SPEECH OF PROF. K.V. THOMAS, HON’BLE MINISTER OF STATE (INDEPENDENT CHARGE) OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION AT THE LAUNCH OF KENDRIYA BHANDAR BRAND AGMARK ATTA ON 23RD MAY 2012:
It gives me immense pleasure to be here amongst you on the occasion of launch of Kendriya Bhandar Brand Agmark Atta. Set up in 1963 as a welfare project, the Kendriya Bhandar renders a useful service to the general public by making available essential commodities and thereby keeping a check on their price rise. Agmark Atta is a new addition today and, I am sure, this will be welcomed by the public.
One could see similarities between the utility of the Kendriya Bhandars and the Public Distribution System (PDS). If Kendriya Bhandars make available essential commodities to all at a price range that cannot be breached by neighbourhood shops, the PDS, the single largest retail chain existing in the country, offers essential food items to the public, especially the poor and the downtrodden, at a price that is affordable by even the poorest of the poor.
The Targeted Public Distribution System (TPDS) was launched in 1997 with a focus on the poor. Strengthening and streamlining of TPDs is being undertaken as a continuous process in partnership with States/UTs. Timely distribution of commodities to the beneficiaries, door step delivery of food-grains to fair price shops, effective monitoring of PDS items through social audit are our priority areas. In addition, States have been making full use of technology for tracking TPDS vehicles and redressing grievances of consumers through toll free call centres. Creation of awareness among the public about the PDS, Market Intervention for strengthening financial capabilities of State agencies like Civil Supply Corporations enabling them to intervene during price rise by providing non-PDS items at reasonable rates to consumers are some of the other important actions being taken by us. Cooperation of Gram Panchayats and self-help groups of women are also being sought to make the PDS system more vibrant.
Under the Open Market Sale Scheme (OMSS), the Government has allowed retail sale price of wheat and rice by States at MSP compared to earlier years when freight charges were also included. Under the OMSS bulk scheme for sale of wheat through tender to bulk consumers, while in wheat procuring States the reserve price has been kept at MSP, in other States only 50% freight will be charged compared to full freight which was being charged earlier.
Retail is being hailed as India’s industry of the future, incited by the country’s huge urban middle class population. Food and grocery is the second-largest segment of the retail industry. Growing at the rate of 30%, the Indian food retail is going to be the major driving force for the retail industry. Traditionally, Indians were used to buying their sugar, wheat, pulses, rice etc. from their neighbourhood stores. With changing lifestyle there is scarcity of time; therefore one-stop retail format is emerging as an important driver of growth that can offer consumer 'value for time' in addition to 'value for money.’
In the present era of competition, when organized sector is entering retail trade, the cooperatives must respond to the challenges by adopting technology & professionalism. They need diversification and should adopt market driven strategies for its sustenance. I understand that in line with latest trend in retailing, Kendriya Bhandar has taken up immense efforts to modernize the existing stores in term of its ambience, display system, computerization etc. in a phased manner. Concerted steps are also being taken for computerization of godowns and installation of the latest Point of Sales (POS) Machines at retail stores for ensuring better supply chain management. About 52 per cent of the Bhandar’s sale of consumer and grocery items is to general public while only 48 per cent of its sale is to government employees. Keeping this in view they should develop new strategies for a quantum increase in its sales.
Kendriya Bhandar and similar cooperative Societies should be able to anticipate and gear up to this situation of market transformation and consumer awareness and should be able to introduce innovative ideas in marketing, bringing in more clientele into their fold. I am sure, the introduction of professionalism and better quality products with trust marks like Agmark will generate consumer confidence in sourcing products from Kendriya Bhandar.
THANK YOU!
It gives me immense pleasure to be here amongst you on the occasion of launch of Kendriya Bhandar Brand Agmark Atta. Set up in 1963 as a welfare project, the Kendriya Bhandar renders a useful service to the general public by making available essential commodities and thereby keeping a check on their price rise. Agmark Atta is a new addition today and, I am sure, this will be welcomed by the public.
One could see similarities between the utility of the Kendriya Bhandars and the Public Distribution System (PDS). If Kendriya Bhandars make available essential commodities to all at a price range that cannot be breached by neighbourhood shops, the PDS, the single largest retail chain existing in the country, offers essential food items to the public, especially the poor and the downtrodden, at a price that is affordable by even the poorest of the poor.
The Targeted Public Distribution System (TPDS) was launched in 1997 with a focus on the poor. Strengthening and streamlining of TPDs is being undertaken as a continuous process in partnership with States/UTs. Timely distribution of commodities to the beneficiaries, door step delivery of food-grains to fair price shops, effective monitoring of PDS items through social audit are our priority areas. In addition, States have been making full use of technology for tracking TPDS vehicles and redressing grievances of consumers through toll free call centres. Creation of awareness among the public about the PDS, Market Intervention for strengthening financial capabilities of State agencies like Civil Supply Corporations enabling them to intervene during price rise by providing non-PDS items at reasonable rates to consumers are some of the other important actions being taken by us. Cooperation of Gram Panchayats and self-help groups of women are also being sought to make the PDS system more vibrant.
Under the Open Market Sale Scheme (OMSS), the Government has allowed retail sale price of wheat and rice by States at MSP compared to earlier years when freight charges were also included. Under the OMSS bulk scheme for sale of wheat through tender to bulk consumers, while in wheat procuring States the reserve price has been kept at MSP, in other States only 50% freight will be charged compared to full freight which was being charged earlier.
Retail is being hailed as India’s industry of the future, incited by the country’s huge urban middle class population. Food and grocery is the second-largest segment of the retail industry. Growing at the rate of 30%, the Indian food retail is going to be the major driving force for the retail industry. Traditionally, Indians were used to buying their sugar, wheat, pulses, rice etc. from their neighbourhood stores. With changing lifestyle there is scarcity of time; therefore one-stop retail format is emerging as an important driver of growth that can offer consumer 'value for time' in addition to 'value for money.’
In the present era of competition, when organized sector is entering retail trade, the cooperatives must respond to the challenges by adopting technology & professionalism. They need diversification and should adopt market driven strategies for its sustenance. I understand that in line with latest trend in retailing, Kendriya Bhandar has taken up immense efforts to modernize the existing stores in term of its ambience, display system, computerization etc. in a phased manner. Concerted steps are also being taken for computerization of godowns and installation of the latest Point of Sales (POS) Machines at retail stores for ensuring better supply chain management. About 52 per cent of the Bhandar’s sale of consumer and grocery items is to general public while only 48 per cent of its sale is to government employees. Keeping this in view they should develop new strategies for a quantum increase in its sales.
Kendriya Bhandar and similar cooperative Societies should be able to anticipate and gear up to this situation of market transformation and consumer awareness and should be able to introduce innovative ideas in marketing, bringing in more clientele into their fold. I am sure, the introduction of professionalism and better quality products with trust marks like Agmark will generate consumer confidence in sourcing products from Kendriya Bhandar.
THANK YOU!
