September 15, 2020
Kalyan Banerjee speaks on The Essential Commodities (Amendment) Bill, 2020
FULL TRANSCRIPT
Sir, I oppose this Essential Commodities (Amendment) Bill, 2020. The original Act—The Essential Commodities Act, which was adopted in 1955—was an Act meant to provide, the object being stated in its preamble, in the interest of the general public, control on certain commodities. Though the preamble speaks of certain commodities, commodities other than those which have been enumerated as essential commodities can come within the purview of the Act, under section 2A sub-section 2.
Sir, one of the objects, rather the prime object, of the Act is to regulate production, supply and pricing of the essential committees to ensure their availability at fair prices. The aim of the Act is to curb the hoarding and black marketing, and thus profiteering from, such commodities. The object is to deter a person from dealing in essential commodities and consequently, to impose a deterrent penalty against him.
If we read the amendments which have been sought for, it will be established, as it appears from the speech of the Honourable Member—with great respect to him, I say that the cat is out of the bag—the objects of curbing of hoarding and black marketing, and profiteering from, of such commodities are going to be taken away. This has to be stopped. This is aimed for the purpose of helping big businessmen.
Sir, with respect to section 3 of the Amendment Bill, which seeks to The Essential Commodities (Amendment) Ordinance, I would say that deregulating such agricultural foodstuffs from the list of essential commodities may lead to every chance of hoarding by suppliers, thereby resulting in price rise and ultimately leading to excessive financial burden on the common people. Moreover, as per the Amendment Bill, in extraordinary circumstances, the Central government only may choose to exercise regulation. Such legislative ambiguity makes one question the entire exercise of introducing the particular provision.
If we read the Amendment, the words, may I say, are extremely vague with respect to war—declared or undeclared—or natural calamities. If there are three days of floods in Gujarat, it will be declared a natural calamity, but if there are 15 days of floods in West Bengal, it will not be a natural calamity.
Therefore, unbridled power has been sought to be given by these amendments. The Amendment exempts the value chain participants of agricultural produce from the regulation of stock limits. The stock limits of such persons should not exceed the overall ceiling of installed capacity of processing or the demand for export, in case of an exporter. Such exemptions, Sir, I may say, in terms of removal of stock limits for exporters, traders and value chain participants, may not benefit farmers. Instead it appears to have been done for the benefit of the vested interests of certain giants in this sector.
Sir, it is our common experience. Had it been only for the benefit of farmers I would not have objected to it but now, because of these amendments, the middleman will come and take things as per his wish. Till now, the government was regulating these things. The government is purchasing from the farmers so that they get the right price and at the same time, the consumer also gets a fair price.
Now who will be benefited? The benefits will go in favour of the middlemen. They will hoard goods. Black marketing will be done by them. Let’s take the example of potatoes. Now the rate at which it is being bought from farmers is Rs 18 to 19 per kilo, and is being sold at Rs 25. If the amendments are implemented, the potato consumer would have to pay at least Rs 50. There would be no control. Sir, I tell you, now, during this COVID-19 pandemic, we are facing extremely bad days. All of us are facing a challenge, but middlemen are benefiting from COVID-19.
You are taking away the powers of State governments through this Amendment Bill, therefore you are really hitting the cooperative federalism of the country.
As an Honourable Member said, investors will come to farmers. Who are the investors? Yes, this is the reason this has been done. Who are the investors? These big businessmen. Sir, the Railways will go to big investors, telecommunications will go to big investors, agricultural goods will go to big investors—all will become private. I don’t know, when such a privatisation is going to take place, why are so many Ministers required? I don’t understand that. If everything is privatised, why are so many Ministers required? Let there be privatisation of them as well.
In the midst of the COVID-19 crisis, in April 2020, mustard oil was Rs 90 a kilo. In May it was Rs 120 and in June it was Rs 130. State government had to interfere, the police had to arrest people, and now it has come down. Soya oil in April was Rs 70 a kilo, in May it was Rs 90 and in June it was Rs 102. There had to be intervention by State governments in this case too. Chana dal was Rs 62 a kilo in April, Rs 82 in May and Rs 120 in June. Who interfered? The State governments.
This Bill will be passed by the Central government but who will work on the ground for its implementation? State government officials. Then we won’t see any Central government officials.
Nobody will be there to stop black marketing. No one from the Central government will be there to stop hoarding. No one will be there for the benefit of the common people. If this Amendment Bill is brought into effect, common people will suffer. Farmers will suffer. Now farmers are getting the chance through the State governments to enter the markets. Warehouses are there for them. But if the big industrialists come into agriculture, they will offer farmers lower prices for the produce.
Thank you, Sir.
