PRESIDENTIAL SPEECH OF THE BUREAU INDIAN STANDARDS on 17.1.2012 in New Delhi.

PRESIDENTIAL ADDRESS BY PROF. K. V. THOMAS, HON’BLE MINISTER OF STATE (I/C) CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION, GOVT. OF INDIA AND PRESIDENT OF THE BUREAU INDIAN STANDARDS on 17.1.2012 in New Delhi.
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Members of the BIS and distinguished invitees consisting of Hon’ble Members of Parliament; Ministers of the State Governments and representatives of various stakeholder organizations, Shri Rajiv Agarwal, Secretary, Consumer Affairs; Shri Pankaj Agrawala, Additional Secretary, Consumer Affairs; Shri Sharad Gupta, Director General, BIS; senior officials from the Ministry and the BIS, friends from the media and ladies and gentlemen:


I am happy to be here amidst you to preside over the Twentieth meeting of the Bureau. Today, as you are all aware, India is an important player in the global market and Indian industry is a major contributor to India’s visibility on the international trading scene. However, our country has to play a more prominent role in the present world scenario of greater international competitiveness. For this purpose, it is important that all efforts should be made by manufacturers to adhere to the prescribed standards, i.e., national or international standards, as applicable, so that the consumers of Indian products have confidence in the products they purchase. This will not only help in building our national image overseas but also assure quality goods to consumers.


Keeping this in view, the Bureau of Indian Standards, the national standards body of the country, has taken a number of steps to meet the emerging challenges through its manifold activities in the field of standardization and quality certification of goods and services.


BIS is formulating Indian Standards in line with the national priorities in a time bound manner and has formulated over 18,600 Indian standards on diverse subjects, ranging from food, chemicals, engineering, textiles, to high technological areas of electronics etc. These standards are formulated through a network of technical committees comprising different stakeholders like representatives from industry, research and development organizations, consumers, testing and lab experts, government etc. Standards undergo periodic review and up-gradation, keeping in view consumer needs, health and safety aspects, environmental protection and the latest technological developments.


In the present era of the WTO, the national standards play a vital role. As per WTO-TBT agreement, to which India is also a signatory, the technical regulations are normally required to be based on international standards. Therefore, Indian Standards, where feasible, should be harmonized with International Standards. This requires proactive approach on the part of BIS to actively participate in the technical committees of International Organization for Standardization (ISO) and International Electro-technical Commission (IEC) so that the interests of Indian industry as well as consumers are well protected during the process of standard setting by these organizations. To enhance participation of experts representing technical/scientific organizations and members of BIS technical committees in international standardization Government of India has provided funds through Plan Scheme on National System of Standardization. Such participation by BIS in the development of International Standards helps in promoting and safeguarding the nation’s interests.


I am happy to inform that BIS is an active and prominent member of ISO. BIS, after a span of 47 years, once again hosted the General Assembly of the ISO at New Delhi in September, 2011, which earned international acclaim. 378 delegates from 125 countries and international organizations participated in the General Assembly. BIS, India got elected as one of the Members of ISO Council, the apex body of ISO, for a two year term, i.e., 2012-13.


BIS is also playing an active role in the activities of IEC. It is also a matter of pride for us that BIS will be hosting the Annual IEC General Meeting in October 2013 in New Delhi. It is expected that representatives from a large number of member-countries of IEC will participate in the meetings.


To have an effective voice in various international standardization fora, it is necessary that BIS also actively participates in regional body meetings on Standardization and Conformity Assessment. In this regard, BIS has participated in the meetings of SAARC Standards Coordination Board (SSCB), including the eighth meeting of SSCB organized at Kathmandu, Nepal in August 2011 and the first meeting of the Governing Board of South Asia Regional Standards Organization (SARSO) in Dhaka in December 2011.


Consumers need quality products and services. BIS is conscious of its role in this regard and is operating certification schemes for products as well as management systems. The Product Certification Scheme is basically voluntary and around 25,000 licenses covering about 1,000 products are in operation. However, in public interest, the Central Government has notified 83 articles for mandatory conformance to the relevant Indian Standard. These products normally relate to health and safety of the consumers and include packaged drinking water, LPG cylinders, clinical thermometers, cement, milk powder, etc.


