SHILLONG: With an aim to incentivise investment in the supply chain and enhance the growth prospects of farmers, the government has amended the Essential Commodities Act (ECA), 1955, a statement said on Thursday.
In the statement, the Secretary to the Government of India, Department of Consumer Affairs, informed that the commodities such as cereals, pulses, potato, onions, edible oil seeds and edible oils, would only be regulated under extra ordinary circumstances which may include war, famine, extra ordinary price rise and natural calamity of grave nature.
Imposition of stock limit on these items will be allowed on price rise trigger.
For regulating the stock limit of any agricultural produce an order can be issued under this Act in cases of 100 per cent increase in retail price of horticultural produce or 50 per cent increase in the retail price of non-perishable agricultural food items over the price prevailing immediately preceding 12 months or retail price of last 5 years, whichever is lower, the statement said.
However, no order for these items shall apply to the public distribution system or targeted public distribution system.
Moreover, according to the amendment, value chain participants — persons involved in processing, packaging, storage, transport et al, of the agricultural items —, with due consideration to the installed capacity, will not be subjected to stock limit which may be imposed due to unprecedented price rise, the statement added.
Similarly, the stock limit would not apply in case of an exporter, subject to the demand for export.