Food Minister Consultation Meeting in Delhi on National Food Security Bill, 13.2.13

Address by Hon’ble MOS (IC), CA, F&PD

(Consultation with Food Ministers of States/UTs on NFSB; 13^th February, 2013)

Food Ministers and Food Secretaries of States and Union Territories, Secretary, Deptt. of Food and Public Distribution, senior officers of Central Ministries and Departments, other distinguished guests, friends from media, ladies and gentlemen.

We have assembled today to discuss and give final shape to a historic and path-breaking initiative of the Government, which seeks to ensure food security in a rights based manner. After a wide ranging process of consultation, including consultation with States on more than one occasion, the Government introduced the National Food Security Bill in the Lok Sabha in December, 2011. The Bill was thereafter examined in detail by the Standing Committee, which has now given its recommendations. We need to fianlise our views on these recommendations early, give a final shape to the Bill and present it back to the Parliament for consideration and passage in the ensuing Budget Session, so that the people of this country are ensured of its benefits at the earliest.

States/UTs have been our partners in implementation of TPDS and a great deal of role is envisaged for you in implementation of the Food Security Act. Your views therefore are extremely important for us before finalising the Bill. It is for this reason that we have convened this meeting.

The Committee, during its process of examination of the Bill, interacted with a large variety of people and organisations, representing different shades of opinion. It also visited States to hear out their views. Recommendations of the Committee are guided by the need for the Act to be simpler for ease of its implementation. It also attempts to address many of the concerns of States/UT. Overall, the approach suggested by the Committee appears practical, simple and easy to implement. Still, there are certain aspects which need to be discussed before taking a final view.

As stated by the Secretary (Food), the Standing Committee has made many recommendations. However, those relating to coverage under TPDS, identification of beneficiaries, entitlement to foodgrains and their prices are the principal ones, which require careful consideration. There are divergent views on each of these issues and the challenge before us today is to arrive at a workable, practical and equitable approach, keeping the larger objective of the Bill in mind. The Committee has also made certain recommendations on sharing of the additional expenditure arising out of implementation of the Bill. In their comments on the original Bill, many State Governments had raised this issue and expressed their inability to bear the additional burden especially on items such as transportation, handling & FPS dealers’ margin and the grievance redressal mechanism at the District and State levels. Committee has kept in mind the concerns of State Governments and made its recommendations accordingly.

As we move from a welfare approach on food security to a rights based approach, the issue of grievance redressal assumes great importance. The Bill provided for a three tire independent grievance redressal mechanism. Keeping the concerns of States/UTs on additional expenditure required to be borne by them, the Committee has recommended that States/UTs should be allowed to use existing machinery for grievance redressal. In this background,  I would be particularly interested in hearing the views of State Governments on the kind of institutional structure that the Food Security Act should have in order to ensure that the entitlements reach the intended beneficiaries and those responsible for delivery of benefits are held accountable in case they fail to do so. 

The Committee has also recommended that the Act should provide for allowing States/UTs, a reasonable time limit, which could be one year, within which they will be required to complete the preparatory work, at the end of which the Act will come into force in all States. If any State/UT is in a position to implement the Act earlier than the stipulated time, they may do so. This is a valid recommendation, as preparedness to implement the Act varies from State to State. However, I would urge States/UTs to utilise this window of one year to strengthen TPDS including intermediate storage facilities at all levels in order to be able to successfully implement the Act. I seek personal attention of State Food Ministers to ensure time-bound accomplishment of certain critical components of strengthening such as elimination of bogus ration cards, door step delivery, first phase of computerisation   of TPDS, setting up or strengthening of State Civil Supplies Corporations, setting up of Vigilance Committees and ensuring their regular meetings etc.  As you are aware, the Supreme Court has also from time to time passed orders for strengthening of TPDS on which States/UTs are also required to file their responses.

As mentioned earlier, we intend to present the revised Bill in Parliament in the forthcoming Budget Session and therefore this is last opportunity for consultation before finalising the Bill. I look forward to hear your views on recommendations of the Standing Committee and seek active cooperation in successful implementation of the Food Security Act.

Friends, now a detailed presentation will be made on recommendations of the Standing Committee, with particular reference to the issues that I have specifically mentioned above, i.e. issues of coverage, identification, entitlement, prices as well as sharing of expenditure, where the views of the State Govts. are crucial.

With these words, I welcome you once again and thank you for your participation.

21st BIS meeting on 24.1.13 at Kochi

PRESIDENTIAL ADDRESS BY PROF. K. V. THOMAS, HON’BLE MINISTER OF STATE (INDEPENDENT CHARGE) OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION, GOVT. OF INDIA AND PRESIDENT OF THE BUREAU AT THE 21^ST BUREAU MEETING ON THURSDAY, THE 24^TH JANUARY, 2013 at Kochi:

Hon’ble Members of the Bureau of Indian Standards, Shri Pankaj Agrawala, Secretary, Department of Consumer Affairs, Shri Afzal Amamullah, Additional Secretary, Department of Consumer Affairs and Director General,  Bureau of Indian Standards, ladies and gentlemen: 

        

2.    I am happy to be here amidst all of you to preside over the twenty first meeting of the Bureau of Indian Standards (BIS). At the outset, I would like to take the opportunity to congratulate all of you on the BIS having completed 25 years of its existence on 1 April 2012.  We are in the silver jubilee year of the Bureau now.  On this occasion, I would like to reiterate the objectives of BIS which are harmonious development of the activities of standardization, marking and quality certification of goods and related matters. While BIS has achieved significantly in respect of these objectives, there is always a scope to excel, keeping pace with the latest technological advancements.

