year end review - ministry of consumer affairs, food & pd

emphasis on strengthening of pds and better consumer protection

Monday, December 27, 2004

Year End Review

Ministry of Consumer Affairs, Food and Public distribution has initiated several steps during the year for strengthening the Public Distribution System (PDS). A meeting of the State food ministers was held in the capital by Shri Sharad Pawar, Minister of Consumer Affairs, Food and Public Distribution for adopting appropriate measures for this purpose. The suggestions emerged included making Fair Price Shops economically viable by allowing them to sell utility items other than those distributed under PDS, Fair Price Shops to be treated as priority sector for providing bank credits, constitution of task forces for regular inspection and monitoring of Targeted Public Distribution System, constant review and updating of families for issue of ration cards and deletion of ineligible units etc. It was recommended to consider payment of a retail commission to Fair Price Shops from Government of India for distribution of foodgrains under Antyodaya Anna Yojana (AAY).

The Scheme of Antyodaya Anna Yojana for supplying highly subsidized foodgrains to the poorest of the poor in the country has been expanded to cover 5 million more BPL families in line with the National Common Minimum Programme (NCMP). With this, two crore families from among the BPL section have been brought under AAY. A decision was also taken for stepping up of procurement of foodgrains in non-traditional states like Bihar, Assam, Jharkhand, Tamil Nadu and Andaman & Nicobar Islands. State governments have been encouraged to take up procurement of foodgrains under the decentralized procurement scheme.

With a view to bring about substantial and sustainable efficiency in FCI’s functioning and to reduce the subsidy burden, it has been proposed to entrust a study on the functioning of FCI to a reputed international organization. The modalities for the study are being worked out. Procuring states have also been requested to bring down the high taxation and market charges for reducing the economic cost and food subsidy which stood at Rs.24176.45 crore in 2003-04 as against Rs. 2450 crore in 1990-91.

In the sugar sector, the Government has disbursed a total of Rs.262.33 crore as buffer stock subsidy to sugar mills in 698 cases and a sum of Rs. 400 crore has been budgeted in the current financial year for this purpose. Cane arrears have reduced from Rs. 2,568.79 crore (24.8%) to Rs.580.81 crore (5%) as on September 30, 2004.

The Tuteja Committee for Restructuring of sugar Industry, which submitted its report early this month has inter alia recommended abolition of the mechanism of release of free sale sugar quota with effect from October 1, 2005, while retaining the present system of 10 per cent of the production being collected as levy sugar. The Committee also recommended allowing governments of drought/flood affected states to go for additional open market borrowings to help sugar factories meet the fixed costs and 75 per cent entitled wages (of 2004-05 and 2005-06 season and arrears of 2003-04 season) of mills which were operational in 2002-03 sugar season but may have to remain closed in the 2004-05 and 2005-06 seasons due to non-availability of sugarcane.

The Department of Consumer Affairs has introduced a few schemes like setting up of District Consumer Information Centre in each district in the country, setting up of consumer clubs in schools, Jagriti Shibir Yojana etc. for spreading awareness among consumers about their rights as provided in the Consumer Protection Act, 1986. In yet another scheme introduced by the Department, Research Institutions/Universities/Colleges etc. are being encouraged to promote consumer protection. Under the Scheme, the Department is all set to launch a Helpline for the consumer at the University of Delhi to provide assistance and guidance to the consumer. The proposed National Consumer Helpline to be set up and operated by the University of Delhi will be funded from the Consumer Welfare Fund in the Department of Consumer Affairs to the tune of Rs.3.3 crore to be released in the course of three years. The National Consumer Helpline will be formally launched on the National Consumer Rights Day on March 15, 2005.Indian Institute of Public Administration (IIPA), New Delhi has been appointed as a consultant to the Department of Consumer Affairs for three years in the area of consumer protection and consumer welfare. An amount of Rs. 90.1 lakh has been released to IIPA as charges for consultancy services for the first year commencing from 2004-05.

A Consumer Activist Group has been set up within the Department comprising senior officials and a few reputed and experienced personalities. Further three Committees for preparing a module for consumer clubs, for drafting a National Consumer Policy and for suggesting a suitable mechanism for handling consumer complaints have also been set up.

The Bureau of Indian Standards has initiated hallmarking of gold jewellry in 2000 and at present 19 hallmarking centres have been recognized for this purpose and more than 800 jewellers have been certified under the scheme.