Wednesday, February 16, 2011

Programmes to make people aware about consumer rights Read more: Programmes to make people aware about consumer rights - The Times of India http://ti

LUCKNOW: The UP government will organise a series of informative programmes to make consumers aware of their rights and to mark the National Consumer Day on December 24. The theme for this year is 'Consumers! discharge your responsibility: Assert your rights'.

Principal secretary, consumer protection and weights and measures, JN Chamber said that cooperation from all government departments is needed to create awareness among consumers. The government will organise seminars, exhibitions, rallies and workshops to sensitise consumers about their rights and responsibilities. The significant and important judgments from consumer forums will be distributed among people to make them aware on their rights as consumers.

The government plans to create awareness about the Consumer Protection Act, 1986, which provides for promotion and protection of the rights of the consumers. The provisions of this Act cover goods as well as services.

People will be told that written complaints can be filed before district consumer forum for demanding compensation upto Rs 20 lakh whereas complaints demanding compensation between Rs 20 lakh and Rs 1 crore can be filed at state commission and cases demanding compensation more than Rs 1 crore can be filed at national commission. However, no complaint can be filed for alleged deficiency in any service that is rendered free of charge or under a contract of personal service.

Consumers can file the complaint in case of deficiency of service, sub-standard products, shoddy goods, false assurances, mis-representation, restrictive trade practices, over-charging or hoarding, in case of goods being hazardous to life and safety and when company/organisation refuses to reimburse your bills. Schools, colleges and educational institutes will organise debate, quiz and essay competitions on National Consumer Day. The government plans to organise several programmes during the week following the Day.

Protection Against Unfair Competition

Protection against unfair competition has been recognised as one of the main objectives of intellectual property system. It does not grant exclusive rights to the owners with respect to the subject concerned, like in the case of patents, trade marks, etc. Infact, it prohibits any act of competition that is contrary to honest practices in industrial or commercial matters, referred to as "unfair competition".

The acts of unfair competition not only adversely affect the competitors, which tend to lose their customers and market share; but also affect consumers as they are likely to be misinformed and mislead and tend to suffer economic and personal prejudice.

The following acts of unfair competition are closely related to IP and are directly relevant to consumer protection:-
  • all acts of such a nature as to create confusion by any means whatever with the establishment, the goods, or the industrial or commercial activities, of a competitor
  • false allegations in the course of trade of such a nature as to discredit the establishment, the goods, or the industrial or commercial activities, of a competitor
  • indications or allegations the use of which in trade is liable to mislead the public as to the nature, manufacturing process, characteristics, suitability for their purpose or quantity, of the goods.
Whatever form unfair competition may take, it is in the interest of the honest and legitimate entrepreneur, the consumer and the public at large that they should be prevented from it as early and as effectively as possible. Free and fair competition between enterprises is considered to be the best means of satisfying supply and demand in the economy as well as of serving the interests of consumers and economy as a whole. This stimulates innovation and productivity and leads to the optimum allocation of resources in the economy; reduces costs and improves quality; as well as accelerates economic growth and development. Hence, In India, the Government has formulated a Competition Policy which protects the interests of consumers and producers by promoting and sustaining a fair competition.

Further, fair play in the market place cannot be ensured only by the protection of industrial property rights. A wide range of unfair acts, such as misleading advertising, violation of trade secrets, etc., are usually not dealt with by specific laws on intellectual property. Thus, it is necessary to enforce Unfair Competition law to supplement the intellectual property laws and to grant fair protection to consumers.

Suggestions or Opinions

In today's changing market scenario, there is an increasing necessity of empowering the consumers through education and motivation regarding their rights and responsibilities. He/she should be equipped to be fully vigilant so as to be able to protect himself/herself from any wrongful act on the part of the seller/trader. Several steps have been taken by the Government, both at the Central and State level towards generating awareness among the consumers. Given all such initiatives, it is the responsibility of the consumer as well to keep in mind the following suggestions:
  • Purchase products only after their complete scrutiny and not at the cost of attractive advertisements.
  • Keep check on the weighing and measuring instruments used by traders.
  • Avoid buying fruits and vegetables from unhygienic place.
  • Check print of MRP on the packet.
  • Check the quantity as per the figure printed on the packet.
  • Check the expiry date of the product, particularly that of eatables and medicines.
  • Always collect bill at the time of purchase.
Moreover, the packaging and appearance of the product should not be the guiding factor for consumer purchases. Along with cost consideration, consumer must be cautious of the quality of the product. Most importantly, it is the prime responsibility of a consumer to bring to the notice of the concerned authorities, any violation in their rights.

Issues and Problems

Globalization has made the world smaller by integrating the global markets. This has exposed the consumers to the wide range of products and services available in the market. It has, on one hand, given them a greater choice of products and brands with lower costs. While, on the other hand, it has made consumers more and more quality consciousness and aware of their rights. As a result, they are able to voice their concerns about various problems and issues faced by them.

Some of the commonly raised problems are:

  • Adulteration of food substances by traders through addition of substances which are injurious to health or removal of substances which are nutritious or by lowering their quality standards
  • Misleading advertisements of goods and services in television, newspapers and magazines to influence the consumers demand for the same
  • Variations in the contents filled in the package of goods
  • Improper delivery of after sales services
  • Supply of defective goods
  • Hidden price component
  • Use of deceptive or incorrect rates on products
  • Use of false or non-standard weights and measures in supply of goods
  • Production of low quality goods in bulk quantities
  • Illegal fixation of Maximum Retail Price (MRP)
  • Selling above the MRP
  • Unauthorized sale of essential products like medicines, etc. beyond their expiry date to ignorant consumers
  • Poor customer services
  • Non-compliance with the terms and conditions of sales and services
  • Supply of false or incomplete information regarding the product
  • Non-fulfilment of guarantee or warrantee etc.
All such issues and problems must be handled more efficiently both at the Centre and the State level, with a view to protect the interests of the consumers and promote their welfare.

Guarantees, warranties and refunds

As a consumer, the law automatically provides you with guarantees on certain goods and services. These are called consumer guarantees.

You are guaranteed that the goods you buy:

  • are of acceptable quality
  • match the description, sample or demonstration model you were shown
  • are fit for their intended purpose
  • have clear title, unless otherwise stated
  • do not have any undisclosed securities (money owing on them)
  • come with a right to undisturbed possession
  • will have spare parts and repairs available for a reasonable amount of time after you buy them
  • will have express warranties honoured.

You are guaranteed that the services you buy are:

  • provided with due care and skill
  • fit for purpose
  • completed within a reasonable time.

If a good or service fails to meet a guarantee, you have rights against the business you purchased them from and, in some cases, the manufacturer. They will have to provide a ´remedy´-an attempt to put right the fault, deficiency or failure.

Tuesday, February 15, 2011

Consumer Packaged Goods

Consumer packaged goods (CPG) are consumable goods such as food and beverages, footwear and apparel, tobacco, and cleaning products. In general, CPGs are things that get used up and have to be replaced frequently, in contrast to items that people usually keep for a long time, such as cars and furniture. Although the CPG industry has been slow to invest in new technology, it is increasingly turning to computerized and Web-based applications for customer relationship management (CRM), supply chain management (SCM), enterprise resource planning (ERP), and marketing automation. A number of vendors, including Oracle, SAP, and Siebel Systems offer products for the CPG sector.

Consumer packaged goods are the everyday use items that consumers purchase mostly from supermarkets. They include food and beverages, cosmetics, skin care, hair care, feminine care,home cleaning, and detergents. The most striking feature of this industry is the wide range of consumer needs and preferences involved. The buyers can be considered fragmented in the sense that there is no single marketing strategy that can effectively address all consumer needs. A retailer has a particularly important role to fulfill in the supply chain i.e. aggregation of demand and supply. We discuss below the unique characteristics of the CPG Industry that have significance for the use of Web.

The CPGI consists of low-value products that have can be considered “mundane.”Consumer goods can be considered non-durable and most individual purchases of consumer products are of low value. The margins for the manufacturer and the retailer on these products are very low, but they rely on the high turnover of the products to be profitable. Thus, it is critical to provide a very good product and channel experience to the consumer on a continual basis to ensure maximum consumer satisfaction.