3.    No doubt, standards provide a framework for an orderly development of the industry, quality production and competitive efficiency; but our actual success lies in adoption of these standards by the industry. With only 90 Indian Standards having been made mandatory by the Government out of 18,800 formulated by the BIS, a lot depends on the voluntary adoption of BIS standards by the industry if it were to walk with confidence of its quality of products.  I would expect that the industry would be willing and forthcoming without reservations in adopting these standards, as they are not only in their interest but in the interest of the potential of Indian industry as a whole.

4.    Another important aspect concerns the need for development of standards in areas such as health, safety, environment protection and energy conservation with clearly-defined national priorities.  In the area of public health and safety, the BIS has given adequate attention to formulate food safety standards to ensure availability of safe and hygienic food to consumers.  Here, the Indian Standards on Good Manufacturing Practices (GMP), Good Hygiene Practices (GHP) and on Food Retail Management have been formulated.  Another standard on `Street Food Vendors,’ lays down check points on quality control, with minimum requirements, ensuring safety aspects of street food.  It has also been published recently which was released by Hon’ble President of India during a national seminar on Food Safety – Role of  Standards organized by the BIS at Vigyan Bhawan, New Delhi in December 2012.  It has been a matter of satisfaction for us that the Hon’ble President had, during the seminar, highlighted the important role to be played by Bureau of Indian Standards in meeting the challenge of ensuring food safety.

5.    In addition to setting up standards, the BIS has also been operating ‘certification schemes’ for products as well as management systems to provide quality products and services to the consumers.  Since the last meeting of the BIS, 7 Steel Products, which include specific varieties of steel plates and bars, have been brought under mandatory certification to protect the consumers from being supplied with products of irregular quality with which the number of products being covered under mandatory certification will get raised to 90.

6.    Another effort of the BIS has been to facilitate the growth of emerging technologies such as information technology, bio-technology, nano-technology, etc.  To protect consumers from spurious and sub-standard imports in these areas of technology, a Scheme for Self-declaration of Conformity has been introduced by the BIS in the form of “Registration” by an amendment to BIS Rules, 1987.  This will provide an alternate conformity assessment option to the existing provisions through Registration Scheme.  I am told that the Department of Electronics and Information Technology has issued necessary order in this regard, and the BIS has geared up its mechanism to meet the challenges, and that laboratories have already been recognized by the BIS for testing of these electronic and IT goods.

7.    The BIS has been playing an active role in international events and I am happy to inform that BIS, after a span of 47 years, had once again hosted the General Assembly of the ISO at New Delhi, India in September 2011, which was a great success.  368 delegates from 127 countries and international organizations participated in the General Assembly, which came in for special praise, and, as a token of its appreciation, the ISO had also passed a special resolution praising the efforts of the BIS in this regard.

8.    I feel happy to inform that during the year BIS will be hosting the 77^th IEC General Meeting from 21-25 October 2013 in New Delhi. It is expected that representatives from a large number of Member Countries of IEC will participate in the meetings.  Hosting the meeting in India will provide us a forum to voice our concerns and views on matters of standardization in the electro-technical sector.

9.  On the whole, it has been a happy journey for the BIS since the last meeting with new achievements.  I hope that the BIS will continue to strive to achieve its objective of safeguarding the customers’ needs for goods and services of good quality.

10.  In conclusion, I extend my personal welcome to the Members of the Bureau and invite them to actively participate in the deliberations of Twentieth meeting of the Bureau.

THANK YOU!

Speech at NTH, Kolkata on 1.12.12

ADDRESS OF PROF. K.V. THOMAS, HON’BLE MINISTER OF STATE (I/C) OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION AT THE CENTENARY CELEBRATION OF THE NATIONAL TEST HOUSE, KOLKATA, ON SATURDAY, THE 1^ST DECEMBER, 2012 AT KOLKATA:

            Respected Rashtrapati Shri Pranab Mukherjee ji, Hon’ble Governor of West Bengal Shri M.K. Narayanan, Shri Sadhan Pandey, Minister-in-Charge, Consumer Affairs Department, Government of West Bengal, Shri Pankaj Agrawala, Secretary, Department of Consumer Affairs, Prof. Bikaram Sinha, distinguished Scientist, Dr. Bijendra Kumar Sharma, Director General, NTH, Scientists and the senior officials and dear employees of the National Test House, friends from the media, ladies and gentlemen:

2.         On this historic occasion of the Centenary Celebration of National Test House, Kolkata, Department of Consumer Affairs, it is a matter of rare privilege for us that we have amongst us Respected Rashtrapati ji, who has kindly agreed to grace the occasion. I convey my sincere gratitude on behalf of Department of Consumer Affairs and the NTH to Respected Rashtrapati ji for sparing his valuable time to be with us today.  I am also grateful to the Hon’ble Governor, West Bengal, Shri. M.K. Narayanan, Prof. Sinha and other dignitaries for their gracious presence here.

