A LOOK INTO ESSENTIAL COMMODITIES ACT, 1955

“The world has enough for everyone’s needs, but not for everyone’s greed.”

~ Mahatma Gandhi

As the demand of sanitizers and face masks increases due to current pandemic so does the
avarice of some money-grubbing people which has led to bring ECA again into picture as
government announces to bring hand sanitizers and face masks into the purview of this act. The
main objective of this enactment is to prevent black marketing and overpricing in times of spur
in the demand of certain commodities.

The underlying features of this act are as follows:

1) It empowers Central and State govt. to control the production, supply, and distribution of the
commodities when prices are rising.
2) It helps to stabilize the prices of essential commodities throughout whole of India including
Jammu and Kashmir.
3) The commodities which are under its ambit are divided into following classes:
a) Petroleum and its derivatives such as petrol, diesel, etc.
b) Food items like edible oils, pulses, sugar, rice paddy etc.
c) Jute and textiles.
d) Drugs – Essential drugs which are controlled under Drug Price Control Order (DPCO).
e) Fertilizers – Control on prices, stock and transfer of fertilizers under Fertilizer Control
Order.
f) The government can make alterations by adding or removing the commodities according
to economic conditions, weather etc.
4) Following measures can be taken to avoid any flouting of the law:
a) licensing and permit issuance.
b) fixing price limits.
c) imposing stock holding limits to prevent any hoardings in rise of demand.
d) imposing quota restrictions.
e) imposing penalties.
5) It works harmoniously with other provisions such as Drug Price Control Order (DPCO),
Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act
(PBMMSEC Act) to ensure the smooth functioning of the law.

The Act has been criticized in the past a few times such as back in 2014 when the
government tried to bring onion and potatoes under its purview. The Economic Survey of
2019-2020 argued ECA is draconian and not suited for times when farmers face problems of
plenty rather than scarcity. It hampers the remunerative prices for farmers and discourages

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 investment in storage infrastructure as ECA prevents hoarding.1 It has also been criticized as
the state can remove or add commodities as per it’s discretion as the Act don’t lays down
provision regarding the conditions to do the same.

But the merits it holds in the tumultuous times as now has definitely outweighed the
demerits, as ECA is serving it’s major purpose to maintain the availability of the sanitizers
and face masks at fair prices as Ministry of Consumer Affairs, Food and Public Distribution
has issued notification declaring hand sanitizer and masks (2-ply, 3-ply and N95) as essential
commodities up to 30th June 2020. “It will enhance the availability of both the items to the
general people at reasonable prices or under MRP (maximum retail price”, the ministry said.
The government is taking further actions under the act such as:
 Urging the producers to manufacture sanitizers and face masks to full capacity over 3 shifts.
 Quota restrictions on holdings of raw materials i.e. ethanol and extra neutral alcohol (ENA)
are relaxed.
 The organizations such as Indian Sugar Mills Association and All India Distillers Association
are asked to maintain the supply of ethanol and ENA in the market.
 The prices of ethanol and ENA cannot be increased till June 30 and has to be sold at the
prices as were on March 5, 2020.
 The prices of the masks and sanitizers are also capped. The mass are priced between Rs.8-10
and sanitizers are to be sold under Rs.100 per 200 ml.

If someone tries to evade the law and satisfy their greed, they can be held liable and can be
punished. A person can get the imprisonment not exceeding seven years or fine or both under
the ECA and six months detention under Prevention of Black Marketing and Maintenance of
Supplies of Essential Commodities Act, 1980.

Complaints can be registered by any individual with National Consumer Helpline number
1800-11-4000 or online at www.consumerhelpline.gov.in or www.consumeraffairs.nic.in/
through the NCH/Consumer app.

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The Hindu, All you wanted to know about Essential Commodities Act,
https://www.thehindubusinessline.com/opinion/columns/slate/all-you-wanted-to-know-about-essential-
commodities-act/article31143709.ece, March 24, 2020