ESSENTIAL COMMODITIES ACT, 1955
The Essential Commodities Act, 1955 was enacted to ensure the easy availability of essential commodities to consumers and to protect them from exploitation by unscrupulous traders. The Act provides for the regulation and control of production, distribution and pricing of commodities which are declared as essential for maintaining or increasing supplies or for securing their equitable distribution and availability at fair prices.
As per the decisions of the Conference of Chief Ministers held on 21 May 2001, a Group of Ministers and Chief Ministers had been constituted which recommended that the regulatory mechanism under the Essential Commodities Act, 1955 should be phased out. Accordingly, the restrictions like licensing requirement, stock limits and movement restrictions have been removed from almost all agricultural commodities. Wheat, pulses and edible oils, edible oilseeds and rice being exceptions, where States have been permitted to impose some temporary restrictions in order to contain price increase of these commodities.
The number of essential commodities which stood at 70 in the year 1989 has been brought down to 7 at present.
The Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities Act, 1980 is being implemented by the State Governments/UT Administrations for the prevention of unethical trade practices like hoarding and black-marketing.
The Act empowers the Central and State Governments to detain persons whose activities are found to be prejudicial to the maintenance of supplies of commodities essential to the community.
CONSUMER CO-OPERATIVES
The consumer co-operative structure in the country has four tiers, with the National Co-operative Consumers Federation of India Ltd. (NCCF) at the national level.
Thirty State Co-operative Consumers Organisations are affiliated to the NCCF. At the Central/ Wholesale level, there are 800 Consumer Co-operative Stores. At the primary level, there are 21,903 primary stores. In the rural areas, there are about 44,418 village level Primary Agricultural Credit Societies and Marketing Societies undertaking the distribution of consumer goods along with their normal business. In the urban and semi-urban areas, the consumer co-operative societies are operating about 37,226 retail outlets to meet the requirements of the consumers.
The NCCF, besides undertaking distribution of consumer articles, also has a Consultancy and Promotional Cell for strengthening consumer co-operative societies engaged in the retailing activities.
The NCCF with its Head Office at New Delhi, has 34 branches/sub-branches located in various parts of the country.
FORWARD TRADING AND FORWARD MARKETS COMMISSION
Forward Markets Commission (FMC) is a statutory body set up under Forward Contracts (Regulation) Act, 1952 and functions under the administrative control of the Ministry of Consumer Affairs, Food and Public Distribution. The FMC regulates forward markets in commodities through the recognised associations, recommends to the
Government the grant / withdrawal of recognition to the associations organizing forward trading in commodities and makes recommendations for general improvement of the functioning of forward markets in the country.
At present, there are 24 exchanges including three ‘national level’ exchanges which have been recognised for conducting futures/forward trading in India and all the commodities have been permitted for trading. During the current year "Thermal Coal "and "Carbon Credit" have also been allowed to be traded on recognized Commodity Exchanges.
In order to amend Forward Contracts (Regulation) Act, 1952 (FCR Act), Forward Contracts (Regulation) Amendment Bill 2008 was introduced in Lok Sabha on 13.03.2008.
The trading volume and value have increased by manifold after the three national Exchanges were setup. National Multi-Commodity Exchange of India, Ahmedabad (NMCE), Exchange of India Ltd., Mumbai (MCX) and National Commodity and Derivative Exchange Ltd., Mumbai (NCDEX) started trading in November 2003.
'Jago grahak jago' — an Initiative towards consumer Education and Awareness
Realising the importance of consumer awareness, the Government has accorded top priority to Consumer Education, Consumer Protection and Consumer Awarenesss. The most important milestone in Consumer Movement in the country has been the enactment of the Consumer Protection Act, 1986. The Act applies to all goods and services unless specially exempted by the Central Government, in all sectors whether Private, Public or Co-operative.
Consumer Protection Act, 1986
The Act enshrines all the consumers rights which are internationally accepted. As per the Act, the consumer protection councils have been established at Central, State and District levels to promote and protect the consumer rights. They are:
Right to Safety: To be protected against the sale of goods and services which are spurious/hazardous for the life.
Right to Information: To know the quality, quantity, weight and the price of goods/services being paid for, so that one is not cheated by unfair trade practices.
Right to Choose: To be assured, wherever possible, access to a variety of goods and services at competitive prices.
Right to be Heard: To be heard and to be assured that the interest would
receive due consideration at appropriate fora.
Right to Seek Redressal: To seek legal redressal against unfair or restrictive
trade practices or exploitation.
Right to Consumer Education: To have access to consumer education.
