Page 30 - Banking Finance May 2022

ARTICLE

HAS THE

WHEEL

COMPLETED A

FULL CIRCLE?

T he above question has come to the foray, as the Price and with the new provisions, whether influence and

farm bills passed by the parliament has become
dominance of corporates will be more.
an Act with the assent of President Sri Ram Nath
Let us try to understand, whether the above are merely
Kovind.
apprehensions of farmers, or they are really threats which
If we go by the history, the situations and circumstances are looming on them or these new changes will bring the
which were prevailing then have necessitated the desired growth in their income levels and will be definitely
formulation of certain guidelines or systems with regard to a right and big step towards better future.
providing necessary infrastructure for farmers to sell their
produce by establishing APMC/MANDIS, Assured payment Essential Commodities (Amendment)
of minimum support price and see that certain section of Act, 2020
commodities are put under Essential Commodities list.
If you consider one of the farm bills which is The Essential
Commodities (Amendment) Act, 2020 has certainly diluted
With the passing of farm bills, there has been considerable
the main purpose of the act which was enacted way back
doubt and worry in farming community. Their main concerns
in 1955. The Act which has been an effective tool, where in
are whether the APMC/Mandis will exist, Whether the
the Government could intervene and control the rise of
Government will abolish the concept of Minimum Support
prices of essential commodities which are coming under the
act. The commodities which are covered under the act are
About the author essential drugs, fertilizers, pulses, edible oils and petroleum
and petroleum products.
M Raghavendra Rao
Chief Manager The recent bill has deregulated commodities such as cereals,
Union Bank of India (e-Corporation Bank) pulses, oilseeds, edible oils, onion and potatoes. Whether
Staff Training Centre, Bangalore this will rekindle the habit of hoarding which was prevalent

30 | 2022 | MAY | BANKING FINANCE