HEALTHY ECONOMY IS A MUST FOR CONSUMER WELFARE, BUT WE ARE IN MESS

      Since I joined Akhil Bhartiya Grahak Panchayat, about 30 years back. I started thinking what a Grahak need. What are his expectations. What happens when we can say he is not exploited.

This question I asked from number of consumers and consumer activist. There were different opinions, different expectations. Out of all these revelations, what I could gather is that a consumer want, he should be able to procure all essential commodities (eatables) for his family at affordable price. This word "affordable" carries different meaning for different consumers.  Apart from essential commodities he should also get clothing, housing education and medical services within his financial reach. These are minimum requirements of a consumer. He would also like to save something out of it for the security of his future and to spend some amount on lavish articles for the upliftment of his living standard. So, these are the requirements of most of the consumers, and the consumer should get all these commodities at proper price, therefore most of the consumer organisation concentrate their work around it. They are fighting manufacturers, traders and government to make the commodities / services available to the consumers. And that the commodities and services should be defect free. We all say that consumer is an essential part of the economy, he is the king, but here we are missing one important link. We all know that economy does not work without money. Even if we ignore to define the term affordable in quantum. We can not ignore that consumer needs money for purchasing his requirements. In absence of money consumer will not be able to purchase any of the commodity / service said earlier. Where the money will come from.  Because we are ignoring this that is why millions of consumers in our country are not able to afford even food. We as a consumer activist and member of Akhil Bhartiya Grahak Panchayat can not ignore it. Consumer should not only get essential commodities / services at proper price but he should also get sufficient money to purchase it. This is the point where consumer movement starts. If consumer do not have money to purchase a commodity, what is the sense in fighting for the price at which it should be sold.

Money in the pocket of a consumer, means purchase power. Here the economics starts. Better will be the purchase power of the consumer, better will be the condition of the economy and better will be the standard of living of the consumer. These are integral activities of the consumer movement.  Beside the  consumer should get correct commodity at correct price, the consumer movement should take care for the standard of living of the consumer. It should not be like that the consumer is exhausting his entire money on a limited commodities by paying hefty profits to the other components of the economy. It should be maintained that the fruit of growth of the economy are equally distributed among all constituents of the economy. Now where the money in the pocket of the consumer comes from. It is an important question. In any type of economy the money in the pocket of consumer comes from 4 ways. First the SALARY he earns against a job he is performing. Second is by RENTING out a plant, land or premises, Third one is the PROFIT he earns out of economic activities he performs and the fourth or last one is the INTEREST he earns on the money he gives to some one for use. The money earn through the four routes, runs the economy. The more will be the flow of this money earn,healthier will be the economy of the country. Better will be the standard of living of the consumers. But a perfect balance is to be maintained in all these four ingredients. In absence of the balance, there will be numerous problems. It is the duty of the state to maintain it and the consumer movement to put a check on it. 

Now it comes how  a Consumer earns money out of it, i.e. Salary, Rent, Profit & interest. Consumer needs various articles for consumption as well as for other use. All these articles are manufactured in Industries. Money and land are required to open up an industry. Those who provide land, gets rent, those who provide money earns interest, those manage industry earns profit and those who work in the Industry earns salary. Money so earned is spent in the market for purchasing requirements. More the money will reach in the hand of the consumer, more he will spent in the market. This spending of money by the consumer in the market will create  increase in demand and to meet the demand more Industries will come up, more consumers will get a job, more the money will go in the hand of the consumers. This way cycle works. The total sale of goods and services in the country is called as GDP of the country. More the money will land in the hand of consumers, more he will purchase, more units are required to complete his demand, more employment will  be generated.  In present day economics GDP of a nation is regarded as a development scale of that country. Higher GDP growth is considered as a higher economical growth of that country. 

