LexThe Essential Commodities Act, 1955
Maharashtra · state statute
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THE ESSENTIAL COMMODITIES ACT, 1955
_________
ARRANGEMENT OF SECTIONS
_________
SECTIONS
1. Short title and extent.
2. Definitions.
2A. Essential commodities declaration, etc.
3. Powers to control production, supply, distribution, etc., of essential commodities.
4. Imposition of duties on State Governments, etc.
5. Delegation of powers.
6. Effect of orders inconsistent with other enactments.
6A. Confiscation of essential commodity.
6B. Issue of show cause notice before confiscation of food grains, etc.
6C. Appeal.
6D. Award of confiscation not to interfere with other punishments.
6E. Bar of jurisdiction in certain cases.
7. Penalties.
7A. Power of Central Government to recover certain amounts as arrears of land revenue.
8. Attempts and abetment.
9. False statement.
10. Offences by companies.
10A. Offences to be cognizable.
10B. Power of court to publish name, place of business, etc., of companies convicted under
the Act.
10C. Presumption of culpable mental state.
11. Cognizance of offences.
12. Special provision regarding fine.
12A. Power to try summarily.
12B. Grant of injunction, etc., by civil courts.
13. Presumption as to orders.
14. Burden of proof in certain cases.
15. Protection of action taken under Act.
15A. Prosecution of public servants.
16. Repeals and savings.
THE SCHEDULE.
THE ESSENTIAL COMMODITIES ACT, 1955
ARRANGEMENT OF SECTIONS
SECTIONS
1. Short title and extent.
2. Definitions.
2A. Essential commodities declaration, etc.
3. Powers to control production, supply, distribution, etc., of essential commodities.
4. Imposition of duties on State Governments, etc.
5. Delegation of powers.
6. Effect of orders inconsistent with other enactments.
6A. Confiscation of essential commodity.
6B. Issue of show cause notice before confiscation of food grains, etc.
6C. Appeal.
6D. Award of confiscation not to interfere with other punishments.
6E. Bar of jurisdiction in certain cases.
7. Penalties.
7A. Power of Central Government to recover certain amounts as arrears of land revenue.
8. Attempts and abetment.
9. False statement.
10. Offences by companies.
10A. Offences to be cognizable.
10B. Power of court to publish name, place of business, etc., of companies convicted under
the Act.
10C. Presumption of culpable mental state.
11. Cognizance of offences.
12. Special provision regarding fine.
12A. Power to try summarily.
12B. Grant of injunction, etc., by civil courts.
13. Presumption as to orders.
14. Burden of proof in certain cases.
15. Protection of action taken under Act.
15A. Prosecution of public servants.
16. Repeals and savings.
THE SCHEDULE.
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THE ESSENTIAL COMMODITIES ACT, 19551
ACT NO. 10 OF 1955
[1st April, 1955.]
An Act to provide, in the interest of the general public, for the control of the production,
supply and distribution of, and trade and commerce, in certain commodities.
BE it enacted by Parliament in the Sixth Year of the Republic of India as follows:―
1. Short title and extent.―(1) This Act may be called the Essential Commodities Act, 1955.
(2) It extends to the whole of India 2***.
2. Definitions.―In this Act, unless the context otherwise requires,―
3[(ia) “Collector” includes an Additional Collector and such other officer, not below the rank
of Sub -Divisional Officer, as may be authorised by the Collector to perform the functions and
exercise the powers of the Collector under this Act;]
4* * * * *
(b) “food-crops” include crops of sugarcane;
(c) “notified order” means an order notified in the Official Gazette;
5[(cc) “order” includes a direction issued thereunder;]
6[(d) “State Government,” in relation to a Union territory, means the administrator thereof;]
5[(e) “sugar” means―
(i) any form of sugar containing more than ninety per cent, of sucrose, including sugar
candy;
(ii) khandsari sugar or bura sugar or crushed sugar or any sugar in crystalline or powdered
form; or
(iii) sugar in process in vacuum pan sugar factory or raw sugar produced therein.]
STATE AMENDMENT
Maharashtra
Amendment of section 2 of Act 10 of 1955. --In section 2 of the Essential Commodities Act,
1955 (10 of 1955), in its application to the State of Maharashtra,--
(a) for clause (ia), the following clause shall be substituted, namely:--
"(ia) "Collector" in any Rationing Area means the Controller of Rationing designated for
that area and includes the Deputy or Assistant Controller or Rationing; and elsewhere, the
Collector of the District and includes Additional, Deputy or Assistant Collector, Sub -
Divisional Officer and District Supply Officer within his respective jurisdiction;";
(b) clause (ai) shall be deleted.
[Vide Maharashtra Act 6 of 2003, s. 2]
1. Extended to Goa, Daman and Diu with modification by Regulation 12 of 1962, section 3 and Schedule, to Dadra and
Nagar Hav eli by Regulation 6 of 1963, section 3 and Schedule I and to Lakshadweep and Amindivi Islands by
Regulation 8 of 1965, section 3 and Schedule, to the State of Sikkim vide S.O. 28(E), dated 7th January, 1976
(w.e.f. 7-1-1976).
