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Type: Bills/Act/Laws

  • Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

    Draft Drone Rules, 2021

    Bills/Act/Laws | Governance | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Draft Drone Rules, 2021

    The Ministry of Civil Aviation has released Draft Drone Rules, 2021, for public consultation. The rules will replace the Unmanned Aircraft System Rules, 2021.

    Highlights of the Draft Drone Rules 2021

    Number of forms: The rules propose to reduce the number of forms required for manufacturing, importing, testing, certifying and operating drones in India from 25 to six.

    Abolishing authorization number: The draft seeks to abolish the unique authorisation number, unique prototype identification number, and certificate of conformance that were previously required for approval of drone flights.

    Digital Sky Platform: Digital Sky, a platform launched by the government in December 2018, will become a single-window system for all approvals under the newly proposed rules.

    Airspace map: An airspace map segregating the entire landmass of India into Green, Yellow and Red zones will be published on the platform within 30 days of notification of the new rules, the government said. The map will also be machine-readable through an Application Programming Interface (API) for easier plotting of drone flight paths.

    Airport Perimeter: The draft rules reduced the airport perimeter from 45 km to 12 km. The rules state that no flight permissions would be required to fly up to 400 feet in green zones and up to 200 feet in the area between 8 and 12 km from the airport perimeter.

    Drone corridors: The government will also publish a policy framework for Unmanned Aircraft System Traffic Management (UTM) within 60 days of notifying the rules. This will also include frameworks for developing “drone corridors” for the safe transfer of goods by drones.

    Drone Promotion Council: The Rules also propose the setting up of a Drone Promotion Council, with the aim of facilitating a business-friendly regulatory regime for drones in India, the establishment of incubators for developing drone technologies and organizing competitive events to showcase drones and counter-drone solutions.

    Others: To implement safety features such as “no permission, no take-off”, real-time tracking and geofencing, drone manufacturers, importers and operators will get six months’ time to comply from the date of notification of the rules.

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  • Human Rights Issues

    Draft Anti-trafficking Bill 2021

    Bills/Act/Laws | Polity | Mains Paper 1: Population & Associated Issues

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Draft Anti-trafficking Bill 2021

    The Ministry of Women and Child Welfare has invited suggestions and comments for its Trafficking in Persons (Prevention, Care and Rehabilitation) Bill, 2021 which it has released.

    A re-attempted legislation

    • A previous draft had been introduced in 2018 and had been passed by Lok Sabha despite stiff opposition from both parliamentarians as well as experts.
    • It was later never introduced in Rajya Sabha.
    • Experts say that nearly all the concerns raised in 2018 have been addressed in this new draft Bill.

    Draft Anti-trafficking Bill 2021

    The Bill has increased the scope of the nature of offences of trafficking as well as the kind of victims of these offences, with stringent penalties including life imprisonment, and even the death penalty in cases of an extreme nature.

    Types of offenders

    • The scope of the Bill vis offenders will also include defence personnel and government servants, doctors and paramedical staff or anyone in a position of authority.

    Penalty

    • In most cases of child trafficking, especially in the case of the trafficking of more than one child, the penalty is now life imprisonment.
    • While the penalty will hold a minimum of seven years which can go up to an imprisonment of 10 years and a fine of Rs 5 lakh.
    • In certain cases, even the death penalty can be sought.

    Definition of exploitation

    • Exploitation has been defined to include, at a minimum, the exploitation of the prostitution of others or other forms of sexual exploitation including pornography.
    • It also includes any act of physical exploitation, forced labour or services, slavery or practices similar to slavery, servitude or forced removal of organs, illegal clinical drug trials or illegal bio-medical research.

    Victims covered

    • The Bill also extends beyond the protection of women and children as victims to now include transgenders as well as any person who may be a victim of trafficking.
    • It also does away with the provision that a victim necessarily needs to be transported from one place to another to be defined as a victim.

    Investigation Agency

    • The National Investigation Agency (NIA) shall act as the national investigating and coordinating agency responsible for the prevention and combating of trafficking in persons.

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  • Censorship Issues – Censor Board, Banning films, etc

    What govt proposes to change in film certification

    Bills/Act/Laws | Governance | Mains Paper 2: Indian Constitution – historical underpinnings, evolution, features, amendments, significant provisions and basic structure

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Not much

    Mains level: Censorship of movies

    The Centre has recently released the draft Cinematograph (Amendment) Bill 2021 to the general public for comments.