Another important area, where BIS needs to strengthen its activities, is Hallmarking of Gold and Silver Jewellery / artefacts. We know that Gold has always occupied a special place in the Indian households. For ensuring that the consumer gets value for money, and is not cheated by unscrupulous manufacturers, the Hallmarking Scheme was launched by BIS in April 2000. The Scheme provides third party assurance to consumers on the purity of gold jewellery or its fineness. The Scheme for Hallmarking of Silver Jewellery/ artefacts was launched in October 2005. The Hallmarking Scheme is operated through the network of regional and branch offices of BIS all over the country.


I am happy to note that for giving focused publicity on Hallmarking, “Hallmarking Awareness Weeks” have been organized in different regions of the country. “Hallmarking Awareness Week” has been organized in Kerala in July 2011, in the states covered under Western, Eastern and Northern Regional Offices in September 2011, November 2011 and December 2011, respectively. During these weeks, jewellers’ awareness programmes, training programmes for artisans and training programmes for assaying and hallmarking personnel were organized in different parts of the region and wide publicity in regional languages through regional print and electronic media was made.


BIS also operates Management Systems Certification Schemes for Quality, Environment, Food Safety, Occupational Health and Safety of employees in an organization.


Another major challenge consists of sustaining and improving the quality of services. With the advent of strong consumer movement in India and consumers becoming increasingly aware of their rights, greater need is being felt for more transparency and accountability in the delivery of public services. Keeping this in view, Bureau of Indian Standards has formulated an Indian Standard, namely, IS 15700: 2005 “Quality Management Systems – Requirements for Service quality by Public Service Organizations.”


Many Government departments, including Income Tax department, Central Excise and Custom department, Postal department, Central Schools and various departments of State Governments are in the process of implementing this Indian Standard. With this end in view, BIS, under 11th plan scheme on Consumer Education & Training, HRD and Capacity Building, has conducted over forty training programmes on IS 15700, for officials of various government departments like Customs and Central Excise, Income Tax Department, All India Radio, Doordarshan, etc., in which over 1500 officials of these organizations were trained.


I extend my personal welcome to the members of the Bureau and invite them to actively participate in the deliberations of this Twentieth Bureau Meeting. JAI HIND!

52nd Annual Meeting of National Federation of Cooperative Sugar Factories Limited

Inaugural Address of Prof. K.V. Thomas, Union Minister for Consumer Affairs, Food & Public Distribution at the inaugural function of the 52nd Annual Meeting of National Federation of Cooperative Sugar Factories Limited

Shri Jayantilal B. Patel, President, Mr. Shankarrao G. Kolhe, Vice-President, Mr. Vinay Kumar, Managing Director of National Federation of Cooperative Sugar Factories Ltd., distinguished guests, ladies and gentlemen.

I am happy to be here in your midst this afternoon to inaugurate the 52nd Annual Meeting of the General Body of National Federation of Cooperative Sugar Factories Limited, the apex body of cooperative sugar factories in the country.


We are meeting at a time when Indian sugar production is on an upswing from 2010-11 season. The country has produced around 24.30 million tonnes of sugar this sugar year which was more than our annual consumption requirement. In order to ensure that the higher production does not lead to mounting cane price arrears and to keep sugar prices stable, the Government allowed sugar factories to export sugar. The objective was to avoid sugar stock build up and resultant drop in prices leading to cane price arrears and to provide additional liquidity to the sugar factories by capitalizing on the low global sugar balance and the better international prices. Consequently, the domestic retail prices of sugar are currently stable.


Coming to ensuing 2011-12 sugar season, I am aware that there is some difference on preliminary estimates of sugar production and efforts are on to reconcile the figures. In any case, it is projected that sugar production in the next season will be more than our consumption needs. The excess production can depress prices. Therefore, I can understand your concern. We are also equally concerned. Keeping in view the estimated opening sugar stocks and the estimated domestic production and consumption in 2011-12 season, the Government will take appropriate steps to maintain price stability so as to ensure that sugar factories make fair realization and pay remunerative cane price to sugarcane farmers and sugar prices remain at reasonable levels.


I would like to remind you that the Central Government has already taken certain long term policy measures with a view to reduce fluctuations in production of sugar. The concept of Statutory Minimum Price (SMP) has been replaced by the Fair and Remunerative Price (FRP) of sugarcane with effect from 2009-10 season. The FRP provides for upfront payment of margins on account of profit and risk to sugarcane farmers, which was not available under SMP. Further, the Government has allowed sugar factories to produce ethanol directly from sugarcane juice. I am hopeful that these measures should help in reducing the cyclicality in sugar production in coming years.


