Govt wants cos to mark CSR funds for consumer awareness

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Press Trust of India New Delhi
Last Updated : Jan 12 2016 | 8:42 PM IST
To protect consumers from misleading advertisements and sale of fake products, the government today discussed with the industry the possibility of setting aside part of CSR funds to create consumer awareness, especially in rural areas.
At the first meeting held here today on this issue with industry bodies such as CII, Ficci and Assocham, Food and Consumer Affairs Minister Ram Vilas Paswan discussed in detail six issues, including funding through corporate social responsibility (CSR) funds that will help in strengthening consumer awareness and protection in the country.
"Both the government and industry should work together in addressing concerns of consumers. The companies are involved in some CSR activities. However, it is largely restricted to community development. I think they should set aside part of CSR funds for consumer awareness," Paswan said.
CSR funds can be used for raising consumer awareness, especially in rural areas, to prevent sale of fake products and check misleading advertisements, he added.
To this, representatives of the industry bodies said the companies are more than willing to spend their CSR funds on consumer related activities but sought more clarity and direction from the government.
The issue of CSR funding came up for discussion as part of the six action points that the Consumer Affairs Ministry is planning to incorporate as part of the charter for the new 'Government-Industry Forum on Consumer Awareness' to be launched on March 15 commemorating the World Consumer Rights Day.
Besides CSR funding, it has proposed framing of self- regulation code to be adopted by the industry for prevention of misleading ads and check sale of poor quality goods and services in the market.
It has proposed that industry evolve standards for speedy redressal of consumer grievances, linkage of national and state consumer helplines with the industry and industry- funded joint initiatives to promote consumer-related issues.
"On these points, we discussed how government and industry can co-ordinate. Response was good. These action points will be finalised by February," Paswan said.
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Paswan said 27 states were now providing wheat at Rs two a kg and rice at Rs three a kg.
Barring six states - Tamil Nadu, Kerala, Gujarat, Mizoram, Nagaland and Arunchal Pradesh - all other states have already implemented National Food Security Act(NFSA).
"We are optimistic that the remaining states will implement NFSA by April 1 this year," the union minister said in response to a question.
The Centre in its bid to check leakage and diversions has launched direct cash transfer of food subsidy to beneficiaries in Chandigarh and Puducherry in September 2015 on a pilot basis which will be extended to rest of the country later.
Under the scheme, the subsidy component is credited directly into the accounts of beneficiaries, who will be free to buy food grains from anywhere in the market.
Paswan said to ensure that NFSA beneficiaries get entitled food grains, rules for payment of food subsidy allowance to them in the case of non-delivery have been notified.
A committee of ministers under the chairmanship of Minister of Consumer Affairs, Food and Public Distribution has decided to continue food grain allocation for other welfare schemes.
The committee has also recommended providing milk, eggs, pulses and other things under the scheme, Paswan said adding online grievances redressal has been implemented and toll free help line installed in all the 36 states and union territories.
He said drop in oil prices in international market was affecting the prices of edible oils in India and the farmers' interests. The food department had therefore recommended an increase in import duty.
Accordingly, the import duty on crude edible oil has been increased from 7.5 per cent to 12.5 per cent and import duty on refined oils has been upped from 15 per cent to 20 per cent from September 17, 2015, he added.
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First Published: Jan 12 2016 | 8:42 PM IST

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