This Act has been amended in Maharashtra by Maha rashtra Act 71 of 1976, in Orissa by Orissa Act, 8 of 1976, in
Uttar Pradesh by Uttar Pradesh Acts 9 of 1974, 18 of 1975, 39 of 1975 and 16 of 1978.
2. The words “except the State of Jammu and Kashmir” omitted by Act 25 of 1968, s. 2 and the Schedule
(w.e.f. 15-8-1968).
3. Ins. by Act 92 of 1976, s. 2 (w.e.f. 2-9-1976).
4. Clause (c) omitted by Act 54 of 2006, s. 2 (w.e.f. 12-2-2007).
5. Ins. by Act 36 of 1967, s. 2 (w.e.f. 30-12-1967).
6. Subs. by the Adaptation of Laws (No. 3) Order, 1956, for clause (d).
THE ESSENTIAL COMMODITIES ACT, 1955!
ACT NO. 10 OF 1955
[1st April, 1955.]
An Act to provide, in the interest of the general public, for the control of the production,
supply and distribution of, and trade and commerce, in certain commodities.
BE it enacted by Parliament in the Sixth Year of the Republic of India as follows:—
1. Short title and extent.—(/) This Act may be called the Essential Commodities Act, 1955.
(2) It extends to the whole of India ****.
2. Definitions.—In this Act, unless the context otherwise requires,—
3[(ia) “Collector” includes an Additional Collector and such other officer, not below the rank
of Sub-Divisional Officer, as may be authorised by the Collector to perform the functions and
exercise the powers of the Collector under this Act;]
4x * * * *
(b) “food-crops” include crops of sugarcane;
(c) “notified order” means an order notified in the Official Gazette;
*[(cc) “order” includes a direction issued thereunder;]
®[(d) “State Government,” in relation to a Union territory, means the administrator thereof; ]
*[(e) “sugar” means—
(2) any form of sugar containing more than ninety per cent, of sucrose, including sugar
candy;
(ii) khandsari sugar or bura sugar or crushed sugar or any sugar in crystalline or powdered
form; or
(iii) Sugar in process in vacuum pan sugar factory or raw sugar produced therein. ]
STATE AMENDMENT
Maharashtra
Amendment of section 2 of Act 10 of 1955.--In section 2 of the Essential Commodities Act,
1955 (10 of 1955), in its application to the State of Maharashtra,--
(a) for clause (ia), the following clause shall be substituted, namely:--
"(ia) "Collector" in any Rationing Area means the Controller of Rationing designated for
that area and includes the Deputy or Assistant Controller or Rationing; and elsewhere, the
Collector of the District and includes Additional, Deputy or Assistant Collector, Sub-
Divisional Officer and District Supply Officer within his respective jurisdiction;";
(b) clause (ai) shall be deleted.
[Vide Maharashtra Act 6 of 2003, s. 2]
1. Extended to Goa, Daman and Diu with modification by Regulation 12 of 1962, section 3 and Schedule, to Dadra and
Nagar Haveli by Regulation 6 of 1963, section 3 and Schedule I and to Lakshadweep and Amindivi Islands by
Regulation 8 of 1965, section 3 and Schedule, to the State of Sikkim vide S.O. 28(E), dated 7th January, 1976
(w.e.f. 7-1-1976).
This Act has been amended in Maharashtra by Maharashtra Act 71 of 1976, in Orissa by Orissa Act, 8 of 1976, in
Uttar Pradesh by Uttar Pradesh Acts 9 of 1974, 18 of 1975, 39 of 1975 and 16 of 1978.
2.The words “except the State of Jammu and Kashmir” omitted by Act 25 of 1968, s. 2 and the Schedule
(w.e.f. 15-8-1968).
3. Ins. by Act 92 of 1976, s. 2 (w.e.f. 2-9-1976).
4. Clause (c) omitted by Act 54 of 2006, s. 2 (w.e.f. 12-2-2007).
5. Ins. by Act 36 of 1967, s. 2 (w.e.f. 30-12-1967).
6. Subs. by the Adaptation of Laws (No. 3) Order, 1956, for clause (d).
2
3
Uttar Pradesh
Amendment of s ection 2 of Act X of 1955. —In section 2 of the Essential Commodities Act,
1955, as amended in its application to Uttar Pradesh, hereinafter called the principal Act, before
clause (a), the following clause shall be inserted namely:--
“(aa) ‘Collector’ includes such officer not below the rank of an Assistant Collector of the first
class as may be authorized by the Collector to exercise the powers conferred on him by or under
the provisions of this Act;”
[Vide Uttar Pradesh Act 18 of 1975, s. 3]
Amendment of section 2 of Act 10 of 1955 .—In section 2 of the Essential Commodities act,
1955 (hereinafter referred to as the principal Act). Clause (aa) as inserted by the Essential
Commodities (Uttar Pradesh Amendment) Act, 1975, hereinafter referred to as the Uttar Pradesh
Amendment, shall stand omitted with effect from September 2, 1976, the date of the commencement
of the Essential Commodities (Amendment) Act, 1976, hereinafter referred to as the Central
(Amendment).
