Better Price Realisation For Farmers: Essential Commodities Act Amendment, Agri Marketing Reforms And MoreFarmers in a field in Madhya Pradesh. (Rajarshi Mitra/Wikimedia Commons)

Finance Minister Nirmala Sitharaman in her press-briefing on Friday (15 May) announced that the Essential Commodities Act, 1955, will be amended to provide farmers with better price realisation.

As a result, agriculture food stuffs such as cereals, oilseeds, onions, potato, edible oils will be deregulated.

The Finance Minister contended that the Essential Commodities act was enacted in the days of food scarcity, and it needs amendment to attract investment in the farm sector to make it more competitive.

The stock limit for the essential commodities would now only be imposed in cases of national calamities and famines to prevent a price surge.

The government will also bring in a law to implement agriculture marketing reforms to help provide adequate choices to farmers in selling their produce at good prices. The law will also allow free inter-state trade and e-trading of agriculture produce.

Additionally, a legal framework will be created to provide assured returns to farmers while sowing crops which will help in risk-mitigation. This framework will help farmers engage with various stakeholders like processors, aggregators, large retailers and exporters in fair and transparent manner.

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