Products within the CPGI have short-product lives and are frequently re-purchased. Many of these products are considered necessities and demand is typically steady. The consumer’s need from many products within the industry is long-term (e.g., feminine care products), with some being life-long (e.g., deodorant, soaps). However, the demand for a specific brand within the CPGI is influenced by several factors, including price of the product, the consumer’s discretionary household income, the demographics of consumers, and the innovation of the product (Standard & Poor’s, 2000).

The CPGI is highly competitive across brands. Consumer products are closely associated with and differentiated by brands. Brands are an important way, other than the actual product experience, that the product benefits are communicated to the consumer. Consequently, consumer goods manufacturers spend enormous efforts at building their brands and media is a critical component of brand building. Major consumer goods manufacturers, such as Procter & Gamble and Unilever are known to be big advertisers in television and radio.

It is difficult for CPGI companies to raise product prices. The CPGI is saturated (Standard & Poor’s, 2000) and highly competitive. This makes it difficult for companies to raise prices despite any increases in raw materials cost.

It is becoming more difficult for consumers to differentiate competing brands as the number of product introductions is continually increasing.
Companies within the industry are frequently enhancing older product lines, while new product lines are also be introduced. The innovativeness of a product can enhance the demand for the product. Being the first company to market a new product type is advantageous within this industry as it takes considerable effort to lure customers away (Standard & Poor’s, 2000). However, as more brands and product features are offered, it will become harder for consumers to differentiate among the products that are offered.

It is difficult to develop brand loyalty since switching costs are low. Even though the value of each purchase is relatively small, a loyal consumer is likely to purchase the products several times over his/her lifetime. But the low switching costs make consumers to easily switch their brands, if their experience with the existing brands is not satisfactory. Thus, organizations are constantly struggling to increase the bond between the consumer and the brand, by personalizing the products and offering superior customer service. However, brands that are strong within the industry tend to develop a competitive advantage through the loyalty of its users.

Private-label goods are becoming more accepted by consumers
. However, some branded products are protected by emotional factors and consumer doubts regarding the quality of the private-label good (e.g. health and beauty products).

Low growth in sales is expected in the United States.
Only small increases in the U.S. population and in the number of U.S. households are expected in upcoming years. In order to increase sales, CPGI players will need to gain market share from competition in the domestic market or they will need to focus on strengthening their positions in international markets. Finding new ways to reduce current costs also will become important as companies work to improve profitability in this tight market.

An aging population will change consumption patterns. This will lower the demand for certain products types (e.g., household maintenance products) while other product types, specifically those with features that appeal to older consumers (e.g., anti-aging health care products), will grow in demand.

Women are the primary purchasers of CPGI products. Women form the major target group for the messages of consumer goods companies. Several consumer products, such as skin careand beauty care, are addressed directly to women. Other products, such as food and beverages,home cleaning and detergents are addressed to women as the primary decision makers or decision influencers. In addition to the media choice, companies have to decide on the type of programs they sponsor, so as to attract the attention of their target audience.

New distribution channels are needed to meet today’s consumers. CPGI companies need to expand their distribution channel from the traditional outlets (e.g., Food, Drug, Mass
Merchanding Retailerst) to other outlets that will be accessible to consumers.As we can see from the above characteristics, marketing consumer goods involves constant
feedback from consumers about their experience with the products and the ability to rapidly respond to the consumer needs and preferences. Further, since the manufacturers are far removed from the consumers, they have to rely on the information supplied by the retailers to understand the demand for their products. With the emergence of the Web as a new channel, consumer goods manufacturers are hoping to overcome these limitations and create a closer relationship with their consumers in order to serve them better and be their preferred brands.

Characteristics of Products

  • Low-value
  • Mundane
  • Non-durable
  • Low margin
  • Frequently re-purchased
  • Short-product life
  • Considered necessary
  • Low switching costs
  • Women are primary purchasers
  • Product selection influenced by: price, discretionary household income, consumer demographics, and product features.

Characteristics of Industry

  • Demand for products is steady
  • Highly-competitive
  • Difficult to raise product prices
  • Difficult to develop brand loyalty
  • Difficult for consumers to differentiate among brands
  • Product introductions are increasing
  • Private label goods are becoming more acceptable
  • Low growth in sales expected in the U.S.
  • Consumption patterns change as population ages
  • New distribution channels are needed