[Vide Uttar Pradesh Act XVI of 1978, s. 2]
1[2A. Essential commodities declaration , etc.―(1) For the purposes of this Act, “essential
commodity” means a commodity specified in the Schedule.
(2) Subject to the provisions of sub -section (4), the Central Government may, if it is satisfied that
it is necessary so to do in the public interest and for reasons to be specified in the notification
published in the Official Gazette, amend the Schedule so as to―
(a) add a commodity to the said Schedule;
(b) remove any commodity from the said Schedule,
in consultation with the State Governments.
(3) Any n otification issued under sub -section ( 2) may also direct that an entry shall be made
against such commodity in the said Schedule declaring that such commodity shall be deemed to be an
essential commodity for such period not exceeding six months to be specified in the notification:
Provided that the Central Government may, in the public interest and for reasons to be specified,
by notification in the Official Gazette, extend such period beyond the said six months.
(4) The Central Government may exercise its powers under sub -section ( 2) in respect of the
commodity to which Parliament has power to make laws by virtue of Entry 33 List III in the Seventh
Schedule to the Constitution.
(5) Every notification issued under sub -section ( 2) shall be laid, as soon as ma y be after it is
issued, before both Houses of Parliament.]
3. Powers to control production, supply, distribution, etc., of essential commodities .―(1) If
the Central Government is of opinion that it is necessary or expedient so to do for maintaining or
increasing supplies of any essential commodity or for securing their equitable distribution and
availability at fair prices, 2[or for securing any essential commodity for the defence of India or the
efficient conduct of military operations], it may, by order, provide for regulating or prohibiting the
production, supply and distribution thereof and trade and commerce therein.
3* * * * *
1. Ins. by Act 54 of 2006, s. 3 (w.e.f. 12-2-2007).
2. Ins. by Act 36 of 1967, s. 3 (w.e.f. 30-12-1967).
3. Sub-section (1A) omitted by Act 40 of 2021, s. 3 (w.e.f. 30-11-2021).
Uttar Pradesh
Amendment of section 2 of Act X of 1955.—In section 2 of the Essential Commodities Act,
1955, as amended in its application to Uttar Pradesh, hereinafter called the principal Act, before
clause (a), the following clause shall be inserted namely:--
“(aa) ‘Collector’ includes such officer not below the rank of an Assistant Collector of the first
class as may be authorized by the Collector to exercise the powers conferred on him by or under
the provisions of this Act;”
[Vide Uttar Pradesh Act 18 of 1975, s. 3]
Amendment of section 2 of Act 10 of 1955.—In section 2 of the Essential Commodities act,
1955 (hereinafter referred to as the principal Act). Clause (aa) as inserted by the Essential
Commodities (Uttar Pradesh Amendment) Act, 1975, hereinafter referred to as the Uttar Pradesh
Amendment, shall stand omitted with effect from September 2, 1976, the date of the commencement
of the Essential Commodities (Amendment) Act, 1976, hereinafter referred to as the Central
(Amendment).
[Vide Uttar Pradesh Act XVI of 1978, s. 2]
'12A. Essential commodities declaration, etc.—(/) For the purposes of this Act, “essential
commodity” means a commodity specified in the Schedule.
(2) Subject to the provisions of sub-section (4), the Central Government may, if it is satisfied that
it is necessary so to do in the public interest and for reasons to be specified in the notification
published in the Official Gazette, amend the Schedule so as to—
(a) add a commodity to the said Schedule;
(5) remove any commodity from the said Schedule,
in consultation with the State Governments.
(3) Any notification issued under sub-section (2) may also direct that an entry shall be made
against such commodity in the said Schedule declaring that such commodity shall be deemed to be an
essential commodity for such period not exceeding six months to be specified in the notification:
Provided that the Central Government may, in the public interest and for reasons to be specified,
by notification in the Official Gazette, extend such period beyond the said six months.
(4) The Central Government may exercise its powers under sub-section (2) in respect of the
commodity to which Parliament has power to make laws by virtue of Entry 33 List III in the Seventh
Schedule to the Constitution.
(5) Every notification issued under sub-section (2) shall be laid, as soon as may be after it is
issued, before both Houses of Parliament. ]
3. Powers to control production, supply, distribution, etc., of essential commodities.—(/) If
the Central Government is of opinion that it is necessary or expedient so to do for maintaining or
increasing supplies of any essential commodity or for securing their equitable distribution and
availability at fair prices, *[or for securing any essential commodity for the defence of India or the
efficient conduct of military operations], it may, by order, provide for regulating or prohibiting the
production, supply and distribution thereof and trade and commerce therein.
