Union Cabinet Extends Control by Essential Commodity Act on Pulses and Edible Oils for One Year

The Union Cabinet on 24 September approved for extending the validity of the Central Notifications as under:

“The validity of the Central Notification No.S.0.2227(E) dated 27.09.2011 issued in respect of pulses, edible oils and edible oilseeds to be extended for a further period from 01.10.2012 to 30.09.2013.”

This will moderate the prices of these commodities and ensure its availability at fair prices to the general public.

The main objective of Control Orders is to enable the State Governments to continue to take effective de-hoarding operations under Essential Commodities Act, 1955 by fixing stock limits/licensing requirements etc. in respect of these commodities, especially in view of rising prices and unsatisfactory monsoon in the prevailing circumstances. This 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 general public, especially the vulnerable sections.

Background:

In August 2006 it was decided to keep in abeyance certain provisions of the Order dated 15.02.2002 in respect of wheat and pulses with the approval of the Cabinet initially for a period of 6 months. The validity of this order has been extended from time to time incorporating also some more essential commodities.

Subsequently Central Orders were issued by keeping in abeyance the operation of Central Order dated 15.02.2002 in respect of commodity edible oils, edible oilseeds, rice, paddy and sugar. The validity of all these orders have been extended from time to time . At present stock limits are permitted for pulses, edible oils and edible oilseeds for a period up to 30.09.2012 and in respect of rice and paddy up to 30.11.2012 for the 7 States/Union Territories i.e. Andhra Pradesh, NCT of Delhi, Manipur, Maharashtra, Tamil Nadu, Jharkhand and Andaman & Nicobar Islands who had sent their request specifically opting for continuation of stock limits in respect of paddy and rice. Wheat and sugar have been withdrawn from the ambit of these orders with effect from 1st April 2009 and 1st December 2011 respectively.