GDP of a nation grow in three sectors, Agriculture, Industrial and Service. A country like India have an advantage to grow in all the three sectors. Beside it help in growing more it also works as a shock absorber in case of some adversaries in any sector. GDP growth of our country was 5.38% in 1990's, which rose to 6.23 % during 1991 to 2007. A mere growth of 0.81 % is observed. Where as it was propagated from all the platforms that we have achieved some miracle during the period 1991 to 2007. If we analyze it, more worst will come to the forefront. In the agriculture sector we have performed negative during 1991 to 2007. Our GDP was 3.39% in this sector before 1991, where as we could achieve only 2.77% GDP growth in agriculture sector during the year 1991 to 2007. Similarly on Industrial front the data coming are not encouraging. During the period 1991 to 2007 we achieved GDP growth only 6.15% against the 6.72 % of GDP growth prior to 1991. Here also we are on negative side. The only one sector where we have performed is service sector, where GDP grew from 6.33% before 1991 to 7.81% during 1991 to 2007. We can not take this figure encouraging as we know it is the outcome of increase in export in software sectors. Where we were having matchless  intelligence  of trained software engineers. As this export grew, a lot of foreign exchange started pouring in our country. And a neo rich i.e. Higher middle class started emerging. To match the requirement of this higher middle class, new banks, insurance, hotels and tourist organisations are developed. But this superficial development is also not expected to go long. And a downtrend started in this sector after 2007.

Serious concern is non performance of our economy in Industrial sector. Where we have opened all type of facilities. In order to increase our production in this sector we opened up import of Capital Goods, which went on increasing like anything after NDA regime, ruining almost all foreign reserves. Creating a major crisis of Balance of Payments. The figures are self explanatory, how our capital goods import increased, and it has contributed nothing to GDP. This smells some wrong, which should be looked seriously. Capital goods import was $10 billion during 2004 -05 NDA regime,it rose to $25.5 billion during 1st year, to $38 billion during 2nd year,  to $47 billion during 3rd year,  to $70 billion during 4th year,  to $72 billion during 5th year,  to $66 billion during 6th year,  to $79 billion during 7th year,  to $99 billion during 9th year. A hovering import of $587 billion in 9 years.Against this heavy import the GDP growth was 11.5% during first 4 year rule of UPA, came down to less then 5% during the next 5 years of their rule and in 2012 -13 it is only peanuts 2.9%. It's behavior is just  reverse to what experts believe, that import of capital goods is a sign of Vibrant Economy. Though it is advertised that Crude oil and Gold imports are liable for the bad shape of balance of payment. Crude import is the one, no doubt. But one can not believe that the Government was not having any clue that 80% of the required crude we are importing. And we are making payment for this import in Dollars. Any Government will try to ensure control on this import and measures so that it should not effect our economy adversely. When coming to Gold import. It is true, every consumer know that rising inflation is contributing negative growth to his capital and saving. It is natural that under the circumstances investors will try to secure their savings, that is why they are converting it in gold. But we should also remember that our country is in the field of jewelry export. And the export in this account has contributed $251 billion against the Gold import of $402 billion during 9 year regime of UPA. Therefore deficit in this account during 9 years is only $161 billion. Could not be termed as alarming as advertised. One can ensure its contribution in present crisis. Actually Government is trying to hide its failure. And they know that common public is not aware of all these facts.Therefore by making wrong and confusing statements they are trying to mislead consumers.

           In a country like India with 10.2 million population. Spread over a large geographical area with different cultural, economic background and concerns. This European model of economy, which has failed several time, will not work. When it was not able to carter small population in those countries, how it can work in a big country like India.Such concerns were made in 1991, when Manmohan Singh started proceeding on these lines, but he did not listen to it. A model which could not maintain economic growth in  America and other European countries, how can work in India. We ignored that  Americans followed it during the year 1870 to 1929 by keeping the growth rate 3.5%. Development in the economy was very fast. Even working hours were reduced from 60 to 44 per week. Share market boom was there. $1000 invested in the year 1921 grown to $20,000 by 1928. But what happened on 24th October, which is still  remembered by Americans as Black Thursday, share market came down, wealth equivalent to $3000 crores, vanished in just 1 week. By the year 1932 cost of a share was just 20% what it was in 1929. What happened to GNP by the year 1932 it reduced by 32%. In the year 1933, out of 25,000 banks, 11000 american banks pulled down their shutters. American GNP which was $10,400 in 1929 came down to $5,600 in 1933.  Unemployment rate increased to 25% by 1933. We are not discussing American recession in 2008, this was another one.

