The Cabinet Committee on Economic Affairs has approved the inclusion of onion and potato under the purview of stock holding limits under the Essential Commodities Act, 1955.

This will empower the State Governments to undertake de-hoarding operations and to control the prices of onions and potatoes.

This decision is expected to help in the efforts being taken to tackle the problem of rising prices and also improve the availability of these commodities to the general public especially vulnerable sections.

The main objective of Control Orders is to enable State Governments to continue to take effective de-hoarding operations under the Essential Commodities Act, 1955 by fixing stock limits/licensing requirements etc. in respect of these commodities especially in view of rising prices. The Central Government has already delegated powers by empowering State Governments to fix stock holding limits etc., as per local conditions and to undertake de-hoarding operations commensurate with the objective of the Central orders.

Background:

The Essential Commodities Act, 1955 was enacted to ensure the easy availability of essential commodities to consumers and to protect them from exploitation by unscrupulous traders. The Act provides for the regulation and control of production, distribution and pricing of commodities, which are declared as essential for maintaining or increasing supplies or for securing their equitable distribution and availability at fair prices. Exercising powers under the Act, various Ministries/ Departments of the Central Government and State Governments/Union Territory administrations have issued Control Orders for regulating production, distribution, price and other aspects in relation to the commodities declared as essential.

Stock holding limits extend to onions and potatoes, enabling state de hoarding and price control measures. Inclusion of onion and potato within the scope of stock holding limits under the Essential Commodities Act, 1955 empowers State Governments to fix stock limits, impose licensing requirements and undertake de hoarding operations to curb hoarding, stabilise supplies and improve availability while enabling issuance of Control Orders to regulate distribution and pricing as per local conditions.