3x * * * *
1. Ins. by Act 54 of 2006, s. 3 (w.e.f. 12-2-2007).
2. Ins. by Act 36 of 1967, s. 3 (w.e.f. 30-12-1967).
3. Sub-section (/A) omitted by Act 40 of 2021, s. 3 (w.e.f. 30-11-2021).
4
(2) Without prejudice to the generality of the powers conferred by sub -section (1), an order made
thereunder may provide―
(a) for regulating by licences, permits or otherwise the production or manufacture of
any essential commodity;
(b) for bringing under cultivation any waste or arable land, whether appurtenant to a building
or not, for the growing thereon of food -crops ge nerally or of specified food -crops, and for
otherwise maintaining or increasing the cultivation of food -crops generally, or of specified
food-crops.
(c) for controlling the price at which any essential commodity may be bought or sold;
(d) for regula ting by licences, permits or otherwise the storage, transport, distribution,
disposal, acquisition, use or consumption of, any essential commodity;
(e) for prohibiting the withholding from sale of any essential commodity ordinarily kept for
sale;
1[(f) for requiring any person holding in stock, or engaged in the production, or in the business
of buying or selling, of any essential commodity,―
(a) to sell the whole or a specified part of the quantity held in stock or produced or
received by him or,
(b) in the case of any such commodity which is likely to be produced or received by him,
to sell the whole or a specified part of such commodity when produced or received by him,
to the Central Government or a State Government or to an officer or agent of such Government or to a
Corporation owned or controlled by such Government or to such other person or class of persons and
in such circumstances as may be specified in the order.
Explanation 1.―An order made under this clause in relation to food grains, edible oilseeds or
edible oils, may, having regard to the estimated production, in the concerned area, of such foodgrains,
edible oilseeds and edible oils, fix the quantity to be sold by the prod ucers in such area and may also
fix, or provide for the fixation of, such quantity on a graded basis, having regard to the aggregate of
the area held by, or under the cultivation of, the producers.
Explanation 2.―For the purpose of this clause, “production” with its grammatical variations and
cognate expressions includes manufacture of edible oils and sugar;]
(g) for regulating or prohibiting any class of commercial or financial transactions relating to
foodstuffs 2*** which, in the opinion of the authority making the order, are, or, if unregulated, are
likely to be, detrimental to the public interest;
(h) for collecting any information or statistics with a view to regulating or prohibiting any of
the aforesaid matters;
(i) for requiring persons engaged in t he production, supply or distribution of or trade and
commerce in, any essential commodity to maintain and produce for inspection such books,
accounts and records relating to their business and to furnish such information relating thereto, as
may be specified in the order;
1. Subs. by Act 92 of 1976, s. 3, for clause (f).
2. The words “or cotton textiles” omitted by Act 54 of 2006, s. 4 (w.e.f. 12-2-2007).
(2) Without prejudice to the generality of the powers conferred by sub-section (/), an order made
thereunder may provide—
(a) for regulating by licences, permits or otherwise the production or manufacture of
any essential commodity;
(5) for bringing under cultivation any waste or arable land, whether appurtenant to a building
or not, for the growing thereon of food-crops generally or of specified food-crops, and for
otherwise maintaining or increasing the cultivation of food-crops generally, or of specified
food-crops.
(c) for controlling the price at which any essential commodity may be bought or sold;
(d) for regulating by licences, permits or otherwise the storage, transport, distribution,
disposal, acquisition, use or consumption of, any essential commodity;
(e) for prohibiting the withholding from sale of any essential commodity ordinarily kept for
sale;
'I(f) for requiring any person holding in stock, or engaged in the production, or in the business
of buying or selling, of any essential commodity,—
(a) to sell the whole or a specified part of the quantity held in stock or produced or
received by him or,
(5) in the case of any such commodity which is likely to be produced or received by him,
to sell the whole or a specified part of such commodity when produced or received by him,
to the Central Government or a State Government or to an officer or agent of such Government or to a
Corporation owned or controlled by such Government or to such other person or class of persons and
in such circumstances as may be specified in the order.
Explanation 1.—An order made under this clause in relation to foodgrains, edible oilseeds or
edible oils, may, having regard to the estimated production, in the concerned area, of such foodgrains,
edible oilseeds and edible oils, fix the quantity to be sold by the producers in such area and may also
fix, or provide for the fixation of, such quantity on a graded basis, having regard to the aggregate of
the area held by, or under the cultivation of, the producers.
