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Yes, agri-businesses in post-harvest supply chains need predictable regulation to invest. But that doesn& #39;t mean govt can give up on its power to regulate for protection of weakest. So, what& #39;s wrong with Essential Commodities Amendment Bill 2020, to be introduced today? 1/7
Preamble says it& #39;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& #39;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
