Download Essential Commodities Act MCQs PDF
1. The Essential Commodities Act was enacted in the year:
a. 1950
b. 1955
c. 1960
d. 1965
2. The Essential Commodities Act is numbered as:
a. Act No. 5 of 1955
b. Act No. 7 of 1955
c. Act No. 10 of 1955
d. Act No. 12 of 1955
3. The Essential Commodities Act came into force on:
a. 26 January 1950
b. 15 August 1947
c. 1 April 1955
d. 2 October 1955
4. The Essential Commodities Act was enacted by the:
a. State Legislature
b. Parliament of India
c. President of India
d. Supreme Court
5. The Essential Commodities Act was enacted in the ______ Year of the Republic of India.
a. Fourth
b. Fifth
c. Sixth
d. Seventh
6. The main objective of the Essential Commodities Act is to regulate:
a. Banking and financial institutions
b. Production, supply, distribution, trade and commerce in certain commodities
c. Labour welfare
d. Industrial licensing
7. The Essential Commodities Act aims to regulate commodities primarily in the interest of:
a. Private traders
b. State Governments
c. The general public
d. International trade
8. Which of the following aspects of commodities is controlled under the Essential Commodities Act?
1. Production
2. Supply
3. Distribution
4. Trade and commerce
a. 1 and 2 only
b. 1, 2 and 3 only
c. 1, 2, 3 and 4
d. 3 and 4 only
9. The Essential Commodities Act was enacted mainly to prevent:
a. Industrial disputes
b. Hoarding and black marketing of essential commodities
c. International trade restrictions
d. Banking fraud
10. The phrase “certain commodities” in the preamble refers to commodities considered:
a. Industrial products only
b. Essential for public consumption and welfare
c. Luxury goods
d. Export commodities
11. Section 1 of the Essential Commodities Act deals with:
a. Definitions
b. Short title and extent
c. Control orders
d. Essential commodities
12. According to Section 1(1), this Act may be called:
a. The Essential Supplies Act, 1955
b. The Essential Commodities Control Act, 1955
c. The Essential Commodities Act, 1955
d. The Essential Goods Regulation Act, 1955
13. The official short title provided under Section 1(1) of the Act is:
a. Essential Goods Act, 1955
b. Essential Commodities Act, 1955
c. Commodities Regulation Act, 1955
d. Public Supply Act, 1955
14. Section 1(2) of the Essential Commodities Act provides that the Act extends to:
a. The whole of India
b. Only metropolitan cities
c. Only Union Territories
d. Selected States notified by the Central Government
15. The territorial applicability of the Essential Commodities Act covers:
a. Only rural areas
b. Only State territories
c. The entire territory of India
d. Only areas notified by State Governments
16. Which of the following statements is correct regarding the Essential Commodities Act, 1955?
a. It applies only to certain States
b. It applies only to Union Territories
c. It extends to the whole of India
d. It applies only where notified by the Central Government
17. The provision declaring the name of the Act is contained in:
a. Section 1(1)
b. Section 1(2)
c. Section 2
d. Section 3
18. The provision declaring the territorial extent of the Act is contained in:
a. Section 1(1)
b. Section 1(2)
c. Section 2
d. Section 4
19. Which of the following correctly represents Section 1 of the Essential Commodities Act?
a. Short title only
b. Short title and commencement
c. Short title and extent
d. Definitions and extent
20. The Essential Commodities Act, 1955 applies uniformly throughout:
a. All States and Union Territories of India
b. Only States
c. Only Union Territories
d. Only notified districts
21. A. Under Section 2(ia) of the Essential Commodities Act, the term “Collector” includes:
a. Only the District Collector
b. Additional Collector and authorised officers not below the rank of Sub-Divisional Officer
