Question : Hoarding of Food Grains


(a) whether the Government has legalized hoarding of foodgrains by section 2 of Essential Commodities (Amendment) Act 2020 which was a criminal offence in the country for 65 years; and

(b) if so, the manner in which it will benefit farmers?

Answer given by the minister

THE MINISTER OF STATE
CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
(SHRI DANVE RAOSAHEB DADARAO)


(a) & (b) : No, Sir. Essential Commodities (Amendment) Act, 2020 provides for an objective and transparent criteria based on price triggers for imposition of stock limits. It also provides for exemption to processors and value chain participants subject to overall ceiling of installed capacity of processing, or the demand for export in case of an exporter. The objective is to encourage investment in post-harvest management activities such as storage and processing as well as logistics and supply chain management; leading in turn to an increase in farmers’ income. The amendment also provides that Government can regulate the foodstuffs under extraordinary circumstances which may include war, famine, extraordinary price rise and natural calamity of grave nature.

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