Indian Handicrafts Trade Promotion Network

  • Indian Oilseeds & Produce Exporters Association (IOPEA)
  • Exporters India - offers business listings for exporters in India.
  • Indian Exporters Directory - directory of Indian importers, exporters, and manufacturers.
  • Indian Exporters - includes information on government offices and export councils
  • Indian Apparel Manufacturers - manufacturers and exporters of garments for ladies, gentlemen, and kids
  • Indian Auto Industries - manufacturers and exporters of automotive components axles and spanners.
  • Great Indian Bazaar - catalog of Indian products from manufacturers and exporters.
  • Metro Exporters - exporters of bicycles, pharmaceuticals, diesel engines, textiles, plastics, and more.
  • V-Star Creations - manufacturers and exporters of fashionable ladies apparels
  • Seeba Exporters - offering stainless steel, copper, and plastic cookware and accessories.
  • Marble & Granite Tarikh Export House - exporters of Indian marble and granite.
  • Trade India - Indian Importer's Directory and Trade India Bulletin Board.
  • Chic Avenue Fashions - manufacurers and exporters of traditional womens' wear.
  • Ann' Artome - exporters of assorted Indian handicrafts and gifts.
  • Jivraj Tea - manufacturers, processors and exporters of Indian tea.
  • F.A.R. Brass Products - manufacturers and exporters of Indian metal handicrafts
  • Sangeeta Granites Limited - manufacturers and exporters of sculpted Indian stonework and monuments.
  • MAS Enterprises Limited - exporters and auctioneers of spices
  • MVJ Foods Private Limited - manufacturers and exporters of different range of curry powders
  • AutoIndia.Com - database of Indian auto and related manufacturers, exporters/importers, and suppliers.
  • F.A.R. Brass Products - manufacturers and exporters of Indian metal handicrafts
  • Inet India Business Network - comprehensive network of Indian trade promotion organizations
  • Mandaliyaa Overseas Pvt. Ltd. - manufacturers and exporters of traditional Indian garments
  • Trimbak Industries Ltd. - manufacturers and exporters of terry and other towels and related products.
  • Autopack Machines Pvt. Ltd. - manufacturers and exporters of packaging machinery
  • Pasupati Fabrics Ltd. - manufacturers and exporters of cotton yarn, and knitted and woven fabric
  • Aarcom International - exporters of fishing equipment and accessories.
  • Aval Exports - manufacturers and exporters of beaded garments and house furnishings.
  • Chrishiv - manufacturers, retailers and exporters of salwaar kameezes, lachaas, and chaniya cholis.
  • Luxor Writing Instruments - manufacturers and exporters of pens
  • Surya Global Ltd. - manufacturers and exporters of steel pipes and tubes.
  • South Seas Distilleries and Breweries Pvt. Ltd. - manufacturers and exporters alcoholic beverages.
  • Punihani International - exporters and manufacturers of leather garments
  • Hicon Group - manufacturers and exporters of air conditioners, diesel generators, and aqua coolers.
  • EI Industries Limited - manufacturers and exporters of stainless steel wires and electric cables
  • Jairamdass Khushiram - exporters of herbs, herbal extracts spices, and dry fruits.
  • Mangla Group - manufacturers and exporters of bicycle components.
  • Dipchem Industries - manufacturers, suppliers, and exporters of pharmaceuticals and chemicals.
  • Panchsheel Organics Ltd. - manufacturers and exporters of bulk drugs and intermediates.
  • Shaktimaan Zippers - manufacturers and exporters of fashion accessories.
  • Essaar P.U. Soles - manufacturers and exporters of shoes, soles, and slippers.
  • NB Footwear Limited - manufacturers and exporters of hand sewn leather footwear.
  • R H Exports - exporters of gems and jewellery.
  • Goldiam International Limited - International Diamond Jewelry and Diamonds Exporters
  • Ajanta Leather Fashion Ltd. - manufacturers and exporters of leather goods.
  • Crescent Export Syndicate - manufacturer and exporters of handbags and small leather goods.
  • Kiran Fashion - manufacturer and exporters of high fashion leather goods and garments.
  • Rika Enterprises - manufacturers of hotel linen, and exporters of bed, bath, and table linen.
  • MB Exports International - exporters and manufacturers of leather jackets and garments.
  • Teja Industries- manufacturers and exporters of hidecraft leather goods.
  • PLT Industries - manufacturers and exporters of ball, needle, roller, and thrust bearings.
  • PNK Paramount - manufacturers and exporters of industrial circular knives
  • Surbhi Cables - manufacturers and exporters of coaxial, multicore, computer, and shielded cables.
  • Allen Solly - exporters of men's shirts, trousers, and ties.
  • Mohan Clothing Co. - manufacturers and exporters of formal suits, sports wear, and more.
  • Page International - knitwear garment manufacturers and exporters.
  • Sahiba International- manufacturers and exporters of garments for men, women, and children.
  • Dossa Harjee Regd.- manufacturers and exporters of cotton canvas,sheetings and industrial fabrics.
  • Ekta Exports - manufacturer and exporters of fabrics
  • AA Arts - manufactures and exporters of handicrafts.
  • Kalpetta Estates Limited - exporters of natural, block and raw rubber, latex, mats, and other products.
  • Shree RubberPlast - manufacturers and exporters of plastic packing material and other plastic goods.
  • Allied - manufacturers and exporters of oil seals and gaskets.
  • Designs India - exporters of decorative wrought iron objects and other handicrafts.
  • Odyssey Exports - exporters of terracotta, papier machie, paintings and more.
  • Ajmera Group - exporters of machinery and tools.
  • Pioneer Arts - manufacturing exporters of decorative items, and lamps.
  • Sea Shells International - exporters of engraved, ceramic finished, and dyed shells.
  • Shamken Group - manufacturers and exporters of fabrics and garments.
  • Anchor Engineers' Files - manufacturers and exporters of steel engineers' files.
  • Sage Metals Limited - manufacturers and exporters of fully machined cast components
  • Narang Enterprises - exporters of hospital, surgical, dental, medical goods
  • Cannula - manufacturers and exporters of medical disposables.
  • Classic Finishers - manufacturers and exporters of micro-gold plated imitation jewelry.
  • Gem-Impex - manufacturers and exporters of pearls, pearl jewelry, diamonds, and diamond jewelry.
  • Sangam Chains - manufacturers, wholesalers, and exporters of gold jewelry and chains.
  • Nikki International - exporters of hand made terracotta pottery.
  • Palbro Industries - manufacturers and exporters of automobile and light engineering goods.
  • Jindal Pipes Limited - manufacturers and exporters of ERW steel pipes, tubes, OCTG, and scaffoldings.
  • Allied - manufacturers and exporters of oil seals and gaskets.
  • Admir Ovens - manufacturers and exporters of industrial ovens.
  • Choksi Group - manufacturers and exporters of cooling towers and spare parts and clothing.
  • Speedo Plastics - manufacturers and exporters of plastic moulded products.
  • Carni Exports - manufacturers and exporters of coir and jute mats, interior floor furnishings, and more.
  • PLT Industries - manufacturers and exporters of ball, needle, roller, and thrust bearings.
  • Turbo Bearings Pvt. Ltd. - manufacturers and exporters of bearings.
  • Clutch Auto Limited - manufacturers and exporters of clutch discs, kits, and components.
  • Involute - manufacturers and exporters of gear boxes, gears, oil pumps, and pulleys.
  • Leeway Mafcom International - manufacturers and exporters of brake linings.
  • Sanal Exports - manufacturers and exporters of engineering goods from India.
  • Sevana Group - manufacturers and exporters of electrical appliances and tools.
  • Priyanka Pvt. Ltd - manufacturers and exporters of tents, camping and relief items.
  • Aarcom International - exporters of fishing equipment and accessories.
  • Silk-n-Silver - manufacturers and exporters of sterling silver tablewares, kitchenware, gift items.
  • Ramtirth Exports - manufacturers and exporters of natural health products.
  • Covertech Equipments Pvt. Ltd - exporters of blades for rotogravure and flexographic printing.
  • Subburaj Group - manufacturers and exporters of cotton yarn.
  • Transworld - manufacturers and exporters of various types of handicraft items.
  • Bimbrah Electronics - manufacturers and exporters of public address systems and more.
  • Meko Auto Pvt. Ltd - manufacturers and exporters of water pump assemblies.
  • Chandra Exports - exporters, global traders, and brokers of commodities.
  • Glisters Internationals - exporters of commodities and products offering marketing and sales services.
  • L. T. Overseas - exporters of rice and other agricultural commodities.

Exim Policy For Handicrafts and EPCH

All manufacturers of handicrafts are exempt from obtaining an industrial license to manufacture. There are no restrictions regarding the location of the manufacturing unit Characteristics of Indian hand crafted items for exports:
  • They are quota free and neutral to fiber content or composition, barring 100% silk.
  • They include Garments, Made-up and clothing accessories.
  • Are produced in cottage industries.
  • Should not have zippers.
  • Must be ornamented using any one or more of the following Indian folk styles.
  • Hand painting, Hand printing, Batik, Tie and Dye, Kalamkari.
  • Hand embroidery, Crocheting.
  • Appliqué work of sequins, wooden or glass beads, shells, mirror, ornamental motifs of textiles materials.
  • Extra wrap of welt ornamentation of silk, art silk or zari threads.
  • Should conform to shape and styles of each item as defined in the agreed list of different countries.
  • Should satisfy the dimensional aspects.
New Handicraft SEZs shall be established which would procure products from the cottage sector and do the finishing for exports. Duty free import entitlement of trimmings and embellishments shall be 5% of the FOB value of exports during the previous financial year. The entitlement is broad banded, and shall extend also to merchant exporters tied up with supporting manufacturers. The Handicraft Export Promotion Council shall be authorized to import trimmings, embellishments and consumables on behalf of those exporters for whom directly importing may not be viable Specific funds would be earmarked under MAI & MDA Schemes for promoting Handicraft exports.
CVD (Countervailing Duty) is exempted on duty free import of trimmings, embellishments and consumables.

Export Promotion Council for Handicrafts

EPCH Council was set up by the Ministry of Textiles, Government of India for promotion of Exports of handicrafts from India. EPCH is a non-profit and non-trading organisation working under the administrative control of the Development Commissioner (Handicrafts). The basic objective of EPCH is to promote & develop the exports of Country. The main role of EPCH is to project India's image abroad as a reliable supplier of high quality handicrafts & gifts. More than 6000 handicraft's manufacturers & exporters are the members of EPCH.The Council is run and managed by team of professionals headed by Executive Director. The Committee of Administration consist of eminent exporters, professionals. The Export Promotion Council for Handicrafts has a rarest distinction of being considered as MODEL COUNCIL which is self sustaining and where all the promotional activities are self financed. The main activities of EPCH are narrated as follows:
  • Providing commercially useful information and assistance to members in developing and increasing exports.
  • Offering professional advice and services to members in areas of technology upgradation, quality and design improvement, standards and specifications, product development, innovation etc.
  • Organising visits of delegation of its members abroad to explore overseas market opportunities.
  • Participating in specialized International Trade Fairs of handicrafts & gifts.
  • Organizing Indian Handicrafts and Gifts Fair at New Delhi.
  • Interaction between exporting community and Govt. both at the Central and State level and representation in almost all the committees/panels of Central and State and represents in almost all the committees/panels of Central and State.
  • To create an environment of awareness through Workshops on "Export Marketing, Procedures and Documentation", Packaging, Design Development, Buyer Seller Meet, Open House etc. interaction with Central and State Govt. and various other similar programmes.
  • Dissemination of government notification, orders, information on trade and other relevant information to members.
The importers of handicrafts and gifts can always bank upon EPCH to look after their import needs. The EPCH undertakes to meet your choices, treasures of India’s rich cultural heritage so vividly reflected in its handicrafts.

