Essential Commodities Act

The ECA was enacted in 1955 and has since been used by the Government to regulate the production, supply, and distribution of a host of commodities declared ‘essential’ to make them available to consumers at a fair price.

Additionally, the government can also fix the minimum support price (MSP) of any packaged product that it declares an “essential commodity”.

The ECA was enacted in 1955 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.

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 COVID-19—are available to people at the right price and in the right quality during the COVID-19 pandemic in India.

In May 2020, Finance Minister Nirmala Sitharaman suggested that the Act will be amended and stock limit will be imposed only under exceptional circumstances such as famine or other calamities.

It will also deregulate agricultural produce such as pulses, onion, potato and cereals, edible oils, and oilseeds, to realize better prices for farmers.

The commodities that have been deregulated are food items, including cereals, pulses, potatoes, onion, edible oilseeds, and oils.

[11] In 2021, the Parliamentary Committee on Food, Consumer Affairs and Public Distribution had submitted a report to the Union Government recommending implementation of the Essential Commodities Act, 2020.

[16][17] By mid December, the Supreme Court of India had received a batch of petitions asking for the removal of blockades created by the protesters around Delhi.