Essential commodities act

IN NEWS:

• The Union Cabinet has approved an ordinance to amend The Essential Commodities Act, 1955, to deregulate commodities such as cereals, pulses, oilseeds, edible oils, onion and potatoes.
• The amended law provides that the mechanism for the “regulation” of agricultural foodstuffs, namely cereals, pulses, oilseeds, edible oils, potato, and supplies will apply under extraordinary circumstances only, which include extraordinary price rise, war, famine, and natural calamity of a severe nature.

WHAT IS ECA:

• The Essential Commodities Act is an act of Parliament of India which was established to ensure the delivery of certain commodities or products, the supply of which if obstructed owing to hoarding or black-marketing would affect the normal life of the people.
• The ECA was enacted in 1955.

WHAT IS AN ‘ESSENTIAL COMMODITY’:

• There is no specific definition of essential commodities in The EC Act. Section 2(A) of the act states that an “essential commodity” means a commodity specified in the “Schedule” of this Act.
• The Act gives powers to the central government to add or remove a commodity in the “Schedule.” The Centre, if it is satisfied that it is necessary to do so in public interest, can notify an item as essential, in consultation with state governments.
• At present, the “Schedule” contains 9 commodities — drugs; fertilisers, whether inorganic, organic or mixed; foodstuffs, including edible oils; hank yarn made wholly from cotton; petroleum and petroleum products; raw jute and jute textiles; seeds of food-crops and seeds of fruits and vegetables, seeds of cattle fodder, jute seed, cotton seed; face masks; and hand sanitisers.(added during Covid-19 pandemic).
• By declaring a commodity as essential, the government can control the production, supply, and distribution of that commodity, and impose a stock limit.

PRACTICE QUESTION:

Q. Which of the following items can be regulated under the provisions of Essential commodities act:

1. Petroleum products
2. Cattle fodder
3. Hand sanitizers
4. Seeds of crops

Select the correct answer using the code given below:

1. 1 and 2 only
2. 2 and 3 only
3. 3 and 4 only
4. All of the above

Answer to Prelims question