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.
• Though there is no specific definition for ‘essential commodities’, Section 2(A) of this Act states that an essential commodity means a commodity specified in the “Schedule” of this Act.
• As per the Essential Commodities Act, only the Central government can add/remove a commodity from 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
  • Drugs- prices of essential drugs
  • Fertilisers
  • Raw jute and jute textiles
  • Cattle fodder
  • Face masks and sanitisers.

Why in News?

• With tur dal prices surging since mid-July and reports coming in of some traders creating artificial supply squeeze by restricting sales, the Centre has invoked the Essential Commodities Act of 1955 to ask States to monitor and verify the stocks available with such traders.

Reference:

1. https://www.thehindu.com/business/Economy/to-rein-in-tur-dal-price-surge-centre-invokes-essential-commodities-act/article65761631.ece