Explanation 2.—For the purpose of this clause, “production” with its grammatical variations and
cognate expressions includes manufacture of edible oils and sugar; ]
(g) for regulating or prohibiting any class of commercial or financial transactions relating to
foodstuffs **** which, in the opinion of the authority making the order, are, or, if unregulated, are
likely to be, detrimental to the public interest;
(A) for collecting any information or statistics with a view to regulating or prohibiting any of
the aforesaid matters;
(i) for requiring persons engaged in the production, supply or distribution of or trade and
commerce in, any essential commodity to maintain and produce for inspection such books,
accounts and records relating to their business and to furnish such information relating thereto, as
may be specified in the order;
1. Subs. by Act 92 of 1976, s. 3, for clause (f).
2. The words “or cotton textiles” omitted by Act 54 of 2006, s. 4 (w.e.f. 12-2-2007).
4
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1[(ii) for the grant or issue of licences, permits or other documents, the charging of fees
therefore, the deposit of such sum, if any, as may be specified in the order as security for the due
performance of the conditions of any such lic ence, permit or other document, the forfeiture of the
sum so deposited or any part thereof for contravention of any such conditions, and the
adjudication of such forfeiture by such authority as may be specified in the order;]
2[(j) for any incidental and supplementary matters, including, in particular, the entry, search or
examination of premises, aircraft, vessels, vehicles or other conveyances and animals, and the
seizure by a person authorised to make such entry, search or examination,—
(i) of any articl es in respect of which such person has reason to believe that a
contravention of the order has been, is being, or is about to be committed and any packages,
coverings or receptacles in which such articles are found;
(ii) of any aircraft, vessel, vehicle or other conveyance or animal used in carrying such
articles, if such person has reason to believe that such aircraft, vessel, vehicle or other
conveyance or animal is liable to be forfeited under the provisions of this Act;
3[(iii) of any books of accounts and documents which in the opinion of such person, may
be useful for, or relevant to, any proceeding under this Act and the person from whose
custody such books of accounts or documents are seized shall be entitled to make copies
thereof or to take extract s therefrom in the presence of an officer having the custody of such
books of accounts or documents.]]
(3) Where any person sells any essential commodity in compliance with an order made with
reference to clause ( f) of sub -section (2), there shall be paid to him the price therefore as hereinafter
provided:―
(a) where the price can, consistently with the controlled price, if any, fixed under this section,
be agreed upon, the agreed price;
(b) where no such agreement can be reached, the price calculated with reference to the
controlled price, if any;
(c) where neither clause ( a) nor clause ( b) applies, the price calculated at the market rate
prevailing in the locality at the date of sale.
4[(3A) (i) If the Central Government is of opinion that it is necessary so to do for controlling the
rise in prices or preventing the hoarding, of any food -stuff in any locality, it may, by notification in
the Official Gazette, direct that notwithstanding anything contained in sub -section ( 3), the price at
which the food-stuff shall be sold in the locality in compliance with an order made with reference to
clause (f) of sub-section (2) shall be regulated in accordance with the provisions of this sub-section.
(ii) Any notification issued under this sub -section shall remain in fo rce for such period not
exceeding three months as may be specified in the notification.
(iii) Where, after the issue of a notification under this sub -section, any person sells foodstuff of
the kind specified therein and in the locality so specified, in com pliance with an order made with
reference to clause (f) of sub-section (2), there shall be paid to the seller as the price therefor―
(a) where the price can, consistently with the controlled price of the foodstuff, if any, fixed
under this section, be agreed upon, the agreed price;
(b) where no such agreement can be reached, the price calculated with reference to the
controlled price, if any;
1. Ins. by Act 17 of 1961, s. 2.
2. Subs. by Act 66 of 1971, s. 2, for clause (j) (w.e.f. 23-12-1971).
3. Subs. by Act 92 of 1976, s. 3, for sub-clause (iii).
4. Ins. by Act 13 of 1957, s. 2 (w.e.f. 4-6-1957).
‘\(@ii) for the grant or issue of licences, permits or other documents, the charging of fees
therefore, the deposit of such sum, if any, as may be specified in the order as security for the due
performance of the conditions of any such licence, permit or other document, the forfeiture of the
sum so deposited or any part thereof for contravention of any such conditions, and the
adjudication of such forfeiture by such authority as may be specified in the order;]
*[(/) for any incidental and supplementary matters, including, in particular, the entry, search or
examination of premises, aircraft, vessels, vehicles or other conveyances and animals, and the
seizure by a person authorised to make such entry, search or examination,—
(i) of any articles in respect of which such person has reason to believe that a
contravention of the order has been, is being, or is about to be committed and any packages,
coverings or receptacles in which such articles are found;
(ii) of any aircraft, vessel, vehicle or other conveyance or animal used in carrying such
articles, if such person has reason to believe that such aircraft, vessel, vehicle or other
conveyance or animal is liable to be forfeited under the provisions of this Act;
3[(iii) of any books of accounts and documents which in the opinion of such person, may
be useful for, or relevant to, any proceeding under this Act and the person from whose
custody such books of accounts or documents are seized shall be entitled to make copies
thereof or to take extracts therefrom in the presence of an officer having the custody of such
books of accounts or documents. |]
(3) Where any person sells any essential commodity in compliance with an order made with
reference to clause (f) of sub-section (2), there shall be paid to him the price therefore as hereinafter
provided:—
(a) where the price can, consistently with the controlled price, if any, fixed under this section,
be agreed upon, the agreed price;
(5) where no such agreement can be reached, the price calculated with reference to the
controlled price, if any;
(c) where neither clause (a) nor clause (6) applies, the price calculated at the market rate
prevailing in the locality at the date of sale.
