ESSENTIAL COMMODITIES ACT, 1955

NEWS: Ministry of Petroleum and Natural Gas (MoPNG) has invoked the Essential Commodities Act (ECA), 1955, to prioritize the allocation of natural gas to critical “priority sectors” currently facing fuel shortages.

Essential Commodities Act, 1955

• Aims toà control the production, supply, and distribution of specific commodities in the interest of the general public, preventing hoarding and black marketing.
• Core Listà Includes cattle fodder, coal, automobiles/components, textiles, drugs, foodstuffs, iron/steel, and raw cotton/jute.
• The Centre can notify any other product as an “essential commodity” (e.g., masks and sanitizers in 2020).
• 2020 AmendmentàDelisted cereals, pulses, onions, potatoes, and oils.
• Regulation now only occurs under “extraordinary circumstances” (war, famine, natural calamity, or extreme price rise- 100% for perishables; 50% for non-perishables)

Natural Gas Priority Allocation

• Priority Level Ià Domestic PNG, Full requirement (Subject to availability)
• Priority Level IIà Fertilizer Units, 70% of average six-month consumption
• Priority Level IIIàTea & National Grid Industries, 80% of average six-month consumption
• Priority Level IVà Commercial/Industrial (City Gas) 80% of average six-month consumption