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What is the News?
Government of India has declared Soya Meal as an Essential Commodity till 30th June, 2022 under the Essential Commodities Act 1955.
What is Soya Meal?
Soybean meal is the by-product of the extraction of soybean oil. It is the most important protein source used to feed farm animals. It is also used for human consumption in some countries.
What is the impact of declaring Soya Meal as an Essential Commodity?
This is expected to stop any unfair practices (like hoarding, black marketing etc) in the market having the potential to hike the prices of soya meal.
This will also enhance the availability of the commodity for consumers like poultry farms and cattle feed manufacturers.
What is the Essential Commodities Act 1955?
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.
There is no specific definition of essential commodities in The EC Act. Section 2(A) of the act states that an “essential commodity” means a commodity specified in the “Schedule” of this Act.
The Act gives powers to the central government to add or remove a commodity in the “Schedule”. The Centre, if it is satisfied that it is necessary to do so in public interest, can notify an item as essential, in consultation with state governments.
By declaring a commodity as essential, the government can control the production, supply, and distribution of that commodity, and impose a stock limit.
Source: This post is based on the article ‘Centre declares Soya Meal as an Essential Commodity up to 30th June, 2022’ published in PIB on 25th Dec 2021.