Categories in Handicraft
Categories in handicrafts as per EPCH are as follows:
  • Art metal ware
  • Wood ware
  • Hand printed textiles and scarves
  • Embroidered and crocheted goods
  • Shawls as art wares
  • Zari and zari goods
  • Imitation jewellery
  • Miscellaneous handicrafts
List of concerned Export Promotion Councils
1.Carpet Export Promotion Council
Address: 110-A/1, Krishna Nagar, (Behind Govt. St. Sec School), Safdarjung Enclave, New Delhi.
Tel: 6102741, 6101024
Fax: 011-6165299
Contact Person: Mr. O.P. Garg, Chairman
Areas of Interest: Handmade/Woollen Carpets, Rugs, Durries, Druggets and Namdhas including handmade Silk carpets.

2. Export Promotion Council for Handicrafts

Address: 6, Community Centre, IInd Floor, Basant Lok, Vasant Vihar, New Delhi - 110 057
Tel: 011-6875377, 600871
Fax: 011-606144
Email: secy.epch@axcess.net.inWebsite:
Contact Person: Mr. Rakesh Kumar, Executive Director
Areas of Interest: Handicrafts

3. Handicrafts & Handloom Export Corporation
Address: Jawahar Vyapar Bhavan, Annex-I, 1, Tolstoy Marg, New Delhi - 110 001
Tel: 011-3315116, 3315282
Fax: 011-3315351
Contact Person: Mr. Vinod Kumar Malhotra, Chairman & MD

Logistics

Logistics is the art and science of managing and controlling the flow of goods, energy, information and other resources like products, services, and people, from the source of production to the marketplace. It is difficult or nearly impossible to accomplish any international trading, global export/import processes, international repositioning of raw materials/products and manufacturing without a professional logistical support. It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging. The operating responsibility of logistics is the geographical repositioning of raw materials, work in process, and finished inventories where required at the lowest cost possible.Logistics and Supply Chain services are provided by a wide range of 3rd party suppliers.

Origins and Definition

The word of logistics originates from the ancient Greek logos (λ?γος), which means “ratio, word, calculation, reason, speech, oration”.Logistics is an idea considered to have transformed from the military's need to supply themselves as they moved from their base to a forward position. In ancient Greek, Roman and Byzantine empires, there were military officers with the title ‘Logistikas’ who were responsible for financial and supply distribution matters.

The Oxford English dictionary defines logistics as: “The branch of military science having to do with procuring, maintaining and transporting material, personnel and facilities.”Another dictionary definition is: "The time related positioning of resources." As such, logistics is commonly seen as a branch of engineering which creates "people systems" rather than "machine systems"

Logistician

Logistician is the profession in the logistics & transport sectors, including sea, air, land and rail modes. Professional qualifications for the logisticians can carry post-nominal letters. Common examples include FCILT/CMILT (by The Chartered Institute of Logistics & Transport) (CILT), EJLog/ESLog/EMLog (by European Logistics Association) (ELA), CML/CPL (by International Society of Logistics) (SOLE), JrLog/Log/SrLog (by China Federation of Logistics & Purchasing) (CFLP), FHKLA/MHKLA (by Hong Kong Logistics Association) (HKLA), PLS/CTL/DLP (by American Society of Transportation & Logistics) (AST&L). However, some universities and academic institutions do help in producing logisticians, by offering academic degree programmes at both undergraduate and postgraduate levels, too.

Military Logistics
In military logistics, experts manage how and when to move resources to the places they are needed. In military science, maintaining one's supply lines while disrupting those of the enemy is a crucial—some would say the most crucial—element of military strategy, since an armed force without food, fuel and ammunition is defenseless.

The defeat of the British in the American War of Independence, and the defeat of Erwin Rommel in World War II, have been largely attributed to logistical failure. The historical leaders Hannibal Barca, Alexander the Great and the Duke of Wellington are considered to have been logistical geniuses.

Logistics Management

Logistics management is that part of the supply chain which plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements. A professional working in the field of logistics management is called a logistician.

The Chartered Institute of Logistics & Transport (CILT) was established in the United Kingdom in 1919 and was granted the Royal Charter in 1926. The Chartered Institute is one of professional bodies or institutions for the logistics & transport sectors, that offers such professional qualification or degree in logistics management.

Business Logistics
Logistics as a business concept evolved only in the 1950s. This was mainly due to the increasing complexity of supplying one's business with materials and shipping out products in an increasingly globalized supply chain, calling for experts in the field who are called Supply Chain Logisticians. This can be defined as having the right item in the right quantity at the right time at the right place for the right price and is the science of process and incorporates all industry sectors. The goal of logistics work is to manage the fruition of project life cycles, supply chains and resultant efficiencies.

In business, logistics may have either internal focus (inbound logistics), or external focus (outbound logistics) covering the flow and storage of materials from point of origin to point of consumption (see supply chain management). The main functions of a qualified logistician include inventory management, purchasing, transportation, warehousing, consultation and the organizing and planning of these activities. Logisticians combine a professional knowledge of each of these functions so that there is a coordination of resources in an organization. There are two fundamentally different forms of logistics. One optimizes a steady flow of material through a network of transport links and storage nodes. The other coordinates a sequence of resources to carry out some project.

Production Logistics
The term is used for describing logistic processes within an industry. The purpose of production logistics is to ensure that each machine and workstation is being fed with the right product in the right quantity and quality at the right point in time.

The issue is not the transportation itself, but to streamline and control the flow through the value adding processes and eliminate non-value adding ones. Production logistics can be applied in existing as well as new plants. Manufacturing in an existing plant is a constantly changing process. Machines are exchanged and new ones added, which gives the opportunity to improve the production logistics system accordingly. Production logistics provides the means to achieve customer response and capital efficiency.

The importance of production logistics is getting more and more important with the decreasing batch sizes. In many industries (e.g. mobile phone) batch size one is the short term aim. This way even a single customer demand can be fulfilled in an efficient way. Track and tracing, which is an essential part of production logistics - due to product safety and product reliability issues - is also gaining importance especially in the automotive and the medical industry. One of the major provider of production logistics solutions is Flex Link.

Retail Management Education

India is one of the youngest nations in the world with more than half the nation’s population below the age of 25 years. High aspiration levels and optimism of this young India has been a key driver for consumption in India today. At Pantaloon, we believe that the next phase of economic development in India will be consumption led. With the sustained and strong rates of economic growth, retail sales is expected to cross USD 400 billion by 2010, turning India into the biggest retail market in the world!

Today, Pantaloon is one of the leading multi format retailer in India with presence in food, fashion, home solutions and consumer electronics, books and music, health, wellness and beauty, general merchandise, communication products, E-tailing and leisure and entertainment. As per our projections, our businesses would grow manifolds in the next few years, both in terms of new formats as well as the new locations that we are planning to venture into. Hence, we are looking for bright, young people like you to partner us in our growth journey.

The two-year full time Post Graduate Retail Management program has been designed with the intention of inspiring and preparing young graduates to be leaders in the field of modern retail. This course will combine the best of academic excellence and the necessary practical training and corporate exposure that Pantaloon will provide.

Thursday, February 10, 2011

Advertising Industry

Advertising is the means of informing as well as influencing the general public to buy products or services through visual or oral messages. A product or service is advertised to create an awareness in the minds of potential buyers. Some of the commonly used media for advertising are T.V., radio, websites, newspapers, magazines, bill-boards, hoardings etc. As a result of economic liberalization and the changing social trends advertising industry has shown rapid growth in the last decade.

Advertising is one of the aspects of mass communication. Advertising is actually brand-building through effective communication and is essentially a service industry. It helps to create demand, promote marketing system and boost economic growth. Thus advertising forms the basis of marketing.

Advertising plays a significant role in today's highly competitive world. A career in advertisement is quite glamourous and at the same time challenging with more and more agencies opening up every day. Whether it's brands, companies, personalities or even voluntary or religious organizations, all of them use some form of advertising in order to be able to communicate with the target audience. The salary structure in advertising is quite high and if you have the knack for it one can reach the top. It is an ideal profession for a creative individual who can handle work-pressure.

