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Yes, agri-businesses in post-harvest supply chains need predictable regulation to invest. But that doesn't mean govt can give up on its power to regulate for protection of weakest. So, what's wrong with Essential Commodities Amendment Bill 2020, to be introduced today? 1/7
Preamble says it's for enhancing income of farmers but EC Act was never about Farmers or their incomes. There was no restriction under ECA on Farmers or FPOs from stocking produce/selling it. It's established that during retail price rise, benefit is not passed on to farmers.2/7
Now, restrictions are being removed for all foodstuffs to give Companies freedom to purchase & store any quantities, hence indulge in hoarding. This is “Food Hoarding (Freedom for Corporates) Bill”. Cos like Adani-Wilmar & Reliance will now stock any amount of food stuffs. 3/7
EC Amendment Bill 2020 removes supply of all foodstuffs from regulation except in “extraordinary circumstances”. Price limits set for such situations are vague & high and are basically irrelevant. Even here, Adani et al would be exempted from stock limits. 4/7
There were several regulatory tools earlier in ECA – licensing, price control, compulsory licensing, stocking, information collection and produce for inspection records, entry/search/examination of premises and seizure etc. All of this is being thrown away now. 5/7
Even within very limited purview of regulatory authority kept, non-applicability of stock limit is to processors and value chain participants within their installed capacity of processing, or demand for export. Unclear how fake export demand will be scrutinized & confirmed. 6/7
The invisibilising of stocks in the country of different food stuffs has great adverse implications for policy action, in addition to fact that different regulatory regimes applicable b/w registered warehouses & private players now. 7/7
