Act to control production, supply and distribution in the interest of public to secure equitable distribution and availability at fair prices.

1. Divya Chhabra
GBPUA&T , Pantnagar

2. INTRODUCTION
 Name: Essential Commodity Act,1955
 Sections: 16
 Latest: The Essential commodity Act,2006
(inserted section 2A[2(a) omitted)
Schedule-essential commodity

3. OBJECTIVE
 The Act aims to control:
• Production
• Supply and
• Distribution
Of certain commodities
 In the interest of the general public so as to secure
 Equitable distribution
 Availability
 Fair prices

4. DEFINITIONS UNDER THE ACT
 COLLECTOR-2(Ia) :collector includes,
 An additional collector and
 Such other officer not below the rank of sub divisional officer
as may be authorized to-
o Perform the function and
o Exercise the power
Of the collector under the act

5. ESSENTIAL COMMODITIES
 Section 2A defines the essential commodities as mentioned
in the schedule
1. Drugs
2. Fertilizers
3. Foodstuffs
4. Hank yarn made wholly from cotton
5. Petroleum and petroleum products
6. Raw jute and jute textiles

6. CONTINUED
7.A) Seeds of food crops and seeds of fruit and
vegetables
B)Seeds of cattle fodder and
C)Jute seeds
8. Coal
9.Parts and accessories of automobiles

7. CONTINUED
10. Iron and steel, manufactured products of iron
and steel
11. Paper, Sugar
12.any other article within the scope of entry 33 in
list 3 in the 7th schedule of the constitution,
which may be notified by the central
government to be an essential commodity

8. PURPOSE TO ENLIST ANY COMMODITY
AS ESSENTIAL
 Maintaining or increasing their supplies.
 Equitable distribution and availability at fair prices of the
commodities concerned.
 Securing any essential commodity for the defence of India or
the efficient conduct of military operations.

9. POWERS TO CONTROL PRODUCTION,
SUPPLY, DISTRIBUTION OF ESSENTIAL
COMMODITIES
 By regulating the licenses regarding production,
manufacture, storage, transport, distribution, disposal and
acquisition of essential commodity.
 Controlling the price at which EC may be bought or sold.
 Agreed , controlled and market rate
 Prohibiting the withholding from sale, or holding stock.
 Selling the whole commodity to one buyer

10. CONTINUED
 Fixing price of sugar to be paid to producer
 Maintaining the records and accounts of the essential commodities.
 for controlling the rise in prices or preventing the hoarding, of any
foodstuff in any locality, it may, by notification in the Official Gazette
 5) An order made under this section shall,-
 (a) in the case of an order of a general nature or affecting a class of
persons, be notified in the Official Gazette; and
 (b) in the case of an order directed to a specified individual be served on
such individual,-
 (i) by delivering or tendering it to that individual.

11. IMPOSITION OF DUTIES ON STATE
GOVERNMENT
 An order made under section 3 may confer powers and
impose duties upon the central government as well as state
government.
 Officers and authorities of Central government may contain
directions to state government for :
1. exercise of the powers
2. and discharge of duties

12. DELEGATIONS OF POWERS
 Central Government and its Subordinate Authority
 State Government

13. 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.

14. EFFECT OF ORDERS INCONSISTENT
WITH OTHER ENACTMENTS
 Confiscation of essential commodity
 Issue of show cause notice before confiscation of essential
commodity
 Appeal
 Award of confiscation not to interfere with other punishment
 Bar of jurisdiction in certain cases

15. 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.

16. PENALTY PROVISION
 At present, section 7(1) a (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.
 Section 7(1) a (2) applies for major offences and embraces a large part of
violations where punishment can extend up to seven years in jail.
 At the time of violation of act Property will be forfeited & the
carriage(animal, vessel, etc.) will be seized by govt.

17. OTHER PROVISIONS IN CASE OF
PROSECUTION UNDER ECA
 Attempts and abetments
 False statement
 Presumption of orders
 Burden of proof