Farmers can sell produce outside states, says govt

CABINET APPROVES AMENDMENT TO THE SIXDECADE-OLD ESSENTIAL COMMODITIES ACT TO DEREGULATE FOOD ITEMS AND HELP RAISE FARMERS’ INCOME

NEWDELHI: The Union Cabinet on Wednesday approved amendment to the six-and-a-half decade old Essential Commodities Act to deregulate food items, including cereals, pulses and onion, a move that will transform the farm sector and help raise farmers’ income.

The move came two days after the Cabinet approved federally fixed minimum support prices (MSP) for 14 kharif or summersown crops, which will give farmers a 50-83% return on their cultivation cost.

Briefing the decisions taken in the Cabinet meeting headed by Prime Minister Narendra Modi, Union agriculture minister Narendra Singh Tomar said, “This will go a long way in helping India’s farmers while also transforming the agriculture sector.”

The proposed amendment to the Essential Commodities Act will allay fears of private investors of excessive regulatory interference, he said on Wednesday.

The Cabinet also approved ‘The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020’ to ensure barrier free trade in agriculture produce.

This, the minister said, will promote barrier-free inter-state and intra-state trade and commerce outside the physical premises of markets notified under State Agricultural Produce Marketing legislations.

The g o v e r n me n t also approved ‘ T h e F a r me r s (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020’ to empower farmers to engage with processors, aggregators, wholesalers, large retailers and exporters.

This will empower farmers for engaging with processors, aggregators, large retailers, exporters, etc, on a level playing field without any fear of exploitation, Tomar said/

“This is a historic-step in