    Cinematograph (Amendment) Bill 2021

    • The new draft proposes to amend the Cinematograph Act of 1952 with some provisions.
    • It seeks to give the Centre “revisionary powers” and enable it to “re-examine” films already cleared by the Central Board of Film Certification (CBFC).

    A look at what the draft proposes to change:

    (a) Revision of certification

    • This will equip the Centre with revisionary powers on account of violation of Section 5B(1) (principles for guidance in certifying films).
    • The current Act, in Section 6, already equips the Centre to call for records of proceedings in relation to a film’s certification.
    • The Ministry of I&B explained that the proposed revision “means that the Central Government, if the situation so warranted, has the power to reverse the decision of the Board”.
    • Currently, because of a judgment by the Karnataka High Court, which was upheld by the Supreme Court in November 2020, the Centre cannot use its revisionary powers on films that have already been granted a certificate by the CBFC.

    Issues

    • The draft comes shortly after the abolition of the Film Certificate Appellate Tribunal, which was the last point of appeal for filmmakers against the certificate granted to their film.
    • The draft has been criticized by filmmakers and term it a “super censor”.

    (b) Age-based certification

    • The draft proposes to introduce age-based categorisation and classification. Currently, films are certified into three categories — ‘U’ for unrestricted public exhibition; ‘U/A’ that requires parental guidance for children under 12; and ‘A’ for adult films.
    • The new draft proposes to divide the categories into further age-based groups: U/A 7+, U/A 13+ and U/A 16+.
    • This proposed age classification for films echoes the new IT rules for streaming platforms.

    (c) Provision against piracy

    • The Ministry noted that at present, there are no enabling provisions to check film piracy in the Cinematograph Act, 1952.
    • The draft proposes to add Section 6AA that will prohibit unauthorized recording.
    • The proposed section states, no person shall, without the written authorization of the author, be permitted to make an audio-visual recording device.
    • Violation shall be punishable with imprisonment for a term of not less than three months and may extend to three years and with a fine which shall not be less than Rs 3 lakh which may extend to 5 per cent of the audited gross production cost or with both.

    (d) Eternal certificate

    • The draft proposes to certify films for perpetuity.
    • Currently, a certificate issued by the CBFC is valid only for 10 years.

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  • Important Judgements In News

    Enforcing COVID-19 rules is State’s responsibility: ECI

    Bills/Act/Laws | Polity | Mains Paper 2: Constitutional Bodies

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Disaster Management Act

    Mains level: Paper 2- Powers of Election Commission

    What prompted ECI to give clarification

    • In its oral observations, the Madras High Court blamed the ECI for the second wave of COVID-19 in Tamil Nadu and Puducherry.
    • The Madras High Court said the ECI was unable to ensure political parties followed the rules while campaigning for the Assembly elections.

    What the ECI said

    • The ECI said that the enforcement under the 2005 Act has to be ensured by the SDMA [State Disaster Management Authority] concerned and notified authorities under the Act.
    • The Commission has always emphasised that the State authorities shall ensure COVID-19 compliance in the matter of public gatherings, etc. for campaign purposes.
    • At no occasion, the Commission takes over the task of SDMA for enforcement of COVID-19 instructions.

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  • J&K – The issues around the state

    Task force in J&K under Article 311 to act against govt staff without probe

    Bills/Act/Laws | Polity | Mains Paper 2: Executive & Judiciary

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Article 311

    Mains level: Paper 2- Article 311 (2) C

    Why the task force

    • The Jammu and Kashmir administration has set up a Special Task Force (STF) to initiate action against government employees suspected of activities against security of the State.
    • The order has been passed under provisions of Article 311(2) (C) of the Constitution.
    • The STF would be headed by the J&K Additional Director General of Police, CID, and include Inspectors General of Police, Kashmir and Jammu, a representative of Law, Justice and Parliamentary Affairs, and a representative of the department the employee belongs to.

    What are the provisions under Article 311 (2) C

    • Article 311(2) says no government employee shall be dismissed or removed or “reduced in rank” except after an inquiry.
    • However, its sub-section C says this clause will not apply “where the President or the Governor, as the case may be, is satisfied that in the interest of the security of the State, it is not expedient to hold such inquiry”.

