price control on products as per Indian constitution
The medicines which are not under price control, manufacturers are allowed to increase their maximum retail price by 10 per cent annually. The calculation for essential drugs is done on the basis of the simple average of all medicines in a particular therapeutic segment with sales of more than 1 percent. Despite getting pressure from domestic generic drug manufacturers, NPPA has been consistently working on lowering and revising prices of NLEM in a phased manner. So far, NPPA has revised prices of 330 out of 799 formulations.
Search
EditWatch this pageRead in another language
Essential Commodities Act
The Essential Commodities Act is an act of Parliament of India which was established to ensure the delivery of certain commodities or products, the supply of which if obstructed owing to hoarding or blackmarketing would affect the normal life of the people. This includes foodstuff, drugs, fuel (petroleum products) etc.[1][2]
Essential Commodities Act
An Act to provide, in the interests of the general public, for the control of the production, supply and distribution of, and trade and commerce in, certain commodities.CitationAct No. 10 of 1955Territorial extentThe whole of IndiaEnacted byParliament of IndiaStatus: In force
The ECA was enacted way back in 1955. It has since been used by the Government to regulate the production, supply and distribution of a whole host of commodities it declares ‘essential’in order to make them available to consumers at fair prices.
The list of items under the Act include drugs, fertilisers, pulses and edible oils, and petroleum and petroleum products. The Centre can include new commodities as and when the need arises, and take them off the list once the situation improves.
Here’s how it works. If the Centre finds that a certain commodity is in short supply and its price is spiking, it can notify stock-holding limits on it for a specified period. The States act on this notification to specify limits and take steps to ensure that these are adhered to. Anybody trading or dealing in a commodity, be it wholesalers, retailers or even importers are prevented from stockpiling it beyond a certain quantity.
A State can, however, choose not to impose any restrictions. But once it does, traders have to immediately sell into the market any stocks held beyond the mandated quantity. This improves supplies and brings down prices. As not all shopkeepers and traders comply, State agencies conduct raids to get everyone to toe the line and the errant are punished. The excess stocks are auctioned or sold through fair price shops.
References
See also
Last edited 1 month ago by Capankajsmilyo
RELATED ARTICLES
Ministry of Consumer Affairs, Food and Public Distribution
government ministry of India
Content is available under CC BY-SA 3.0 unless otherwise noted.
Comments
Post a Comment