Essential Commodities Act 1955: Features and Penalties
Why in the news
Facing an energy crisis tied to tension around Iran, the Union Government used the ECA to control supply and curb hoarding.
About the Act
A central law under which the government oversees production, supply and distribution of essential goods, keeping them available at fair prices without hoarding or black marketing. It also lets the state secure items for defence and emergencies.
Key facts
| Feature | What it allows |
|---|---|
| Declaration | Items in the Schedule count as essential |
| Schedule changes | Centre may add or remove items, consulting States |
| Stock limits | Caps on trader holdings |
| Price control | Food grains, edible oils, sugar and similar items |
| Penalty (Section 3) | 3 months to 7 years, plus fines |
| Confiscation | Seizure of goods and vehicles used in illegal storage or transport |
Exam angle
- Central law of 1955.
- Tool against hoarding: stock limits.