c. Only Revenue Officers
d. Only Executive Magistrates
22. B. An officer authorised by the Collector to exercise powers under the Act must not be below the rank of:
a. Tehsildar
b. Sub-Inspector
c. Sub-Divisional Officer
d. District Magistrate
23. C. According to Section 2(b), “food-crops” include crops of:
a. Wheat only
b. Rice only
c. Sugarcane
d. Cotton
24. D. The term “notified order” under Section 2(c) means:
a. An order issued by a Magistrate
b. An order notified in the Official Gazette
c. An order issued by police
d. An order passed by Parliament
25. E. According to Section 2(cc), the term “order” includes:
a. Only statutory rules
b. A direction issued under the order
c. Only administrative instructions
d. Court judgments
26. F. Under Section 2(d), “State Government” in relation to a Union Territory means:
a. The Chief Minister
b. The Governor
c. The Administrator of the Union Territory
d. The District Magistrate
27. G. According to Section 2(e), sugar includes any form containing more than how much sucrose?
a. 80%
b. 85%
c. 90%
d. 95%
28. Which of the following forms are included in the definition of sugar under Section 2(e)?
1. Sugar candy
2. Khandsari sugar
3. Bura sugar
4. Crystalline or powdered sugar
a. 1 and 2 only
b. 2 and 3 only
c. 1, 2, 3 and 4
d. 3 and 4 only
29. I. Sugar in process in a vacuum pan sugar factory is considered:
a. Raw agricultural product
b. Not covered under the Act
c. Included in the definition of sugar
d. Industrial waste
30. J. Raw sugar produced in a vacuum pan sugar factory is:
a. Excluded from the definition of sugar
b. Included in the definition of sugar under the Act
c. Treated as food-crop
d. Treated as industrial material
31. Section 2A of the Essential Commodities Act deals with:
a. Definition of essential commodity
b. Declaration and amendment regarding essential commodities
c. Control orders
d. Licensing of traders
32. For the purposes of this Act, an “essential commodity” means a commodity:
a. Declared by the State Government
b. Specified in the Schedule to the Act
c. Listed by Parliament every year
d. Determined by courts
33. The power to amend the Schedule of essential commodities under Section 2A(2) lies with the:
a. Parliament
b. State Government
c. Central Government
d. High Court
34. The Central Government may amend the Schedule by:
1. Adding a commodity
2. Removing a commodity
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither
35. Before amending the Schedule of essential commodities, the Central Government must:
a. Obtain approval of Parliament
b. Consult the State Governments
c. Seek approval of the Supreme Court
d. Obtain consent of traders
36. Any amendment to the Schedule under Section 2A must be made through a notification published in the:
a. Gazette of India
b. Official Gazette
c. State Gazette
d. Court Gazette
37. The Central Government must specify reasons for amending the Schedule in the notification if it is satisfied that it is necessary:
a. For administrative convenience
b. In the public interest
c. For economic profit
d. For international trade
38. A notification issued under Section 2A(2) may declare a commodity to be an essential commodity for a period not exceeding:
a. Three months
b. Six months
c. One year
d. Two years
39. The Central Government may extend the six-month period of declaration of an essential commodity:
a. Without any reason
b. Only once
c. In public interest and by notification in the Official Gazette
d. Only with Parliamentary approval
40. The power of the Central Government to amend the Schedule applies only to commodities for which Parliament has legislative competence under:
a. Entry 52, Union List
b. Entry 33, Concurrent List (List III)
