Essential Commodities Act

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What is Essential Commodities Act?

The Essential Commodities Act (ECA) was a Parliamentary act which governed the delivery and supply of commodities or products, whose obstruction could affect the lives of the common people to a great extent. The act was modified through the Essential Commodities (Amendment) Act, 2020 as part of the 2020 Indian Agricultural Acts (Also known as Farm Bills. The Essential Commodities Act came into force in 1955 and has been used to manage the supply, distribution and production of commodities termed as ‘essentials’. In this way the government makes these commodities available for consumption at acceptable prices. A minimum support price can also be fixed by the government should it deem it necessary.

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Issues Regarding the Essential Commodities (Amendment) Act 2020 The Essential Commodities (Amendment) Act 2020 has also its fair share of issues. They are as follows: The new amendment to the ECA is believed by critics to infringe on State’s powers as they will be unable to regulate hoarding and black market practices. The stock limit relaxations under the ECA may lead to black marketing and hoarding rather than benefiting the producers. This will lead to an increase in inflation and the monopoly of a few individuals over the prices of certain goods.

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