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What is the Essential Commodities Act, and how will amending it help?
By declaring a sale of goods as important, the government can regulate the production, supply, and distribution of such goods, and limit the stock.
The Union Cabinet approved the constitutional amendment of the Essential Commodities Act, 1955, for the removal of such substances as wheat, peas, oil, edible oil, onions and potatoes.
This rule, already approved by the President of India and introduced in the Gazette, will become law. The text of this rule has not been made public yet.
Important Property Law: What is an amendment?
Sources in the Department of Consumer, Food and Public Distribution said the legislation introduced subsection (1A) in section 3 of the Essential Commodities Act, 1955.
The amended legislation provides for a "control" of agricultural foods, ie cereals, dipsticks, oils, edible oils, potatoes, and other items under unusual circumstances, including various inflation, war, famine, and severe natural disaster.
What is the meaning of the term 'essential goods'?
There is no specific definition of assets that are important in the EC Act. Section 2 (A) of the Act says "essential property" means the property contained in the "Schedule" of this Act.
The law empowers the central government to add or remove assets in the "Plan." An institution, once satisfied that it is necessary to do so for the public good, may prioritize the matter, in consultation with the national government.
Currently, the "Program" consists of 9 items - drugs; fertilizer, whether organic, organic or mixed; foods, including edible oils; hank cord made entirely of cotton; oil and petroleum products; green cloth and jute cloth; cereal-seed and seed-and-vegetable seeds, cattle-feed seeds, jute seeds, cotton seeds; face mask; and hand sanitisers.
The latest items added to the program are masks and hand sanvoers, which have been declared a significant asset since March 13, 2020 following the outbreak of Covid-19 violence.
By declaring a sale of goods as important, the government can regulate the production, supply, and distribution of such goods, and limit the stock.
How and under what circumstances can the government keep stock shares?
Under the amended EC Act, agricultural food items can only be regulated under unusual conditions such as war, famine, unusual inflation, and natural disaster.
However, any action to enter the stock limits will be based on pricing.
Therefore, in the case of a very high yield, a 100% increase in the sales price over the previous 12 months or the average selling price of the last five years, however low, would be a reason to draw the stock limit. of such assets.
