Industry & Economy
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Industry Associations
PHDCCI for abolition of Essential Commodities Act
Our Bureau
New Delhi
,
Jan. 10
THE PHD Chamber of Commerce and Industry (PHDCCI) has urged the Government to repeal the Essential Commodities Act (ECA) to strengthen the country's global competitiveness and to facilitate easy movement of commodities within the country. With the development of the futures and commodity markets such legislation has been rendered redundant, says the chamber.
The ECA was primarily formulated keeping in mind the then prevailing scarcity of resources, thereby necessitating regulation and control over production and distribution of essential commodities. But, according to the chamber, the Act has outlived its relevance in today's competitive environment when the economy is globalising and import procedures and policies are being simplified.
The chamber argues that today, when the food situation is comfortable, restrictions due to the ECA, such as licensing of dealers, limits on stock and control on movement are no longer required; these only hamper the growth of the agricultural sector and promotion of food processing industries in the country. The Act has also adversely impacted the food processing industry, which has not been able to go in for expansion and modernisation and has found itself incapable of utilising existing capacities and benefits of scale because of such restrictions.
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