Essential Commodities Act, 1955
[10 OF 1955]
An Act to provide, in the interest of the general public, for the control of the production, supply and distribution of, and trade and commerce, in certain commodities.
BE it enacted by Parliament in the Sixth Year of the Republic of India as follows:—
Short title and extent.
1. (1) This Act may be called the Essential Commodities Act, 1955.1 (2) It extends to the whole of India 2[***].
De nitions.
2. In this Act, unless the context otherwise requires,— (a) 3[***]
1. Dated 1-4-1955.
This Act has been extended to Goa, Daman and Diu by Regulation 12 of 1962, Dadra and Nagar Haveli by Regulation 6 of 1963, to Lakshadweep and Aminidivi Islands by Regulation 8 of 1965 and to the State of Sikkim by S.O. 28(E), dated 7-1-1976, w.e.f. 7-1-1976.
2. Words “except the State of Jammu and Kashmir” omitted by the Central Laws (Extension to Jammu and Kashmir) Act, 1968, w.e.f. 15-8-1968.
3. Omitted by the Essential Commodities (Amendment) Act, 2006, w.e.f. 12-2-2007. Prior to its omission, clause (a), as amended by the Essential Commodities (Amendment) Act, 1974, w.r.e.f. 22-6-1974, read as under:
‘(a) “essential commodity” means any of the following classes of commodities—
(i) cattle fodder, including oil-cakes and other concentrates;
(ii) coal including coke and other derivatives;
(iii) component parts and accessories of automobiles;
(iv) cotton and woollen textiles.
(iva) drugs;
Explanation.— In this sub-clause, “drug” has the meaning assigned to it in clause (b) of section 3 of the Drugs and Cosmetics Act, 1940 (23 of 1940);
(v) foodstuffs, including edible oil seeds and oils;
(vi) iron and steel, including manufactured products of iron and steel;
(vii) paper, including newsprint, paperboard and straw board;
(viii) petroleum and petroleum products;
(ix) raw cotton, whether ginned or unginned, and cotton seed;
(x) raw jute;
(xi) any other class of commodity which the Central Government may, by noti ed order, declare to be an essential commodity for the purposes of this Act, being a commodity with respect to which Parliament has power to make laws by virtue of Entry 33 in List III in the Seventh Schedule to the Constitution.’
4[(ia)] “Collector” includes an Additional Collector and such other of cer, not below the rank of Sub-Divisional Of cer, as may be authorised by the Collector to perform the functions and exercise the powers of the Collector under this Act;]
(b) “food-crops” include crops of sugarcane;
(c) “noti ed order” means an order noti ed in the Of cial Gazette;
5[(cc) “order” includes a direction issued thereunder;]
6[(d) “State Government,” in relation to a Union territory, means the administrator thereof;]
5[(e) “sugar” means—
(i) any form of sugar containing more than ninety per cent, of sucrose, including sugar candy;
(ii) khandsari sugar or bura sugar or crushed sugar or any sugar in crystalline or powdered form; or
(iii) sugar in process in vacuum pan sugar factory or raw sugar produced therein;]
COMMENTS
SECTION NOTES
Section 2 defines various terms but does not define “essential commodity” which is the most important term in the Act.
Section 2A defines “essential commodity” to mean a commodity specified in the Schedule.
CASE LAWS
The Supreme Court upheld the Allahabad High Court’s decision invalidating the requirement for brick manufacturers to obtain licenses to use coal under the U.P. Coal Control Order, 1977. The Court determined that “bricks” are not classified as an “essential commodity” under Section 2(a)(xi) of the Essential Commodities Act, 1955. As the State Government’s regulatory authority under section 3, read with Section 5, extends only to listed essential commodities, it lacks jurisdiction to mandate licensing for coal usage specific to brick manufacturing. Consequently, the prosecution attempts against brick manufacturers for non-compliance with the Coal Control Order were quashed. All appeals and writ petitions were dismissed. - State of U.P. v. Janta Industrial Udyog AIR 1991 SC 477
The Supreme Court ruled that rice bran qualifies as “foodstuff” under Section 2(a)(v) of the Essential Commodities Act, 1955, thus making it an essential commodity subject to regulatory control under Section 3. The appellants challenged the Haryana Rice Bran (Distribution and Price) Control Order, 1967, asserting rice bran was neither “foodstuff” nor “cattle fodder.” The Court held that rice bran, commonly used as poultry and cattle feed, fits the dictionary definition of “food,” which includes any substance taken for life and growth, whether by
4. Inserted by the Essential Commodities (Amendment) Act, 1976, w.e.f. 2-9-1976.
5. Inserted by the Essential Commodities (Second Amendment) Act, 1967, w.e.f. 30-12-1967.
6. Substituted by the Adaptation of Laws (No. 3) Order, 1956. Prior to its substitution, clause (d) read as under:
“(d) ‘State Government’ in relation to a Part C State means the Lieutenant Governor or the Chief Commissioner, as the ease may be.”
