SOME PICTURES OF KARYAKARI PARISHAD AT VARANASI OF AKHIL BHARTIYA GRAHAK PANCHAYAT

SAVE PETROL - SAVE DOLLAR

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.

MID DAY MEAL SCHEME : TAMING OF WHITE ELEPHANT

Once my father told me story of a Saint, living in a jungle, far away from the village, devoting all his time in prayers and meditation. Villagers use to visit him frequently, for his discourses. One morning when he was changing dhoti, the only fabric he was using. He noticed some ratted holes in the dhoti. The holes were caused by chewing of the dhoti by rat. This incident increased the worries of the saint. He kept on thinking it all the day, what is to be done. When villagers came in the evening for discourse, they saw the worried saint. They kept on asking the saint, reason for his worry. After too much compulsion the saint repeated the story. They suggested the saint of taming a cat, Cat can easily take care of the Rat, the saint was told. After some resistance the saint gave node for it. Next morning the villagers arranged for a cat. Cat started moving in the Ashram, but started mewing after some time out of hunger, disturbing the saint who was in meditation. Again this new problem was discussed and the solution came in the form of a cow to feed the cat. The cow was brought in the Ashram. Every thing was well, but the saint was busy with the cow and cat for most of the time, not having sufficient time for the prayers and meditation, which was taken by him as a purpose of life. This was a big problem for the saint, it was again discussed and the decision for keeping a maid, who could take care of cat & cow and will make the saint free for his daily routine.The maid is arranged, she started taking care of the cat & cow. she was comforting the saint also by making arrangements for him. The Ashram got converted in to a family house. One fine morning when the saint was sitting for his meditation, this thought came in his mind and he started thinking, how it started. The solution for the problem of ratted Dhoti, has changed whole purpose and motive of his life. Such is our Mid Day Meal Scheme. Started for the welfare of children, have become cage of corruption. You turn any stone you will find only and only corrupt inhuman norms in it.

Mid day meal started in the year 2006, with a golden motif. But it is not different from the story of the saint. Worst part of it, no one is there to take care of it. After the unfortunate incident of Chapara, all the officials and the machinery involved in the implementation of this scheme, and was supposed to be taken to the task, is moving freely. And everyone is just beating the bush, passing the buck. No one is ready to look at the origin of the problem. We all will be surprised 

to know, that 50% of the amount allocated for this scheme is preserved for the MONITORING, EVALUATION & MANAGEMENT of the scheme, as per circular no. F.1-15/2009-Desk (MDM) dated 21.06.2010. What this white elephant machinery, gulping 50% amount of the scheme was doing, is it not there responsibility,  are they not guilty, should they not to be punished. Why no one is talking for them.

Provision made in the Mid Day Meal Scheme is to give 100 gms. of food grain, 20 gm pulse, 50 gm vegetables, 5 gm oil & fat and Salt & condiments as per requirement for the children studying in Primary and 50% additional quantity of each item for the upper primary children. The schools were given 50% of the fund allocated in the scheme out of which Rs.2.50 per meal for a primary child and 3.75 for the upper primary child is preserved and spent by the schools . And this cost is inclusive of pulses, vegetables, oil & fat, salt and condiments and fuel. Balance grant out of 50% share of the schools. Schools are permitted to spent on Forms, stationary, soaps,plates, glasses, mats, training of cooks, repair & maintenance of cooking vessels etc. These provisions are made in the circular no. F.1-1/2009-Desk (MDM) dated 24.11.2009.

I am sure everyone will understand, why I am calling this scheme as taming of White Elephant. More then 75 % of the money allocated for children is spent for  managing  the scheme. Share of child is only Rs.2.50 in the money allocated. One can easily imagine, what quality of food children are served. That is why, every now and then we are observing the complaints of insects and rotten food, almost from every part of the country. Even Rs. 2.50 are not spent on the meal articles honestly. If a thorough inquiry is conducted you will find many many loo poles and corruption in the scheme, right from the procurement of the food grains, up to cooking and serving the meals to the children. It happened with me, when I inquired with some of the schools. Off the record they are telling that apart from the quality of food grains they are supplied, it is not easy for them to get their share of money, without paying bribes to the officials. There are two opinions about the quality of food grains, one is complaining for the quality, other is blaming school management, for disposing good quality food grain in the market and procuring lowest quality from the market for children. On asking how they are managing and cooking the meal. They told, it is impossible for them to manage meals with the money they receive after bribing. They compensate it by showing additional strength of the children, they get additional quantity of food grain. This additional quantity of the food grain, and some saving they make in cooking the food by putting less quantity then the allocated, which they sell in the market. The total amount received so, they are managing the things. This is what they have told, we can make it easily, that they are also not innocent as they are posing. They are also engaged in making money out of it. Deteriorating the quality of the food further.