3.         The National Test House, the premiere scientific institution of our country was established in the year 1912 at Alipore, Kolkata by the then Indian Railway Board to ensure quality of the engineering products manufactured by nascent Indian industries and imported products brought in for utilisation in railway. From its very inception, the NTH has been pursuing research and development on test methodologies and up-gradation of quality of products to assist blooming Indian Industries. Eminent Scientists across the country, most of them sons of this soil, took special interest in NTH as a centre for scientific research in our country in those pre-independence days.  As we celebrate the 100^th year of the National Test House, I could not but only recall with pride the grateful acknowledgement by Sir C.V. Raman, in his Noble Prize acceptance speech, of the effective role played by the NTH in no small measure in exploration of his research work that led him getting the Noble Prize in 1930.

4.         It is worthwhile noting here that two of the present day scientific organizations, which have earned a name for themselves, the Bureau of Indian Standards (BIS) and the Council of Scientific and Industrial Research originated (CSIR) had their origin in the Alipore Campus of the National Test House.  To serve the long-felt needs of the Indian industry which is growing at a fast pace, the NTH now has added six regional laboratories in its network spread across the country, well equipped with advance technological microprocessor-based instruments which generate authentic and reproducible test results for ensuring quality of engineering products.   They render scientific services to industries, Government Departments, PSUs, and other organizations and give expert opinions, as third party reference laboratories, to the Judiciary, custodians of law and vigilance departments of various Governments and the PSUs.

5.         The NTH has extended its services in the area of Test, Quality Evaluation and Calibration to our neighboring countries such as Nepal, Bhutan, Sri Lanka and Bangladesh and imparted training on testing methodologies to the professionals from the SAARC countries.  It supports Bureau of Indian Standard (BIS) in up-gradation of Indian National Standards through representation of NTH Scientists on several Technical Committees of the BIS. The NTH Scientists have also rendered their valuable services for up-gradation of quality system of the country through National Accreditation Board of Test & Calibration Laboratories.

6.         Of late, the import of standardization has been realised with added vigour in meeting the needs of consumer, trade and industry and above all in promoting the cause of innovation and sustainable development, especially in having a sound indigenous engineering manufacturing base.  It cuts cost a nation spends on import of engineering products required for its industrial development; it brings in revenue through export of engineering products recognised for their quality and affordability, the evolution of quality improvement of products gives birth to new innovations, ingenuity and improved confidence in our capabilities in manufacturing engineering goods – leading us to be self-sufficient in this important area of economic activity.   The future of Indian engineering capabilities looks promising, especially in areas such as power, infrastructure and manufacturing.  Increased international competition also pushes Indian players to develop their capabilities to be competitive enough to produce engineering products that are of quality with strong technical base.  Understanding the hidden potential of Indian players, internationally well-established companies prefer India as a favoured destination for outsourcing of their business activities in area of engineering product designs, manufacturing systems, etc. 

7.         These are newer issues which pose new challenges before the NTH.  The NTH must ponder where it stands today in its preparedness in helping the Indian industry face challenges of today in areas like indigenous product development, quality testing and national and international level standardization.  We need to have more and more agility in the methods and techniques in assessing the quality of engineering products that come under our scanner.  Your stamp of approval on an engineering tool must have international appreciation and recognition.  The NTH must keep it abreast of latest quality assessment techniques; the NTH must constantly endeavour to modernize its activities – its laboratories must be on par with the best in the world of quality assessment, its staff and scientists trained well enough to be superior in their output through latest test methodologies under different technological areas.

    

8.         I am also happy to know that the NTH is gearing up to face these challenges and is proposing to expand its activities by covering new products and new areas, such as solar-energy equipment, by setting up massive testing facilities in various parts of the country for testing LED and Solar equipment.   The efforts of the NTH in advance technology areas such as non-destructive testing of structures like building, bridges, etc. and testing of tyres, microchip-based plastic cards, etc. are innovative ideas in pace with developments taking place in such areas of economic development, and hence are welcome.  These efforts, I am sure, will help the NTH earn more revenue and become self-sufficient in resources.  

9.         I am very proud that NTH has performed extremely well during the 11^th Five Year Plan Period and met the target set. The adoption of strengthening and modernization of test procedure and technique has helped NTH to increase its revenue generation enormously in comparison to that of 10^th Five Year Plan period. The statistics shows that while during the 10^th Plan period, NTH was able to garner revenue to the tune of  Rs. 17.61 crore, it has increased its revenue generation by three times to Rs. 52.59 crore during the 11^th Five Year plan.

10.       In the globalized economy, where competitiveness is at its peak, the weak wither away.  Quality and standard of products have become bywords which decide the fate of a nation’s economy.  As someone has aptly said, “Quality is never an accident; it is always the result of intelligent effort.” I hope that in coming years, the National Test House will emerge as a Centre of Excellence in encouraging such intelligent efforts in test engineering and become notable for its presence not only in our country but also in the entire continent bringing laurels and revenue to our motherland.  Before concluding, I once again thank Hon’ble Rashtrapati ji and other dignitaries for their kind presence at this historic function, and congratulate the officials and the employees of the National Test House on their achievement, and believe that we will continue to touch new heights in the area of testing quality of engineering in the years to come.

JAI HIND!

