Question

The government has powers under the Essential Commodities Act, 1955 (EC Act) to declare a commodity as an essential commodity to ensure its availability to people at fair price. The commodities covered under the Act include:

1. Paper

2. Hank yarn made wholly from cotton

3. Fertilizers

4. Petroleum and petroleum products

5. Cotton and jute seeds

Select the correct answer using the code given below :

1. 1, 2 and 3 only
2. 1, 3 and 4 only
3. 3, 4 and 5 only
4. 1, 2, 3, 4 and 5

Answer 1

Correct Answer - Option 4 : 1, 2, 3, 4 and 5

The correct answer is 1, 2, 3, 4 and 5.

 

• The ECA was enacted in 1955.
• The act provides for the control of production, supply, distribution, trade, and commerce in any farm good deemed “essential” and “in the interest of the general public”.
• The list of items under the Act includes drugs, fertilizers, pulses, and edible oils, and petroleum and petroleum products.

 

• If the Centre finds that a certain commodity is in short supply and its price is spiking, it can notify stock-holding limits on it for a specified period.
• The States act on this notification to specify limits and take steps to ensure that these are adhered to.
• Anybody trading or dealing in a commodity, be it wholesalers, retailers, or even importers are prevented from stockpiling it beyond a certain quantity.

 

•  The Essential Commodities (Amendment) Bill, 2020 is aimed at deregulating commodities such as cereals, pulses, oilseeds, edible oils, onion, and potatoes.