Essential Commodities Act: Lockdown angle
Karthik K.P, INN/Chennai, @Infodeaofficial
The Essential Commodities Act is a statute of Parliament of India which was established to guarantee the supply of certain commodities, the delivery of which if blocked due to hoarding or black-marketing would disturb the regular life of the people. This comprises of foodstuff, drugs, fuel (petroleum products), etc.
The ECA was passed in 1955. It has ever since been used by the Government to normalize the production, supply, and delivery of a whole crowd of produces it states ‘essential’ in order to make them accessible to buyers at fair rates. Furthermore, the government can as well fix the maximum retail price (MRP) of any packed commodity that it declares an “essential commodity”.
The list of things in the Act comprises of medicines, fertilizers, pulses and edible oils, and fuel and petroleum products. The government can include new produces as and when the requirements arise, and take them off the list once the condition recovers.
If the government discovers that a definite commodity is in short supply and its price is mess up, it can alert stock-holding restrictions on it for a definite period.
The State performances on this notification to require limits and take steps to certify that these are stick to. Anybody transitioning or dealing in the commodity, be it, dealers, sellers or even shippers are prohibited from hoarding it beyond a definite amount.
A State can, although, indicate not to carry out any restrictions. But once it organizes, traders have to instantly sell into the market any stocks held outside the authorized amount.
This increases supplies and reduces prices. As not every sellers and traders comply, State organizations conduct raids to get one and all to toe the line and the delinquent are punished. The leftover stocks are auctioned or sold over reasonable price shops.
The Act authorizes the Central and state governments at the same time as to control the production, supply, and distribution of certain commodities in the assessment of increasing prices.
The actions that can be taken under the provision of the Act comprise in the middle of others, authorizing distribution and imposing stock limits. The governments also have the authority to fix price limits, and selling the specific commodities beyond the limit will invite penalties.
Black marketing of essential commodities remained a most important problem in the past and this has here and now been controlled to a larger extent. The Drug Price Control Order (DPCO) and equivalent orders have been issued under the authorities of the ECA.
Seven major commodities are covered under the act. Some of them are:
- Petroleum and its products, including diesel, Naphtha, solvents, kerosene, petrol, etc.
- Foodstuffs, including Vanaspati, pulses, edible oil, and seeds; sugarcane and its products like sugar and Khansari; rice paddy
- Jute and textiles
- Medicines- prices of essential medicines are still controlled by the DPCO
- Fertilizers- the Fertiliser Control Order recommends restrictions on transfer and stock of fertilizers apart from prices
The Act authorizes the Centre to mandate states to carry out stock limits and bring hoarders to duty, so as to smoothen supplies and reduce prices.
Mostly the Centre lays down upper limits in the situation of stock holding and states suggest specific limits. On the other hand in the event there is a difference between states and the Centre, the act stipulates that the latter will prevail.
Section 7(1)a(i) states that offenses consist of violations of maintaining records, filing returns, books and so on. Such offenses are carrying a punishment of a jail term of between three months and a year.
Section 7(1) a (2) is applicable for major offenses and holds a large part of violations wherever punishment can prolong up to seven years in jail.
Food and civil supply authorities implement the provisions of the said Act. They normally raid the premises of the businessmen to find out violations along with the local police, who have the power to arrest.
At the time of the epidemic, due to market demand-supply mechanism, it’s obvious that products like masks and sanitizer’s demand would rise and because of less supply, the price would trigger high.
It’s because of this situation the Ministry of Consumer Affairs has invoked its power under – of this act and has brought hand sanitizers and masks (2-ply, 3-ply variety, and N95) under the purview of this act until June 30.
By placing them under the EC Act, the government has capped the prices of these items. The price of a 2-ply mask has been capped at ₹8 and that of 3-ply surgical mask can’t exceed ₹10.
The cost of hand sanitizers can’t exceed ₹100 for a 200-ml pack. Responding to this directive, companies such as Godrej Consumer, ITC and Hindustan Unilever have slashed the prices of sanitizers.
Invoking the Act makes it harder for retailers to hoodwink customers. If they violate the norms, States can take action under the EC Act and the Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act (PBMMSEC Act).
A wrongdoer under the EC Act may perhaps be punished with an imprisonment of up to seven years and/or fine; and under the PBMMSEC Act, they can be detained for a maximum of six months.
Every country and individual are taking necessary measures to fight the COVID-19 across the world. Masks and hand sanitizers ought to been considered as essential things in combatting this virus.
Due to COVID-19, a pandemic situation in the world there exist higher chances where the poor are completely being mistreated due to increasing the prices of essential commodities which prevents them from purchasing the needs to survive.
The quarantine situation is reducing the availability of essential goods for a longer period of time, as a result of which individuals buy in bulks which results in poor not getting the necessary supplies and also price starts to increase as demand gradually increases.
The government through the Essential Commodities Act, 1955 is taking measures to control the malpractices and effects of such malpractices within the state. The government is also keen to bring masks and sanitizers into essential commodities in order to make them available for the poor at the lowest price