BUREAU OF INDIAN STANDARDS
Bureau of Indian Standards (BIS) is a national standards body engaged in the preparation and implementation of standards, operation of certification schemes both for products and systems, organisation and management of testing laboratories, creating consumer awareness and maintaining close liaison with international standards bodies.
General
Bureau of Indian Standards (BIS) came into existence, through an Act of Parliament on 1 April 1987. BIS is involved in multifarious activities like Standards Formulation, Certification, Product/Schemes. Laboratory Services, International Activities, Consumer –related Activities, Promotional Activities, Training Services, Information services, Sale of Standards & Publications.
Standards formulation
As on 31 March 2008, 18424 Standards formulated by BIS, are in force. These cover important segments of economy, which help the industry in upgrading the quality of their goods and services.
Product Certification Scheme
As on 31 March 2008, 20025 certification marks licences are in operation under the Scheme, covering about 1000 different items ranging from food products to electronics.
Hallmarking
Hallmarking of Gold Jewellery started in April 2000 on voluntary basis under BIS Act 1986. It is aimed at to protect the consumer's interest and providing third party assurance to consumers on the purity of gold. Till 31 Mar 2008, 91 hallmarking centers have been recognized. Since the launch of the scheme, over 5403 gold jewelers have taken licence from BIS, a figure which stood at 186 in the year 2001-02. So far, over 381 lakh jewellery articles have been hallmarked.
Rajiv Gandhi National Quality Award
With a view to encourage manufacturers and service organizations to strive for excellence, Rajiv Gandhi National Quality Award was instituted by the Bureau in 1991. This annual award compares well with similar international awards, such as, Malcolm Baldrige National Quality Award of USA and European Quality Award.
National Institute of Training for Standardization (NITS)
To impart training to technical and management personnel BIS has established, the National Institute of Training for Standardization (NITS) at NOIDA (U.P.)
WELFARE SCHEMES
MID-DAY MEAL SCHEME
The Mid-Day Meal Scheme was launched by the Ministry of Human Resource Development (Department of Education) with effect from 15th August 1995 for the benefit of students in primary schools under Employment Assurance Scheme (EAS)/earlier Revamped Public Distribution System (RPDS) blocks (2368). The Scheme covers students (Class I-V) in the Government Primary Schools/Primary Schools aided by Government and in the Primary Schools run by local bodies. Foodgrains (wheat and rice) are supplied free of cost @ 100 gram per child per school day where cooked/processed hot meal is being served with a minimum content of 300 calories and 8-12 gm of protein each day of school for a minimum of 200 days and 3 kg per student per month for 9-11 months in a year, where foodgrains are distributed in raw form. In drought-affected areas, the mid day meal is distributed in summer vacations also.
WHEAT-BASED NUTRITION PROGRAMME
The Scheme is implemented by the Department of Women and Child Development, The foodgrains allotted under this Scheme are utilised by the States/UTs under Integrated Child Development Scheme (ICDS) for providing nutritious/energy food to children below 6 years of age and expectant/lactating women.
ANNAPURNA SCHEME
Ministry of Rural Development launched this scheme in 2000-2001. Indigent senior citizens of 65 years of age or above who though eligible for old age pension under the National Old Age Pension Scheme (NOAPS) but are not getting the pension are covered under the Scheme. 10 kg of foodgrains per person per month are supplied free of cost under the scheme. From 2002-2003, the scheme has been transferred to State Plan along with the National Social Assistance Programme comprising the National Old Age Pension Scheme and the National Family Benefit Scheme.
SAMPOORNA GRAMIN ROZGAR YOJANA (SGRY)
The Ministry of Rural Development, which is the nodal Central Ministry for the programme, launched the scheme on 25.9.2001 for all the States/UTs for organizing various employment generation programmes. Under the Scheme, 50 lakh tonnes of foodgrains are to be allotted to the States/UTs free of cost by Ministry of Rural Development.
SPECIAL COMPONENT OF SAMPOORNA GRAMIN ROZGAR YOJANA
Special Component of Sampoorna Gramin Rozgar Yojana aims at extending support to the people affected by natural calamities in States/UTs. Foodgrains are released under the special component of SGRY by the Ministry of Rural Development, being the nodal Ministry for the Scheme, after the approval of Department of Food and Public Distribution.