Pravasi Bharatiya Divas--Infrastructure Development in Kerala 9.1.13

SPEECH OF PROF. K.V. THOMAS, HON’BLE MINISTER OF STATE (I/C) OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION, GOVERNMENT OF INDIA AT THE ‘PRAVASI BHRATIYA DIVAS’ SESSION ON INFRASTRUCTRE DEVELOPMENT IN KERALA ON WEDNESDAY, THE 9^TH JANUARY, 2013 AT KOCHI, KERALA:

            Respected Rashtrapati ji, Shri Oommen Chandy, Hon’ble Chief Minister, officials of the Central and State Governments, distinguished delegates and participants, friends from the media, ladies and gentlemen:

2,         I am happy to be here in the midst of celebrations of the ´Pravasi Bharatiya Divas’ and in the session that is discussing the importance of infrastructure development in the State of Kerala.  I recall what the Hon’ble Chief Minister had said during the “Emerging Kerala 2012” conclave held recently.  The Chief Minister noted that “we have neglected infrastructure development.  We know that if infrastructure is there, investment will definitely come and job opportunities will open up.”  The Chief Minister further added that his main aim was to develop the infrastructure of the State with whatever possible method.”  Infrastructure development is the need of the hour in our State today.  Kerala has changed and it is an investment-friendly State now that welcomes investors.  This is the message that this session wants to send to the world outside.  What does an investor look for in a place for investments?  In one word, it is the availability of sound logistics that would help him cut costs in areas such as material handling, production and packaging, warehousing and transportation, inventory and security. 

3.         Shri Sam Pitroda, the mentor to the Government of Kerala, has his focus on ten major areas to develop and the most important of them are: coastal transport, national waterways, development of Ayurveda system as this relates to a vibrant tourism sector in the State, manufacturing corridor which suffered so far for want of land that is scarce in the State, and good inducements that would help us tide over the shortage of labour.  I would like to dwell in brief on these important areas that would have a say on the strengthening of infrastructure in the State.  When coastal transport, which has not been given its due so far, is strengthened, this will result in reduction of road traffic and in transport costs being brought down by up to 40 per cent.  I need not say that this will not only benefit our people but the investors too in that this will cut their operating costs.  The additional attractions are the “Kochi International Container Transhipment Terminal (ICTT), locally known as the Vallarpadam Terminal, a container trans-shipment facility and part of Kochi Port, the upcoming Vizhinjam and Azhikkal projects, and 14 other minor ports being developed now.  The Vallarpadam Terminal reduces our country’s dependence on foreign ports to handle trans-shipment.  I may also like to add that Cabotage relaxation for the Vallarpadam Terminal has also been taken up at the highest levels of the Government of India as this would ensure development of trans-shipment hub ports, resulting in reduction of freight charges – all indirect inducements to the investors to choose Kerala as a preferred destination for investment. 

4.         On national waterways, there is an idea to extend the Kollam-Kottappuram waterway to Kasaragod.  Then, we have in pipeline the high speed Thiruvananthapuram-Kasaragod corridor and the Kochi-Palakkad manufacturing corridor which will add to infrastructure strengths of the State.  The State does visualise acquisition of land as a problem but is hopeful of surmounting it with its readiness to give a good financial package for acquisition of land.  Similarly, the Kochi Metro, for which the Foundation Stone was laid recently by our beloved Prime Minister, will also be a major milestone in the overall infrastructure and logistics development of Kochi in particular and the State in general.  The project of the Kannur International Airport is also coming up in a major way.  In a nutshell, an investor will have excellent infrastructure facilities available to him on a platter from the day one of his setting foot in the State. 

5.         There are certain additional advantages that the State of Kerala offers to an investor.  Kerala’s strength can also be spotted in the services sector.  It has the highest Human Development Index of all Indian States; its literacy rate is the highest of any Indian State; it is least corrupt and ranks as India’s cleanest.  The State also has efficient and talented work force.  An investor only has to tap and exploit these potentials that will be to his advantage.   Now talking about apprehensions which naturally cross an investor’s mind: one, availability of labour: Kerala with highest literacy level in the whole country naturally suffers from the disadvantage of non-availability of unskilled workers.  Attracting them into the State will be a challenge which the State and the entrepreneurs wishing to do business in the State can together face successfully.  Two, trade-unionism: it was a problem, but it is no longer a problem:  I may like to reiterate what our Hon’ble Chief Minister had said some time back that Kerala had the lowest figure in India for working days loss due to labour strikes and that militant unionism is an old story that is no longer true. 

6.         Some good news about the Kerala Trade Centre: its inauguration scheduled very recently could not take place; otherwise the investors would have got this news as sweetening their intentions to do business in Kerala.  With its inauguration expected any time now, let me assure the investors that the State of Kerala is going to transact business dealings with investors, domestic and foreign, with minimum hassles in one roof.  It is a win-win situation for the investors as well as the people of Kerala.  The state-of-the-art technologies that the Kerala Trade Centre boasts of will ensure that the industrial research and development centre, the information and resource centre, business and exhibition centre, an international convention centre, quality testing lab, etc. will be finer additions providing advanced communication facilities to businessmen eager to do business in Kerala.  I need not emphasise that this is one more reason why investors must look at Kerala for investment. 

