Q. Consider the following statements regarding the Essential Commodities Act (ECA), 1955:
1. It was enacted to control the production, supply and distribution of, and trade and commerce in, certain goods considered as essential commodities.
2. Food and civil supply authorities in States execute the provisions of the Act.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C
Notes:

Essential Commodities Act (ECA), 1955 was enacted to control the production, supply and distribution of, and trade and commerce in, certain goods considered as essential commodities.  

  • The Act itself does not lay out Rules and Regulations but allows the States to issue Control Orders related to dealer licensing, regulate stock limits, and restrict movement of goods and requirements of compulsory purchases under the system of levy.  
  • The Act also provides for action to confiscate the stock seized; to suspend/ cancel licenses, if any and impose punishments like imprisonment.  
  • The Act also gives the power to fix price limits, and selling the particular commodities above the limit will attract penalties.  
  • Most of the powers under the Act have been delegated by the Central Government to the State Governments with the direction that they shall exercise these powers.  
  • Food and civil supply authorities in States execute the provisions of the Act. 

Source: The Hindu