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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.