3
ESSENTIAL COMMODITIES ACT, 1955 S. 2
humans or animals. The Court emphasized that “foodstuff” is not limited to human consumption, affirming the State’s authority to regulate rice bran production and sale to ensure availability for animal nutrition. The appeal was dismissed. - Sat Pal Gupta v. State of Haryana AIR 1982 SC 798
STATE AMENDMENTS
HIMACHAL PRADESH
Section 2
After sub-clause (vi) of clause (a) of section 2 insert, “( vi - a ) cases made wholly or partially of wood, card-board or straw;” - [ Vide Essential Commodities (Himachal Pradesh Amendment) Act, 1986, w.e.f. 29-2-1992]
MAHARASHTRA
Section 2
In Section 2—
(a) after the words “the context otherwise requires”,- and before clause (a) insert—
“(ai) ‘Collector’ in Greater Bombay means in Controller of Rationing and includes any Deputy or Assistant Controller of Rationing and elsewhere means the Collector of the District and includes any Assistant or Deputy Collector or District Supply Of cer within his respective jurisdiction”;
(b) after clause (b), insert—
“(ba) ‘holder’, in relation to any agricultural land, means the person in actual possession of such land, and includes a company or other body corporate, rm association, joint family or body of individuals in joint possession of such land;
(
bb) ‘holding’ means the aggregate of all lands in possession of a holder;”— [Vide Essential Commodities (Maharashtra Amendment) Act, 1975, w.r.e.f. 12-11-1975.]
In section 2,—
(a) for clause (ia), the following clause shall be substituted, namely: —
‘(ia) “Collector” in any Rationing Area means the Controller of Rationing designated for that area and includes the Deputy or Assistant Controller or Rationing; and elsewhere, the Collector of the District and includes Additional, Deputy or Assistant Collector, Sub-Divisional Officer and District Supply Officer within his respective jurisdiction;’;
(b) clause (ai) shall be deleted.- [Vide Essential Commodities (Maharashtra Amendment) Act, 2002, w.e.f. 19-3-2003.]
UTTAR PRADESH
In section 2 before clause (a), the following clause shall be inserted namely:—
“(aa) ‘Collector’ includes such of cer not below the rank of an Assistant Collector of the rst class as may be authorized by the Collector to exercise the powers conferred on him by or under the provisions of this Act;” - [Vide Essential Commodities (Uttar Pradesh Amendment) Act, 1975, w.e.f. 31-3-1975.]
7[Essential commodities declaration, etc.
2A. (1) For the purposes of this Act, “essential commodity” means a commodity speci ed in the Schedule.
(2) Subject to the provisions of sub-section (4), the Central Government may, if it is satis ed that it is necessary so to do in the public interest and for reasons to be speci ed in the noti cation published in the Of cial Gazette, amend the Schedule so as to—
(
a) add a commodity to the said Schedule;
(
b) remove any commodity from the said Schedule, in consultation with the State Governments.
(3) Any noti cation issued under sub-section (2) may also direct that an entry shall be made against such commodity in the said Schedule declaring that such commodity shall be deemed to be an essential commodity for such period not exceeding six months to be speci ed in the noti cation:
Provided that the Central Government may, in the public interest and for reasons to be speci ed, by noti cation in the Of cial Gazette, extend such period beyond the said six months.
(4) The Central Government may exercise its powers under sub-section (2) in respect of the commodity to which Parliament has power to make laws by virtue of Entry 33 in List III in the Seventh Schedule to the Constitution.
(5) Every noti cation issued under sub-section (2) shall be laid, as soon as may be after it is issued, before both Houses of Parliament.]
COMMENTS
SECTION NOTES
2.1 Definition of Essential Commodity [Sub-section (1)]
An “essential commodity” is any commodity listed in the Schedule of the Act.
In terms of the Schedule, the following are the essential commodities:
(1) drugs [as de ned in clause (b) of section 3 of the Drugs and Cosmetics Act, 1940]
(2) fertilizer, whether inorganic, organic or mixed;
(3) foodstuffs, including edible oilseeds and oils;
(4) hank yarn made wholly from cotton;
(5) petroleum and petroleum products;
(6) raw jute and jute textiles;
(7) (i) seeds of food-crops and seeds of fruits and vegetables;
(ii) seeds of cattle fodder; and
(iii) jute seeds;
(iv) cotton seeds.
(8) masks (2ply and 3ply surgical masks, N95 masks) and hand sanitizers.