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  • Coal and Mining Sector

    Mines and Minerals (Development and Regulation) Amendment Bill, 2021

    Bills/Act/Laws | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: MMDR Amendment Bill, 2021

    Mains level: Mining sector reforms

    The coal and Mines Minister has introduced the Mines and Minerals (Development and Regulation) Amendment Bill, 2021 in Lok Sabha to streamline the renewal of the auction process for minerals and coal mining rights.

    MMDR Amendment Bill, 2021

    The Bill seeks to amend the Mines and Minerals (Development and Regulation) Act, 1957.  The Act regulates the mining sector in India.

    (1) Removal of restriction on end-use of minerals

    • The Act empowers the central government to reserve any mine (other than coal, lignite, and atomic minerals) to be leased through an auction for a particular end-use (such as iron ore mine for a steel plant).
    • Such mines are known as captive mines.  The Bill provides that no mine will be reserved for particular end-use.

    (2) Sale of minerals by captive mines  

    • The Bill provides that captive mines (other than atomic minerals) may sell up to 50% of their annual mineral production in the open market after meeting their own needs.
    • The central government may increase this threshold through a notification.  The lessee will have to pay additional charges for mineral sold in the open market.

    (3) Auction by the central government in certain cases

    • Under the Act, states conduct the auction of mineral concessions (other than coal, lignite, and atomic minerals).
    • Mineral concessions include mining lease and prospecting license-cum-mining lease.
    • The Bill empowers the central government to specify a time period for completion of the auction process in consultation with the state government.
    • If the state government is unable to complete the auction process within this period, the auctions may be conducted by the central government.

    (4) Transfer of statutory clearances

    • Upon expiry of a mining lease (other than coal, lignite, and atomic minerals), mines are leased to new persons through auction.
    • The statutory clearances issued to the previous lessee are transferred to the new lessee for a period of two years.
    • The new lessee is required to obtain fresh clearances within these two years.
    • The Bill replaces this provision and instead provides that transferred statutory clearances will be valid throughout the lease period of the new lessee.

    (5) Allocation of mines with expired leases

    • The Bill adds that mines (other than coal, lignite, and atomic minerals), whose lease has expired, may be allocated to a government company in certain cases.
    • This will be applicable if the auction process for granting a new lease has not been completed, or the new lease has been terminated within a year of the auction.
    • The state government may grant a lease for such a mine to a government company for a period of up to 10 years or until the selection of a new lessee, whichever is earlier.

    (6) Rights of certain existing concession holders

    • In 2015, the Act was amended to provide that mines will be leased through an auction process.
    • Existing concession holders and applicants have been provided with certain rights.
    • The Bill provides that the right to obtain a prospecting license or a mining lease will lapse on the date of commencement of the 2021 Amendment Act.
    • Such persons will be reimbursed for any expenditure incurred towards reconnaissance or prospecting operations.

    (7) Extension of leases to government companies

    • The Act provides that the period of mining leases granted to government companies will be prescribed by the central government.
    • The Bill provides that the period of mining leases of government companies (other than leases granted through auction) may be extended on payment of additional amount prescribed in the Bill.

    (8) Conditions for lapse of mining lease

    • The Act provides that a mining lease will lapse if the lessee: (i) is not able to start mining operations within two years of the grant of a lease, or (ii) has discontinued mining operations for a period of two years.
    • However, the lease will not lapse at the end of this period if a concession is provided by the state government upon an application by the lessee.
    • The Bill adds that the threshold period for lapse of the lease may be extended by the state government only once and up to one year.

    (9) Non-exclusive reconnaissance permit

    • The Act provides for a non-exclusive reconnaissance permit (for minerals other than coal, lignite, and atomic minerals).
    • Reconnaissance means preliminary prospecting of a mineral through certain surveys.
    • The Bill removes the provision for this permit.

    Why such a move?

    • The move would likely lead to greater transparency in the auction process.
    • There is a perception that states governments may in some cases prefer some bidders, and try to delay or cancel mining rights if their preferred bidders do not win mining rights.

    Could the amendment face legal challenges?

    • The amendment, if passed, was likely to face legal challenges particularly from state governments.
    • If an act is passed in which any state government’s discretionary power is taken away or their rights or benefits are infringed, it is likely to be challenged in the Supreme Court.

    (With inputs from PRS)

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  • Port Infrastructure and Shipping Industry – Sagarmala Project, SDC, CEZ, etc.

