Unit 8 Consumer Movement: Features, Issues and Trends

Unit 8 Consumer Movement: Features, Issues and Trends

UNIT 8 CONSUMER MOVEMENT: FEATURES, ISSUES AND TRENDS Structure 8.0 Objectives 8.1 Introduction 8.2 Socio-economic Factors 8.2.1 Population Problem 8.2.2 Unemployment 8.2.3 Adult Illiteracy 8.2.4 Inflation 8.2.5 Economic Liberalization 8.3 The Public Distribution System (PDS) , 8.4 The Role of the State i 8.4.1 Directive Principles of State Policy 8.5 Why the Consumer Needs Protection? 8.5.1 The Role of ConsumedPublic Opinion 8.5.2 The Power of Consumer Boycon 8.6 The Changing Trends in Consumer Movement 8.6.1 The Areas of Emerging Concern 8.6.2 Possibilities for Action 8.6.3 Expanding Scope 8.7 Tasks Ahead 8.8 Let Us Sum Up 8.9 Key Words 8.10 Answers to Check Your Progress Exercises 8.0 OBJECTIVES T-lnl +,his unit, you will study about the various factors influencing the consumer movement in India. You will also study about the future directions in which the movement is visible, subsequent to various economic and environmental issues. The economic and social factors leading to specific problems that consumers in India have to face and the role of consumer organizations in tackling them are also identified. All this will help you to know where we stand as consumers at present and what is needed to be done in the future. 8.1 INTRODUCTION , With a population of over 950 million spread over 3287263 sq.kms. of land, geo- graphical divisions into 25 states and 7 union territories, over 30 languages, and hundreds of dialects, the Indian subcontinent presents a very complex and confounding picture to anyone attempting to evolve a cohesive policy in any field of' social action. Nearly 40 per cent (320 ml) of the population lives below the poverty line with little or no purchasing power at all and thus, remains outside the market system. Of the remaining, the consumer class is estimated at around 500 million. The rich and the super rich account for the rest of the populace. This, in brief, is he economic profile .of the Indian' consumer. Till 1970, the average Indian consumer was not seriously concerned about the problem of rising prices or shortages. Statutory rationing schemes providing a certain quantum of supply of food grains and other commodities at fixed prices provided insurance against vagaries in supplies and fluctuations in prices. The money in Consumer Movement circulation was also limited and therefore inflation was under check. However after 1972, things started looking grim. There was unexpected shortage of everything from foodgrains to toilet soaps. Adulteration was the order of the day. Consumers began to feel the need to organise themselves into pressure groups to voice their grievances. A few groups here and there emerged as spokespersons for ate consumer community. These groups identified the weaknesses in the system, examined their rights and the position of the consumers in the existing legal framework. The Public Distribution System (PDS) meant to supply essential commodities to consumers in the rural and urban areas was the first area of concern and action for these consumer groups. Thus, complaint handling, grievance redressal and activising the inactive and indifferent government machinery were the items on the agenda of about 20 odd consumer organizations across the country that were functioning by 1974. Though limited, the success stories of these consumer groups which were highlighted by the media spread hopes among several others and thus, more consumer groups came into being. By 1976, there were over 60 consumer organizations in the country. By the 80s, consumer concerns were getting enlarged from problems of supply and distribution of food grains to short weights, adulteration, food safety, quality, consumer education and training, environmental issues, problems of the poor and vulnerable sections of the society. From a study of the existing laws such as the Essential Commodities Act, the Weights and Measures Act, the Prevention of Food Adulteration Act, consumer groups found that these and several other laws dealt with consumer protection only indirectly and that their primary objective was to regulate trade and industry. The groups, therefore, lobbied with the government and political parties and used the iedia for focusing attention on the immediate need for comprehensive con,sumer protection legislation. These efforts ultimately resulted in the government coming up with the Consumer Protection Act 1986 (CPA). This has been implemented from 15th April 1987 onwards. 