The entry 42 empowers the Centre to frame laws for inter-state trade, while the entry 26 of the State list empowers states to frame rules and laws to regulate trade within their boundaries
The Centre will use its powers under the Constitution’s seventh schedule to free up inter-state and intra-state trade in agricultural commodities as it allows agricultural price marketing committees (APMCs) to continue.
The government is looking at tweaking provisions of the Indian Contracts Act of 1872 to bring agreements between farmers and companies under its ambit, aiming to prevent exploitation of farm people.
The seventh schedule allocates subjects to the Centre and the states. Some subjects are in the Concurrent list where both the Centre and the states can frame laws, but only the law framed by the union government prevails
First Published: May 16 2020 | 9:33 PM IST