“{(3A) (i) If the Central Government is of opinion that it is necessary so to do for controlling the
rise in prices or preventing the hoarding, of any food-stuff in any locality, it may, by notification in
the Official Gazette, direct that notwithstanding anything contained in sub-section (3), the price at
which the food-stuff shall be sold in the locality in compliance with an order made with reference to
clause (f) of sub-section (2) shall be regulated in accordance with the provisions of this sub-section.
(ii) Any notification issued under this sub-section shall remain in force for such period not
exceeding three months as may be specified in the notification.
(iii) Where, after the issue of a notification under this sub-section, any person sells foodstuff of
the kind specified therein and in the locality so specified, in compliance with an order made with
reference to clause (f) of sub-section (2), there shall be paid to the seller as the price therefor—
(a) where the price can, consistently with the controlled price of the foodstuff, if any, fixed
under this section, be agreed upon, the agreed price;
(5) where no such agreement can be reached, the price calculated with reference to the
controlled price, if any;
1. Ins. by Act 17 of 1961, s. 2.
2. Subs. by Act 66 of 1971, s. 2, for clause (/) (w.e.f. 23-12-1971).
3. Subs. by Act 92 of 1976, s. 3, for sub-clause (iii).
4. Ins. by Act 13 of 1957, s. 2 (w.e.f. 4-6-1957).
6
(c) where neither clause ( a) nor clause ( b) applies, the price calculated with reference to
average market rate prev ailing in the locality during the period of three months immediately
preceding the date of the notification.
(iv) For the purposes of sub -clause ( c) of clause ( iii), the average market rate prevailing in the
locality shall be determined by an officer autho rised by the Central Government in this behalf, with
reference to the prevailing market rates for which published figures are available in respect of that
locality or of a neighbouring locality; and the average market rate so determined shall be final and
shall not be called in question in any court.]
1[(3B) Where any person is required, by an order made with reference to clause ( f) of sub-section
(2), to sell to the Central Government or a State Government or to an officer or agent of such
Government or to a Corporation owned or controlled by such Governmen t, any grade or variety of
foodgrains, edible oilseeds or edible oils in relation to which no notification has been issued under
sub-section (3A), or such notification having been issued, has ceased to be in force, there shall be paid
to the person concerned, notwithstanding anything to the contrary contained in sub -section ( 3), an
amount equal to the procurement price of such food grains, edible oilseeds or edible oils, as the case
may be, specified by the State Government, with the previous approval of the Central Government
having regard to―
(a) the controlled price, if any, fixed under this section or by or under any other law for the
time being in force for such grade or variety of foodgrains, edible oilseeds or edible oils;
(b) the general crop prospects;
(c) the need for making such gra de or variety of food grains, edible oilseeds or edible oils
available at reasonable prices to the consumers, particularly the vulnerable sections of the
consumers; and
(d) the recommendations, if any, of the Agricultural Prices Commission with regard to the
price of the concerned grade or variety of foodgrains, edible oilseeds or edible oils.]
2[(3C) Where any producer is required by an order made with reference to clause (f) of
sub-section (2) to sell any kind of sugar (whether to the Central Government or to a State Government
or to an officer or agent of such Government or to any other person or class of persons) whether a
notification was issued under sub-section (3A) or otherwise, then, notwithstanding anything contained
in sub-section (3), there shall be paid to that producer only such amount as the Central Government
may, by order, determine, having regard to—
(a) the fair and remunerative price, if any, determined by the Central Government as the price
of sugarcane to be taken into account under this section;
(b) the manufacturing cost of sugar;
(c) the duty or tax, if any, paid or payable thereon; and
(d) a reasonable return on the capital employed in the business of manufacturing of sugar:
Provided that the Central Government may determine different prices, from time to time, for
different areas or factories or varieties of sugar:
Provided further that where any provisional determination of price of levy sugar has been done in
respect of sugar produced up to the sugar season 2008 -2009, the final determination of price may be
undertaken in accordance with the provisions of this sub-section as it stood immediately before the 1st
day of October, 2009.
Explanation 3[I].— For the purposes of this sub-section,—
1. Subs. by Act 92 of 1976, s. 3, for sub-section (3B).
2. Subs. by Act 36 of 2009, s. 2, for sub-section (3C) and the Explanations (w.e.f. 1-10-2009).
3. The existing Explanation numbered as Explanation I by Act 35 of 2010, s. 2 (w.e.f. 1-10-2009).
(c) where neither clause (a) nor clause (b) applies, the price calculated with reference to
average market rate prevailing in the locality during the period of three months immediately
preceding the date of the notification.
