Monday, 23 March 2009

Talk on "Rethinking Food & Agricultural Research"

K.N. Ramachandra, Member, Mysore Grahakara Parishat writes

Mysore Grahakara Parishat and The Institution of Engineers(India), Mysore Local Centre have organized a talk on "Rethinking Food & Agricultural Research" by Dr. Satheesh Periyapatna, Director, Deccan Development Society, Hyderabad. The talk will be at 6 PM on Tuesday, 24-3-09 at the S.P. Bhat Hall of The Institution of Engineers, JLB Road. The public is invited.

For the last several decades, agricultural research has been oriented away from the ordinary farmer. Today's research emphasis on biotechnology and biofuels is of little relevance to the average farmer. There are relatively few direct inputs from small scale farmers, food workers and ordinary citizens on what kind of food and agricultural research they want. Deccan Development Society is proposing a new initiative to rethink food and agricultural research under the assumption that scientific innovations can be beneficial to small scale producers, the rural poor and the ordinary consumer.

Dr. Satheesh Periyapatna will give a presentation on this initiative.

Friday, 20 March 2009

JNNURM Project Reports Are Now On The Internet

Dr. T.N. Manjunath, Member, Mysore Grahakara Parishat writes


Mysore Grahakara Parishat has been meeting with MCC officials for the last six months to get the Detailed Project Reports of the various JNNURM projects on the internet so that the people of Mysore, who are the real stakeholders can get to know what they are paying for (Even though the Central and State governments meet 90% of the cost of JNNURM Projects, MCC and hence the taxpayers of Mysore have to foot the remaining 10% of the bill).

Most of these project reports have now been put on the internet. They are available at http://www.jnnurm.mysorecity.gov.in. The public of Mysore can go through them and voice their opinions about these projects.

The public of Mysore have been asked to submit their opinions and objections concerning the agreement MCC has signed with JUSCO to remodel the water supply system in Mysore. The DPR of this project is also on the above website. MGP members met Mr. H. Honne Gowda, EE and Mr. M. Ramachandraiah, AEE of Vani Vilas Water Works today and requested them to put the actual contract signed with JUSCO on the internet. They have agreed to do so within a day. These documents will help the public of Mysore to understand the agreement and to voice their opinions and objections.

Power Cuts Without Rationale in Karnataka - MGP's Letter to KERC

Maj.Gen.(Rtd.) S.G. Vombatkere, President, Mysore Grahakara Parishat, writes



Electricity consumers in the State have been subjected to extremely unreliable electricity supply. Lengthy power cuts, upto twelve continuous hours in some areas, have been imposed all over the State, severely degrading the quality of life and economic welfare of people.

Ministers and officials of Government of Karnataka have been making statements since October 2008 that the situation will be improved soon by purchasing power from outside the State. But, almost all states are short of power and it is not clear from where this power will come.

After carefully studying the available power data for Karnataka, it is MGP's considered opinion that if all the available power capacity is generated and if some basic steps in demand management are taken, there should be no power shortage this summer, even without purchase of additional expensive power from elsewhere. MGP has written letters to the State government on this matter, but has received no response. Therefore, MGP has written to KERC requesting it to exercise powers given by various provisions of the IE Act (especially Sec. 86(2) which makes it mandatory for KERC to advise the government on such matters) and the KER Act to impress upon the State government to the short term and long term steps which need to be initiated urgently in the overall interest of society. MGP has also suggested some such measures. They include the following:

1. Many captive power plants in the state are not running at full capacity for want of suitable tariff mechanism. With suitable incentives they can provide peak demand support especially during summer months.ÿSuch additional generation will cost much less than power from other states and with much less transmission loss.

2. Aggregate Technical & Commercial losses in the state are about 35%, while the international levels are below 10%. Even if we reduce the losses to 15%, the norm set by the Ministry of Power, we can postpone power cuts by many years.

3. Agriculture sector which is consuming 37% of the sold energy, is wasting 40-50% of this energy since technical guidance is lacking. This loss can be avoided by a small investment of Rs. 3,000-4,000 per IP set. This step will again postpone power cuts by many years.