c. Entry 14, State List
d. Entry 97, Union List
41. Entry 33 of List III in the Seventh Schedule of the Constitution relates to:
a. Defence production
b. Trade and commerce in certain essential commodities
c. Agricultural taxation
d. Banking regulation
42. Every notification issued under Section 2A(2) must be laid before:
a. Supreme Court
b. Both Houses of Parliament
c. State Legislatures
d. High Courts
43. The requirement of placing notifications before Parliament under Section 2A ensures:
a. Judicial control
b. Legislative oversight over delegated legislation
c. Police supervision
d. Administrative secrecy
44. Which of the following statements regarding Section 2A is correct?
a. State Governments may amend the Schedule
b. Central Government may amend the Schedule after consulting State Governments
c. Courts amend the Schedule
d. Parliament must approve every amendment before issuance
45. The main purpose of Section 2A is to allow the Government to:
a. Define criminal offences
b. Dynamically regulate which commodities are treated as essential
c. Regulate court procedures
d. Control police powers
46. Section 3 of the Essential Commodities Act deals with:
a. Definitions of essential commodities
b. Powers to control production, supply and distribution of essential commodities
c. Licensing of traders
d. Penalties for hoarding
47. The authority empowered under Section 3(1) to regulate production, supply and distribution of essential commodities is the:
a. State Government
b. Central Government
c. Parliament
d. District Magistrate
48. The Central Government may exercise powers under Section 3(1) when it forms the opinion that it is:
a. Legally necessary only
b. Administratively convenient
c. Necessary or expedient
d. Economically profitable
49. The powers under Section 3(1) may be exercised to maintain or increase:
a. Trade licences
b. Supplies of essential commodities
c. Police authority
d. Judicial supervision
50. Section 3(1) aims to ensure equitable distribution and availability of essential commodities at:
a. Market prices
b. Government prices
c. Fair prices
d. Subsidized prices only
51. The Central Government may regulate or prohibit which of the following under Section 3(1)?
1. Production
2. Supply
3. Distribution
4. Trade and commerce
a. 1 and 2 only
b. 1, 2 and 3 only
c. 1, 2, 3 and 4
d. 3 and 4 only
52. Regulation or prohibition under Section 3(1) is carried out by the Central Government through:
a. Act of Parliament
b. Judicial order
c. Order issued by the Government
d. Police notification
53. One of the objectives of Section 3(1) is to ensure availability of essential commodities for:
a. Export purposes
b. Defence of India
c. Industrial licensing
d. International trade
54. Section 3(1) also empowers the Government to regulate commodities for the purpose of:
a. Conduct of elections
b. Efficient conduct of military operations
c. Expansion of industries
d. Promotion of exports
55. Which of the following conditions must exist for the Central Government to act under Section 3(1)?
a. Court order
b. Opinion that action is necessary or expedient
c. Parliamentary resolution
d. State Government approval
56. The power under Section 3(1) is primarily aimed at preventing:
a. Judicial delays
b. Economic inequality
c. Hoarding, black marketing and artificial scarcity
d. Industrial competition
57. Which of the following best describes the nature of power under Section 3(1)?
a. Judicial power
b. Legislative power
c. Administrative regulatory power
d. Police investigative power
58. The Central Government may prohibit production or supply of an essential commodity if necessary for:
a. Increasing imports
b. Securing the commodity for defence or equitable distribution
c. Reducing taxation
d. Expanding trade
59. Section 3(1) provides the Central Government with the authority to regulate trade and commerce in:
a. Agricultural products only
b. All commodities
c. Essential commodities
d. Imported goods only
60. The fundamental purpose of Section 3(1) is to protect the:
a. Interests of traders
b. Interests of exporters
c. Interests of the general public
d. Interests of industrialists
61. Section 3(2) begins with the phrase “Without prejudice to the generality of the powers conferred by sub-section (1)”. This means:
a. It restricts the powers of Section 3(1)
b. It clarifies that the powers listed are only illustrative and not exhaustive
c. It overrides Section 3(1)
d. It repeals Section 3(1)