(iv) For the purposes of sub-clause (c) of clause (iii), the average market rate prevailing in the
locality shall be determined by an officer authorised by the Central Government in this behalf, with
reference to the prevailing market rates for which published figures are available in respect of that
locality or of a neighbouring locality; and the average market rate so determined shall be final and
shall not be called in question in any court.]
'[(3B) Where any person is required, by an order made with reference to clause (f) of sub-section
(2), to sell to the Central Government or a State Government or to an officer or agent of such
Government or to a Corporation owned or controlled by such Government, any grade or variety of
foodgrains, edible oilseeds or edible oils in relation to which no notification has been issued under
sub-section (3A), or such notification having been issued, has ceased to be in force, there shall be paid
to the person concerned, notwithstanding anything to the contrary contained in sub-section (3), an
amount equal to the procurement price of such foodgrains, edible oilseeds or edible oils, as the case
may be, specified by the State Government, with the previous approval of the Central Government
having regard to—
(a) the controlled price, if any, fixed under this section or by or under any other law for the
time being in force for such grade or variety of foodgrains, edible oilseeds or edible oils;
(6) the general crop prospects;
(c) the need for making such grade or variety of foodgrains, edible oilseeds or edible oils
available at reasonable prices to the consumers, particularly the vulnerable sections of the
consumers; and
(d) the recommendations, if any, of the Agricultural Prices Commission with regard to the
price of the concerned grade or variety of foodgrains, edible oilseeds or edible oils. ]
*[(3C) Where any producer is required by an order made with reference to clause (f) of
sub-section (2) to sell any kind of sugar (whether to the Central Government or to a State Government
or to an officer or agent of such Government or to any other person or class of persons) whether a
notification was issued under sub-section (3A) or otherwise, then, notwithstanding anything contained
in sub-section (3), there shall be paid to that producer only such amount as the Central Government
may, by order, determine, having regard to—
(a) the fair and remunerative price, if any, determined by the Central Government as the price
of sugarcane to be taken into account under this section;
(5) the manufacturing cost of sugar;
(c) the duty or tax, if any, paid or payable thereon; and
(d) a reasonable return on the capital employed in the business of manufacturing of sugar:
Provided that the Central Government may determine different prices, from time to time, for
different areas or factories or varieties of sugar:
Provided further that where any provisional determination of price of levy sugar has been done in
respect of sugar produced up to the sugar season 2008-2009, the final determination of price may be
undertaken in accordance with the provisions of this sub-section as it stood immediately before the Ist
day of October, 2009.
Explanation >[I|.— For the purposes of this sub-section,—
1. Subs. by Act 92 of 1976, s. 3, for sub-section (3B).
2. Subs. by Act 36 of 2009, s. 2, for sub-section (3C) and the Explanations (w.e.f. 1-10-2009).
3. The existing Explanation numbered as Explanation I by Act 35 of 2010, s. 2 (w.e.f. 1-10-2009).
6
7
(a) “fair and remunerative price ” means the price of sugarcane determined by the Central
Government under this section;
(b) “manufacturing cost of sugar” means the net cost incurred on conversion of sugarcane into
sugar including net cost of transportation of s ugarcane from the purchase cent re to the factory
gate, to the extent it is borne by the producer;
(c) “producer” means a person carrying on the business of manufacturing sugar;
(d) “reasonable return on the cap ital employed ” means the return on net fixed assets plus
working capital of a producer in relation to manufacturing of sugar including procurement of
sugarcane at a fair and remunerative price determined under this section.]
1[Explanation II.―For the removal of doubts, it is hereby declared that the expressions “fair and
remunerative price” referred to in clause ( a), “manufacturing cost of sugar ” referred to in clause ( b)
and “reasonable return on the capital employed” referred to in clause ( d), of this sub -section do not
include the price paid or payable under any order or any enactment of any State Government and any
price agreed to between the producer and the grower or a sugarcane growers' co-operative society.]
2[(3D) The Central Governmen t may direct that no producer, importer or exporter shall sell or
otherwise dispose of or deliver any kind of sugar or remove any kind of sugar from the bonded go
downs of the factory in which it is produced, whether such godowns are situated within the pr emises
of the factory or outside or from the warehouses of the importers or exporters, as the case may be
except under and in accordance with the direction issued by the Government:
Provided that this sub -section shall not affect the pledging of such sugar by any producer or
importer in favour of any scheduled bank as defined in clause ( e) of section 2 of the Reserve Bank of
India Act, 1934 (2 of 1934) or any corresponding new bank constituted under section 3 of the
Banking Companies (Acquisition and Transf er of Undertakings) Act, 1970 (5 of 1970), so, however,
that no such hank shall sell the sugar pledged to it except under and in accordance with a direction
issued by the Central Government.
