Essential Commodities Act, 1955

Purpose and scope of the Essential Commodities Act

The Act authorises the Central Government to regulate essential commodities when it considers such action necessary or expedient for maintaining or increasing supplies, securing equitable distribution and availability at fair prices, or securing an essential commodity for the defence of India or efficient conduct of military operations.

The regulatory framework operates mainly through orders issued under Section 3. Depending on the commodity and the applicable control order, regulation may concern production, manufacture, supply, storage, distribution, disposal, acquisition, transport, prices, licensing, permits, information and related matters.

What is an "essential commodity"?

Section 2A links the expression "essential commodity" to the commodities specified in the Schedule to the Act. The Central Government may amend the Schedule in the public interest in accordance with Section 2A.

Principal scheduled categories

• Drugs, as defined for this purpose by reference to the Drugs and Cosmetics Act, 1940.
• Fertilizer, whether inorganic, organic or mixed.
• Foodstuffs, including edible oilseeds and oils.
• Hank yarn made wholly from cotton.
• Petroleum and petroleum products.
• Raw jute and jute textiles.
• Specified seeds, including seeds of food crops, fruits and vegetables, cattle fodder, jute and cotton seed.

The legal status of a commodity may also depend on a time-bound notification or order. For a transaction or prosecution, check the notification and control order in force on the relevant date.

Section 3: Power to control production, supply and distribution

Section 3 is the principal enabling provision. It permits the Central Government to make orders for regulating or prohibiting the production, supply and distribution of an essential commodity and trade and commerce in it where statutory conditions are satisfied.

Confiscation, notice and appeal: Sections 6A to 6E

Where an essential commodity is seized for an alleged contravention of an order made under Section 3, Section 6A provides the statutory framework for confiscation. Section 6B requires notice and an opportunity concerning confiscation, while Section 6C provides an appeal. Sections 6D and 6E deal with the relationship between confiscation and other punishment and with the statutory bar of jurisdiction in specified cases.

Penalties and offences under the Act

Section 7 prescribes punishment for contravention of orders made under Section 3. The punishment varies according to the nature of the order. For many contraventions, imprisonment may extend to seven years and a fine may also be imposed; specified categories carry different punishment. The section also contains provisions concerning forfeiture and repeat offences.

Section 8 covers attempts and abetment. Section 9 deals with false statements. Section 10 addresses offences by companies, while Section 10A declares offences under the Act to be cognizable. Section 10C contains a statutory presumption concerning culpable mental state, subject to the terms of that provision.

Essential Commodities Act, 1955: section-wise index

• Sections 1, 2 and 2A - Short title, definitions and essential commodities declaration
• Section 3 - Powers to control production, supply, distribution, etc.
• Sections 4, 5 and 6 - Duties, delegation and effect of orders
• Sections 6A to 6E - Confiscation, notice, appeal and jurisdiction
• Sections 7, 7A and 8 - Penalties, recovery, attempts and abetment
• Sections 9, 10 and 10A - False statements, companies and cognizable offences
• Sections 10B, 10C and 11 - Publication, culpable mental state and cognizance
• Sections 12, 12A and 12B - Fine, summary trial and injunctions
• Sections 13 to 16 - Presumptions, burden of proof, protection, prosecution of public servants, repeal and savings