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Parliament by law to be expedient in the public interest, and imported goods of the same kind as such products;

(b) foodstuffs, including edible oilseeds and oils;

(c) cattle fodder, including oilcakes and other concentrates; (d) raw cotton, whether ginned or unginned and cotton seed; and (e) raw jute.”

This Entry is linked with Entries 26 and 27, List II, which are as follows:

“26. Trade and Commerce within the State subject to the provisions of Entry 33 of List III.”

“27. Production, supply and distribution of goods subject to the provisions of Entry 33 of List III.” 2.22.07 The suggestion of one State Government is that the words “subject to the provisions of Entry 33 of List III” may be omitted from both Entries 26 and 27, the remainder of Entry 26 and Entry 27 may be combined with the Transferred Entry 33 of List III, after omitting from clause (a) of the latter the words “where the control of such industry by the Union is declared by Parliament by law to be expedient in the public interest”. The recast Entries 26 and 27 of List II would read thus:

“26. Trade and Commerce within the State including trade and commerce in— (a) the products of any industry and imported goods of the same kind as such products; (b) foodstuffs including edible oilseeds and oils;

(d) raw cotton, whether ginned or unginned and cotton seed; and (e) raw jute.”

“27. Production, supply and distribution of goods including the production, supply and distribution of—

(a) the products of any industry and imported goods of the same kind as such products;

(b) foodstuffs: including edible oilseeds and oils;

(c) cattle fodder, including oilcakes and other concentrates; (d) raw cotton whether ginned or unginned, and cotton seed; and (e) raw jute;

Another State Government has stated that there is no reason why trade and commerce within a State may not be in the exclusive jurisdiction of that State. They are of the view that the only reasonable exception to this might be the inputs of Defence and War industries within the purview of Entry 7 of List I and therefore trade and commerce in these inputs may be put in the Concurrent List to ensure uninterrupted flow to production units. Modification to Entries 26 and 27 of List II have been accordingly suggested, but deletion of Entry 33 of List III in its entirety has been proposed.

2.22.08 The original Entry 33 of List III did not contain clauses (b), (c), (d) and (e). The last Limb of clause (a) viz., “and imported goods of the same kind as such products” was also not there. This limb and clauses (b) to (e) were inserted by the Constitution (Third Amendment) Act, 1954.

2.22.09 A perusal of Entry 33 would show that the matters comprised in it are not of exclusive concern either of the State or of the Union Some aspects of these matters are primarily of State concern, while others are of common Union-State concern. There can be no sharp distinction or division between these aspects. A certain amount of flexibility in the distribution of these matters between the Union and the States is not only unavoidable but desirable. That is why some aspects of these matters, supposed to be of dominant State interest were included in Entries 26 and 27 of List II and were made subject to Entry 33 of List III containing other aspects of the same matters considered to be of Union-State common interest.

2.22.10 Clause (a) of Entry 33 has an inter-face with Entry 52 of List I. We have discussed the problems relating to industries, in the context of Union State relations, in details in a separate Chapter.41 We have

concluded that, in our view, no change or amendment of the language of Entry 52 of List I or Entry 24 of List II is called for. It would follow that the Union cannot divest itself of the power to regulate trade and commerce in, and the production, supply and distribution of, products of any industry which has come under its control by virtue of a law of Parliament. It is not, therefore, possible to support the suggestion that this power should be entirely with the States. We are of the view that clause (a) of Entry 33 of List III should continue in its present form in that List.

2.22.11 We have also discussed the problems bearing on Union-State relations regarding trade and commerce in and, production, supply and distribution of, essential commodities of the kind mentioned in clauses (b), (c), (d) and (e) of this Entry in the Chapter on “Food and Civil Supplies"42. It is sufficient to

reiterate here that the Union should continue to play an overall supervisory and regulatory role in the production, supply and distribution of these commodities. Supply and distribution of these essential commodities is a problem that has assumed national dimensions. The retention of these matters in List III is fully justified in the larger interest of the country.

2.22.12 One of the State Governments (presumably in the alternative) has raised certain issues relating to the functional aspect of these matters. It has urged that “the State Government or its agencies should be permitted to purchase levy paddy and rice from the surplus States without interference by the Centre”, and “the Reserve Bank of India should charge concessional rate of interest in this regard”. It has also urged that “in the interest of effective control over the roller flour mills and ensuring proper production and distribution of maida and sooji to consumers, it is but necessary that the licensing powers of roller flour mills are again vested with the State Governments, subject to general guidelines from the Government of India.” It further goes on to suggest that “if the power to grant exemption from ceiling on stocks of pulses, in cases where the genuineness is satisfied, is vested with the State Governments without reference to the Government of India, it will do a lot of good to dealers besides making pulses available in plenty to the

consumers at reasonable price”. It wants that the power of appointing new wholesale dealers in kerosene should be with the State administration. These issues, mainly of an administrative nature, have been dealt

with in the Chapter on “Food and Civil Supplies”.43