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ESSENTIAL
COMMODITIES ACT
SHREYAN DUTTA
ROLL NO 26
INTRODUCTION
 Passed on April 1 , 1955
 The main purpose of this Act was to control the
production, distribution and supply of, trade and
commerce in certain commodities.
 The government has listed a number of commodities as
essential commodities
- In 1989, 70 essential commodities were listed under the
act and presently only 7 commodities are listed
OBJECTIVE
 Ensure the availability of essential commodities to
consumers and to protect them from exploitation by
traders.
 This act empowers the Central government to:
1. Regulate or prohibit production, distribution, supply,
storage etc.
2. Control price of certain commodities which have been
declared under the Act as essential
IMPLEMENTATION
 The implementation lies with the State Governments and
Union Territories Administrations.
 State governments issue various control orders w.r.t
trading of some essential commodities like pulses, food
grains, kerosene, sugar etc.
 Items listed under the act are reviewed from time to time
as per the economic policies, production, demand, and
supply.
CONTROL
 The governments also have the power to fix price limits.
Selling the particular commodities above the limit will
attract penalties. Black marketing of essential
commodities was a major problem in the past and this
has now been controlled to a large extent.
 Only those commodities considered essential to protect
the interest of farmers and the large section of people
“below the poverty line” are proposed to be retained
under this Act.
Penal provisions
 At present, section 7(1) specifies offences which include
violations with respect to maintaining records, books,
filing returns and so on. Such offences are punishable
with a jail term of between three months and a year.
THANK YOU

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Essential commodities act

  • 2. INTRODUCTION  Passed on April 1 , 1955  The main purpose of this Act was to control the production, distribution and supply of, trade and commerce in certain commodities.  The government has listed a number of commodities as essential commodities - In 1989, 70 essential commodities were listed under the act and presently only 7 commodities are listed
  • 3. OBJECTIVE  Ensure the availability of essential commodities to consumers and to protect them from exploitation by traders.  This act empowers the Central government to: 1. Regulate or prohibit production, distribution, supply, storage etc. 2. Control price of certain commodities which have been declared under the Act as essential
  • 4. IMPLEMENTATION  The implementation lies with the State Governments and Union Territories Administrations.  State governments issue various control orders w.r.t trading of some essential commodities like pulses, food grains, kerosene, sugar etc.  Items listed under the act are reviewed from time to time as per the economic policies, production, demand, and supply.
  • 5. CONTROL  The governments also have the power to fix price limits. Selling the particular commodities above the limit will attract penalties. Black marketing of essential commodities was a major problem in the past and this has now been controlled to a large extent.  Only those commodities considered essential to protect the interest of farmers and the large section of people “below the poverty line” are proposed to be retained under this Act.
  • 6. Penal provisions  At present, section 7(1) specifies offences which include violations with respect to maintaining records, books, filing returns and so on. Such offences are punishable with a jail term of between three months and a year.