Essential Commodities Act, 1955
About
- The Essential Commodities Act (ECA) was enacted in 1955 to control and regulate trade and prices of commodities declared essential under the Act.
- The Act empowers the central government to notify certain commodities as essential commodities and to regulate or prohibit the production, supply, distribution, and trade of such essential commodities to control rising prices, prevent hoarding and maintain food security.
- Most of the powers under the Act have been delegated by the Central Government to the State Governments.
- The measures that can be taken under the provisions of the Act include licensing, distribution and imposing stock limits. Governments also have the power to fix price limits, and selling the particular commodities above the limit will attract penalties.
- Some of the major commodities that are covered under the act:
- Petroleum and its products
- Food products, including edible oilseeds and oils
- Drugs
- Fertilisers
- Raw jute and jute textiles
- Seeds of cattle fodder.
Why in News?
- Amid the ongoing Iran war that caused the closure of the Strait of Hormuz, leading to disruption in global oil and gas supply, the Government has invoked the Essential Commodities Act 1955 to regulate the production, maintain supply, equitable distribution and availability of natural gas for priority sectors.