About ECA

• The Essential Commodities Act (ECA) was enacted by the Central Government in 1955 to control and regulate trade and prices of commodities declared essential under the Act.
• The Act empowers the Central and state governments concurrently to control production, supply and distribution of certain commodities in view of rising prices and to prevent Black marketing.
• The measures that can be taken under the provisions of the Act include licensing, distribution and imposing stock limits. The governments also have the power to fix price limits, and selling the particular commodities above the limit will attract penalties.
• Most of the powers under the Act have been delegated by the Central Government to the State Governments with the direction that they shall exercise these powers.
• Some of the major commodities that are covered under the act:
  • Petroleum and its products
  • Food stuff, including seeds, vanaspati, pulses, sugarcane
  • Drugs- prices of essential drugs
  • Fertilisers

Why in News?

• The Central government has removed face masks and hand sanitisers out of the purview of the Essential Commodities Act, 1955 as their supply is sufficient in the country.
• On March 13, the Union Consumer Affairs Ministry had declared face masks and hand sanitisers as essential commodities for 100 days to boost supply and prevent hoarding of these items in its fight to check the spread of COVID-19.

Related information

• Recently, the central government announced that it will deregulate the sale of six types of agricultural produce, including cereals, edible oils, oilseeds, pulses, onions and potatoes, by amending the Essential Commodities Act, 1955.
• Stock limits on these commodities will not be imposed except in times of a national calamity or a famine, and will not be imposed at all on food processors or value chain participants, which/who will be allowed to store as much as allowed by their installed capacity. Exporters will also be exempted.