Cottonseed to be in essential commodity list till 21 December 2010

The union cabinet today gave its approval to extend the period of validity of the continuation of cottonseed as an essential commodity beyond the initial period of six months, ie, for a further period of six months from 22 June 2010.

With the extension of the validity period, the government would continue to regulate production, quality, distribution etc of cottonseed as also check the sale and spread of spurious cottonseed.

Aspects like quality, production, distribution, etc of cottonseed will be subject to regulation under Seed Control Order 1983, thereby ensuring quality of seed, particularly private hybrids of cotton/Bt cotton seeds increasing the productivity and production.

"It is necessary to regulate the aspects of production, distribution and quality in the interest of the farming community and to prevent seed producers from resorting to unregulated trade practices," a government release said.

The regulations will continue till such time a new Seed Bill is passed by the Parliament, rules are framed under the new Act and the new Act is brought fully into force, the release said.

The cabinet also approved insertion of a new explanation under sub-section (3C) of section 3 of the Essential Commodities Act 1955 in order to "clarify beyond doubt that the factors of price of levy sugar mentioned in sub-section (3C) do not include the price paid or payable under any order or any enactment of any state government and any price agreed to between the producer and the grower of sugarcane."

"The approved amendment does not, in any way, alter the present status regarding the power of the state governments to fix the state advised price of sugarcane," another release said.