The union government has approved the removal of the requirement of licensing of dealers and restriction on storage and movement of wheat, rice, paddy, sugar, edible oil etc. placed under the Essential Commodities Act.

The decisions of the government involve the objective of freeing up markets. It may also appear that this could also be the beginning of a unified Pan-India market for agriculture produce.

Facilitating free trade and movement of food grains would enable famous to get the best prices for their produce, achieve price stability and ensure availability of food grains in deficit areas.

It is also in the interest of consumers, the lower income group. Such freedom’ for private trade in food grain is a prerequisite for the governments proposed move to limit official procurement to the buffer stocking norm.

ADVERTISEMENTS:

Removal of quantitative ceiling may not translate into large scale expert of food grain but a window of opportunity is open to the private players to explore overseas markets.