Coming to the solution part of it. We are too much dependent on the government and its machinery. We are not reacting to the evils happening in the society. I am not asking to open fight in every walk of the society.Government machinery can not solve  the problems, unless it is hammered. Take the unfortunate incident of Chapara, find out and punish corrupt machinery, but is it going to solve the problem. For some time, officials will feel the heat, then they will return to normal. Even today you go and check Mid day meal served around your area, it will not be difficult for you to find insects and bad smell in the meal. 

I am of the opinion that Good things can never comes in the life of a sleeping society. We have social groups, bahajan mandals, senior citizen groups, environment protection groups and several other groups, almost in all the parts of the country. Is there any other more important work then this. Which is going to save future of the nation. Resist whenever, wherever you find any wrong by making representations through delegations, writing letters to media & concerned departments and officials, making complaints in media including social one, holding demonstration in front of the schools and officials. This is the only way of implementing this and several social welfare schemes in the country successfully.

INDIAN ECONOMY IS IN THE TRAP OF FDI : NOW

It was always a cause of concern for Indian Economy, whether we go for FDI (Foreign Direct Investment) or not and in case we opt it, in how much percentage. The issue was in demand of a large scale debate in the country. Instead of inviting a debate on the issue. The Government went on advocating for it with all their available resources. Unfortunately our rulers came forward on the issue with a prejudice mind. That is why they never opened a discussion on it, in the country. This is because  for unknown reasons, they were always soft on FDI. 

Several times the issue of FDI came before the country. Some country men were not in favor of it. But their thought were never given a patient and justified hearing. Most of the people must not have forgotten, that when Government was in the process of inviting FDI in some sectors like Single Brand Retail & Multi Brand Retail. Economic recession was in the worst of it,in US and Europe  And our Government was receiving threats from the various international institutions and countries, for not taking adequate measures for adoption of open economy. So that large business houses can start their free business in India. And wipe out most of the middle and small size entrepreneurs of the country. They call it, "economic reforms"  in their 

language . This was the period when economist of the country were worried, and asking the 

Government to take measures, so that we can survive from the effects of economic recession, western world was facing. This was not a vague thought. After taking several steps in the name of economic reforms, effect of economic recession in the western world was unavoidable for the country. It seems that the Government was having second thought in their mind. That is why they went on telling the people of the country that under the rule of Great Economist, we achieved high levels of economy. Our economy is stable and able to sustain effects of western recession easily. They did nothing.

Their in activeness proved very very costly to the country. Slowly slowly our currency started loosing in comparison with the Dollar in the international market. In spite of fall in the price of Rupee, we have not gone for any measures, to curb it. Instead Government went on telling the people that the problem is because we Indian go for excessive purchasing of the gold. Don't know their intention behind this mis advertisement.

Is not Government contradicting its own remark's. At one side they are telling people that recession in the rupee is out of purchase of excessive Gold from the international market. On the other side they are telling people that Three Fourth population of the country, is not able to feed themselves, need support of the Government to fill their belly. And that for the purpose it is essential for the Government to bring Food Safety Bill, to feed these people. This is the strong argument of the Government that the bill can not wait and this is their compulsion to bring it foin the form of an Ordinance. Even wait for a month is undesirable, to discuss it in the Parliament, as per demand of all political parties. Who would agree, that the population able to disturb balance of payment by making purchases in the Gold, need Government assistance to feed themselves immediately. 

The Government was in favor of FDI in all the sectors, they were under pressure from the international institutions. That is why they have not cared for the fall of Rupee, kept on sitting silently. Waiting for the worst to come. When worst is there, instead of fighting it back, they surrendered by inviting huge amount of FDI in almost all the sectors. Effect of FDI on the country is discussed time and again, need not to be repeated. Only time to come will tell. But one 

thing is certain, so many promises given by the Government for improvement of the economy, proved wrong. This heavy increase in FDI is also going to prove suicidal for the country, in time to come. But it is our destiny.