7.         You all would have heard about the Kochi refinery for whose expansion project, the foundation stone was laid by our Hon’ble Prime Minister on the 7^th of this January.   The Kochi Refinery will be an important landmark of Kerala insofar as infrastructure developmental activities are concerned.  The expansion project of the Kochi Refinery will increase the refining capacity of the refinery by nearly 7 million tonnes, and the modernisation will result in the auto fuel being produced complying with Euro IV and Euro V specification, in addition to the low value refinery residue stream upgraded to value added products and production of propylene.  A refinery being an important part of economic developmental activity, the expansion project will definitely be in the interests of the investors planning their activities in the State of Kerala.

8.         Dear friends:  the three-day Pravasi Bharatiya Divas 2013 is witnessing celebrations in myriad forms – all the while without losing sight of the enormous contributions that you, the NRIs have been making towards the development of our country.  You will remain forever in our minds and hearts holding a special place.  As we bid adieu to you, it is with the fervent hope that we will soon meet again, as entrepreneurs, as investors to contribute your might for the development of the country, with renewed vigour

9.         I congratulate all the Non-Resident Indians, who have assembled here, on this happy occasion.  We have not honoured you with these celebrations; rather it is you who have honoured your motherland by your presence here, by your eagerness to see how well and in whatever more ways that you could contribute to the wellness of our dear land.  We would like to see you not just as our brothers and sisters visiting us, but also as business men and women with creative ideas reserved for their motherland in entrepreneurship.  I sincerely believe that as years roll by, an NRI will come to become a brand name the world over not just for his singular achievements, hard work and, above all, his love for peaceful co-existence, but also as an emerging and successful business community of the world.

10.       Thank you for giving me a patient hearing.  Let the resolution be:  Strengthen us; let us strengthen ourselves, let us strengthen our country.

            JAI HIND!

 

Inaugural session at Pravasi Bharatiya Divas, 8.1.13

SPEECH OF PROF. K.V. THOMAS, HON’BLE MINISTER OF STATE (I/C) OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION AT THE INAUGURAL SESSION OF THE PRAVASI BHARATIYA DIVAS, 2013 ON TUESDAY, THE 8^TH JANUARY, 2013 AT KOCHI, KERALA:

            Hon’ble Prime Minister of India, Dr. Manmohan Singh ji, Shri Vayalar Ravi, Hon’ble Minister of Overseas Indian Affairs, Shri Oommen Chandy, Hon’ble Chief Minister of India, officials of the Central and the State Governments, distinguished delegates and participants, friends from the media, and ladies and gentlemen:  I welcome you all to Kerala, one of the most beautiful lands on earth and truly, a ‘God’s own country,’ as we celebrate the Pravasi Bharatiya Divas here now.

2.         “Pravasi Bharatiya,” the non-resident Indians can be compared to a heart located outside, yet pumping blood and strengthening the whole body.  They may be miles away from India, yet their heart beats for India.  There is no country in the world that does not have an NRI.  They are our ambassadors abroad, in each and every country, throughout the world.  The world looks at India through them and it can fairly be said that the honour and reputation that India today enjoys among the world community, to a great extent, is through the achievements of our NRIs. 

3.         This Divas is to express the gratitude of the nation to the NRIs for the hard work that they do at foreign soil against all odds, their determination to win against all hurdles, and their will power to keep afloat the flag of the nation high in the sky – as representatives of a country whose strength lies in its citizens, in their talent, in their output through blood, sweat and tears.  The celebrations are also our assurance to the NRIs that we will stand by them taking care of their every need, and that they will not feel lonely in their lives in a far off place, that the love and affection of the people of India for them will ever remain greener and grow stronger with each passing day.  I congratulate all the Non Resident Indians on this happy occasion and sincerely believe that as years roll by, an NRI will come to be known as a brand name the world over for achievements, hard work and, above all, a love for peaceful co-existence.   

4.         The great advantage that India enjoys today is its young population.  Naturally, with increase in educational opportunities and socio-economic developments taking place at a fast pace, the number of our youngsters who will be migrating to foreign countries will grow enormously.  Needless to say our policy measures, through the Ministry for Overseas Indian Affairs, will keep pace with the situations as they emerge in the coming days to see that the vibrancy witnessed in our men and women moving abroad to fulfil their dreams continues unabated. 

5.         And, a word about Malayalees - no discourse on NRI will be complete without a mention about the Malayalees who constitute a better percentage of the NRIs.  That the Pravasi Bharatiya Divas is celebrated in Kerala this year is but an act of appreciation for the courage, perseverance and entrepreneurship qualities of the Malayalees, who deserve special kudos.  With these words, I would like to conclude my speech and while congratulating all the NRIs for their exemplary achievements so far, I would urge upon them to extend a helping hand to the coming generations who may be in need of their guidance to succeed in their chosen paths.  Together, we as Indians can excel in every land of the globe, and be a power to reckon with, and an example to follow, in the coming days.   

            JAI HIND!

Chief Guest at the National Consumer Rights Week Celebrations 20.12.12

SPECIAL ADDRESS OF PROF. K.V. THOMAS, HON’BLE MINISTER OF STATE (I/C) OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION AS THE CHIEF GUEST AT THE NATIONAL CONSUMER RIGHTS WEEK CELEBRATION BY FICCI COMMITTEE AGAINST SMUGGLING AND COUNTERFEITING ACTIVITIES DESTROYING THE ECONOMY (CASCADE) IN COLLABORATION WITH THE MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION ON THRUSDAY, THE 20^TH DECEMBER, 2012 AT FICCI FEDERATION HOUSE, NEW DELHI.