4. Losses in lighting, heating and motive power applications can be reduced by 15-20%. The electric supply companies can procure good quality CFL lamps and supply them to all consumers to replace incandescent lamps. Each CFL consumes only about a quarter of the energy required by an incandescent lamp to produce the same light and lasts much longer. The cost of such lamps can be passed on the consumers in installments. If all incandescent lamps are replaced by CFL lamps, the state's peak demand will fall by about 600 MW and more than 100 MU per month can be saved. One CFL lamp can save more than Rs. 300 per year in electricity usage.

5. Large scale use of solar energy for water heating in residences, hospitals, hotels etc. should be encouraged with the help of limited period subsidies and loans. If all AEH installations switch to solar water heating, about 150 MU per month can be saved.

6. Incentives should be given to commercial establishments to reduce energy consumption compared to the corresponding months of the last summer. This can significantly reduce the peak hour demand and also produce substantial energy savings.

7. Industry working hours in different parts of the state should be staggered to reduce peak hour demand. Single shift operations can operate between 9 AM and 5 PM while double shift operations can switch from morning and evening to night and morning. This measure will also reduce peak hour demand.

8. For consumers having time-of-day meters, incentives can be given for reducing the energy consumption between 5 PM and 9 PM.

9. Controlling street lighting with light sensitive switches will save enormous power.

10. Preventive maintenance schedules of existing generating stations in the State should be planned so that failure downtime during the summer months is minimized, especially during the morning and evening peak hours. Maintenance shutdowns should be avoided, as far as possible, during these months. Minor shutdown should be taken up, if absolutely required, only between 10 PM and 4 AM. Close monitoring of generating stations is a part of efficient management.

11. A concerted public awareness campaign on energy efficiency and conservation should be launched. Schools and colleges are ideal for inculcating a sense of responsibility in every individual not to waste energy.

These measures will not only eliminate the need for power cuts or for buying additional power from other states at huge costs, but they will also improve the voltage at all points of the grid, and also will provide much better quality electricity to farmers. Investment in these measures is much less than the cost of buying power from neighboring states and will produce perpetual benefits like reduced T&D losses, improved quality of electricity and economic and social welfare of the state. Assured quality of grid supply will also result in avoiding the usage of small diesel generating sets by commercial and industrial establishments, which are inefficient and cause air and noise pollution.

Saturday, 14 March 2009

MGP Celebrates World Consumer Day

Sreemathi Hariprasad, Secretary, Mysore Grahakara Parishat writes


March 15th is World Consumer Day. To celebrate it, Mysore Grahakara Parishat is holding a consumer awareness program from 10 AM to 5 PM on Monday, 16-3-09. The programme will take place opposite Ayurveda College. The programme has two parts.

The danger of food adulteration is increasing day by day. All the food items we use every day, such as rice, dhal, spices, oil, tea, etc. are being adulterated and this adulteration is threatening not only our health but even our lives. Simple methods which can be used at home to detect many types of food adulteration will be demonstrated.

Simple methods to test the water we drink for potability will also be shown. Simple and inexpensive methods to render water safe for drinking will be demonstrated. The public is invited to record complaints about any leaking water mains they have come across.

Books on food adulteration and drinking water, food adulteration detection kits and kits which can be used to render water safe for drinking will be available to the public. Other publications of MGP will also be available.

The public should make use of this opportunity.

Tuesday, 10 March 2009

Meters in Auto Rickshaws

Asha Vombatkere, Member, Mysore Grahakara Parishat, writes

The public is continually facing hardship due to defective and tampered auto rickshaw meters. This is true in all cities and towns in the State.

The problem is exacerbated by the frequent fare rate changes which are implemented whenever the market prices for petrol change. It makes it difficult for the public to figure out if they are being overcharged.

We believe that the problem can be eliminated by installing auto rickshaw meters that read the distance covered in kilometers rather than the actual fare in rupees as is being done now. A conversion card issued by the concerned Regional Transport Office can be used to convert the distance travelled to the fare amount.