NUTRITIONAL PROGRAMME FOR ADOLESCENT GIRLS (NPAG)
A Pilot Project – ‘‘Nutritional Programme for Adolescent Girls" (NPAG) was launched by the Planning Commission initially for a period of two years, i.e. 2002-03 and 2003-04 in 51 identified districts. This scheme was restarted in 2005-06. Ministry of Women and Child Development administers the scheme.As per the revised guidelines of the programme, adolescent girls (age group 11-19 years) as identified by weight would be covered irrespective of financial status of the family to which they belong. Free foodgrains @ 6 kg. per beneficiary per month is provided to the adolescent girls (weight < 35 kg.) initially for a period of three months. Those beneficiaries, who cross the cut off point for weight, would not receive foodgrains any further.
EMERGENCY FEEDING PROGRAMME (EFP)
Emergency Feeding Programme is a food-based intervention targeted for old, infirm and destitute persons belonging to BPL households to provide them food security in their distress conditions. This was introduced in May 2001. The Scheme is being implemented by Government of Orissa in eight KBK (Kalahandi Bolangir Koraput) Districts covering two lakh beneficiaries. Under the scheme, foodgrains (rice) at BPL rates is being allocated to State Government by Department of Food and Public Distribution.
VILLAGE GRAIN BANKS SCHEME (VCB SCHEME)
A Centrally Sponsored Scheme of Grains Banks in Tribal villages was launched during 1996-97 by Ministry of Tribal Affairs in 11 States. Now the scheme has been transferred to Ministry of Food & Public Distribution.
The revised Village Grain Bank Scheme for establishment of Grain Banks in chronically food scarce areas was approved by Ministry of Finance on 15.2.2006. The main objective of the scheme is to provide safeguard against starvation during the period of natural calamity or during lean season.
NATIONAL FOOD FOR WORK PROGRAMME (NFFWP)
The scheme for National Food for Work Programme was launched with effect from 13.10.2004. This programme is being implemented in 150 most backward districts of the country so that the generation of supplementary wage employment and providing of food security through creation of need-based economic, social and community assets in these districts is further intensified. Most of the backward districts, which would benefit from the scheme are in the tribal belts. The scheme will provide 100 days of employment at minimum wages for at least one able-bodied person from each household in the country.
TARGETTED PUBLIC DISTRIBUTION SYSTEM (TPDS)
In order to ensure availability of minimum quantity of foodgrains to the families living below the poverty line, the Government launched the TPDS in June 1997. It was intended to benefit about six crore poor families in the country for whom a quantum of 72 lakh tonnes of foodgrains was earmarked annually at the rate of 10 kg per family per month. The allocation was increased from 10 kg to 20 kg from 1 April 2000. This was increased from 20 to 25 kg per family per month from July 2001. From 1 April 2002, 462 India 2010 this allocation was further increased from 25 to 35 kg per family per month. The Central Issue Price (CIP) for BPL families is Rs 4.15 per kg for wheat and Rs 5.65 per kg for rice.
ANTYODAYA ANNA YOJANA (AAY)
In order to make TPDS more focused and targeted towards the poorest section of population, the "Antyodaya Anna Yojana" (AAY) was launched in December, 2000 for one crore poor families. Initially AAY contemplated identification of one crore poorest of the poor families from amongst the BPL families covered under TPDS within the States and providing them foodgrains at a highly subsidised rate of Rs. 2/- per kg for wheat and Rs. 3/- per kg for rice. The States/UTs are required to bear the distribution cost, including margin to dealers and retailers as well as the transportation cost. Thus the entire food subsidy is being passed on to the consumers under the scheme. The scale of issue that was initially 25 kg per family per month has been increased to 35 kg per family per month with effect from 1st April, 2002. The AAY Scheme has been expanded in subsequent years and presently it is covering 2.5 crore households.
MANAGEMENT OF FOODGRAINS
SAVE GRAIN CAMPAIGN (SGC)
The scheme is implemented through a network of 12 SGC offices in close collaboration with the State Governments and NGOs. The main objective of the scheme is to transfer the technical know-how developed by Indian Grain Storage Management and Research Institute (IGMRI) to the farmers for minimising the post-harvest losses in foodgrains.
INDIAN GRAIN STORAGE MANAGEMENT AND RESEARCH INSTITUTE (IGMRI)
Indian Grain Storage Management and Research Institute (IGMRI), Hapur, is engaged in the training and R&D work relating to grain storage management. The Institute has three field stations at Hyderabad, Jorhat and Ludhiana.
SUGAR POLICY:
The country had achieved an all time high-level of sugar production of 281.99 lakh tones (Provisional) during the sugar season 2006-07. There were 615 installed sugar factories in the country as on 31st March 2008.
