ESSENTIAL COMMODITIES ACT

The Essential Commodities Act was enacted by the Central Government in 1955. Main purpose of the act was to control the price and trade for commodities which are essential for public at large. This act gives the power to governments at the center and state to control the price, supply, production, trade etc. when the chance of price rise is present. Various measures are provided to the governments in order to effectively discharge the functioned assigned in the act. Government can impose stock limit, can issue license and distribute the commodity. Government can also impose penalties in case of stock keeping of essential commodity.

Commodities which are covered under the act are provided in the essential commodities act, 1955 and new commodities are added to it through various amendments. Original text of the Act says; “essential commodity” means any of the following Classes of commodities:

(i) cattle fodder, including oilcakes and other concentrates;.
(ii) coal, including coke and other derivatives;
(iii) component parts and accessories of automobiles;
(iv) cotton and woollen textiles;
(v) foodstuffs, including edible oilseeds and oils;
(vi) iron and steel, including manufactured products of iron and steel;
(vii) paper, including newsprint, paperboard -and straw board;
(viii) petroleum and petroleum products;
(ix) raw cotton;
(x) raw jute:,
(xi) any other class of commodity which the Central Government may, by notified order, declare to be an essential commodity for the purposes of this Act, being a commodity with respect to which Parliament has power to make laws by virtue of Entry 33, in List III in the Seventh Schedule;. to the Constitution;

Government has made various amendments in the past either to remove or add some commodities with in the purview of the act. Herbicides, fungicides and exercise books have been removed from the purview of the act while new commodities like steel etc were added in order to keep in tap with the changing time.

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