what are essential commodities act PASA
Answers
Answer:
ESSENTIAL COMMODITIES ACT÷
The essential commodities act (eca) is an act of the Parliament of INDIA that was established to ensure that the delivery of certain commodities or products, the supply of which, if obstructed due to hoarding or black marketing, would affect the normal life of the people. This includes food stuff, drugs, feul(petroleum products), etc..,
This act was modified by the Essential commodities (Amendment) Act, 2020 as the part of 2020 Indian form reforms.
LONG TITLE
An act to provide, in the interests of general public, for the control of the production, supply and distribution of, and the trade and commerce in, certain commodities.
Citation : Act no. 10 of 1955
Territorial extent : Republic of India
Enacted by : Parliament of INDIA
Enacted : 1995
The ECA was enacted in 1995 and has since been used by the government to regulate the production, supply, and distribution of a whole host of commodities that it declares 'essential' to make them available to consumers at fair prices. Additionally the government can fix the minimum support price (msp) of any packaged product that it declares an 'essential commodity'.
The list of items under the Act includes drugs, fertilisers, pulses, and edible oil, as well as petroleum and petroleum products. The centre can include new commodities as when the need arises, and take them off the list once the situation improves.
Usage÷
If the centre finds that a certain commodity is in short supply and its price is spiking, it can notify stock holding limits on it for a specified period. The state acts on this notification to specify limits and take steps to ensure that these are adhered to. Anybody trading or dealing in the commodity, be it wholesalers, retailers, or even importers are prevented from stockpiling it beyond a certain quantity.
A state can, however, choose not to impose any restrictions. But once it does, traders have to immediately sell into the market any stocks held beyond the mandated quantity. This improves supply and brings down prices. As not all shopkeepers and traders comply, state agencies conduct raids to get everyone to toe the line and the errant are punished. The excess stocks are auctioned or soled through fair price shops.
BACKGROUND ÷
The eca was enacted in 1955 and since had been used by the government to regulate the production, supply, and distribution of a whole host of commodities that it declares 'essential' to make them available to consumers at fair prices.
On 14 March 2020, the Union Government brought masks and hand sanitizers under the act to make sure that these products - key for preventing the spread of covid19 - are available to the people at right price and right quality during covid19 Pandemic in India. As of July 1 2020, however the government has removed the masks and hand sanitizers from its Essential commodities list.
ESSENTIAL COMMODITIES (Amendment) Act 2020÷
In may 2020, Finance minister Nirmala Sitaraman suggested that the act will be amended and stock limit will be imposed only under expectational circumstances such as famine or other calamities. There will be no stock limit for processors and supply chain owners based on their capacity and for exporters based on the based demand. It would also deregulate agricultural produce such as pulses, onions, etc.,, to realise better prices for farmers.