Partial control : Sugar & sugarcane are essential commodities under the Essential Commandities Act, 1955. Government has been following a policy of partial control and dual pricing for sugar. Under this policy a certain percentage of sugar produced by sugar factories is requisitioned by the Government as compulsory levy at a price
fixed by Government in every sugar season. The levy sugar so requisitioned is distributed under the Public Distribution System (PDS) The non-levy (free-sale) sugar is allowed to be sold as per the quota/quantity released by the Government under the regulated release mechanism.
Phased Decontrol of the Sugar Industry: The Government has taken steps for decontrol of the sugar industry which include reduction in the compulsory levy obligation of the sugar factories. Accordingly the levy obligation now stands reduced gradually from 40% (Prior to 01.01.2000) to 10% from 01.03.2002.
SUGARCANE PRICING POLICY
The Central Government fixes the Statutory Minimum Price (SMP) of sugarcane for each sugar season. The SMP is fixed on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP) and after consulting the State Governments and associations of sugar industry and cane growers.
FOOD PROCESSING
Role and Objectives
The Ministry of Food Processing Industries (MFPI) was set up in July 1988 to give an impetus to development of food processing sector in the country. The Ministry is concerned with formulation and implementation of the policies & plans for the food processing industries within the overall national priorities and objectives.
Major Policy initiatives
• Food processing has been identified as industry with employment potential.
• Most of the processed food items have been exempted from the purview of licensing, except items reserved for small-scale sector and alcoholic beverages.
• To ensure easy availability of credit, Government has included food processing industries in the list of priority sector for bank lending. NABARD has created a refinancing window with a corpus of Rs. 1000 crore, especially for agroprocessing infrastructure and market development.
• Rs. 150 crore earmarked for (National Horticulture Mission) NHM for terminal markets.
• Food processing industries were included in the list of priority sector for bank lending in 1999.
• Automatic approval for foreign equity upto 100% is available for most of the processed food items except alcohol and beer and those reserved for small scale sector subject to certain conditions. 468 India 2010
Integrated Food Law
An Integrated Food Law, i.e. Food Safety and Standards Act, 2006 was notified on 24.8.200implementation of the Act.
National Institute of Food Technology Entrepreneurship & Management (NIFTEM)
The Ministry has set up a National Institute of Food technology Entrepreneurship & Management (NIFTEM) at Kundli (Haryana). The Institute will function as a knowledge centre in food processing.
Steps taken by the Government
The Government has been taking effective steps to moderate the prices and increase domestic availability of essential commodities. It has taken a number of step as listed below:-
To augment availability of wheat, Public Sector Agencies STC, MMTC, PEC imported about 18.0 lakh tonnes of wheat during 2007-08.
In order to maximize procurement of wheat and paddy, the Government has been increasing MSPs and announcing bonus in the last 5 years. The Government fixed the MSP of wheat for Crop Year 2007-08 at Rs. 1000 per quintal. The Minimum Support Price (MSP) of 'common' and 'Grade A' varieties of paddy was increased by Rs 105 per quintal, to Rs. 850 per quintal and Rs 880 a quintal respectively during the Kharif marketing Season 2008-09.
Export of non-basmati rice was banned in April 2008. Import duty on rice was cut to zero upto 31.3.2009. Government also directed that the order regarding removal of restrictions on licensing, stock limits and movement of rice be kept in abeyance for a period of one year.
Government has perotected vunerable section of society through Targeted Public Distribution System (TPDS) and Antodaya Anna Yajana (AAY). Under the TPDS, wheat, rice, sugar and kerosene oils are allocated to State Governments for distribution through the Fair Price Shops.
Customs duty on import of pulses was reduced to zero on June 8, 2006. Also withdrawn the 4% additional countervailing duty on all edible oils.
When the onion prices started flaring up, NAFED increased the MEP from USD 250 PMT in March/April 2007 to US$ 495 PMT in October 2007 to increase the domestic availability of onion. The export of onion was also put under license through designated canalizing agencies. Further more, Government also organized sale of onion through mobile centres operated by Delhi Government, NAFED), Kendriya Bhandar as well as Mother Dairy. These outlets numbering around 375, sold onion at Rs 17-18 per kg when the outside price was Rs 22-24 per kg.
Subsequently, with the domestic prices of onion showing a declining trend, MEP was successively reduced. The export restriction was also lifted w.e.f. 16.11.07 in view of the increased availability of kharif onion.
As a measure of abundant precaution, Forward Markets commission (FMC) on 23.01.07, directed the three National Exchanges, namely (a) Multi Commodity Exchange of India Ltd., (b) National Commodity & Derivatives Exchange Ltd., (c) National Multi Commodity Exchange of Inda Ltd., to delist all contracts of tur and urad and to close out all outstanding positions in all Tur and Urad contracts at the closing price on 23.01.07.
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