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Essential Commodities Act: When and why did Centre invoke it last?

07 Mar 2026
1 min

Essential Commodities Act, 1955 and Recent Invocations

Background and Current Scenario

The Indian government has invoked the Essential Commodities Act, 1955 (ESA) in response to an oil crisis triggered by geopolitical tensions. The ESA enables the regulation of production levels and supply limits of essential commodities, in this case, Liquified Petroleum Gas (LPG).

Recent Government Actions

  • Effective from March 5, 2026, the order requires public Oil Marketing Companies (OMCs) such as IndianOil, Hindustan Petroleum, and Bharat Petroleum to prioritize LPG production for domestic use, utilizing Propane and Butane streams exclusively for this purpose.
  • The ESA, amended in 2020, allows regulation of certain commodities only under extraordinary circumstances like war or natural disasters.

Implications

The act intends to stabilize commodity prices, prevent hoarding, and protect food security. Since 2020, it has been used selectively under stringent conditions to address specific economic and environmental challenges.

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RELATED TERMS

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Food security

Food security exists when all people, at all times, have physical, social, and economic access to sufficient, safe, and nutritious food that meets their dietary needs and food preferences for an active and healthy life. India's transition to a food provider signifies its surplus production capacity.

Hoarding

The act of accumulating large quantities of a commodity with the intention of selling it at a higher price later, especially during times of scarcity. It is often practiced illegally and contributes to artificial shortages and price hikes.

Propane and Butane

Hydrocarbon gases that are components of LPG. Propane and butane are often extracted from natural gas and crude oil refining processes and are key ingredients for producing LPG for domestic and industrial use.

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