    Major Port Authorities Bill, 2020

    Bills/Act/Laws | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Various ports in India

    Mains level: Corporatization of ports

    Rajya Sabha has passed the Major Ports Authorities Bill 2020 with 88 votes for and 44 against it. The Bill was passed in Lok Sabha in September last year.

    Major Ports Authorities Bill 2020: Major: Highlights

    • The Bill provides for the regulation of major ports and will replace the Major Port Trusts Act of 1963, and a board of Major Port Authority for each major port will replace the current port trusts.
    • The Bill will apply to the major ports of Chennai, Cochin, Jawaharlal Nehru Port, Kandla, Kolkata, Mumbai, New Mangalore, Mormugao, Paradip, VO Chidambaranar and Vishakhapatnam.

    Boards to replace trusts

    • Under the 1963 Act, all major ports are managed by the respective Board of Port Trusts that have members appointed by the central government.
    • The Bill provides for the creation of a Board of Major Port Authority for each major port.
    • These Boards will replace the existing Port Trusts.
    • It will have a member each from the state governments, the Railways Ministry, the defence ministry, and the customs department.
    • The Bill allows the Board to use its property, assets and funds as deemed fit for the development of the major port.

    Board has financial powers

    • Under the 1963 Act, the Board had to seek the prior sanction of the Centre to raise any loan.
    • Under the new Bill, to meet its capital and working expenditure requirements, the Board may raise loans from any scheduled bank or financial institution within India, or any financial institution outside India.
    • However, for loans above 50% of its capital reserves, the Board will require prior sanction of the central government.

    The board will fix rates

    • At present, the Tariff Authority for Major Ports fixes the scale of rates for assets and services available at ports.
    • Under the bill, which now awaits President’s accent to become a law, the Board or committees appointed by the Board will determine these rates for services that will be performed at ports.
    • The services would include the access to and usage of the port assets, and different classes of goods and vessels, among others.

    Punishments

    • Under the 1963 Act, there are various penalties for contravening provisions of the Act.
    • The penalty for setting up any structures on the harbours without permission, for example, may extend up to Rs 10,000, and the penalty for evading rates may extend up to 10 times the rates.
    • Under the new Bill, any person contravening any provision of the Bill or any rules or regulations will be punished with a fine of up to Rs one lakh.

    Opposition criticism

    • Opposition parties had opposed the legislation terming it the move to privatize ports.
    • They said that this Bill is nothing but a retraction of the Singapore model.
    • When there were hue and cry that there cannot be the privatization of ports, it adopted a policy of so-called corporatization. Thereafter, it ultimately privatized its ports.
    • So, corporatization is the first step. The next in the offing is privatization said the opposition.

    What did the govt. say?

    • The government has brought in a provision that will allow ports to take their own decisions. To change tariffs, the ports have to now approach the ministry.
    • The port sector in the last six years has doubled the profit. Profit has increased, liabilities have come down. For modernization, 300 projects are ongoing.
    • This Bill is not to privatize any port, but it is to ensure that our ports can properly compete with private ports.

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  • Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

    Centre’s new labour codes to allow 4-day work per week

    Bills/Act/Laws | Governance | Mains Paper 2: Government Scheme/Policies

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Various labour laws

    Mains level: 4-day work and its benefits

    The Centre under its new labour codes would soon provide an option for organisations to allow their employees to work for four days in a week.

    What is the news?

    • The proposed new labour codes could provide companies with the flexibility of four working days in a week.

    What does this mean?

    • The working hour’s limit of 48 hours for a week will remain unchanged.
    • This implies that there will be long working hours if the working days are reduced.
    • Having a reduced number of working days does not mean a cut in paid holidays.
    • Therefore, when the new rules will provide the flexibility of four working days, it would imply three paid holidays.

    Roll out of the proposal

    • The Ministry of Labour and Employment is likely to complete the process to finalise the rules for four labour codes soon.
    • The provision of flexibility to have reduced working days of four days in the labour code rules will mean that companies will not require prior government nod to enact it.

    Why such a move?

    • The well-being of employees improves with less workload. Working parents can spare more time for the childcare.
    • It helps the economy and the environment since power and fuel consumption is reduced.

    Ahead of Labour reforms

    • The ministry is in the final phase of amalgamating 44 central labour laws into four broad codes.
    • The four Codes include- Code on Wages, Industrial Relations, Occupational Safety, Health and Working Conditions (OSH) and Social Security Codes.

