March 19, 2002

AMENDMENT TO ESSENTIAL COMMODITIES ACT

    The central government has issued an order under the Essential Commodities Act, 1955 allowing dealers to freely buy, stock and sell certain commodities, which were classified as essential commodities. The order is called the Removal of (Licensing requirements, Stock limits and Movement Restrictions) on Specified Foodstuffs Order, 2002 and the provision of this Act has come into force by March 15, 2002. Under this order dealers are free to buy, transport and distribute any quantity of wheat, paddy/rice, coarse grains, sugar, edible oils and oilseeds without any license or permit under any order issued under the Act.

    The Essential Commodities Act, 1955 was enacted to ensure the easy availability of essential commodities to consumers and to protect them from exploitation by unscrupulous traders. The Act provided for the regulation and control of production, distribution and pricing of commodities which are declared as essential for maintaining or increasing supplies or for securing their equitable distribution and availability at fair prices. The list of essential commodities has been reviewed from time to time in the light of changes in the economic situation particularly with regard to their production and supply. The number of essential commodities has been brought down from 70 in 1989 to 29 and has further been reduced by 12 as on February 15, 2002.