Today, new areas are emerging within advertising like event management, image management, internet marketing etc. Event management wherein events are marketed, Image management wherein a a particular profile of an individual or an organisation is projected. Internet marketing has also brought about a lot of changes in advertising as Internet means that one is catering to a select group of audience rather than a mass audience.

Overview of Advertising Industry in India

The structure of the advertising industry in Asia Pacific has been affected by globalisation and international alignments creating a smaller number of very large agencies and the growth of independent major media buying houses. Very sophisticated software optimisation and planning systems are now integral to the industry, enabling agencies to offer a unique positioning in the marketplace to attract new business.

American companies are discovering the appeal of marketing their products in India. With a population of approximately one billion, and a middle class that's larger than the total population of the United States, there's definitely money to be made. Local retailers in apparel, food, watches and jewellery have all increased their average ad spending by almost 50% in the past two years. Coupled with many other local players big retailing brands are spending to the tune of Rs 12,000 crores annually on advertising and promotional activities. This figure, according to industry estimates, was less than Rs 400 crores about 3 years ago. Which means the growth has been a whopping 40%. The local firms are using all the available advertising tools from electronic to print, outdoor advertising and even models. The advertising and promotional spending by local brands is substantial during the festival season and almost 70% of the spending is done between September to January. The advertising industry in India is growing at an average rate of 10-12% per annum. Over 80% of the business is from Mumbai and Delhi followed by Bangalore and Chennai.

Online Ad Spending in India

Online advertising spending is holding its own and will continue to grow steadily over the next several years. Marketers are responding to the economic challenges with new techniques and strategies, along with research data to prove their effectiveness. According to statistics, online ad spending has reached $23 billion. Nonetheless, nearly three-quarters of web advertising space goes unsold and more than 99.7 per cent of banner ads are not clicked on.

Scope of Advertising Industry in India
The advertising industry in India has several competitive advantages:

  • India has a rich pool of strategic planning, creative and media services personnel: Indeed, Indian advertising industry has been exporting senior-level talent to many countries, particularly to the Gulf, South-East Asia, China, the UK and the US. Indian talent is recognised and respected in global agency networks.
  • No other country has access to so many trained management graduates who can provide strategic inputs for brand and media planning.
  • Indians are multicultural: we learn at least two languages and that gives us a head start in understanding cultural diversity.
  • Most of the top 20 agencies in India have a global partner or owner, which should provide an immediate link to global markets.
  • Our production standards in TV and print have improved: With a vibrant animation software industry, we have access to this area of TV production.
  • India's advanced IT capabilities can be used to develop Web-based communication packages for global clients.

Quality Checks - Agmark in India

Agmark Grading and Standardisation is a Central Sector Scheme.
Objectives
Promotion of Grading and Standardisation of agricultural and allied commodities under Agricultural Produce (Grading & Marking) Act, 1937.
Salient features
Quality standards for agricultural commodities are framed based on their intrinsic quality. Food safety factors are being incorporated in the standards to complete in World trade. Standards are being harmonised with international standards keeping in view the WTO requirements. Certification of agricultural commodities is carried out for the benefit of producer/manufacturer and consumer. Certification of adulteration prone commodities viz. Butter, Ghee, Vegetable Oils, Ground-Spices, Honey, Wheat Atta etc. is very popular. Blended Edible Vegetable Oils and Fat Spread are compulsorily required to be certified under Agmark. Facilities for testing and grading of Cotton for the benefit of cotton growers is provided through six cotton classing centres set up in cotton growing belt in the country.Check is kept on the quality of certified products through 23 laboratories and 43 offices spread all over the country.

Eligibility
Parties desirous to grade their commodities under Agmark have to obtain Certificate of Authorization. For the purpose, they should have adequate infrastructure to process the commodity and access to an approved laboratory for the determination of quality and safety factors.

A sample AGMARK seal
AGMARK BESAN
SL.NO. B-162002
GRADE-STANDARD
PLACE OF PACKAGING…….
DATE OF PACKAGING……
NET WEIGHT……..

The quality of a product is determined with reference to the size, variety, weight, colour, moisture, fat content and other factors are taken into account. The grades incorporated are grades 1,2,3 and 4 or special, good, fair and ordinary.

Tuesday, February 8, 2011

Legal Tenders

Legal tender or forced tender is payment that, by law, cannot be refused in settlement of a debt denominated in the same currency.Legal tender is a status which may be conferred on certain examples of money, which may depend on circumstances including the amount of money. The term legal tender does not refer to the money itself.

Legal tender is a concept that is frequently misunderstood: this is often a result of differing legal definitions in different jurisdictions. Cheques, credit cards, debit cards and similar non-cash methods of payment are not generally defined as legal tender. Only specific coin and note examples of cash money are usually defined as legal tender. Some jurisdictions may, by law, forbid or otherwise restrict payment made other than by legal tender. For example, such a law might outlaw the use of foreign coins and bank notes, or require a license to perform financial transactions in a foreign currency.

In some jurisdictions legal tender can be refused as payment if no debt exists prior to the time of payment (for example, where the obligation to pay arises substantially contemporaneously with the offer of payment). Consequently vending machines and transport staff do not have to accept the largest denomination of banknote for a single bus fare or bar of chocolate, and even shopkeepers can reject large banknotes — this is covered by the legal concept known as invitation to treat. However, restaurants that do not collect money until after a meal is served would have to accept that legal tender for payment of the debt incurred in purchasing the meal.

The right, in many jurisdictions, of a trader to refuse to do business with any person means a purchaser cannot demand to make a purchase, and so declaring a legal tender other than for debts would not be effective.

Tender in India
The Indian rupee is the only legal tender in India. The rupee is also legal tender in Nepal and Bhutan. But Nepali Rupee and Bhutanese Ngultrum are not legal tender in India.The Indian National Rupee is not accepted in Government institutions like Post Offices etc in Nepal and Bhutan.

Consumer Markets

India is currently the twelfth largest consumer market in the world. According to a study by McKinsey Global Institute, India is likely to join the premier league of the world’s consumer market by 2025 improving its position to the fifth.

Aggregate consumption in India is expected to grow four-fold in real terms during the period, 2006-2025 to touch US$ 1.73 trillion from US$ 420.7 billion. Also, by then, the middle class will have grown almost 12 times, from 50 million in 2006 to 583 million in 2025. Over 23 million Indians—more than the population of Australia—will number among the country’s wealthiest citizens.

FMCG
India's fast moving consumer goods (FMCG) sector is the fourth largest sector in the economy. The total FMCG market is in excess of US$ 17.36 billion and is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. . The Indian FMCG industry grew by 22% in 2006. Of the total sales, food (43%) and personal care (22%) are the largest categories.

The fact that the per capita income has nearly doubled in a short span of four years to just under US$ 800 in 2006-07 (from around US$ 450 in 2002-03), has boosted the growth of FMCG companies.The top 10 FMCG companies clocked net sales and net profit growth of 19 per cent for the quarter ended March 2007, compared with the corresponding period for the previous year.

The prospect for further growth in this segment is robust as in many category of commodities the market penetration levels of the organised sector is still low. These commodities include instant coffee (6.6 per cent), deodorants (2.1 per cent), skin creams (22 per cent) and utensil cleaners (28 per cent).

Consumer Durables
A combination of changing lifestyles, higher disposable income, greater product awareness and affordable pricing has been instrumental in changing the pattern of consumer expenditure. The consumer durables industry, which includes white goods, televisions, VCD and DVD players, and audio systems, has been one of the segments to experience increased demand.

  • The microwave oven industry (worth US$ 173.35 million) grew at a robust rate of 48.5%, with the solo category increasing 22%, grill model increasing 36% and convection model growing at 71% over the last year.
  • The fully automatic washing machines market grew at the rate of 40% while the semi-automatic market rose by 19% in the first quarter of 2007.
  • Refrigerators sales rose by 10.7% in value terms and 6.7% in volume terms to touch US$ 936.2 million and 3.75 million units respectively in 2006-07.
  • Air conditioners sales grew by 50% in value terms to US$ 494.5 million and 51.6% in volume terms (1.05 million) in 2006-07.
  • Frost-free refrigerators clocked an unprecedented growth of 50 per cent this summer compared with the previous year.