62. Under Section 3(2)(a), the Government may regulate the production or manufacture of an essential commodity by:
a. Court orders
b. Licences, permits or other methods
c. Police supervision
d. Judicial notification
63. Section 3(2)(a) allows regulation of which activity related to essential commodities?
a. Export only
b. Production or manufacture
c. Consumption only
d. Distribution only
64. Under Section 3(2)(b), the Government may require bringing under cultivation:
a. Industrial land
b. Waste or arable land
c. Urban residential land
d. Government land only
65. The purpose of bringing waste or arable land under cultivation under Section 3(2)(b) is to:
a. Promote tourism
b. Increase cultivation of food crops
c. Increase exports
d. Promote industrial development
66. Section 3(2)(b) empowers the Government to promote cultivation of:
a. Industrial crops only
b. Food crops generally or specified food crops
c. Cash crops only
d. Export crops only
67. Which clause of Section 3(2) empowers the Government to control prices of essential commodities?
a. Clause (a)
b. Clause (b)
c. Clause (c)
d. Clause (d)
68. Under Section 3(2)(c), the Government may control the price at which an essential commodity may be:
a. Manufactured
b. Bought or sold
c. Exported
d. Stored
69. Under Section 3(2)(f), a person engaged in production or business of essential commodities may be required to sell the commodity to:
1. Central Government
2. State Government
3. Officer or agent of the Government
4. Government-controlled corporation
a. 1 and 2 only
b. 1, 2 and 3 only
c. 1, 2, 3 and 4
d. 2 and 3 only
70. Regulation of storage, transport and distribution of essential commodities may be done through:
a. Licences or permits
b. Judicial orders
c. Local government rules only
d. Municipal regulations only
71. Section 3(2)(e) empowers the Government to prohibit:
a. Export of essential commodities
b. Withholding from sale of commodities ordinarily kept for sale
c. Manufacture of commodities
d. Consumption of commodities
72. The prohibition against withholding commodities from sale is mainly intended to prevent:
a. Export restrictions
b. Hoarding and artificial scarcity
c. Agricultural expansion
d. Industrial competition
73. Section 3(2)(f) empowers the Government to require persons holding stock of an essential commodity to:
a. Destroy the stock
b. Sell the whole or a specified part of the stock
c. Export the stock
d. Transfer it to private traders
74. Under Section 3(2)(f), a person engaged in production or business of essential commodities may be required to sell the commodity to:
1. Central Government
2. State Government
3. Officer or agent of the Government
4. Government-controlled corporation
a. 1 and 2 only
b. 1, 2 and 3 only
c. 1, 2, 3 and 4
d. 2 and 4 only
75. Section 3(2)(f) also allows the Government to require sale of commodities:
a. Only after production
b. When produced or received by the person
c. Before manufacturing begins
d. Only after export
76. The requirement under Section 3(2)(f) to sell commodities may apply to persons:
a. Only engaged in trade
b. Holding stock or engaged in production or buying or selling
c. Only manufacturers
d. Only exporters
77. Orders requiring compulsory sale of essential commodities may specify:
a. Price only
b. Quantity only
c. Circumstances and persons to whom sale must be made
d. Court approval
78. The compulsory sale provisions under Section 3(2)(f) help the Government to:
a. Promote industrial growth
b. Ensure adequate public supply of essential commodities
c. Encourage export trade
d. Reduce taxation
79. Which of the following activities can be regulated through licences under Section 3(2)?
a. Manufacture
b. Storage
c. Transport
d. All of the above
80. Section 3(2) primarily provides specific examples of regulatory powers under:
a. Section 1
b. Section 2A
c. Section 3(1)
d. Section 4
81. Explanation 1 to Section 3(2)(f) applies specifically to which commodities?
1. Foodgrains
2. Edible oilseeds
3. Edible oils
a. 1 only
b. 1 and 2 only
c. 1, 2 and 3
d. 2 and 3 only
82. Under Explanation 1 of Section 3(2)(f), the quantity of foodgrains or edible oils required to be sold by producers may be determined based on:
a. Market demand only
b. Estimated production in the concerned area
c. Export requirements
d. Industrial demand
83. The quantity of essential commodities to be sold by producers may be fixed on a graded basis considering:
a. The income of producers
b. The aggregate area held or cultivated by producers
c. The population of the State
d. The price of commodities
84. Explanation 2 to Section 3(2)(f) clarifies that the term “production” includes:
a. Export of commodities
b. Manufacture of edible oils and sugar
c. Import of goods
d. Storage of commodities
85. Clause (g) of Section 3(2) empowers the Government to regulate or prohibit certain:
a. Agricultural activities
b. Commercial or financial transactions relating to foodstuffs
c. Industrial manufacturing
d. Import duties
86. Regulation of commercial or financial transactions under Section 3(2)(g) may occur when such transactions are considered:
a. Economically inefficient
b. Detrimental to public interest
c. Unprofitable
d. Politically sensitive
87. Clause (h) of Section 3(2) empowers the Government to collect:
a. Taxes
b. Census data
c. Information or statistics relating to essential commodities
d. International trade reports
88. Information or statistics collected under Section 3(2)(h) are intended to help in:
a. Industrial policy making
b. Regulating or prohibiting activities related to essential commodities