     

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  • Back in news: DNA Bill, 2019

    Bills/Act/Laws | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Details of the bill

    Mains level: DNA profiling and privacy concerns

    Noted Parliamentarians have filed a dissent to the Parliamentary Standing Committee’s report on DNA Technology (Use and Application) Regulation Bill 2019.

    Q. A statutory protection for private data is necessary for the enforcement of DNA Technology (Use and Application) Regulation Bill, 2019. Critically analyse.

    What is the news?

    • The finalized Draft Report recognizes the potential dangers of indexing the DNA profiles of non- convicts, especially convicts and suspects, it has still retained these objectionable provisions.
    • These MPs have claimed that the Bill does not take into account public concerns over privacy violations and targets Dalit, Muslims and Adivasis by way of DNA sample collection.
    • The fear is that the law could be used for caste or community-based profiling.

    Other issues

    • The bill would not be a panacea to the problems of an inadequate criminal justice system, the MPs stressed.
    • He flagged the example of the United Kingdom, where the number of crimes solved by DNA evidence had been reducing even though the number of profiles in the system was going up.

    DNA Technology (Use and Application) Regulation Bill, 2019

    • The primary intended purpose for the enactment of the bill is for expanding the application of DNA-based forensic technologies to support and strengthen the justice delivery system of the country.
    • The utility of DNA based technologies for solving crimes, and identifying missing persons, is well recognized across the world.
    • Other aims include Speedier justice delivery and an Increased conviction rate.
    • Bill’s provisions will enable the cross-matching between persons reported missing and unidentified dead bodies found in various parts of the country, and also for establishing the identity of victims in mass disasters.
    • By providing for the mandatory accreditation and regulation of DNA laboratories, the Bill seeks to ensure the data remain protected from misuse or abuse in terms of the privacy rights of our citizens.
    • The Bill has two major components: the DNA databanks and the DNA Regulatory Board.

    Criticisms of the Bill

    Matter of Consent

    • Written consent is required from everyone for their DNA samples to be collected, processed, and included in the database except for those who have committed crimes with a punishment of 7+ years or death.
    • However, similarly, specific instruction is missing for the collection of DNA samples for civil matters.
    • Such matters include parentage disputes, emigration or immigration, and transplantation of human organs.
    • The Bill also doesn’t state that the consent has to be voluntary.

    Civil Disputes

    • It is not clear if DNA samples collected to resolve civil disputes will also be stored in the databank (regional or national), although there is no index specific for the same.
    • If they will be stored, then the problem cascades because the Bill also does not provide for information, consent, and appeals.
    • If a person’s DNA data has entered the databank, there is no process specified by which they can have it removed.
    • All of these issues together could violate the right to privacy.

    The authenticity of DNA Labs

    • There’s also the question of whether the DNA labs accredited by the Regulatory Board are allowed to store copies of the samples they analyze.
    • And if so, how the owners of those samples can ensure the data is safe or needs to be removed from their own indices.
    • It’s unclear if the Regulatory Board will oversee other tests performed at the accredited labs.
    • This could become necessary because, unlike one’s biometric data or PAN number, the human genome contains lots of information about every individual.

    Overreaching access to identity

    • So a test undertaken to ascertain a person’s identity by analyzing her DNA will in the process also reveal a lot of other things about that person, including information about their ancestry i.e. information that the individual has a right to keep private.
    • The Bill does not specify which parts of an individual’s DNA can be analyzed to ascertain their identity.
    • The more parts are subjected to analysis, the more conclusively a person’s identity can be established.
    • But this can’t be used as a license to parse more than is necessary because then the DNA lab is also likely to reveal more information than it has the right to seek.

    The way forward: Data protection

    • The bill can become oppressive without a robust data protection law.
    • Statutory protection for private data is critical because it provides a mechanism for enforcement of rights, grievance redressal, and independent oversight.
    • When the data being collected is as sensitive as DNA, it requires additional protection.

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  • Food Procurement and Distribution – PDS & NFSA, Shanta Kumar Committee, FCI restructuring, Buffer stock, etc.