Consumer Electronics
The consumer electronics sector is estimated to grow at the rate of 11 per cent, achieving a production level of US$ 4.95 billion during 2006-07 compared with US$ 4.45 billion in 2005-06. The fast growing segments during the year were colour TVs, DVD players and home theatre systems.

  • Colour TV (CTV) production has shot up to over 12 million units during the year 2006-07. The flat CTV segment now accounts for over 50 per cent of the total domestic TV production.
  • Personal computer (PC) sales are expected to cross 6.5 million units during the year 2006-07. The India client PC market witnessed a 20 per cent year-on-year growth in unit shipments, with the total installed base of PCs in India crossing 22 million during 2006-07.
  • Sales of TVs are growing by an estimated 13-15%.
  • Sales of home theatres have been growing at the rate of 80 -90% a year.
  • Mobile handset production is expected to grow to over 51 million units this year against 31 million in 2006 to record the highest growth in the Asia-Pacific region, technology research firm Gartner has predicted.

iSuppli, a electronics market research firm, predicts that the Indian audio/video consumer electronics industry will grow to US$ 6.59 billion by 2011, rising at a Compound Annual Growth Rate (CAGR) of 10% from US$ 4.5 billion in 2007.

Automobiles

The Indian auto industry, worth US$ 34 billion in 2006, has grown at a CAGR of 14% over the last five years with total domestic sales of vehicles reaching around 10.1 million vehicles in 2006-07. Presently, India is the second largest two-wheeler market in the world, the fourth largest commercial vehicle market, the 11th largest passenger car market in the world, and is expected to be the seventh largest by 2016.

Credit Cards

Currently, the number of credit and debit cards in circulation is close to 26 million and 60 million, respectively. The total transaction on the cards as a whole during the year is said to be close to US$ 30.93 billion.

India has become the largest market for VISA debit and pre-paid cards in Asia-Pacific with about 33.9 million card-holders in 2006, accounting for about 3% of the company's total customer-base. Even in terms of total transaction, India is among the top three destinations in the region, accounting for about 62 per cent of the total debit and prepaid card transactions.

E-commerce

Thanks to the broadband revolution, more Indians are spending ever more on the web. On last count, 10.8 million Indians, or 43% of the country’s total internet population, bought online. This is 76 per cent more than the number a year ago. The e-commerce market is estimated to grow at 150 per cent to touch US$ 1.36 billion in 2007-08 from US$ 544 million in 2006-07.While the top ten cities account for 45 per cent of the overall shoppers base, urban uptowns, emerging uptowns and other towns account for the rest.

Real Estate Mortgage

In 1995, just 2.6 million urban households in India could afford a mortgage. After eight years of rapid economic expansion, that number had rocketed to 20.5 million -- a CAGR of 29.4%.

In the last fiscal, 2006-07, many banks continued to show robust loan disbursements. The home loan disbursements of public sector banks grew by over 21%, with the total amount outstanding touching US$ 33.42 billion during 2006-07 as against US$ 27.62 billion in 2005-06. SBI had reported growth of around 18% in 2006-07.The ICICI bank's home loan portfolio on March 31, 2007, was around US$ 15.71 billion, constituting 30 per cent of its total advances.

Consumer Confidence
The Indian consumer remains the most upbeat globally. According to the AC Nielson Consumer Confidence and Opinion Survey, India tops both the 47-nation global survey and the 14-country Asia Pacific study for the fifth time in a row. Also the perception of Indians regarding their personal finances (90 per cent optimistic) and job prospects (94 per cent optimistic) is robust.

The Indian middle-class, which is the backbone of the India market story, comprises 56 million people in households earning US$ 4,400-21,800 a year. The upper middle and high-income urban households are estimated to grow to 38.2 million in 2007 from 14.6 million in 2000, according to the National Council for Applied Economic Research (NCAER).

With the population of high net worth individuals crossing 1,00,000 this year, the prospect for luxury goods market is also bright and is estimated to touch US$ 452 million in coming years.

Friday, February 4, 2011

Indian Standards Institution (ISI)

World Standards Day is celebrated the world over to raise awareness and focus on the need for global standardization and its role in meeting the needs of consumers, trade and industry. It is celebrated on October 14 every year to mark the foundation of the International Organization for Standardization, popularly known as the ISO.

It was on this day in 1946 that 25 countries met in London and decided to create an international organization with the objective of facilitating international coordination and unification of industrial standards. The ISO started functioning in 1947 with the Indian Standards Institution as one of the founder members. Over the years, the membership of ISO has gone up with 130 member countries representing developed and developing economies.

The Bureau of Indian Standards

In the twilight years of the British rule in India, when the country was faced with the gigantic task of laying the industrial infrastructure, it was the institution of Engineers (India), which prepared the first draft of the constitution of an Institution which could take up the task of formulation of National Standards. This led to the Department of Industries and Supplies issuing a memorandum on September 3, 1946 formally announcing the setting up of an organisation called the Indian Standards Institution. It was on January 6, 1947 that the ISI came into being and in June 1947 Dr. Lal C. Verman took over as its first Director. Symbolic of the role, the Indian Standards Institution (I.S.I.) was to play the first standard drawn was for the National Flag of India.

Considerable progress has since been made by the Indian Standards Institution with its multifarious activities like standards formulation, certification, testing of products international cooperation and standards promotion. However, a need was felt to provide recognition and status to the organisation to enable it to discharge its functions effectively. Thus the Government enacted the Bureau of Indian Standards Act, 1986 which led to the establishment of the Bureau of Indian Standards as a statutory body on April 1, 1987.

Standardization is intrinsic to life and we see its many manifestations in nature and life around us. Standardization encourages improvement in the quality of life and makes major contributions to safety, public health and environment protection.

Standardization is based on the experiences of daily life itself. They are results of a cooperative effort, and revised from time to time to keep in step with technological progress. They provide us with a criteria for judgement, a measurement of quality and a certain guarantee of compatibility and interchangeability.

In the Bureau of Indian Standards (BIS), similar to standards bodies the world over, standards are formulated through technical committees which have representatives from the manufacturers, technical experts and users. The standards are documents of consensus which are finalized after taking the views of all those who may have an interest in it.

BIS plays the key role of holding the secretariat for the Technical Committees and collating and analysing the data and other information which may be required for formulating the standards. BIS has formulated nearly 17,000 standards which may be categorized as basic standards, product specifications and methods of test and codes of practices.

ISI Standard Mark
With the objective of satisfying the consumer in terms of product quality, the BIS has undertaken various quality certification activities. The domestic consumer is familiar with the ISI mark on a product which is an assurance that the product conforms to the requirements as laid down in the specification. Conformity to the standard is ensured through regular surveillance of the manufacturing process, surprise inspections and testing of samples drawn from the factory as well as from the market. Fraudulent and unauthorized use of the ISI mark is a violation of the law punishable under the BIS Act.

Quality Management System
There is a world-wide movement for installing Quality Management Systems in accordance with the IS/ISO 9000 series. In India also this has become a prime requisite for manufacturers and service sector units which wish to make an impact in the domestic and global markets. The concept of Quality Management Systems aims at quality control mechanism at every stage of a manufacturing or a service system and not just the quality of the end product as is the case with product certification.

With the growing concern for environment-friendly industrial activity, the ISO 14,000 series of standards were developed. After adopting these standards as national standards the BIS has also launched the Environment Management System Certification under which units may demonstrate their compliance with the ISO 14000 standards. The Hazard Analysis Critical Control Points (HACCP) Certification which again has acquired international recognition for certifying the safety of food manufacturing process has also been undertaken by the BIS. The Bureau of Indian Standards has also formulated IS 15000 : 1998 which is equivalent to the internationally accepted Codex standards.

Product Testing
BIS has established a chain of laboratories at different centres in the country for testing the conformity of certified products and also samples offered by applicants for grant of ISI mark. It also offers specialized services of calibration of test equipment and instruments and procurement of standard reference materials. They also undertake research and development for evolving speedy and effective test methods.