c. Export promotion
d. Trade negotiations
89. Clause (i) of Section 3(2) requires persons engaged in production or trade of essential commodities to:
a. Pay additional taxes
b. Maintain books, accounts and records
c. Register with courts
d. Obtain export licences
90. The legal effect of conviction under Section 3(2) regarding premises is that:
a. The premises are confiscated by police
b. The lease agreement automatically becomes void and inoperative
c. The tenant must pay double rent
d. The property is permanently sealed by the court
91. Clause (ii) of Section 3(2) provides for grant or issue of:
a. Import permits only
b. Licences, permits or other documents
c. Judicial warrants
d. Trade certificates
92. Under Section 3(2)(ii), the Government may require deposit of a sum as:
a. Tax payment
b. Security for due performance of licence conditions
c. Export duty
d. Court fee
93. If licence conditions are violated under Section 3(2)(ii), the security deposit may be:
a. Refunded immediately
b. Confiscated or forfeited
c. Doubled
d. Converted into tax
94. Clause (j) of Section 3(2) deals with powers relating to:
a. Judicial review
b. Incidental and supplementary matters
c. Export regulation
d. Agricultural development
95. 95. Under Section 3(2)(j), authorised officers may enter and search:
1. Premises
2. Aircraft
3. Vehicles
4. Vessels
a. 1 and 2 only
b. 1, 2 and 3 only
c. 1, 2, 3 and 4
d. 2 and 4 only
96. Under Section 3(2)(j), authorised officers may seize articles when they have reason to believe that:
a. The goods are expired
b. A contravention of the order has been or is about to be committed
c. Taxes are unpaid
d. Goods are imported illegally
97. Vehicles or animals used in carrying commodities in violation of the Act may be seized if they are liable to:
a. Auction
b. Forfeiture
c. Export
d. Government purchase
98. Books of accounts and documents may also be seized under Section 3(2)(j) if they are:
a. Related to taxation
b. Useful or relevant for proceedings under the Act
c. Privately maintained
d. Required by traders
99. A person from whose custody books of accounts are seized is entitled to:
a. Destroy them
b. Obtain copies or extracts in the presence of an officer
c. Transfer them to court
d. Replace them with new documents
100. The provisions relating to search, seizure and inspection under Section 3(2)(j) primarily aim to:
a. Promote exports
b. Enforce compliance with control orders under the Act
c. Regulate taxation
d. Increase industrial production
101. Section 3(3) of the Essential Commodities Act deals with:
a. Licensing of traders
b. Payment of price for essential commodities sold under Government orders
c. Confiscation of goods
d. Regulation of exports
102. When a person sells an essential commodity in compliance with an order under Section 3(2)(f), he shall be paid:
a. Government fixed compensation
b. Price determined according to Section 3(3) provisions
c. Market price only
d. Subsidized price
103. According to Section 3(3)(a), where the price can be agreed upon consistent with the controlled price, the seller shall receive:
a. The market price
b. The agreed price
c. Government compensation
d. Export price
104. Where no agreement on price is reached under Section 3(3), the price shall be calculated with reference to:
a. Export price
b. Controlled price fixed under the Act
c. International market rate
d. Auction price
105. If neither agreement nor controlled price applies under Section 3(3), the price shall be calculated based on:
a. Average export rate
b. Government procurement rate
c. Market rate prevailing in the locality at the date of sale
d. Minimum support price
106. Section 3(3A) empowers the Central Government to regulate prices of which commodities in certain circumstances?
a. Industrial goods
b. Foodstuffs
c. Luxury commodities
d. Imported goods
107. The Central Government may issue a notification under Section 3(3A) when it considers it necessary for:
1. Controlling rise in prices
2. Preventing hoarding of foodstuffs
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither
108. A notification issued under Section 3(3A) shall remain in force for a period not exceeding:
a. One month
b. Three months
c. Six months
d. One year
109. Under Section 3(3A), price regulation applies to foodstuffs sold in compliance with orders made under:
a. Section 2A
b. Section 3(1)
c. Section 3(2)(f)
d. Section 4
110. Where price can be agreed upon under Section 3(3A)(iii)(a), the seller shall receive:
a. Agreed price consistent with controlled price
b. Only the controlled price
c. Average market price
d. Minimum support price
111. If no agreement can be reached under Section 3(3A), the price shall be calculated with reference to:
a. Export price
b. Controlled price
c. Wholesale index
d. Import price
112. Where neither agreement nor controlled price applies under Section 3(3A), price shall be calculated based on:
a. Average market rate in the locality during the three months preceding the notification
b. Market rate on the date of sale
c. Export price
d. Government procurement rate
113. The average market rate for determining price under Section 3(3A) shall be determined by:
a. State Government
b. Central Government authorised officer
c. District Magistrate
d. High Court
114. The authorised officer determines the average market rate based on:
a. International trade data
b. Published market rate figures available for the locality or neighbouring locality and the average market rate so determined shall be final and shall not be called in question in any court.
