Optimize IAS
  • Home
  • About Us
  • Free Initiatives
    • Daily Practice Sheets
    • Daily Prelims Notes
    • Prelims Power Play
    • Mains Factly
    • Sunday Essay Sadhna
    • Mains Master Notes
  • Courses
    • Prelims 2023
      • Laqshya 2023
      • Laqshya 2023 OPTIMA
    • Integrated Guidance 2023
      • ARJUNA Prime 2023
      • ARJUNA 2023
    • Mains Guidance 2023
      • DPS Prime (Current)
      • Mains Mentorship Program (Static)
    • CSE Interview Mentorship
    • ESSAY MASTER CLASS 2023
    • ETHICS MASTER CLASS 2023
  • Downloads
    • Daily Prelims Notes Compilation
    • Daily Practice Sheet Compilation
    • PPP Compilation
    • PSIR Notes
    • General Studies Notes
    • UPSC Mains Previous Year Papers
  • Portal Login
  • Home
  • About Us
  • Free Initiatives
    • Daily Practice Sheets
    • Daily Prelims Notes
    • Prelims Power Play
    • Mains Factly
    • Sunday Essay Sadhna
    • Mains Master Notes
  • Courses
    • Prelims 2023
      • Laqshya 2023
      • Laqshya 2023 OPTIMA
    • Integrated Guidance 2023
      • ARJUNA Prime 2023
      • ARJUNA 2023
    • Mains Guidance 2023
      • DPS Prime (Current)
      • Mains Mentorship Program (Static)
    • CSE Interview Mentorship
    • ESSAY MASTER CLASS 2023
    • ETHICS MASTER CLASS 2023
  • Downloads
    • Daily Prelims Notes Compilation
    • Daily Practice Sheet Compilation
    • PPP Compilation
    • PSIR Notes
    • General Studies Notes
    • UPSC Mains Previous Year Papers
  • Portal Login

ESEENTIAL COMMODITIES ACT

  • October 24, 2020
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
No Comments
Print Friendly, PDF & Email

Subject: Important Legislations

Context: Govt imposes stock limits on onion to check prices under Essential commodities act.

Concept:

Essential Commodities Act

  • The ECA is an act which was established to ensure the delivery of certain commodities or products, the supply of which if obstructed owing to hoarding or black-marketing would affect the normal life of the people.
  • The ECA was enacted in 1955. This includes foodstuff, drugs, fuel (petroleum products) etc.
  • It has since been used by the Government to regulate the production, supply and distribution of a whole host of commodities it declares ‘essential’ in order to make them available to consumers at fair prices.
  • Additionally, the government can also fix the maximum retail price (MRP) of any packaged product that it declares an “essential commodity”.
  • The list of items under the Act includes drugs, fertilizers,Food items, pulses and edible oils, and petroleum and petroleum products.
  • The Centre can include new commodities as and when the need arises, and takes them off the list once the situation improves.

How ECA works?

  • 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 the commodity, be it wholesalers, retailers or even importers are prevented from stockpiling it beyond a certain quantity.
  • A State can, however, choose not to impose any restrictions. But once it does, traders have to immediately sell into the market any stocks held beyond the mandated quantity.
  • This improves supplies and brings down prices. As not all shopkeepers and traders comply, State agencies conduct raids to get everyone to toe the line and the errant are punished.
  • The excess stocks are auctioned or sold through fair price shops.
  • Ex: The Union Government has brought masks and hand-sanitisers under the ECA to make sure that these products, key for preventing the spread of Covid-19 infection, are available to people at the right price and in the right quality

For Food Items:

  • Based on the deliberations, Government takes various measures from time to time to stabilize prices of essential food items which, inter-alia, include appropriately utilizing trade and fiscal policy instruments like import duty.
  • The govt. can impose stock limits and advise State for effective action against hoarders & black marketers etc. to regulate domestic availability and moderate prices.
  • The government utilizes the buffer of agri-horticultural commodities like pulses, onion, etc. built under Price Stabilization Fund (PSF) to help moderate the volatility in prices.
ESEENTIAL COMMODITIES ACT Important Legislations
Print Friendly, PDF & Email
Loading

Recent Posts

  • Daily Prelims Notes 29 March 2023 March 29, 2023
  • Air India and Nepal Airlines aircraft almost collide March 29, 2023
  • India under fire at WTO for avoiding questions on MSP March 29, 2023
  • India to host meeting of security advisers from SCO countries March 29, 2023
  • India to estimate TB burden using own system March 29, 2023
  • Congress plans motion against Speaker for ‘bias’ March 29, 2023
  • More than 500 apps blocked on the advice of cyber-crime centre March 29, 2023
  • Students with Type 1 diabetes be given proper care March 29, 2023
  • Prices of essential medicines set to see a hike from April 1 March 29, 2023
  • US and Japan to sign pact on critical mineral supply chain for EVs requirement March 29, 2023

About

If IAS is your destination, begin your journey with Optimize IAS.

Hi There, I am Santosh I have the unique distinction of clearing all 6 UPSC CSE Prelims with huge margins.

I mastered the art of clearing UPSC CSE Prelims and in the process devised an unbeatable strategy to ace Prelims which many students struggle to do.

Free Initiatives

  • Daily Practice Sheets
  • Daily Prelims Notes
  • Mains Factly
  • Prelims Power Play
  • Sunday Essay Sadhna

My Proven Strategy

  • Interview Strategy
  • Mains Strategy
  • Motivational
  • Prelims Strategy

Contact us

moc.saiezimitpo@tcatnoc

For More Details

Work with Us

Connect With Me

Santosh Pandey Quora Santosh Sir Telegram Santosh Sir Youtube Optimize IAS Instagram

Course Portal
Search