    Redefining essential items: why it was needed, and who it will impact

    Bills/Act/Laws | Agriculture | Mains Paper 3: PDS, Buffer Stock & Food Security

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Essential Commodities

    Mains level: Essential Commodities (Amendment) Bill, 2020

    Recently, the Rajya Sabha passed the Essential Commodities (Amendment) Bill, 2020 which is aimed at deregulating commodities such as cereals, pulses, oilseeds, edible oils, onion and potatoes.

    Try this question:

    What are the salient features of Essential Commodities (Amendment) Bill, 2020?

    Essential Commodities (Amendment) Bill, 2020

    • It amends the Essential Commodities Act, 1955, by introducing a new Subsection 1(A) in Section 3.
    • After the amendment, the supply of certain foodstuffs — including cereals, pulses, oilseeds, edible oils, potato — can be regulated only under extraordinary circumstances, which include an extraordinary price rise, war, famine, and natural calamity of a severe nature.
    • In effect, the amendment takes these items out from the purview of Section 3(1), which gives powers to the central government to “control production, supply, distribution, etc, of essential commodities”.
    • Earlier, these commodities were not mentioned under Section 3(1) and reasons for invoking the section were not specified.

    How is an ‘essential commodity’ defined?

    • There is no specific definition of essential commodities in the Essential Commodities Act, 1955. Section 2(A) states that an “essential commodity” means a commodity specified in the Schedule of the Act.
    • The Act gives powers to the central government to add or remove a commodity in the Schedule.
    • The Centre, if it is satisfied that it is necessary to do so in the public interest, can notify an item as essential, in consultation with state governments.

    Which are those commodities?

    • According to the Ministry of Consumer Affairs, Food and Public Distribution, which implements the Act, the Schedule at present contain seven commodities.
    • They are drugs; fertilizers, whether inorganic, organic or mixed; foodstuffs including edible oils; hank yarn made wholly from cotton; petroleum and petroleum products; raw jute and jute textiles; seeds of food-crops and seeds of fruits and vegetables, seeds of cattle fodder, jute seed, cottonseed.
    • By declaring a commodity as essential, the government can control the production, supply, and distribution of that commodity, and impose a stock limit.

    Under what circumstances can the government impose stock limits?

    • While the 1955 Act did not provide a clear framework to impose stock limits, the amended Act provides for a price trigger.
    • It says that agricultural foodstuffs can only be regulated under extraordinary circumstances such as war, famine, extraordinary price rise, and natural calamity.
    • However, any action on imposing stock limits will be based on the price trigger.
    • Thus, in case of horticultural produce, a 100% increase in the retail price of a commodity over the immediately preceding 12 months or over the average retail price of the last five years, whichever is lower, will be the trigger for invoking the stock limit.
    • For non-perishable agricultural foodstuffs, the price trigger will be a 50% increase in the retail price of the commodity over the immediately preceding 12 months or over the average retail price of the last five years, whichever is lower.

    Why was the need for this felt?

    • The 1955 Act was legislated at a time when the country was facing a scarcity of foodstuffs due to persistently low levels of foodgrains production.
    • The country was dependent on imports and assistance (such as wheat import from the US under PL-480) to feed the population.
    • To prevent hoarding and black marketing of foodstuffs, the Essential Commodities Act was enacted in 1955. But now the situation has changed.
    • The production of wheat has increased 10 times while the production of rice has increased more than four times since five decades.
    • The production of pulses has increased 2.5 times, from 10 million tonnes to 25 million tonnes. In fact, India has now become an exporter of several agricultural products.

    What will be the impact of the amendments?

    • The key changes seek to free agricultural markets from the limitations imposed by permits and mandis that were originally designed for an era of scarcity.
    • The move is expected to attract private investment in the value chain of commodities removed from the list of essentials, such as cereals, pulses, oilseeds, edible oils, onions and potatoes.
    • While the purpose of the Act was originally to check illegal trade practices such as hoarding, it has now become a hurdle for investment in the agriculture sector in general, and in post-harvesting activities in particular.
    • The private sector had so far hesitated about investing in cold chains and storage facilities for perishable items as most of these commodities were under the ambit of the EC Act.
    • The amendment seeks to address such concerns.

    Why is it being opposed?

    • This was one of the three ordinances/Bills that have seen protests from farmers in parts of the country.
    • The Opposition says the amendment will hurt farmers and consumers, and will only benefit hoarders.
    • They say the price triggers envisioned in the Bill are unrealistic — so high that they will hardly ever be invoked.

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