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Congress party vice-president Rahul Gandhi probably over-simplified some things in his various announcements on Friday for checking price rise in essential commodities.
For instance, he advocated the Essential Services Maintenance Act (Esma) on commodities of daily use. However, only last month, the Union Cabinet exempted genuine exporters of edible oilseeds, edible oil and rice from stock holding limits.
Onion, the commodity which might have played a role in the Congress rout in the recent Assembly elections, was removed from the list of essential commodities in 2004.
The conviction rate under Esma is also low. Data from the department of consumer affairs show in 2013 till October, 93,532 raids were conducted across the country under the law; 966 were convicted.
On Gandhi's direction to detain chronic offenders under the Prevention of Blackmarketing and Maintenance of Supplies of Essential Commodities Act, 1980, officials said the department of consumer affairs had started working on some amendments to include onion in the list.
The Act empowers the central and state governments to detain persons whose activities are found prejudicial to the maintenance of supplies of commodities essential to the community.
Detentions are made by the states in selective cases to prevent hoarding and black-marketing in these commodities. They have to report to the central government within seven days of the detention.
On keeping out fruits and vegetables from the purview of mandis, officials said much work needs to be done. However, it is not such a difficult step, as fruits and vegetables contribute only seven per cent of the total mandi cess in states.
Studies show fruits and vegetables pass through six to seven middlemen before it actually reaches the consumer from farmers. This results in 15-25 per cent damage and pushes up the cost by at least 60-70 per cent.
Ashok Gulati, chairman of the Commission for Agricultural Costs and Prices, said delisting fruits and vegetables at mandis in the 12 states ruled by the Congress would break the monopoly of wholesale traders and allow new players, including farmers, to sell their produce directly there,helping to reduce prices.
"This sends a message that they mean business and are back into reforms," Gulati remarked.
He said the long-gain would accrue only when modern retailers and processors set up back-end infrastructure and supply chain facilities.
Farm expert Vijay Sardana agreed. "It is a good development. If this is implemented, it will break the monopoly of state traders and bring competition and ensure free trade."