There are several advantages to this system. Thousands of auto rickshaw meters need not be recalibrated every time there is a rate change. Only the new fare conversion cards have to be issued saving enormous amounts of money. Whenever there is fare rate change, the conversion table can also be published in local dailies so that the public is up-to-date on the fare change.

The correct distances between the various landmarks in a city can be made available in the form of a booklet to the public, charging a fee to cover the cost of the booklet. If these distances are known to the public, there will be very little incentive to tamper with the meters. Defective meters can also be easily identified and corrective measures taken.

By changing fare meters to distance meters in auto rickshaws, overcharging of the public due to defective or tampered meters will stop all over the state. MGP has written to the Commissioner of Transport, Government of Karnataka about this matter

Monday, 9 March 2009

Illegal Trade Practice By Some LPG Dealers

V. Balasubrahmanyam, member, Mysore Grahakara Parishat writes

There are thousands of LPG customers who have applied for second cylinders. As cylinders become available, these customers should be given the second cylinder for the current price of Rs. 1250 in the order in which they have filed their applications. But some LPG dealers are bypassing the seniority list by offering "schemes" in which a customer can get a second cylinder for an inflated price and he gets in addition to the cylinder such unwanted items as pressure cookers, stoves, etc.

Such a practice in which the availability a particular goods is tied with the purchase of other goods is a restrictive trade practice which is prohibited by law. Secondly, the dealers issue receipts only for Rs. 1250 and so the rest of the money is unreceipted, which is again illegal.

We have checked with various LPG dealers and it appears that all applications before December 2006 should be cleared by now. If you applied for a second cylinder before December, 2006 and have not yet received it, complain to the dealer. If you have paid more for the second cylinder under any "scheme", again complain to the dealer and get the excess money refunded.

If complaints to the dealer do not work, complain to the concerned oil company. The phone numbers are: Mr. Mohan (BPC) 94481 17453, Mr. Borkar (HPC) 99026 50151 and Mr. Shiva Prakash (IOC) 94482 85525.

Friday, 27 February 2009

National Commission Fines KBC3 for Unfair Trade Practice

P.M. Bhat, Member, Mysore Grahakara Parishat writes

In a recent decision (IV (2008) CPJ 1 (NC)), the National Consumer Commission has fined Kaun Banega Crorepati - 3 Rs. 1 Crore for unfair trade practice.

Kaun Banega Crorepati - 3 which ran on Star Plus TV from January 2007 to April 2007 under the anchor of Shah Rukh Khan, was running a contest called "Har Seat Hot Seat" in which TV viewers were invited to participate. The contest consisted of answering an objective type question with four possible answers. TV viewers who wanted to participate in the contest had to send their answers through SMS. Winners who were selected randomly from those who sent the correct answers were given a prize of Rs. 2 lakhs in each episode of KBC-3.

A consumer organization called Society of Catalysts filed a complaint before the National Commission alleging that Star Plus TV and the sponsor of the show, Bharti Airtel were guilty of unfair trade practice since they created an impression in the minds of the public that participation in the Har Seat Hot Seat contest was "free" and the prize money was being paid by the organizers. But in reality, the cost of organizing the contest as well as the prize money was built in the cost of SMS sent by the participants. Each SMS sent on Airtel by the contestants was charged Rs. 2.40 as compared to the normal charge of Re. 1 per SMS. In the 52 episodes of KBC-3, 58 million SMS were received and the organizers collected Rs. 14 crores. Only Rs. 1 crore were given out as prize money.

The National Commission agreed with this contention. According to Sec. 2(1)(r)(3)(a) of the Consumer Protection Act, a trade practice which "for the purpose of promoting the sale, use or supply of any goods or for the provision of any service" offers "gifts, prizes or other items with the intention of not providing them as offered or creating impression that something is being given or offered free of charge when it is fully or partly covered by the amount charged in the transaction as a whole" is an unfair trade practice.

