Thursday 15 August 2013

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.



1 comment:

  1. thanks for ur blog link.
    this summary of abgp thinking is very useful.can we forward it to new members.prsdeep

    ReplyDelete