The Indian government recently formed a committee to monitor the stock of tur dal, a long-duration pulses variety, held by importers, mills, stockists, and traders to prevent hoarding and speculation. Additionally, to facilitate easy imports, the government eliminated the 10% charge on tur imports from non-LDC countries. This levy posed procedural hurdles even for zero-duty imports from LDC nations.

Importing Tur dal in India

India signed a Memorandum of Understanding (MoU) with Mozambique in 2016 for the import of 0.2 MT of tur annually for five years when the retail prices of tur rose to Rs 200 a kg. This MoU was extended for another five years in September 2021. India meets about 10-12% of its domestic consumption through imports.

The Essential Commodities Act, 1955

The Essential Commodities Act, 1955 was enacted to address the problem of food scarcity during the period and to prevent the hoarding and black marketing of food items. The act provides for the addition or removal of commodities specified in the schedule. Face masks and sanitizers were added to the list in March 2020 during the COVID-19 outbreak.

The government has the power to control the production, supply, and distribution of the declared essential commodity and impose a stock limit. The withdrawal of the Essential Commodities (Amendment) Act 2020 allowed the government to remove some commodities from the list of essential items.

However, the act was repealed by the Centre following massive protests by farmers in many parts of India. The Essential Commodities Act does not have any punishment concerning black marketing or hoarding. The Economic Survey 2019-20 highlighted that government intervention under the ECA 1955 often distorted agricultural trade while being totally ineffective in curbing inflation. Such intervention does enable opportunities for rent-seeking and harassment.

Why In News

In response to rising concerns about food security, the government has taken steps to ensure a steady supply of tur dal by setting up a committee to monitor stockpiling activities among importers, mills, stockists, and traders.

MCQs about The Essential Commodities Act, 1955

  1. What is the purpose of the committee formed by the Indian government regarding tur dal?
    A. To facilitate easy imports of tur dal
    B. To ensure a steady supply of tur dal
    C. To regulate the price of tur dal
    D. To promote fair trade practices
    Correct Answer: B. To ensure a steady supply of tur dal. Explanation: The committee was formed to monitor the stock of tur dal held by importers, mills, stockists, and traders to prevent hoarding and speculation.
  2. The Indian government formed a committee to monitor the stock of which variety of pulses held by importers, mills, stockists, and traders to prevent hoarding and speculation?
    A. Tur dal
    B. Moong dal
    C. Chana dal
    D. Masoor dal
    Correct Answer: A. Tur dal
    Explanation: The Indian government formed a committee to monitor the stock of tur dal to prevent hoarding and speculation.
  3. To facilitate easy imports, the Indian government eliminated the 10% charge on tur imports from which countries?
    A. Non-LDC countries
    B. LDC countries
    C. Both LDC and non-LDC countries
    D. No charges were eliminated
    Correct Answer: A. Non-LDC countries
    Explanation: The Indian government eliminated the 10% charge on tur imports from non-LDC countries to facilitate easy imports.
  4. Which country did India sign a Memorandum of Understanding (MoU) with in 2016 for the import of tur annually for five years?
    A. Bangladesh
    B. Pakistan
    C. Mozambique
    D. Myanmar
    Correct Answer: C. Mozambique
    Explanation: India signed a Memorandum of Understanding (MoU) with Mozambique in 2016 for the import of 0.2 MT of tur annually for five years.

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