Changes to Essential Commodities Act: Can govt make a departure from past?

Aims to ensure Act kicks in only under exceptional circumstances and unforeseen events such as droughts, floods or when food prices fluctuate beyond a point

Last month, Finance Minister Nirmala Sitharaman said the government intends to amend the Essential Commodities Act (EC Act) and bring out foodstuff such as pulses, edible oils, onion and potatoes from its purview.

It will also ensure that the Act’s provisions are imposed only under exceptional circumstances and unforeseen events such as droughts, floods or when food prices fluctuate beyond a point.

According to the ordinance cleared today by the Cabinet, the provisions of the EC Act, which includes imposing stock holding limits, will kick in only when prices fluctuate by, say, 50 per cent or 100 per cent beyond