BE AWARE WHEN MOVING IN GOLD MARKET, IT IS SLIPPERY

A fortnight ago, I was talking to my friend. During conversation he revealed that gold earrings of her wife got worn out. These earrings were presented to the lady on the occasion of her wedding, some 25 years ago, by her sister-in-law.He thought of remaking it. Therefore discussed it with a friend, who is in the business of jewelry making. His friend told that the earrings worth is not more then Rs.20/-, as the same was made out of brass. My friend resisted that how it could be as the same was presented by his sister. But the goldsmith, said, it is. Shocked with the revelation of truth after 25 years, my friend think of consulting some other one. It was to his utter surprise that second man repeated the same thing. Friend was in dilemma, how to disclose to the sister, if he did not, his sister purchasing all her family jewelry, from the same shop, may be in deep water. After a deep thought he revealed it to her sister. She was also shocked, but told the friend to give those earring to him and she will discuss it with the shop owner she is making all jewelry purchases since last 30 years. It was a pleasant surprise to the sister that the shop owner returned entire amount of the gold earrings. Even before his sister could open her mouth and any discussion regarding the quality of gold.

How it could be, two dealers are making statement that the ornament is of brass, whereas the original seller is accepting them as gold, without any discussion. This clearly indicate that something fishy is going in the gold ornament market and the interests of the consumers are at stake. Akhil Bhartiya Grahak Panchayat is taking up the matter for standardization of gold ornaments since long. In the year 2000, Hall Mark stamping introduced by the BIS on voluntary basis, it worked as third party assurance. Caratometer were also introduced by some of the dealers in the market to measure purity of the Gold. But steps were not of much use, since unscrupulous traders continue to perform in the gold market. After a long chase the cabinet ministry approved the amendment in the BIS Act for making the provisions of Hall mark mandatory for all Gold Dealers. 

Even if the provision of Hall Marking mad mandatory for the Gold Ornaments/ Articles. It is necessary for the consumers to understand some basics of this trade. So that their investment in gold fetch them proper price, in the need of the hour.

Firstly the specifications for gold jewelry/articles fineness and marking were published in 1959, later on, these specifications revised in 1971, 1981 &1999. These specifications are based on the standards for manufacturers mark, details of purity/ fineness, followed in the world. 

In India these specific grades are covered by the IS2790, where guidelines are prescribed for manufacturing 23, 22, 21, 18, 14 & 9 Carat gold alloys. It is important for the consumers to become aware of the terminologies, used in the gold market.

CARAT -                         1 of 24th part by mass of the metallic element Gold.

STANDARD GOLD -    Fineness 995 parts per thousand and above without 

                                        any negative tolerance.

FINENESS -                  Ratio between mass of gold content and total mass 

                                        expressed in parts per thousand.

FINE GOLD -               Having  Fineness 999 parts per thousand without any negative tolerance.

Consumers can find in chart below different grades of the gold, their fineness and Carat values.

       GRADES FINENESS CARAT

Fine Gold                                    999                                            -

Standard Gold                             995                                            -

958.3                                           958                                           23

916.6                                           916                                           22

875                                              875                                           21

750                                              750                                           18

  708                                              708                                           17

585                                             585                                            14

375                                             375                                              9

For manufacturing the ornaments solders play an important roll. When ever a consumer sells ornaments, the traders make a huge discount in the name of solders known as Tanka in the Indian markets. There are standards for this solders also, it should be of same fineness. Details are described in IS3095. 

Solder of 22 carat is only allowed in the jewelry of 23 carat. 

Solder of the same carat should be used for the jewelry of carats of other descriptions.

As now Hall marking is made mandatory for any type of jewelry. It is duty of the consumers to expose those who are selling gold ornament without Hall Mark i.e. without any guarantee to the consumers. 

Consumers can check on the ornament which is Hall Mark following descriptions. 

1. BIS mark, 

2. Purity grade/fineness, 

3. Assay Centers(Certification Center) identification mark, 

4. Year of marking denoted by letter symbol & Jewelers Mark. 

It is also important to note that following ornaments should not be Hall Marked -

1. Those not assayed by BIS recognized centers.

2. Hollow ornaments filled with base element like cement, lac etc.

3. Gold article on which it is physically impossible to stamp the mark.

4. Jewelry below 9 carat of gold.

So remember when you next go for gold jewelry purchase, make sure your purchase is worth.