January 08, 2002

'15'

FM HOLDS PRE-BUDGET MEETING WITH THE REPRESENTATIVES OF CONSUMER ORGANISATIONS

    The Union Finance Minister Shri Yashwant Sinha, along with the Minister of State Shri G.N.Ramachandran, met the representatives of various consumer organisations as part of the pre-budget consultation.

    While addressing the representatives of consumer organisations and consumer activists here today, Shri Sinha emphasized the need for harmonizing interests of both consumers and producers, even though it is an accepted practice that the centre point of economic policy is the consumer. He said that economic policy should ensure for the consumer a competitive market which in turn would ensure competitive prices and product quality. There are currently some imperfections in consumer grievance redressal mechanism which need improvement. The Minister felt that price stability is an extremely important factor in ensuring comfort to consumers and this year low inflation rate has been quite helpful in this regard. The Government is taking a fresh look at the Essential Commodities Act and other legislations to ensure competition in the market which would ultimately remove some of the aberrations that affect consumer welfare.

Consumer interest group representatives offered the following suggestions:

• There is need for a National Consumer Policy to protect the interests of the consumers and to safeguard their sovereignty.
• There is need for ensuring that benefits of duty reduction on petroleum products is passed on to the consumers.
• There is need for transparency in collection of petrol cess and its application for road development.
• Increased competition would help improve the quality of service of Banks, Insurance Agencies, Airlines etc.
• Acceleration of reforms in Public Sector Banks in line with the announcements made last year.
• More measures required for safety of small investors in the capital market.
• It was suggested that the first point price (FPP) i.e. ex-factory gate price at excise point should be printed on the product so that consumers get a general idea of cost add-ons.
• Creation of a National Safety Commission for looking into safety aspects in public services, utilities, products, drugs etc.
• Need for monitoring prices of life saving drugs.
• Need to streamline the consumer justice system.
• Overhauling of the PDS system to serve the target groups.
• Need for further widening of the tax net including rich farmers.
• Need for speeding up reforms in the power sector.
• Need for institutionalisation of National Development Council
• Consumer Protection should be a part of the concurrent list/Union List.
• Strict action required against vanishing Non Banking Financial Companies for cheating investors.
• Some Schemes should be announced in the budget for educating rural consumers.
• Protection of domestic industry should not be at the expense of quality. Consumers are willing to pay more if they are assured of better quality.
• Many representatives felt that more funds should be pumped into the Consumer Organizations to facilitate effective functioning.

    Those who participated in the meeting included: Shri Kedar Nath Singh, Shri D.S.Wadhwa, Dr.T.Balachandran, Shri Pradeep Mehta, Shri P.Muthukrishnan, Shri R.Desikan , Smt. Pushpa Girimaji, Shri B.Vaidyanathan, Shri K.C.Borah, Smt. Shubhra Mukherjee, Shri Ved Bhasin, Dr. Ram Khanna, and Dr.D.K.Lahiri.