Mr. Patel had mentioned in his speech that the issue of de-control of sugar has been hanging fire since long and that this is the opportune time to decontrol. You know that decontrol of sugar involves doing away with levy obligation on sugar mills and abolition of release mechanism. As regards levy obligation, I would like to say that it was as high as 65% in seventies which has been reduced to 10% in phases. Further, supply of levy sugar has been restricted to BPL families in the country except in north-eastern states, hill states and island territories where universal coverage has been allowed on account of difficult terrain and other logistics constrains. The Government is committed to supply sugar to poor sections of the society at concessional rate. As such, there has to be some alternate mechanism of supplying sugar to poor families if levy obligation is to be done away with. It needs consultation with State Governments in order to evolve consensus in the matter. With regard to release mechanism, I would say that this system has been continuing to ensure availability of sugar throughout the year at reasonable prices. It has to be remembered that 5 – 6 months sugar production has to be utilized for the entire year. There has to be some alternate mechanism to ensure availability of sugar throughout the year at reasonable prices if the present system is to be dispensed with. I request apex bodies of sugar industry to give suitable suggestions to the Government in this regard. The Government is not averse to decontrol of sugar provided the alternate system is acceptable to all stakeholders. I have requested the Prime Minister to request Dr. C. Rangarajan to look at the issues relating to de-regulation of the sugar sector so that the long standing demand of the industry is examined in a non-partisan manner.

In respect of stockholding limit on sugar traders, I would like to inform you that stockholding and turnover limits have been imposed to check unscrupulous traders to hoard sugar and increase sugar prices by creating artificial scarcity in the market. These limits have recently been reviewed by the Empowered Group of Ministers and it has been decided to extend it up to November, 2011 in view of the ensuing festival and .marriage season when the demand for sugar will be at peak. I hope that sugar prices will remain at reasonable level during these months and there may not be any need to extend the limits beyond November. The stock limits on bulk consumers already stands abolished from 14th August, 2011.

Regarding increasing the radial distance between an existing and new sugar factories, the State Governments have already been authorized to increase it beyond 15 kms with approval of the Central Government. The State Governments of Punjab & Haryana have already been permitted to increase the minimum radial distance to 25 kms in their respective states. If we receive requests from other states, we will consider them also.

My attention has been drawn to the so called ‘injustice’ meted out to negative networth sugar factories with regard to SDF loans. You would appreciate that defaults against loans from the Sugar Development Fund is over Rs. 400 crores in respect of cooperative sugar factories alone. It would be difficult for the Government to put more money unless some concrete steps are taken to improve the management of these mills such that the lenders’ money is made more secure.
I would like to take this opportunity to appreciate the Federation for the promotional work they are doing for the sugarcane farmers. My congratulations to their consultancy team for bagging projects abroad.


I am also very glad that NFCSF is making all efforts to improve the productivity of sugarcane and sugar recovery. At present the yield of sugarcane per hectare varies quite substantially from region to region. There is enormous scope of increasing productivity of sugarcane per hectare. What is required is to make varietal changes looking at agro-climatic factors of each region.

In the end, I would like to congratulate all the factories which are getting efficiency awards this year. I hope that this will motivate the recipient of the awards to improve further their performance and other factories to make all out efforts to get the awards in the coming year. With these words, I inaugurate the 52nd annual meeting of the National Federation of Cooperative Sugar Factories.


Inaugural Address of Prof. K.V. Thomas, Union Minister for Consumer Affairs, Food & Public Distribution at the inaugural function of the 52nd Annual Meeting of National Federation of Cooperative Sugar Factories Limited on 27th September, 20011 at New Delhi.

Shri Jayantilal B. Patel, President, Mr. Shankarrao G. Kolhe, Vice-President, Mr. Vinay Kumar, Managing Director of National Federation of Cooperative Sugar Factories Ltd., distinguished guests, ladies and gentlemen.

I am happy to be here in your midst this afternoon to inaugurate the 52nd Annual Meeting of the General Body of National Federation of Cooperative Sugar Factories Limited, the apex body of cooperative sugar factories in the country.


