Essential Commodities Act (ECA), 1955
Essential Commodities Act (ECA), 1955 The ECA has been used by the Government to regulate the production, supply and distribution of a whole host of commodities it declares ‘essential in order to make them available to consumers at fair prices. The ECA gives consumers protection against irrational spikes in prices of essential commodities. However, it has acted against the interest of the farmers. This has thwarted the creation of integrated value chains across the country. ECA has its roots in the Defence of India Rules of 1943, when India was ravaged by famine and was facing the effects of World War II. It was scarcity-era legislation. By the mid-1960s, hit by back-to-back droughts, India had to depend upon wheat imports from the US and the country was labelled as a “ship to mouth” economy. However, today, India is the largest exporter of rice in the world and the second-largest producer of both wheat and rice, after China. Due to these factors, the Economic Survey 2020, has recomm