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February 28, 2001                                       Feedback  

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Govt to review Essential Commodities Act

Government proposes to review the operation of the Essential Commodities Act, 1955, and remove several restrictions imposed on the free inter-state movement of foodgrains and agricultural produce, besides storage and stocking of such commodities.

Presenting the 2001-02 Budget in the Lok Sabha, Finance Minister Yashwant Sinha said instead of providing subsidised foodgrains, financial assistance would be provided to state governments to enable them to procure and distribute foodgrains to below poverty line (BPL) families at subsidised rates.

Details for operationalising these arrangements would be worked out in consultation with the state governments at the earliest.

He said this was being done to give an enlarge role to the state governments in procurement and distribution of foodgrains for PDS in their respective states.

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