c. Export statistics
d. Agricultural production reports
115. The main objective of Section 3(3A) is to:
a. Encourage exports
b. Stabilize food prices and prevent hoarding
c. Promote agricultural subsidies
d. Increase industrial production
116. Section 3(3B) applies when a person is required to sell commodities under an order made with reference to:
a. Section 3(1)
b. Section 3(2)(f)
c. Section 2A
d. Section 4
117. . Section 3(3B) deals with payment for sale of which commodities?
1. Foodgrains
2. Edible oilseeds
3. Edible oils
a. 1 only
b. 1 and 2 only
c. 1, 2 and 3
d. 2 and 3 only
118. Section 3(3B) applies when:
a. A notification under Section 3(3A) is in force
b. No notification under Section 3(3A) has been issued or it has ceased to be in force
c. Section 3(3A) is permanently applicable
d. State Government orders it
119. Under Section 3(3B), the person selling commodities shall be paid an amount equal to the:
a. Market price
b. Controlled price
c. Procurement price
d. Export price
120. The procurement price under Section 3(3B) is specified by the:
a. Central Government
b. State Government
c. High Court
d. District Magistrate
121. The procurement price specified by the State Government requires the previous approval of the:
a. Parliament
b. Central Government
c. Agricultural Prices Commission
d. High Court
122. While determining procurement price under Section 3(3B), consideration may be given to:
a. Controlled price fixed under the Act
b. Crop prospects
c. Consumer interests
d. All of the above
123. Clause (a) of Section 3(3B) refers to consideration of:
a. Export price
b. Controlled price fixed under this Act or other law
c. International market price
d. Agricultural subsidy
124. Clause (b) of Section 3(3B) requires consideration of:
a. Market demand
b. General crop prospects
c. Export volume
d. Industrial demand
125. Clause (c) of Section 3(3B) emphasises the need to make commodities available at reasonable prices particularly to:
a. Traders
b. Industrialists
c. Vulnerable sections of consumers
d. Exporters
126. Under Section 3(3B), recommendations regarding price of foodgrains or oilseeds may be considered from the:
a. Planning Commission
b. Agricultural Prices Commission
c. Finance Commission
d. Food Corporation of India
127. The Agricultural Prices Commission referred to in Section 3(3B) gives recommendations regarding:
a. Industrial policy
b. Export trade
c. Prices of agricultural commodities
d. Taxation policy
128. Section 3(3B) overrides provisions of which earlier sub-section regarding price payment?
a. Section 3(1)
b. Section 3(2)
c. Section 3(3)
d. Section 2A
129. The procurement price mechanism under Section 3(3B) aims to balance:
a. Export profits and taxes
b. Producer remuneration and consumer affordability
c. Government revenue and subsidies
d. Industrial growth and trade
130. The main purpose of Section 3(3B) is to ensure fair compensation to producers while:
a. Promoting exports
b. Maintaining supply and reasonable consumer prices
c. Increasing industrial production
d. Encouraging imports
131. Section 3(3C) applies when a producer is required to sell which commodity under an order made with reference to Section 3(2)(f)?
a. Wheat
b. Rice
c. Sugar
d. Edible oil
132. Under Section 3(3C), the price payable to the sugar producer is determined by the:
a. State Government
b. Central Government
c. Agricultural Prices Commission
d. District Magistrate
133. Section 3(3C) applies to sale of sugar whether a notification under Section 3(3A):
a. Has been issued
b. Has not been issued
c. Both (a) and (b)
d. Only after expiry of such notification
134. The price payable to sugar producers under Section 3(3C) is determined notwithstanding the provisions of:
a. Section 2A
b. Section 3(1)
c. Section 3(3)
d. Section 4
135. While determining price of sugar under Section 3(3C), the Central Government must consider the:
a. Fair and remunerative price of sugarcane
b. Manufacturing cost of sugar
c. Duties or taxes payable
d. All of the above
Download Essential Commodities Act MCQs PDF