Ms. Naina Lal Kidwai, President, FICCI, Dr. A. Didar Singh, Secretary General, FICCI, Shri Pankaj Agrawala, Secretary, Department of Consumer Affairs, Government of India, eminent experts, civil society members, the business community representatives, distinguished guests, friends from the media, ladies and gentlemen:

2.           First of all, I wish to thank the FICCI for celebrating the National Consumer Rights Week through panel discussions, involvement of students for creating awareness among them on consumer rights and also for their particular focus on the issues of smuggling and counterfeiting activities destroying the national economy and their impact on consumer rights.  I congratulate the FICCI on their proactive efforts in empowering the consumers, because Government alone may not be able to assure a vibrant consumer movement, and it is only through private and voluntary initiatives such as this one that the Government can ensure that the consumer is made aware of his rights and responsibilities. 

3.           All of you would agree with me that in a country like ours, the success of the consumer movement would depend largely upon sustained consumer awareness and in making consumers vigilant about their rights and responsibilities.  Our society gets guided by the market force.  The transition is predominantly from ‘sellers’ market’ to a ‘buyers’ market’ where choice exercised by consumer is influenced by the level of consumer awareness achieved.  I would like to begin by stressing on one important point – that of ‘consumer protection,’ as a significant issue contributing to the economic growth of a country.  A market that is highly competitive is of utmost importance for the healthy growth of economy and is beneficial to the consumer in that the consumer has a wide variety of products to choose from.  such a competitive market in a fast developing country like ours is also prone to spurious goods and inferior services entering the market place to cheat the unsuspecting and ill-informed consumers.  Therefore,   protection of consumer interests becomes a moral responsibility of the State.  This can only be accomplished through setting up quality specifications and safety compliances for goods and services and by establishing proper, effective and easily accessible mechanisms to redress grievances of the consumer.  Amongst the various efforts undertaken, consumer information and education will remain the two most important areas of concentration as they are the most effective means to counter the unscrupulous designs and malpractices of the market.  Consumer education is a life-long education to contribute to basic survival needs of all age groups. But among the consumers, the disadvantaged groups, particularly vulnerable to the economic and social inequalities, the low-income earners, the unemployed, the differently-abled, the immigrant work force – all they need our special attention.  “Jago Grahak Jago” is an innovative attempt at reaching these very segments of the society through the media, especially the electronic media. 

4.           Completion of 25 years of implementation of Consumer Protection Act provides us with an opportunity to assess what has been achieved and what still needs to be done.   A range of reforms in the Consumer Protection Act has been proposed by the Ministry of Consumer Affairs that will have an effect on the laws administered by the States.  These changes will further benefit the consumers and speed up the grievance-redressing processes. 

5.           Now, coming to your focus on smuggling and counterfeiting activities destroying our economy, if I may recall, I did participate in a campaign of FICCI in May, 2012 which was against smuggling and counterfeiting – then too, you involved children in your campaign.  When children are made aware of the ill-effects of smuggling and counterfeiting activities on the economy, this will have a deep impact, as children symbolize the future of a country.  Counterfeit and pirated products are being produced and consumed in virtually all economies, with Asia emerging as the single largest producing region – the reason being their availability at cheaper rates.  The effects of counterfeiting and piracy are more pronounced in developing economies.   The causes for its proliferation may be traced to certain facts such the transfer of world's manufacturing industries to third world countries, the growth witnessed in internet e-commerce sales, and the fact that consumers, seeking out lower-cost items leading to counterfeit articles.  Another great cause of concern to governance is that profits of counterfeiting are known to bolster organized crime and terrorist groups who pose a real threat to security in developed and developing countries alike.

6.           Fundamentally, counterfeiting hinders long term economic development. Economy-wise, counterfeiting and piracy also undermine innovation, which is important to economic growth.  The market for counterfeit and pirated products can be divided into two important sub-markets. In the primary market, consumers purchase counterfeit and pirated products believing they have purchased genuine articles. In the secondary market, consumers looking for what they believe to be bargains knowingly buy counterfeit and pirated products. The policies and measures to combat counterfeiting and piracy in the two markets differ; it is therefore important to know how much of a threat each poses when considering product specific strategies.

7.           I hope this initiative of FICCI, as the largest and the oldest apex organization of Indian business and a leader in policy thinking and change in Indian industry, will go a long way in creating awareness among the consumers on the hazards of purchasing fake products and create more interaction with enforcement authorities.  That FICCI have assembled children here to pass on the message on counterfeiting and piracy is quite apt and symbolic of their efforts in joining government agencies to create an awareness among the consumers on the ill-effects of these evils so that consumers become informed when it comes choosing the right product at the right price.  I congratulate the FICCI on their appreciable endeavour and hope our collective efforts will result in a vibrant economy which will lead to the nation prospering crossing all hurdles.

THANK YOU.

