Essential Commodities Act

In News 

• The Essential Commodities Act invoked to rein in tur dal price.

About Essential Commodities Act

• The Centre has invoked the Essential Commodities Act of 1955 to ask States to monitor and verify the stocks available with such traders.
• Under the EC Act of 1955, if the Central government thinks that it is necessary to maintain or increase supplies of any essential commodity or make it available at fair prices, it can regulate or prohibit the production, supply, distribution and sale of that commodity. 
• The Centre has the power to add or remove any commodity in public interest from this list of essential commodities.
• The EC (Amendment) Bill 2020: 
  • It aims to remove fears of private investors of excessive regulatory interference in their business operations. 
  • The freedom to produce, hold, move, distribute and supply will lead to harnessing economies of scale and attract private sector/foreign direct investment into the agriculture sector.
  •  It will help drive up investment in cold storages and modernization of the food supply chain.

Source: TH