7. Inserted by the Essential Commodities (Amendment) Act, 2006, w.e.f. 12-2-2007.
The designation of a commodity as “essential” allows the government to regulate its production, supply, and distribution to prevent scarcity or price escalation. The essential commodities are not listed in the definition in sub-section (1) of this Section of the Act. Instead, the same are specified in the Schedule, which the Central Government is empowered to amend by Notification by adding any commodity to the Schedule or removing any commodity from the Schedule. This enables the Central Government to respond to exigencies that arise without having to issue an Ordinance to amend the definition in the Act.
Powers to control production, supply, distribution, etc., of essential commodities.
3. (1) If the Central Government is of opinion that it is necessary or expedient so to do for maintaining or increasing supplies of any essential commodity or for securing their equitable distribution and availability at fair prices, 8[or for securing any essential commodity for the defence of India or the ef cient conduct of military operations], it may, by order, provide for regulating or prohibiting the production, supply and distribution thereof and trade and commerce therein.
(1A) 9[***]
(2) Without prejudice to the generality of the powers conferred by sub-section (1), an order made thereunder may provide—
8. Inserted by the Essential Commodities (Second Amendment) Act, 1967, w.e.f. 30-12-1967.
9. Omitted by the Farm Laws Repeal Act, 2021, w.e.f. 30-11-2021. Prior to its omission, subsection (1A), as inserted by Essential Commodities (Amendment) Act, 2020, w.r.e.f. 5-6-2020 read as under:—
‘(1A) Notwithstanding anything contained in sub-section (1),
(
a) the supply of such food stuffs, including cereals, pulses, potato onions, edible oilseeds and oils, as the Central Government may, by noti cation in the Of cial Gazette, specify, may be regulated only under extraordinary circumstances which may include war, famine, extraordinary price rise and natural calamity of grave nature;
(
b) any action on imposing stock limit shall be based on price rise and an order for regulating stock limit of any agricultural produce may be issued under this Act only if there is — (i) hundred per cent increase in the retail price of horticulture produce; or (ii) fty per cent increase in the retail price of non-perishable agricultural foodstuffs, over the price prevailing immediately preceding twelve months, or average retail price of last five years, whichever is lower:
Provided that such order for regulating stock limit shall not apply to a processor or value chain participant of any agricultural produce, if the stock limit of such person does not exceed the overall ceiling of installed capacity of processing, or the demand for export in case of an exporter:
Provided further that nothing contained in this sub-section shall apply to any order, relating to the Public Distribution System or the Targeted Public Distribution System, made by the Government under this Act or under any other law for the time being in force.
Explanation.— The expression “value chain participant”, in relation to any agricultural product, means and includes a set of participants, from production of any agricultural produce in the field to final consumption, involving processing, packaging, storage, transport and distribution, where at each stage value is added to the product.’
ACT 1955 WITH PREVENTION OF BLACKMARKETING AND MAINTENANCE OF SUPPLIES OF ESSENTIAL COMMODITIES ACT 1980 – BARE ACT WITH SECTION
NOTES
AUTHOR : TAXMANN'S EDITORIAL BOARD
PUBLISHER : TAXMANN
DATE OF PUBLICATION : JANUARY 2025
EDITION : 2025 EDITION
ISBN NO : 9789364559744
NO. OF PAGES : 68
BINDING TYPE : PAPERBACK
DESCRIPTION
Essential Commodities Act 1955 with Prevention of Blackmarketing and Maintenance of Supplies of Essential Commodities Act 1980 [Bare Act with Section Notes] by Taxmann is a comprehensive legal reference to two pivotal statutes ensuring the availability, equitable distribution, and prevention of blackmarketing of essential commodities in India. It presents both Acts in a straightforward 'Bare Act' format, enriched with section-wise notes. These notes offer clarity, context, and, where relevant, references to judicial interpretations, making this book a reliable guide for understanding and applying these laws. This book is intended for the following audience:
� Legal Practitioners & Judges
� Compliance Officers & Legal Departments
� Government Officials & Policy Makers
� Law Students & Academicians
The Present Publication is the 2025 Edition, covering the amended and updated text of the Charitable and Religious Trusts Act [Act No. 10 of 1955] and Prevention of Blackmarketing and Maintenance of Supplies of Essential Commodities Act, with the following noteworthy features:
• [Authoritative Text] Complete, up-to-date text of both statutes, incorporating all relevant amendments up to 2025
• [Pre-amendment Provisions] Footnoted earlier provisions to clarify legal positions before amendments
• [Section Notes] Brief explanations of legislative objectives, key case laws, important definitions, and complex clauses
• [Easy Navigation] Marginal headings, clear typography, and subject indices for quick reference
• [Practical Insights] References to judicial judgments for contextual application of legal provisions
• [Supplementary Materials] Includes State Amendments for a holistic understanding of central and state-level rules