The National Commission said that the organisers earned a revenue of Rs. 14 crores for the 58 million SMS messages received at Rs. 2.40 per message. Since the normal cost of SMS is Re. 1, the Commission said that the gross profit was about Rs. 8 crores. Subtracting the Rs. 1 crore prize money given, the net profit was Rs. 7 crores. Of this Rs. 7 crores, the Commission ordered the organizers to deposit 14% or Rs. 1 crore in the Consumer Welfare Fund as a fine.

The compensation ordered, though large, seems incorrect on two counts. Firstly, the gross profit was Rs. 14 crores and not Rs. 8 crores since no one would have sent an SMS if there was no contest. So at 14% of the profit, the fine should have been nearly double. Secondly, the organizers should have been asked to surrender all the net profit and be fined additionally, since the profit was obtained illegally. Taking back only a part of the illegal gain defeats justice.

Sunday, 22 February 2009

Does "Maximum Retail Price" Have Any Value?

Prof. S.K. Ananda Thirtha, Member, Mysore Grahakara Parishat writes

Most people believe that the Maximum Retail Price (MRP) printed on packaged commodities is beneficial to the consumers. They believe that the commodities can not be sold above the MRP and so printing of MRP prevents exploitation of consumers.

But numerous decisions by the Supreme Court have destroyed this myth and have all but made MRP a meaningless number. Defective drafting of the laws related to MRP is the root cause of this state of affairs.

WHAT DOES THE LAW SAY?

MRP is governed by the Standards of Weights and Measures Act, 1976 and the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 made under Sec. 83 of the Act to carry out its provisions. Sec. 39 of the Act states that no commodity shall be sold in package form if the package does not have the price printed on it. A fine of upto Rs. 5000 and a prison term of upto 5 years is prescribed in Sec. 63 of the Act for not printing the price on the package. But the Act does not forbid selling a packaged commodity for a price higher than the printed price, much less fix a penalty for selling above the printed price.

Sec. 23(2) of the Rules prohibits the retail sale of any packaged commodity at a price higher than the printed MRP.

WHAT DOES THE SUPREME COURT SAY?

A Supreme Court order (State of Himachal Pradesh Vs. Associated Hotels of India, AIR 1972 SC 1131) given in 1972 makes MRP applicable only to retail sales, i.e., goods sold in shops. So food and drinks consumed in hotels, restaurants or airplanes may be sold at prices above the MRP. The Supreme Court held that such food and drinks can not be considered retail sales since they are always accompanied by service.

Now it gets even worse. There several Supreme Court orders which prescribe the limits of Rules made under an Act. They all say that Rules cannot extend the boundaries of the Act under which they have been made (e.g. Bharathidasan University Vs. All-India Council for Technical Education, (2001) 8 SCC 767). In the present case, the Standards of Weights and Measures Act only mandates that the price be printed on the package whereas the Rules go impermissibly further by stipulating that price charged can not exceed the printed price. Therefore, this part of the Rules is invalid. In other words, there is no limit on the price charged! Not printing MRP attracts punishment, but not selling above MRP. MRP becomes just a fiction.

It ia amazing that the legal experts and bureaucrats who draft legislation are ignorant of such legal basics. They should have included the prohibition of charging a price higher than the printed price in the Act itself and not just in the Rules. By not doing it, they have negated the very purpose of MRP. It seems that they do not learn from their past mistakes either. The Legal Metrology Bill, 2008 which is replacing the Standards of Weights and Measures Act, 1976, was introduced in the Rajya Sabha on 24-10-08; it also does not contain any provision on the prohibition of charging a price higher than the printed price. Unless they fix this lacuna, MRP will continue to remain a paper tiger and not benefit any consumer.

It appears that most courts, including consumer courts, are not aware of the above mentioned Supreme Court decisions, because they keep awarding compensation against merchants who sell packaged commodities in excess of MRP. For example, in a recent case (II(2007) CPJ 96), The Delhi State Consumer Commission imposed huge punitive damages of Rs. 50,000 on a restaurant serving mineral water to its customers at three times the MRP. These are examples of two wrongs making a right! A badly drafted law and its incorrect interpretation have provided justice. But the correct way to do things is to rectify the law so that MRP again becomes useful in protecting the consumers.