Ordinance approved to amend Essential Commodities Act, 1955

Ordinance approved to amend Essential Commodities Act, 1955

Part of: GS-Prelims and GS-II – Policies and interventions

In News:

• The Union Cabinet has recently approved an ordinance to amend The Essential Commodities Act, 1955, to deregulate commodities such as cereals, pulses, oilseeds, edible oils, onion and potatoes. 
• The ordinance has introduced a new subsection (1A) in Section 3 of the Act.

Important value additions 

• 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.
• By declaring a commodity as essential, the government can control the production, supply, and distribution of that commodity, and impose a stock limit.