We should not forget conditions and nightmares consumer face during recession,  unfortunately it has started in India, if not started is not far off.We should not forget that our economy is not as sound as that of America or other western countries. 67% of our population need economic assistance to quench its hunger. Therefore it is beyond imagination what will be the condition of consumers, it will be furious. Examples of other countries during recession send chilling sensation to our bones. In 1923 when recession started in Germany after First world war, 1 loaf of bread was costing 20,000 Marks to the consumers. What ever consumers used to get out of 1 mark in 1918 started costing 72 corore 60 lakh Mark during 1923. The condition was that worst that it was cheaper to burn Mark instead of wood, as a fuel. In Hungary after second world war inflation was at the rate of (4.19X 10 to the power 16)%. Not far away in 1960 in Indonesia inflation was increasing @60% per month or we can say @1000% per year. In the year 2005, Turkey had started new LIRA, and this new 1 Lira was converted against 1 lakh old Lira. Situation is alarming and what we have done in 1991 by opening our economy,by giving economic control in the hand of multinationals partly. We are ready to give complete economic control in the hand of foreign institutions by opening 100% FDI almost in all the sectors.

CORPORATE, BIG TRADERS AND GOVERNMENT ARE EXPLOITING THE CONSUMER MOST

Consumer Movement is passing through a crucial moment. Whenever, anywhere anyone is talking about it. His views are restricted up to the sale or purchase of goods or services. Or the laws related to these goods and services. Consumers are facing limited problems at  market place. One can also hear problems related to Consumer Protection Act. It is also discussed. It is observed that the Consumers are not easy with the consumer Fora's, now a days. When Akhil Bhartiya Grahak Panchayat started working on this Act. in 1980's. We were afraid of it. As results of the Labor Act. and Labor Court's was in sight. We were aware that the consumer problem is a social problem and that Manufacturer, trader and consumer are part of the society . Cordial atmosphere should be maintained. Therefore interests of all the segment should be looked properly. That is why the Grahak Panchayat was interested in giving the shape of social platform, to these quasi judicial institutions. When we had discussions with Late Prime Minister Rajeev Gandhi, during his first visit to Nagpur, after his entry in to politics at the residence of Mr. Vilas Muttemwar, MP Congress. We expressed our concern. He agreed to it and instructed the then Food and Civil Supply Minister Late Shri H K L Bhagat. Mr. Bhagat kept the promise made by Rajeev Gandhi to Grahak Panchayat at the time of drafting the Act. The Act was passed in the manner Grahak Panchayat asked. Cheap and speedy justice to the consumers.  Two social workers were made members of the forum, along with the President. Out of which one member should compulsorily be a women, because women's are more sensitive about market issues. The decision taken by majority was made admissible. Unfortunately these consumer fora's deviated from the original track, they were given to follow. Slowly slowly consumer fora's are transforming in to civil courts. And out of frustration with this change in behavior and attitude of the consumer fora's. Consumers are going away from this medium of consumer justice. Anyway working of the consumer fora's is not a part of our discussion here. We are discussing that in the opinion of the people consumer movement have limitations to move in and around sale/purchase of goods/services. No one can deny that this is also important, and the consumer activists should concentrate on it. But this activity, though it is of vital importance have a very limited role in the consumer movement. As the rules and plan for consumer exploitation are framed much earlier, even before goods and services enter in to the market. Market have a very limited role to play in the area of consumer protection. And those who are mainly responsible for consumer exploitation are left Scot free.

