Monday, January 9 2006 19:20 Hrs (IST) - World Time -

New Delhi: Industry body PHDCCI has urged the Government to repeal the Essential Commodities Act (ECA) for strengthening India's global competitiveness and facilitate easy movement of commodities in the country.

The chamber said the Act was rendered redundant in the present world when the economy is integrating with the international market and import procedures and policies are being simplified.

"Today, when the food situation is comfortable, restrictions due to ECA, such as licensing of dealers, limits on stock and control on movement are no longer required and only hamper the growth of agricultural sector and promotion of food processing industries in the country," PHDCCI president Sushma Berlia said.

The chamber argues that for the agro processing industry to grow, it is vital that all unnecessary and redundant restrictions are removed.

The amendment made in the APMC Act in some states has not yielded the desired benefits, it said.

The wastage of agri produce worth Rs 50,000 crore per year can be reduced by pruning of such controls, the chamber said in a release.

The integrated food law has proposed repealing nine Acts, including ECA in the context of processed food. The Amendment bill proposes to retain food stuffs as essential commodities.

However, with an Integrated Food Law on the anvil, the chamber pointed out that foodstuffs should be kept out of the purview of the ECA.