As a founder member of International Organization for Standardization (ISO), BIS continues to actively participate in international standardization. As a member of the ISO Council it participates in its policy-making bodies like the Committee on Developing Country matters (DEVCO), Committee on Conformity Assessment (CASCO), Committee on Information (INFCO) and Committee on Consumer Policy (COPOLCO). Besides, it also holds secretarial responsibilities of various Technical Committees and Subcommittees and maintains participation status and observer status on most of the Technical Committees.

BIS is also actively involved in International Electrotechnical Commission (IEC) and has participation status or observer on all the important Technical Committees.

Consumer Protection Act,1986

Aims and Objectives

  • To provide certain important scheduled commodities to the ration card holders at reasonable rates at prescribed quantum.
  • To indirectly control open market prices of certain commodities.
  • To protect the interests of consumers through enforcement of Weights & Measures Act and rules thereunder.
  • To implement Minimum Support Price Scheme of the Central Government to safeguard farmer's interests
  • Matters incidental and supplementary to the above objectives.
  • To promote & protect the rights of consumers by theway of implementation of Consumer Protection Act.

Functions of the Department

  • To implement the Public Distribution System in the State
  • To implement Minimum Support Price Scheme.
  • To implement Maharashtra Rice (Levy on Rice millers) Order, 1989.
  • To implement Mid Day Meal Scheme in association with school education Department.
  • To assist implement ''Annapurna'' Scheme of the Central Government.
  • Creation and maintenance of storage facilities for PDS.
  • Implementation of Consumer Protection Act, 1986

Defination of Consumer
Defination of Consumer as defined in the Consumer Protection Act, 1986, 'Consumer' means any person who -

  • buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person,but does not include a person who obtains such goods for resale or for any commercial purpose; or
  • hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person;{Explanation,- For the purposes of sub-clause (i), "commercial purpose" does not include use by a consumer of goods bought and used by him exclusively for the purpose of earning his livelihood, by means of self-employment.

Implementation of Consumer Protection Act
Consumer Protection:- This department is nodal department for implementing provisions of the consumer protection Act 1986, and for that purpose following authorities have been established for the redressal of grievances of the Consumers :

  • Consumer Disputes Redressal Commission at State Level.
  • District Forums at District levels.

State Commission

  • The State Commission is established in the year 1989. The President and two other members appointed on this Commission.
  • The person, who is or has been a judge of the High Court, is appointed as the President and two other members, who shall be persons of ability, integrity and standing and have adequate knowledge or experience of, or have shown capacity in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration are appointed.
  • Out of the two members, one will be a lady member. The Commission shall have jurisdiction to entertain complaints where the value of the goods or services and compensation, if any, claimed exceeds Rs.20,00,000/- but does not exceed Rs.100,00,000/-. It also decides the appeals filed against the judgements of the District Forums.

District Forums

  • A person who is or has been or is qualified to be a District Judge is appointed as the President and two other Members, who are having qualifications as that of State Commission members; are appointed on the District Forum.
  • Out of these two members, one will be a lady member .The Forum shall have jurisdiction to entertain complaints where the value of goods or services and the compensation, if any claimed does not exceed Rs. 20 lakhs.
  • In Maharashtra, every district has got one forum and the districts of Mumbai, Pune and Nagpur have additional forums as they have more number of complaints. At present 34 district forums are working in the State.

State Consumer Protection Council

  • This Council was initially constituted in the year 1987, for a period of 3 years. This Council consists Members of Parliaments, Members of Legislative Assemblies, representatives of Voluntary Consumer Organizations, Representatives of Trade and Commerce Organization, Government Officials, persons in the Consumer Protection field as well as the journalists.
  • The objects of this Council is to promote and protect within the State, the rights of the consumers as laid down in 'Section 6 ' of the Consumer Protection Act, 1986.
  • Important Schemes for Consumer Protection
  • Every year the Government makes budgetary provisions for the Consumer Welfare Fund and it is spent on the Consumer Protection related matters.
  • There are many Voluntary Consumer Organizations. Since, these
  • Transitions contribute to the welfare of the consumers and create awareness, such organizations are given assistance for their work.
  • The Central Government has started a Scheme under which the Voluntary Consumer Organizations which do commendable work in the Consumer Protection field are granted Rs.50,000/-,Rs.40,000/- & Rs.30,000/- along with Merit Certificate.
  • Similarly, there is National Youth Scheme under which the Youths between 15-35 years age-group are given Rs.20,000/-,Rs.15,000/- & Rs.10,000/- along with Merit Certificate for their contribution in consumer field. The State Government recommends, the names received from the Consumer Organizations to the Central Government.
  • To create awareness in the School/College students, lecturers are given in each district and for that purpose visiting lecturers are appointed.
  • Apart from the above, the Government has created Consumer Protection Cells at District level under the Chairmanship of the Collector. The Cell consists of 17 unofficial members from different Consumer Organizations, representatives of Gas dealers, petrol dealers & Traders' Organizations apart from the Senior Officers at District level connected with consumer goods/services.
  • The meetings of the Cell are held every month and the consumer problems are solved on the spot and many other problems are settled after regular follow-up

Public Distribution System

Fair Price Shops
Procedure of sanctioning Fair Price Shops
In Maharashtra Fair Price Shops are sanctioned by
a) By Advertisement: Applications for sanctioning of Fair Price Shop are invited by way of advertisement published in local newspaper.A notice to that effect is also pasted on notice board at " Chavadi "
b)Without advertisement

  • For sanctioning Fair Price Shop at villages having a population less than 5000, applications are invited by way of pasting a notice to that effect on notice board at "Chavadi " and also by giving publicity by way of "Dawandi"(beat of drums). In such case publishing advertisement in local newspaper is not necessory.
  • Moreover the Fair Price Shops can be allotted to the state level organisations like , Mahila Arhik Vikas Mahamandal, Marketing Federation, Vidarbh Co-operative Marketing Society, Maharashtra Tribal Development Corporation,Apana Bazar, Super Bazar etc, without formal advertisement in news paper.

Reservation for individual womens
The 33% of the the total shops to be sanctioned are reserved for individual womens.The reservation is done by lottery method in the meeting of the " local Vigillance Committee" before publishing the advertisement in the news paper.
(II)Priority List followed for sanctioning Fair Price Shops
After receipt of applications for sanction of fair price shops the following priority list is followed :

A) Integrated Tribal Development Area

  • Permanently residing local Educated unemployed tribal person (male / female )
  • Permanently resided local tribal person ( male / female )
  • Tribal Co-operative Society
  • Village Level Multi-purpose service co-operative society
  • Consumer Co-operative society of Tribal Women
  • Other consumer co-operative society

B) Other Areas

  • Wife of defence personnel died in military action, his major son or unmarried daughter / Ex Serviceman/Handicapped persons / Project affected persons
  • Educated unemployed person ( male / female )
  • Person belonging to SC, ST, VJ & NT
  • Consumer Cooperative Society of backward class
  • Women's Consumer Cooperative Society
  • Other Consumer Cooperative Society
  • Village level multipurpose cooperative service society
  • Others

Recommendation by Gramasabha
Then in rural areas after scrutiny of applications so received lists of eligible persons / organizations are kept before gram sabha. The gram sabhas are asked to select proper candidate for sanction of fair price shop as per priority list prescribed by the State Government. The District Supply Officer formally sanctions fair price shop to the person selected by gram sabha

In urban areas the after scrutiny of applications so received the licensing authority competent authority selects proper candidate as per priority list for allotment of fair price shop and the shop is so sanctioned. In tribal areas locally resided tribal person has been given highest priority for sanctioning of fair price shop.

Mechanism of Lifting, Transportation & Delivery To F.P.Shops.