Akhil Bhartiya Grahak Panchayat is working in this field since long, even before inception of the consumer protection Act. Our concept is very clear. Before proceeding further let me clear, that we are of the opinion that all the segments should be given due importance, along with the consumer for the growth of the economy. No one should be given extra weight-age over other. Fair trade practices should be adopted. Unfortunately it is not happening in the world. In the name of the market forces experts and those in power are fooling consumers. As said earlier market have a very limited role to play. Prices at which a commodity or service should be sold is decided not in the market but some where else. And heavy profit margins are included in it. Though a number of choices are available in the market for the consumers but the competition is completely eliminated. This is the root cause for the consumer exploitation. Heavy profit margins, in absence of the pricing policy, gives free hand to the manufacturers and traders, to compel the consumers to cough out hefty profit margins for them. Government instead of helping the consumers, is only adding woes to the consumers, by charging very high rates of taxes on these products and services. Inclusion of service in to indirect tax had increases 15 to 20 % financial burden on the consumers.  The market have very limited role to play, only responsible to change a faulty article, or act properly when selling a service.Therefore consumer movement should also include those in to their ambit, who are deciding the cost at which goods and services are to be sold in the market at excessive margins (i.e. MRP). Grahak Panchayat is working on it. Time and again we are raising our voice against it, we are arranging programme on this subject to educate the consumers. We are aware that the forces involved in these areas are big. Have enough money to change the conditions in the market. Have their great influence in the Govt. to dictate their terms. Consumer can only be saved from exploitation of these forces by educating and uniting. Consumers are emptying their pocket, since morning till evening in full filling the greed of these manufacturers and traders.

We are of the opinion that in the root of the consumer exploitation is in the process of decision making that a particular commodity is to be sold at what price to the consumer. MRP is labeled here, dealer and the market is forced to follow it. Therefore it is important to understand the process, how prices of a commodity is fixed. It is vague to term economic factors, as decisive factors of price fixing in the market. We are aware that corporate sector have enough money to regulate the conditions in their favor. Right from slowing down the production to making cartel for controling market conditions. Economic rules are only

visible effective only in the rural market. Where agricultural products are sold.  Principles of demand and supply are only applicable there. In this area big traders are moulding conditions in their favor with the support of technology, to prolong the perishable products for a time suitable to earn hefty profits. Consumer is left at the mercy of these market controling forces. In absence of pricing policy, government have no control on it. Instead if you have a look at the tax proposals of the Government, you will find it adding fuel to the woes of the consumer. Hefty amount of taxes are imposed. Whenever government feels pinch of fund shortage, it increases taxes, anywhere anytime. Without considering the effect of tax rise on the consumers.  Government, instead of spending this tax amount for the benefit of the consumers, utilizing this amount for their political interests. Some government is distributing LapTops, some one is distributing bicycles or other items, only to please a small section of consumers. At the cost of larger chunk of the consumers, who has paid this money.  Consumers should understand this. They can question governments framing these policies, based on the money paid by him. Unfortunately consumer is not aware of this right, one side he is finding it difficult to adjust heavy price rise for his survival  On the other side government is making use of this money at places it is not necessary.

Corporates are dictating their terms with the support of huge funds available with them and Government, policies supporting them in the market. The consumer is forced to cough out money as per their demand. There is no control, these big corporates with the help of big traders are are ruling market. Can you imagine  farmers are only paid Rs.15 to 20 for 1 Kg. of apple in Himanchal. Think what cost you are paying. Forget the price given to the farmer for potato and onion. Similarly when ever it comes to industrial products, MRP is fixed and printed at 100 % to 1000%  of the cost of the production. Apart from framing polices which help these corporate and big traders Government is charging heavy tax from the consumers, for giving benefits in the form of different assistance to these big industrialists. Now it has gone further in distributing the money extorted from the consumers, to the selected sections of the society. Instead of spending it on infrastructure and development of the nation. It seems that now the country will starve for developmental program in need of money or the consumers will be forced to cough out more money.  Believe it, if MRP is regulated and rules are formed for deciding and printing of it. And the Government charge justified tax from the consumers. The consumers are going to get a big relief from exploitation and price inflation..

Akhil Bhartiya Grahak Panchayat is serious about this part of the consumer movement , along with day to day exploitation consumers at market place. The need is, to educate consumers . 

Let the consumer know who is doing what. Believe, once consumer is well informed informed, he is capable of taking his care at his own.