(3E) The Central Government may, from time to time, by general or special order, direct any
producer or importer or exporter or recognised dealer or any class of producers or recognised dealers,
to take action regarding production, maintenance of stocks, storage, sale, grading, packing, marking,
weighment, disposal, del ivery and distribution of any kind of sugar in the manner specified in the
direction.
Explanation.―For the purposes of sub-section (3D) and this sub-section,―
(a) “producer” means a person carrying on the business of manufacturing sugar;
(b) “recognised de aler'' means a person carrying on the business of purchasing, selling or
distributing sugar;
(c) “sugar” includes plantation whi te suga r, raw sugar and refined sugar, whether
indigenously produced or imported.]
(4) If the Central Government is of opinion t hat it is necessary so to do for maint aining or
increasing the production and supply of an essential commodity, it may, by order, authorize any
person (hereinafter referred to as an authorized controller) to exercise, with respect to the whole or
any part of any such undertaking engaged in the production and supply of the commodity as may be
specified in the order such functions of control as may be provided therein and so long as such order
is in force with respect to any undertaking or part thereof,―
(a) the authorized controller shall exercise his functions in accordance with any instructions
given to him by the Central Government, so, however, that he shall not have any power to give
any direction inconsistent with the provisions of any enactment or any instrument determining the
functions of the persons in -charge of the management of the undertaking, except in so far as may
be specifically provided by the order; and
1. Explanation II ins. by Act 35 of 2010, s. 2 (w.e.f. 1-10-2009).
2. Ins. by Act 37 of 2003, s. 2 (w.e.f.14-6-2009).
(a) “fair and remunerative price” means the price of sugarcane determined by the Central
Government under this section;
(5) “manufacturing cost of sugar” means the net cost incurred on conversion of sugarcane into
sugar including net cost of transportation of sugarcane from the purchase centre to the factory
gate, to the extent it is borne by the producer;
(c) “producer” means a person carrying on the business of manufacturing sugar;
(d) “reasonable return on the capital employed” means the return on net fixed assets plus
working capital of a producer in relation to manufacturing of sugar including procurement of
sugarcane at a fair and remunerative price determined under this section. ]
'[Explanation IT.—For the removal of doubts, it is hereby declared that the expressions “fair and
remunerative price” referred to in clause (a), “manufacturing cost of sugar” referred to in clause (b)
and “reasonable return on the capital employed” referred to in clause (d), of this sub-section do not
include the price paid or payable under any order or any enactment of any State Government and any
price agreed to between the producer and the grower or a sugarcane growers' co-operative society. |
*[(3D) The Central Government may direct that no producer, importer or exporter shall sell or
otherwise dispose of or deliver any kind of sugar or remove any kind of sugar from the bonded go
downs of the factory in which it is produced, whether such godowns are situated within the premises
of the factory or outside or from the warehouses of the importers or exporters, as the case may be
except under and in accordance with the direction issued by the Government:
Provided that this sub-section shall not affect the pledging of such sugar by any producer or
importer in favour of any scheduled bank as defined in clause (e) of section 2 of the Reserve Bank of
India Act, 1934 (2 of 1934) or any corresponding new bank constituted under section 3 of the
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), so, however,
that no such hank shall sell the sugar pledged to it except under and in accordance with a direction
issued by the Central Government.
(3E) The Central Government may, from time to time, by general or special order, direct any
producer or importer or exporter or recognised dealer or any class of producers or recognised dealers,
to take action regarding production, maintenance of stocks, storage, sale, grading, packing, marking,
weighment, disposal, delivery and distribution of any kind of sugar in the manner specified in the
direction.
Explanation.—For the purposes of sub-section (3D) and this sub-section,—
(a) “producer” means a person carrying on the business of manufacturing sugar;
(6) “recognised dealer" means a person carrying on the business of purchasing, selling or
distributing sugar;
(c) “sugar” includes plantation white sugar, raw sugar and refined sugar, whether
indigenously produced or imported. ]
(4) If the Central Government is of opinion that it is necessary so to do for maintaining or
increasing the production and supply of an essential commodity, it may, by order, authorize any
person (hereinafter referred to as an authorized controller) to exercise, with respect to the whole or
any part of any such undertaking engaged in the production and supply of the commodity as may be
specified in the order such functions of control as may be provided therein and so long as such order
is in force with respect to any undertaking or part thereof,—
(a) the authorized controller shall exercise his functions in accordance with any instructions
given to him by the Central Government, so, however, that he shall not have any power to give
any direction inconsistent with the provisions of any enactment or any instrument determining the
functions of the persons in-charge of the management of the undertaking, except in so far as may
be specifically provided by the order; and
1. Explanation IT ins. by Act 35 of 2010, s. 2 (w.e.f. 1-10-2009).
2. Ins. by Act 37 of 2003, s. 2 (w.e.f.14-6-2009).
8
(b) the undertaking or paExcerpt shown. Open the full act in Lexace.