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Context

• In a bid to cool down the domestic prices of Soya Meal, Government has notified an Order under the Essential Commodities Act to declare ‘Soya Meal’ as an Essential Commodities up to 30th June, 2022 by amending the Schedule of the Essential Commodities Act, 1955.

Essential Commodities Act: Definition of an ‘essential commodity’

• 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 governmentto 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.
• At present, the “Schedule” contains 9 commodities — drugs; fertilisers, whether inorganic, organic or mixed; foodstuffs, including edible oils; hank yarn made wholly from cotton; petroleum and petroleum products; raw jute and jute textiles; seeds of food-crops and seeds of fruits and vegetables, seeds of cattle fodder, jute seed, cotton seed; face masks; and hand sanitisers.
• The latest items added to this schedule are face masks and hand sanitisers, which were declared essential commodities with effect from March 13, 2020 in the wake of Covid-19 outbreak.
• Now, Soya Meal is the new addition.
• The essential Commodities Act 2020 removed cereals, pulses, oilseeds, edible oils, onion and potatoes from the list of essential commodities.
• By declaring a commodity as essential, the government can control the production, supply, and distribution of that commodity, and impose a stock limit.

Significance of the adding soya meal to the list

• Soyameal processors, millers and plant owners can now hold a maximum stock of 90 days production and they are required to declare the storage location.
• The decision would empower the Union Government and all States/UTs to regulate production, distribution etc. of Soya Meal and to smoothen the sale and availability of this item in the market.
• It will stop unfair market practices and enhance the availability for consumers like Poultry farm and Cattle feed manufacturers.

https://pib.gov.in/PressReleasePage.aspx?PRID=1784967

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