Foodstuff classification for raw cashewnut barred State regulation under the Kerala essential articles law.

Raw cashewnut was treated as a foodstuff within Section 2(a)(v) of the Essential Commodities Act, 1955 because the term was construed broadly to cover edible raw materials and articles that become edible after processing. Applying noscitur a sociis and the statutory scheme controlling essential commodities, the Court noted that raw cashewnut is an edible seed used in food preparations and may remain a food article despite processing. Since the Kerala Essential Articles Control Act excluded commodities already covered by the Central Act, the State Government lacked power to declare raw cashewnut an essential article or regulate it under the Kerala Act. The declaration and consequential order were therefore invalid.

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Issues: Whether raw cashewnut is a foodstuff and therefore an essential commodity under Section 2(a)(v) of the Essential Commodities Act, 1955, so as to exclude it from declaration as an essential article under Section 2(a) of the Kerala Essential Articles Control (Temporary Powers) Act, 1961, and whether the declaration and consequential Order made by the State Government were valid.

Analysis: The expression "foodstuffs" in the Central Act was construed in a broad sense, having regard to its association with edible oilseeds and the scheme and object of the legislation controlling production, supply and distribution of essential commodities. Applying the principle of noscitur a sociis, the term was held to include raw food articles and materials which become edible after processing. Raw cashewnut was found to be an edible seed used both in raw form and after processing in food preparations, and precedent was relied upon to show that articles requiring processing could still be foodstuffs. Since the Kerala Act itself excluded articles which were essential commodities under the Central Act, the State Government had no power to declare raw cashewnut an essential article or to regulate it under Section 3 of the Kerala Act.

Conclusion: Raw cashewnut is a foodstuff falling within Section 2(a)(v) of the Essential Commodities Act, 1955 and cannot be declared an essential article under the Kerala Act; the declaration and the impugned Order were invalid and liable to be quashed.

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