Inaugural Speech at the AGM of Confederation of Sugar Mills Assocaiton, 19.12.12

Inaugural Address of Prof. K.V. Thomas, Union Minister for Consumer Affairs, Food & Public Distribution at the inaugural function of the 53^rd  Annual Meeting of National Federation of Cooperative Sugar Factories Limited dated 19.12.12

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1.                Shri Jayantilal B. Patel, President, Shri Shankarrao G. Kolhe, Vice-President, Leaders of Co-operative sector, Shri Vinay Kumar, Managing Director of National Federation of Cooperative Sugar Factories Ltd., Shri Sudhir Kumar, Secretary, Food and Public Distribution, Government of India, Officers from the Ministry of Consumer Affairs, Food & PD, my friends from the Media,  distinguished guests, ladies and gentlemen.

2.                I am happy to be here in your midst this afternoon to inaugurate the 53^rd  Annual Meeting of the General Body of National Federation of Cooperative Sugar Factories Limited.  We are meeting at a time when Indian sugar production continues to surpass the domestic requirement.  The country has produced over 26 million tonnes of sugar in the last season and as per Shri Jayantilal B. Patel, there would be a further production of 24.5 million tonnes this year. Though happy to hear such a happy news,  at this early stage of the sugar season, I may like to be a little cautious and hope that Shri Patel is proved correct.

3.                The supply of sugar during the last season was uninterrupted and at largely stable prices.  This enabled the Government to take certain decisions which gave a certain amount of freedom to the industry to enable them to plan their cash flows and clear cane price arrears.

4.                Shri Jayanti Bhai Patel has already spoken in detail about the recommendations of  Dr Rangarajan Committee and let me assure that the Department of Food and Public Distribution has already initiated action on the report of the committee.  The feasibility and the time frame of implementing the various recommendations are under deliberation and I am sure that a considered decision would soon be taken on some of these issues.

5.                The Ethanol Blending Programme has been reiterated  by the Government and I am sure that this will help the sugar industry improve the financials  and its commitment to make timely payment to the cane farmers. The Department of Food and Public Distribution has already made a request to the Petroleum Ministry to take quick decision regarding notification of mandatory blending of ethanol with petrol.  In view of the good production in last sugar season the Government had permitted exports of sugar under OGL.  This, along with the firming  up of sugar prices have helped clear the cane price arrears. You will however, appreciate that  globally sugar prices are facing a slump and the challenge lies in improved technical efficiency to provide the consumer with globally competitive prices. A demand has been made for an increase in the import duty of white and raw sugar. My Department has already taken up the issue with the Ministry of Finance. However, protection to the industry is seen to be leading to higher consumer prices and at a time when international prices are low, burdening the consumer with a higher liability  on such an essential commodity is bound to raise questions. It is in this context that I would urge you to take necessary steps for increasing cane productivity and look at varietal change which will result in better prices for the consumer without harming the farmer.

6.                I have noted your concern regarding the delay in the notification of levy sugar prices for the year 2012-13.  I have directed the Department of Food and Public Distribution to expedite the notification and ensure that the mills do not suffer on this account. Notification regarding the decision of carry forward of levy sugar will also be issued soon.

7.                I appreciate your concern on  demand being raised by the Income Tax Department. However, you would realize that the issue entails examination by the Department of Revenue and has implications far beyond the cooperative sector. I am sure your suggestion would be examined by the CBDT as per the provisions of law and genuine hardships faced by certain mills and the farmers attached to them would be looked into.

8.                I am glad to know that the sugar industry, specially in the cooperative sector, is committed to the development of renewable energy through bagasse based generation of power.  The department is committed to improving the viability of sugar mills through favourable assistance from the Sugar Development Fund. While appreciating your demand for considering negative network factories for funding from the SDF, let me make it clear that the viability of the sugar mills resulting their capacity to repay the loan, which are public funds, need to be considered. It is painful to note that over Rs.500 crores SDF loan is outstanding against sugar mills in the cooperative sector. You would appreciate that this is the money which could have been used for further development of your fellow sugar undertakings.  The need of the hour is better management of the sugar undertakings in the cooperative sector with  cooperation of the sugarcane farmers assured.

9.                I must congratulate the National Federation of Cooperative Sugar factories for its yeoman’s service in the development of industry but the task remains far from finished. There is a need to further professionalize the organization in the background of technological changes taking place in the industry. Readiness for accepting changes and adopting measures such as satellite mapping need to be  encouraged.  I would ask for more outputs from the research and development centre of the NFCSF and this would be a fitting tribute to the industry in the international year of cooperatives.

10.          The Government is committed to play a facilitating role in the development of the sugar industry and have taken certain measures to enable you  to perform better. Efficiency awards are being given out  to the performers  and I congratulate the factories which have made efforts to stay ahead of the field in their search of excellence.  Excellence is more  relative than absolute and there is definitely further  scope for improvement in this sector. I am sure that you will attempt  even more in ensuring a vibrant sugar industry and the Government will do everything to support the industry reach its pinnacle.

Thank you !

Jai Hind.

78 Annual General Meeting of the Indian Sugar Mills Association 13.12.12

ADDRESS OF HON'BLE MINISTER FOR CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION FOR 78^TH ANNUAL GENERAL MEETING OF THE INDIAN SUGAR MILLS ASSOCIATION (ISMA) ON 13^th  DECEMBER, 2012 AT NEW DELHI.

