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.
