amendments to eca

Friday, December 03, 2004

Rajya Sabha

The list of essential commodities has been reviewed from time to time in the light of changes in the economic situation and particularly with regard to their production and supply. The number of essential commodities which stood at 70 in 1989, has been brought down to 15 at present through such periodic reviews. To facilitate free trade and commerce in respect of the essential commodities, efforts are always made to delete as many commodities as possible from the purview of the Essential Commodities Act, 1955.

The need to relax various controls on agricultural products including controls on inter-state movement of such products was discussed in the Conference on Chief Ministers held in 2001 and thereafter in the Standing Committee of some Union Ministers and Chief Ministers which was set up pursuant to the recommendations made in the Conference.

The Standing Committee of Secretaries constituted under the chairmanship of Cabinet Committee on Economic Affairs (CCEA) and Cabinet Committee on Economic Reforms (CCER) considered a proposal to “Putting Essential Commodities Act, 1955 into suspended animation to be revived by GOI notification only when and for the purpose and duration for which it is necessary” and “Remove all restrictions on inter-State movements of produce; emergency powers may be retained for drought/natural calamities”. In accordance with the advice tendered by Ministry of Law, the Committee observed that the Act can be put into suspended animation, but decided in its meeting held on 29th August, 2002 that regular reviews may be made to identify more commodities to be deleted from the list of essential commodities under the Act alongwith need to continue with the remaining controls and restrictions on their movement, stocking etc. As a result, three more commodities viz.(a) “Exercise Books”, (b) “Insecticides, fungicides, weedicides and the like” and (c) “Onion”, have been deleted from the list of essential commodities.

This information was given in Rajya Sabha today by the Minister of State for Consumer Affairs, Food and Public Distribution Shri Taslimuddin in reply to a question of Shri Vijay J. Darda.