23th October, 2002
Ministry of Consumer Affairs & Public Distribution  


TOWARDS BETTER PROTECTION OF CONSUMER RIGHTS

TASK FORCE TO ENSURE EFFICIENT FOODGRAINS MANAGEMENT


THREE YEARS’ ACHIEVEMENTS

OF THE GOVERNMENT

The Department of Consumer Affairs in the Ministry of Consumer Affairs, Food and Public Distribution has taken several initiatives to create awareness among consumers about their rights and the provision for redressal mechanism in case of deficient goods or unsatisfactory services.

Consumer Protection (Amendment) Bill, 2001 was introduced in the Rajya Sabha on April 26, 2001. Enacted in 1986, The Consumer Protection Act seeks to better safeguard the rights of consumers by establishing an "Alternate Justice Delivery System" free of cost to consumers. The Act was amended in 1991 and 1993 and is being further amended to make it more effective and purposeful. The Consumer Protection (Amendment) Bill, 2002 ( to be passed by Rajya Sabha) contains provisions to facilitate quicker disposal of consumer complaints, enhance the capability of redressal agencies, strengthen them with more powers, streamline the procedures and widen the scope of the Act to make consumer courts more functional and effective. It is expected to be passed by the Parliament in the forthcoming Winter Session.

In order to promote consumer awareness, Ministry has opened a web site on the working of the Department. To encourage voluntary consumer organisations, women and youth, Swami Vivekananda National Awards for outstanding work in the field of consumer protection have been instituted.

Citizens’Charters are being introduced in different Ministries/Departments/Organisations of the central government in collaboration with Department of Administrative Reforms to provide responsive administration at all levels with emphasis on transparency and accountability from service providers.

It is proposed to set up a Consumer Protection Council at District level and make it a necessary requirement for the government to establish District, State and National level Councils. Government has also approved a scheme for setting up District Consumer Information Centre (DCIC) in each district of the country over a period of five years. Under the scheme, a grant of Rs. 5 lakhs is provided for each such centre.

The Standing Committee on Consumer Welfare Fund has approved 527 proposals involving an assistance of Rs. 4.82 crore as on March 2002 for promoting welfare of consumers and to strengthen consumer movement in the country.

A new scheme, Jagriti Shibir Yojana has been initiated in 2000-01 under which a sum of Rs.50000 per district is provided to state governments for undertaking awareness programme among the poor people about the welfare schemes like Antyodaya Anna Yojana, Annapoorna Yojana, Food for Work programme etc.

The Essential Commodities (Amendment) Bill, 2000 seeking to amend the Essential Commodities Act, 1955 to make it more effective while eliminating unnecessary harassment to genuine traders has been introduced in Parliament in March 2000.

Steps have been initiated to expand futures trading in commodities by covering all commodities barring a few sensitive ones. At present futures trading is allowed in 40 commodities including several oils, oil seeds ginger, cotton and turmeric. It is proposed to restructure the commodity market regulator--the Forward Markets Commission.

A commodity exchange, e—Sugar India Limited has been given final approval to commence futures trading in sugar.

Consumer Cooperative Division

The Consumer Cooperative Division launched a scheme for distributing selected consumer goods of daily use to support the poor consumers under a scheme called Sarvpriya Scheme. These commodities are to supplement the public distribution system and could be distributed through Fair Price Shops, Consumer Cooperative Stores, units of State Civil Supplies Corporation etc. as identified by State Governments.

BUREAU OF INDIAN STANDARDS

Bureau of Indian Standards has issued 16195 operative licenses as on March 31, 2002 covering more than 1000 items ranging from food products and mineral water to electronics. BIS Quality System Certification Scheme based on International standards of quality management has 916 operative licenses as on March 31, 2001.

Hallmarking of gold jewellry (gold jewellry certification) was started by BIS keeping in view the consumer interest and marketing demand on a voluntary basis. The scheme is aimed at providing third party assurance to consumers on the purity of gold or its fineness. By May 2002, 11 hall marking centres have been recognised for certification of gold and 306 jewellers have been certified under this scheme.

WEIGHTS AND MEASURES

The Packaged Commodities Rules, 1977 which provide protection to consumers in respect of label declaration and ensuring availability of declared quantity was amended to make it more transparent and user friendly.

Specification of clinical thermometers were aligned with the specification issued by Bureau of Indian Standards to remove any ambiguity. Specification of new weighing and measuring instruments were notified under General Rules to ensure that only verified and correct instruments are used in the field.

A draft Bill for amending Standards of Weights and Measures Act, 1976 and Standards of Weights and Measures (Enforcement) Act, 1985 was placed before the Cabinet Committee for consideration.

DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

The Department of Food has set up a task force comprising senior officials of the ministry to ensure efficient implementation of Public Distribution System (PDS). The task force headed by Secretary, Food and Public Distribution will monitor and supervise all issues relating to management of foodgrains and liaison with State Governments to ensure smooth functioning of PDS and grain management in general.

ANTYODAYA ANNA YOJANA

Launching of Antyodaya Anna Yojana (AAY), a scheme for supplying highly subsidised foodgrains to the poorest of the poor marks an important milestone in providing social security to the economically vulnerable in the country. Under the scheme, launched on December 25, 2000; each identified family is given 35 kilograms of foodgrains per month at Rs. 2 per kg. for wheat and Rs. 3 per kg. for rice.

RESTRUCTURING OF PDS

Public Distribution System has been restructured as the Targeted PDS (TPDS) for reaching foodgrains to the poor on subsidised prices. The quantity of foodgrains available under TPDS has been increased from 25 kg. per month per family to 35 kg. per month per family with effect from April 2002.

Government of India has issued the Public Distribution System (Control) Order, 2001 under the Essential Commodities Act to ensure timely supply of rations to 4.62 lakh fair price shops around the country as well as to streamline PDS. This Order contains provisions for identification of families below poverty line, distribution of ration cards, scale and issue prices of items distributed through fair price shops, fair distribution of foodgrains, licensing of FPSs and monitoring of their functioning. In addition, this Order also provides for punishment to those who violate its provisions.

As on July 26, 2002; the number of valid ration cards in the country stands at 2170.92 lakhs. These include 656.49 lakhs of BPL, 1418.12 lakhs of APL and 96.31 lakh AAY cards.

FOOD FOR WORK PROGRAMME

Food for Work Programme was introduced in January 2001, under which foodgrains are allocated free of cost to States through the Ministry of Rural Development. This scheme has been extended to states affected by drought and other natural calamities to be implemented as part of the Employment Assurance Scheme. States have also been given the flexibility to determine the wage and material components of the works to be undertaken under Food for Work Programme. During 2001-02, the offtake under Food For Work Programme was 31.84 lakh tonnes against an allotment of 33.33 lakh tonnes. During 2002-03 (as on July 25, 2002), 18.11 lakh tonnes of foodgrains was issued to three states and the off take was 12. 18 lakh tonnes.

EXPORT OF FOODGRAINS

The decision to offer wheat from central pool for the purpose of export was taken on November 2, 2001 and export of rice from the central pool was allowed from December 20, 2000. As on September 26, 2002, 141.49 lakh tonnes of foodgrains has been lifted for export and 158.36 lakh tonnes has been paid for. Foreign exchange worth more than Rs.6656 crore has been earned by the country through foodgrains export.

Government has initiated several measures for promoting export of foodgrains from central pool. An empowered standing Committee on exports has been set up in the ministry to take speedy decisions on matters relating to exports of foodgrains.

Price of foodgrains from central pool for exports is fixed for a period of three months with an additional month permitted for lifting of stocks. Prices are annouced 45 days in advance before the commencement of the concerned quarter.

Exporters are allowed WTO compatible post delivery and inland transport expenses also as a promotional measure.

SUGAR

The Government has decided to fully decontrol sugar industry after introducing futures trading in sugar this year. The levy obligation imposed on sugar mills has been brought down from 60% to 10 % to facilitate sugar mills to make sugarcane payment to farmers in time. Export of sugar has been permitted and about 14.56 lakh metric tonnes of sugar has been exported during the financial year 2001-02.

The Sugar Development Fund (Amendment) Act, 2002 came into force on 27th May 2002. This enables the sugar factories to obtain loans for setting up bagasse based cogeneration power projects and for production of ethanol with a view to improve their viability. The Act also provides for defraying expenditure on internal transport and freight charges to the sugar factories in export shipments of sugar with a view to promoting exports.

EDIBLE OILS

Government has rationalised the duty structure of edible oils in order to harmonise the interests of farmers, processors and consumers. Free imports of edible oil is permitted except for copra/ coconut oil which is canalised through the State Trading Corporation (STC).

The Tariff value of edible oils was restructured with effect from. September 5, 2002, the basic price of crude palm oil has been fixed at $ 392 per tonne, RBD palm oil at $ 414 per tonne, RBD palmolein at $ 426 per tonne and crude palmolein at $ 411 per tonne. The base import price of soyabean oil has been fixed at $ 542 per tonne.

India- Nepal Trade Treaty has been revised to safeguard the interests of domestic vanaspati manufacturers.

 
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