29 Nov 2013

Removal of controls imposed under the Essential Commodities Act, 1955 and extension of the validity of Central Orders dated 20.12.2012 in respect of paddy and rice beyond 30.11.2013

The Union Cabinet today approved the proposal for extending the validity of the Central Order No. S.O.2968 (E) dated 20.12.2012 for a further period of one year that is from 1st December, 2013 to 30th November, 2014 in respect of rice and paddy. 

The main objective of Control Orders is to enable State Governments to continue to take effective de-hoarding operations under the Essential Commodities Act, 1955 by fixing stock limits/licensing requirements etc. in respect of these commodities especially in view of rising prices 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 for the 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 six 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 the Central Order dated 15.02.2002 in respect of commodities such as edible oils, edible oilseeds, rice, paddy and sugar. The validity of all these orders has been extended from time to time.

 At present stock limits are permitted for pulses, edible oils and edible oilseeds for a period upto 30.09.2014 and in respect of rice and paddy upto 30.11.2013. Wheat and sugar have been withdrawn from the ambit of these orders with effect from 01.04.2009 and 01.12.2011 respectively. 

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