TOWARDS BETTER CONSUMER PROTECTION & NEW INITIATIVES TO IMPROVE
ACCESS TO FOOD
DEPARTMENT
OF CONSUMER AFFAIRS
The Consumer Protection
(Amendment) Act, 2002 came into force with effect from March 15,
2003 . Enacted in 1986, The Consumer Protection Act was amended
in 1991 and 1993 to better safeguard the rights of consumers by
establishing an "Alternate Justice Delivery System" free of cost
to consumers. The Act contains provisions for making it more effective
and purposeful. The provisions of the Act aim at facilitating
quicker disposal of complaints, enhancing the capability of redressal
agencies, strengthening them with more powers, streamlining the
procedures and widening the scope of the Act to make it more functional
and effective.
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 56 proposals involving an
assistance of Rs 9.08 crore as on March 2003 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 44 commodities including several oils, oil seeds ginger, cotton
and turmeric and metals like gold and silver. 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.
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
jewellery (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
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. AAY was to cover
one crore families out of the 6.52 crore for families belonging
to below poverty line section. It was expanded to cover an additional
50 lakh families as per the Budget proposals for 2003-04 at an
expenditure of Rs. 507 crore. The implementation of the AAY scheme
has been a success and the offtake of foodgrains under this during
2001-02 was 85 per cent and during 2002-03 the offtake under AAY
has touched 100 per cent in certain states like Kerala.
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.
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 special component
of Sampoorna Gramin Rozgar Yojana (SGRY). 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.During
2002-03 upto January,2003, a total of 16.478 lakh tonnes of foodgrains
was lifted by states under Special component of SGRY.
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 February end approximately
193.26 lakh tonnes of foodgrains has been lifted for export and
214.95 lakh tonnes has been paid for resulting in sizeable foreign
exchange earnings.
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 announced 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
A buffer stock of
20 lakh tonnes of sugar has been created involving an outgo of
Rs. 412 crores from the Sugar Development Fund; Rs. 374 crores
would be released by Banks on account of buffer stock. Thus, an
amount of Rs. 786 crores has become available for the payment
of cane dues to the farmers.
In order to extend
relief to sugarcane growers the statutory minimum price (SMP)
of sugarcane was increased by Rs. 5 per quintal to touch Rs. 69.5
per quintal linked to a basic recovery of 8.5 per cent subject
to a premium of Rs. 0.82 for every 0.1 per cent point above that
level for 2002-03 season. The factory wise SMP has since been
notified on January 9, 2003.
The levy obligation
imposed on sugar mills has been brought down from 40% to 10 %
to facilitate sugar mills to make sugarcane payment to farmers
in time.
Government has taken
a number of steps to liquidate the excess stock of sugar and boost
exports. These include:-
- With effect from April 1,2001,
the Government has lifted the quantitative ceiling on export
and has dispensed with the requirement of registration-cum-allocation
certificates from APEDA.
- The sugar factories exporting
sugar have been given exemption from
levy on the quantity
of sugar exported.
- Adjustment of the exported quantity
of sugar in the free-sale stocks of
the sugar factories
is being made at the end of 18 months from the date of export.
- Duty Entitlement Pass Book (DEPB)
benefit @4% on the f.o.b. value of exports has been allowed
to exporters.
- Reimbursement of the internal
transport and freight charges on export shipment of sugar is
being made from June, 2002.
(vi) It has been
decided to reimburse to sugar factories, in addition to the existing
reimbursement of internal transport charges, neutralization of
ocean freight disadvantage at the rate of Rs. 350 per tonne on
account of export shipments of sugar w.e.f. February 14, 2003.
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. The relevant rules for the purpose
have been already notified.
EDIBLE OILS
Government has rationalised
the duty structure of edible oils in order to harmonise the interests
of farmers, processors and consumers.
India- Nepal Trade
Treaty has been revised to safeguard the interests of domestic
vanaspati manufacturers.
