The Hindu Business Line : Pressure mounts on Govt to withdraw ECA control order

The Centre is under increasing pressure from within to withdraw the Removal of (Licensing Requirements, Stock Limits and Movement Restrictions) on Specified Foodstuffs Order, 2002 under the Essential Commodities Act.

According to Mr Kanhaiyalal Gidwani, President of the Maharashtra Pradesh Congress Committee's Consumer Protection, Market, Industry & Commerce Department, the order was issued on February 15, 2002 at a time when the country was surplus in most agro-commodities and the Government had to provide export subsidies.

But now the situation has reversed, and the Government has been forced to allow duty-free imports of wheat, sugar and pulses and also give subsidy on imports for public distribution. Simultaneously, exports of these commodities have been banned.

All these measures will, however, not have any impact unless the 2002 order - removing licensing of dealers and restrictions on storage and movement of foodgrains, pulses, sugar, oilseeds, edible oil and vanaspati - is withdrawn, Mr Gidwani has said in a letter to the Congress President, Ms Sonia Gandhi.

He added that withdrawal of the order would enable State Governments to issue control orders to prevent hoarding and stocking of essential commodities.

They could do so previously under powers delegated as per Central orders dated October 25, 1972 and June 9, 1978.

The February 2002 order overrides these earlier orders and States are now required to seek the Centre's concurrence before issuing any control orders on specified commodities.

The Finance Minister, Mr P. Chidambaram, on Friday told the Lok Sabha that the Centre was willing to give immediate permission to any State Government seeking to issue control orders to fix stock limits and prevent hoarding of essential commodities.

Chidambaram's stance

He added that the previous NDA Government had repealed all control orders on February 15, 2002 and "this action should be revisited." Mr Chidambaram also urged States to play a "more proactive role" in moderating price rise.

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