8.2 SOCIO-ECONOMIC FACTORS Our problems as consumers and the characteristics of the consumer movement are influenced by the socio-economic factors peculiar to India. India's per capita income in 1992 was 310 US dollars as against the per capita BNP of 8356 dollars of economically advanced countries. Over 62% of India's population is employed in agriculture. The problem of both rural and urban poverty complicates any solution to the enormous economic concerns of the country. Over 30 to 40% of the Indian population is estimated to be below the poverty line (although official estimates put it at around 25%); i.e., they are neither buyers nor sellers and are thus, left outside the market system. They have no access to basic necessities such as food, clothing, shelter, health care, and education. The special poverty eradication programmes of the government are directed to ameliorating this enormous problem. Consequently, considerable amount of expenditure is incurred by the government on poverty alleviation programmes, which otherwise would be available for infrastructural development. 8.2.1 Population Problem Indian economy faces a seemingly insurmountable problem on account of a high rate of population growth. The Indian population grew at an annual average rate of 2.2% in the period 1960-62. By 2000 AD, it is estimated that the Indian population will cross the 1 billion mark. The growth in population further aggravates the pmblemk of poverty and unemployment. India's population at the beginning of I996 was estimate at 930 million (93 crores). d 8.2.2 Unemployment I, According to the DGE & T, Ministry of Labour, Govt. of India, at the end of 1993, there were nearly 3.70 crore persons on the live registers of employment exchanges the country. These figures however, do not reflect the reaI problem of For they do not as much reveal the.fact of unemployment in the rural areas. It is said Consumer Movement : that the total number of unemployed persons in the country may actually be about 8 Features, Issues and lknds crores. That the nation is unable to make use of this vast manpower is a poor reflection on our economy. 8.2.3 Adult Illiteracy Another major problem we faci is adult illiteracy. The total literacy rate in 1995 was 52.11% with male literacy at 63.86% and female literacy at 49.42%. Developing consumer awareness is directly linked to the literacy factor and therefore, the consumer movement in India has to encounter a very difficult problem in bringing consumer awareness among the masses. 8.2.4 Inflation Inflation is another economic problem that adversely affects the consumers in India. Several factors such as increased income in the hands of people, financing of government expenditure through deficit financing, increase in wages of government and private sector employees and inadequate supply of goods and services to meet the rising demand contribute to inflation and push.up the prices for the consumers. Through price and distribution controls, the government has been making efforts to ' tackle the problem of inflation. But from the experience gained over the last four decades, it is found that these measures are not adequate to meet the desired objectives. 8.2.5 Economic Liberalization Under the new policy of economic liberalization, government is cornmitt4 to remove price and distribution controls except in respect of a few selected commodities that are supplied through the public distribution system. Consumers are left to protect themselves against price rise in a free market economy in which multinational corporations and monopoly business houses with high market strength and full economic advantages will be dictating terms to the consumers and charging prices at their will. Check Your Progress Exercise 1 Note : i) Use the space given below for your answers. ii) Check your answer with the model answers given at the end of this unit. 1) When and how did the consumer movement start in India? ......................................................................................................................................... 2) Which socio-economic factors affect consumer behaviour and movement? , 8.3 PUBLIC DISTRIBUTION SYSTEM (PDS) The PDS is meant to take care of the minimum nutritional requirements of the eco- nomically vulnerable sections of the society. The PDS now covers a population of around 500 million to a network of nearly 5 lakh fair price shops. Rice, wheat, sugar, kerosene oil are included in the list of items supplied to the card holders through the PDS. In some states items such as edible oils, handloom cloth, tea, iodized salt and a few other products are also supplied through the system. But the huge subsidies involved in running the PDS, estimated at Rs. 5,000 crores, and the leakages in the system have prompted the policy makers to have a re-look at the PDS and specify @ 3 Consumer Mavement targeting of beneficiaries. In fact, the system now in.operation is the TPDS-Targeted a. 1 Public Distribution System. 8.4 THE ROLE OF THE STATE Article 25 of the UN Declaration of Human Rights says: "Everyone has the right to a standard of living adequate for the health and well-being of himself and his family, including food, clothing, housing and medical care and necessary social services". Corresponding to the above, the Constitution of India provides for the right to life and liberty in Article 21, which has been expanded by the Supreme Court in several cases.

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