Day 220

Toll 530+

#KisanSangharsh*

Stock Limit on Pulses

Given the rising fuel prices – on which Centre can reduce taxes but does not – the prices of all commodities are rising. Middle class household budgets have shaken up. The poor are unable to afford food.
Two days back, the government imposed stock limits on all pulses except moong: millers – last three months of production or 25 per cent of annual installed capacity; wholesalers – 200 tonnes; retailers – 5 tonnes.

This is a welcome step. Applaud.

But, the new Essential Commodities Act, does not allow for it. The new ECA, in section 2, b, ii says: stock limit can be imposed on price rise of fifty per cent in case of non-perishable agricultural foodstuff.

Have the prices on all pulses breached that limit yet? No. Then how has the government imposed the stock limit in contravention to its own new laws?

The government could do that because in December 2020 the Supreme Court had suspended the implementation of the three central farm laws including the new ECA so the previous ECA 1955 still applies. ECA 1955 allows the government to regulate the production, supply, and distribution of a whole host of commodities that it declares ‘essential’ to make them available to consumers at fair prices.

A black market run in pulses is curtailed for now because the old law still holds good. Of course, the prices of perishable agriculture products are still swinging widely between either high because of rarity or distress sale because farmers are unable to transport given high diesel rates and the government has no mechanism to check it.

Now do you see why the farmers are protesting against new laws? Because if implemented, they will wreck havoc not only upon farmers, but the whole of India. Especially, us – the urban consumers.

*Changed tag because Facebook has curtailed views with this tag.