  • There is no State Civil Supplies Corporation in Maharashtra.The arrangements for lifting of foodgrains from FCI depots to Government godowns at various blocks are made through the supply machinery of the State Government.
  • In Mumbai-Thane Rationing Area, the Director of Civil Supplies (Warehousing & Movement) lifts the foodgrains from FCI depots, transports these grains to various State Government godowns, standardise the bags and issue these grains to the Fair Price Shopkeepers or their organised bodies as per the Delivery Orders issued by the Controller of Rationing, Mumbai.
  • In districts, the Additional Collector and District Supply Officer remits the money to FCI, lifts and transports the foodgrains through the transport contractors, stores these grains after standardisation in State godowns at block level and these foodgrains are issued to the Fair Price Shopkeepers by the Godown Keepers, as per the permits issued by the Tahsildar.
  • Door Step Delivery Scheme:- The Door Step Delivery Scheme is being implemented in the Tribal areas and DPAP areas wherein the transportation of the commodities is carried out from Government godowns up to door step of Fair Price shops by the Government vehicles and at the Government cost. At present, about 5,000 Fair Price Shops in ITDP areas are covered by 162 vehicles and about 2,000 Fair Price Shops in DPAP areas are covered by 90 vehicles. In tribal areas, the scheme is being implemented through the Maharashtra State Cooperative Tribal Development Corporation Limited, while in DPAP areas it is implemented through the Maharashtra State Cooperative Marketing Federation Limited. The Corporation and the Federation are reimbursed for running cost of the Scheme @ Rs.15.00 and Rs.13.00 per quintal , respectively.

Important provisions under Targeted Public Distribution System

  • Availability of Foodgrains in first week :- The State Government has prescribed detailed time table for lifting of foodgrains and other essential commodities and making them available through fair price shops, in first week of every month. The instructions are issued to take strict action against defaulting fair price shopkeepers.
  • Weekly drawal of ration quota :- The cardholders are allowed to draw their entitlements from fair price shops on weekly basis.
  • Drawal of ration quota of previous month :- The cardholders are allowed to draw their ration for previous months in the succeeding month.
  • Timings of Fair Price Shops :- Instructions are issued to keep the fair price shops open for at least four hours in the morning and four hours in the evening on all days of the month. In industrial areas and at the places of weekly bazaar's, shopkeepers are asked to keep open their shops throughout the day on such days.
  • Display of lists of beneficiaries :- The shopkeepers are asked to display the lists of the beneficiaries under BPL / Antyodaya / Annapurna in fair price shops and allow the cardholders to see them.
  • Display of Stock position :-It is mandatary on the FPS to display the stock position prominently on the shop. The Shop keepers are also instructed to display the price of each of the commodity
  • Publish monthly quantum :- The district authorities are asked to give wide publicity to the commodities being distributed through targeted PDS, their quantum and rates, through local news papers. They are also instructed to display copies of such press notes on the notice boards of Gram Panchayat. The district collectors are also instructed to take help of local audio visual media like local cable TV operators for publishing this information.
  • Right of information regarding the Fair Price Shops (FPSs) :- Address of the FPS is written on every ration card in state. The FPS in the state should maintain basic information regarding name of card holders, No. of Units, and Identity of residence of the card holder and BPL cards should be marked distinctly.
  • Involvement of the Gram Sabha in the running of the FPS :-It has made mandatary to discuss about the working of FPS in the village as priority subject on the agenda of Gram Sabha .
  • Information on ration cards :- On recently issued tricolor ration cards the consumer's rights and instructions for making complaints are printed.
  • Furnishing information concerning PDS to interest groups :-
  1. Any person/institution N.G.O. (Local or outsider) can apply for information about the quota sanctioned to a Fair Price Shop, Number of Cards attached to the Fair Price Shops, Card population, Quantum and Actual Off takes /sale from the Fair Price Shops.
  2. A nominal fee of Rs.3/- per month for information, will be charged up to last three months. Information beyond a period of last three months and up to one year will be on payment of Rs.5/- per month. The relevant information will be supplied to the applicant preferably within 24 hours and in any case within four days from the date of application.
  3. The information can be sent by post also.
  4. The information will be supplied in the prescribed pro forma over the seal and signature of Rationing Officer/ Tahsildar.
  5. Rationing Officer/ Tahsildar to provide shop wise/ village wise information of last month's off takes and current month's sanctioned quota to B.D.O. for onward transmission of this information to all concerned village Panchayats.
  6. Instructions have been also issued for display of shop wise sanctioned quota of various commodities on the Notice Board of Rationing Officer/ Tahsil Office.

Storage Facility for Public Distribution System
'Annapurna' Scheme
Under "Annapurna scheme" 10 Kgs of foodgrains per month are provided free of cost to the destitutes, aged 65 years and above.

Elligilibility Criteria
1) The age of the person (male or Female) should be 65 years or above.
2)The person must be destitute in the sense of having little or no regular means of subsistence from his/her own source of Income or through financial support from family members or other sources.
3) The person should not be in receipt of pension under the National old age pension scheme or state pension scheme.

Procedure for Application
The application in prescribed proforma is to be submitted to the concerned Tahasildar or Collector through Gramsevak /Talathi/Ward Officer/Chief officer of Municipal Council, in areas other than Mumbai/Thane Rationing Area. In Mumbai/Thane Rationing Area application form is to be submitted to the Controller of Rationing, Royal Insurance Building , Churchgate, Mumbai, through rationing office.If case of difficulty, Tahasildar or Collector/ Controller can be contacted.At present nearly 1,20,000 beneficiaries have been identified & 10 kgs of foodgrains Free of Cost are being distributed to them.

Other Schemes

  • Minimum Support Price Scheme: This Scheme of the Central Government is implemented on behalf of the Food Corporation of India. It aims at safeguarding the interests of farmers and prevents distress sales of certain foodgrains. MSP is declared by GOI every season. In Maharashtra MSP Scheme is mainly implemented for Paddy, Jowar, Bajra and Maize. For Kharif Season of year 2000-2001, the MSP for FAQ Paddy 'A' Grade is Rs.540/-, for Common Paddy Rs.510/- and for Jowar, Bajra and Maize (FAQ) Rs.445/- per quintal. The specifications for determining the FAQ standards are also prescribed. The Maharashtra State Co-op. Tribal Development Corporation Ltd. (for Tribal Sub Plan Areas) and the Maharashtra State Co-op. Marketing Federation Ltd. (for rest of the areas) are appointed as procurement agencies who open purchase centers at important market centers/block headquarters for purchase of paddy and coarse grains from the farmers during the marketing season. The grains are purchased at these centers after verifying that the seller is really a farmer/producer and not a trader through 7/12 Extracts, etc.
  • Collection of Levy Rice: This Scheme is implemented in the main rice growing districts of the State. As per Maharashtra Rice (Levy on Rice-millers) Order, 1989,the rice millers are required to give levy on the paddy milled in their mills at a prescribed percentage. At present, levy on rice millers is 30% in the State. The levy is not on the farmers. The rates of levy rice are fixed by the Central Government every season. Levy Rice Prices for the Kharif Procurement Season of the year 2000-2001 are Rs.831.5 for Raw Rice Common Grade, Rs.833.70 for Parboiled Rice Common Grade, Rs.877.20 for 'A' Grade Raw Rice and Rs.878.70 for 'A' Grade Parboiled Rice, per quintal. The procurement of levy rice is done by FCI through the District Additional Collectors and District Supply Officers. In the last season, about 56,000 MT of levy rice is collected in the State. The specifications of levy rice are also prescribed. Government of India has exempted the Levy on Rice in Maharashtra for the current 2000-2001 year.
  • ''Annapurna'' Scheme: Under "Annapurna scheme" 10 Kgs of foodgrains per month are provided free of cost to the destitutes, aged 65 years and above.

Eligibility Criteria

  • The age of the person (male or Female) should be 65 years or above.
  • The person must be destitute in the sense of having little or no regular means of subsistence from his/her own source of Income or through financial support from family members or other sources.
  • The person should not be in receipt of pension under the National old age pension scheme or state pension scheme.

Procedure for Application
The application in prescribed proforma is to be submitted to the concerned Tahasildar or Collector through Gramsevak /Talathi/Ward Officer/Chief officer of Municipal Council, in areas other than Mumbai/Thane Rationing Area. In Mumbai/Thane Rationing Area application form is to be submitted to the Controller of Rationing, Royal Insurance Building , Churchgate, Mumbai, through rationing office.If case of difficulty, Tahasildar or Collector/ Controller can be contacted.At present nearly 8000 beneficiaries have been identified & 10 kgs of foodgrains Free of Cost are being distributed to them.