On June 3, the Narendra Modi government made three historic moves that have the potential to dramatically transform India very quickly. One, amendment to the Essential Commodities Act, 1955, which will free the prices of cereals, pulses, oilseeds, edible oils, onion, and potatoes from stock limits, except in the case of natural calamities like famine. Two, allowing farmers to sell their crop to anyone, anywhere. Under current laws, they can sell only licensed traders in APMC (Agricultural Produce Market Committee) mandis near them. The APMC is controlled by politicians acting as a cartel, who gobble up the bulk of the profits. Three, allowing farmers to do contract farming by engaging with processors, wholesalers, aggregators, large retailers, exporters etc., which will help them get capital and technology.
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