1.   Shri Gautam Goel, President ISMA, Shri  Sreenivasan, Vice President ISMA, Shri Abinash Verma, DG ISMA,  Officers from the Ministry of Consumer Affairs, Food and Public Distribution, distinguished guests, my friends from the Media, Ladies and Gentlemen ! 

2.   It has been one year since I addressed this august gathering and at that time I had made certain requests to the industry and had also promised to look into certain issues. I stand here with satisfaction that the promises made have been fulfilled to a large extent. I must also congratulate the industry that it has acted on the requests  and ensured a stable supply of sugar at almost stable prices during the past one year.

3.   I had expected further requests from the industry in the address by the President, ISMA but I am relieved that the sugar sector has no major requests which implies that the Government policies and decisions have been accepted by industry as having met the requirements of the time. I can understand that there is anticipation in the industry regarding Government’s action on the recommendations of Dr. Rangarajan Committee on de-regulation of the sugar sector. I can assure you that the Department of Food and Public Distribution has initiated action  on the report of the Committee and is in the process of completing consultations with the State Governments and other Departments. You will appreciate that  the decisions have to be well considered and in the long term interests of all stake holders. I would therefore, request you to have patience  in this regard.

4.   The last one year has brought the sugar industry in India on the international stage. The ISO conference held in April 2012 at New Delhi was another feather in our cap and the success of the conference was a tribute to the efforts put in by the sugar industry. The international conference held under the aegis of the Sugar Technologists Association of India (STAI) at Hyderabad also underscores the rising importance of the Indian sugar industry as regards sugar technology.

5.   The reiteration of the Government of its commitment to Ethanol Blending Programme will in no small measure boost the prospects of better utilization of by-products in the manufacture of sugar and I hope that the industry is able to take advantage of this step to improve its bottom-lines. While doing so, I would call upon you to ensure timely cane payments to the sugar farmers so that the cane arrears which we have assiduously worked to reduce and keep within controllable limits, are not allowed to go beyond permissible limits.

6.   Sugar prices have firmed up since July 2012 and this should help the industry in meetings its commitment towards the cane farmers.  I understand that sugar prices are bearish internationally and this trend is likely to continue for some time. This will, no doubt, put the industry under pressure in India, but I am sure that you will face this challenge as skillfully as you had handled the surplus production in the last two sugar seasons. I would urge you to consider improvements in technical efficiency to reduce conversion cost in a bid to compete globally.

7.   The current sugar season and the one following  will be a real test of character for the sugar industry. The sudden drop in expected rainfall in two major sugar producing States has definitely had its impact on the likely sugar production during the current season.  Perhaps it is a blessing in disguise at a time of global surplus.  The weather pattern of last few years holds a challenge to the industry as, even within overall normal level of rainfall, long period of dryness have been experienced. The water expended in growing sugarcane as compared to alternate crops has also been commented upon by responsible quarters. It is imperative that industry should focus on development of draught resistant varieties and agricultural practices to conserve water like drip irrigation.

8.   With the implementation of the Food Safety and Standards Act,  certain regulations to packing and labeling have been passed on  to the Food Safety and Standards Authority of India. I am sure that ISMA, as the industry  body is advising its members on the compliance with the new norms and ensuring that the quality standard in the sugar industry are improving to meet international standards.

9.   I have noted  your concerns regarding certain changes that have been made with regard to the assistance through loans from the Sugar Development Fund. We have tried to expedite the processing of loan applications and make it transparent in the best possible manner. I must confess that there is scope for improvement and I am sure that Department is looking at this aspect for improving service standards.  You must also appreciate that the funds in the SDF are not unlimited and if a curtailment has been made in the number of loans, it is only because the same pie has now to be shared by a larger number of you in the industry. Should the situation of funds improve, or a necessity arises, we shall definitely look at increasing the number of loans for modernization and cane development. There are some other issues which have been raised  which are being looked into within the Department and I expect them to be resolved at an early date.

10.         While on the issue of the Sugar Development Fund, those who have availed of the assistance must also accept that responsibility towards timely repayment of their installments so that the Fund can go on helping the industry. Responsible people in the industry figure among the cases of defaults and I expect ISMA to also look into this issue and ensure that their weaker members are not deprived of assistance because of the recalcitrant behavior of some of their members.

11.         While on the whole, the last sugar year have been one of great satisfaction for us – both from the farmers’ point of view as well as the consumers’ point of view, I have been pained by the action of certain groups within the industry. Government policy decisions are made to serve the best interest of the maximum number. I am sure that all decisions do not find favour with all of you and could possibly lead to some short-term advantage to a few. However, over a period of time this averages out.  The representations being received from factions within the industry on certain issues where there is disagreement  puts us in a difficult position. It is in the interests of the industry to resolve their issues internally and come to a consensus amongst themselves rather than take their differences into the public domain.  I am sure the elders in the industry will be able to guide the young team and new office-bearers appropriately to allow the industry to grow in strength.

12.         I congratulate and compliment the outgoing president Shri Gautam Goel on a very eventful and satisfying innings. The incoming President, Shri  Sreenivasan has to take the task forward and I wish him all success in this endeavour. My best wishes to ISMA on the completion of another year of achievements and my assurances on  meaningful support to the industry and its contribution to the growth of the Indian economy.

Jai Hind !