We are meeting at a time when Indian sugar production is on an upswing from 2010-11 season. The country has produced around 24.30 million tonnes of sugar this sugar year which was more than our annual consumption requirement. In order to ensure that the higher production does not lead to mounting cane price arrears and to keep sugar prices stable, the Government allowed sugar factories to export sugar. The objective was to avoid sugar stock build up and resultant drop in prices leading to cane price arrears and to provide additional liquidity to the sugar factories by capitalizing on the low global sugar balance and the better international prices. Consequently, the domestic retail prices of sugar are currently stable.


Coming to ensuing 2011-12 sugar season, I am aware that there is some difference on preliminary estimates of sugar production and efforts are on to reconcile the figures. In any case, it is projected that sugar production in the next season will be more than our consumption needs. The excess production can depress prices. Therefore, I can understand your concern. We are also equally concerned. Keeping in view the estimated opening sugar stocks and the estimated domestic production and consumption in 2011-12 season, the Government will take appropriate steps to maintain price stability so as to ensure that sugar factories make fair realization and pay remunerative cane price to sugarcane farmers and sugar prices remain at reasonable levels.


I would like to remind you that the Central Government has already taken certain long term policy measures with a view to reduce fluctuations in production of sugar. The concept of Statutory Minimum Price (SMP) has been replaced by the Fair and Remunerative Price (FRP) of sugarcane with effect from 2009-10 season. The FRP provides for upfront payment of margins on account of profit and risk to sugarcane farmers, which was not available under SMP. Further, the Government has allowed sugar factories to produce ethanol directly from sugarcane juice. I am hopeful that these measures should help in reducing the cyclicality in sugar production in coming years
Mr. Patel had mentioned in his speech that the issue of de-control of sugar has been hanging fire since long and that this is the opportune time to decontrol. You know that decontrol of sugar involves doing away with levy obligation on sugar mills and abolition of release mechanism. As regards levy obligation, I would like to say that it was as high as 65% in seventies which has been reduced to 10% in phases. Further, supply of levy sugar has been restricted to BPL families in the country except in north-eastern states, hill states and island territories where universal coverage has been allowed on account of difficult terrain and other logistics constrains. The Government is committed to supply sugar to poor sections of the society at concessional rate. As such, there has to be some alternate mechanism of supplying sugar to poor families if levy obligation is to be done away with. It needs consultation with State Governments in order to evolve consensus in the matter. With regard to release mechanism, I would say that this system has been continuing to ensure availability of sugar throughout the year at reasonable prices. It has to be remembered that 5 – 6 months sugar production has to be utilized for the entire year. There has to be some alternate mechanism to ensure availability of sugar throughout the year at reasonable prices if the present system is to be dispensed with. I request apex bodies of sugar industry to give suitable suggestions to the Government in this regard. The Government is not averse to decontrol of sugar provided the alternate system is acceptable to all stakeholders. I have requested the Prime Minister to request Dr. C. Rangarajan to look at the issues relating to de-regulation of the sugar sector so that the long standing demand of the industry is examined in a non-partisan manner.

In respect of stockholding limit on sugar traders, I would like to inform you that stockholding and turnover limits have been imposed to check unscrupulous traders to hoard sugar and increase sugar prices by creating artificial scarcity in the market. These limits have recently been reviewed by the Empowered Group of Ministers and it has been decided to extend it up to November, 2011 in view of the ensuing festival and .marriage season when the demand for sugar will be at peak. I hope that sugar prices will remain at reasonable level during these months and there may not be any need to extend the limits beyond November. The stock limits on bulk consumers already stands abolished from 14th August, 2011.

Regarding increasing the radial distance between an existing and new sugar factories, the State Governments have already been authorized to increase it beyond 15 kms with approval of the Central Government. The State Governments of Punjab & Haryana have already been permitted to increase the minimum radial distance to 25 kms in their respective states. If we receive requests from other states, we will consider them also.

My attention has been drawn to the so called ‘injustice’ meted out to negative networth sugar factories with regard to SDF loans. You would appreciate that defaults against loans from the Sugar Development Fund is over Rs. 400 crores in respect of cooperative sugar factories alone. It would be difficult for the Government to put more money unless some concrete steps are taken to improve the management of these mills such that the lenders’ money is made more secure.
I would like to take this opportunity to appreciate the Federation for the promotional work they are doing for the sugarcane farmers. My congratulations to their consultancy team for bagging projects abroad.


I am also very glad that NFCSF is making all efforts to improve the productivity of sugarcane and sugar recovery. At present the yield of sugarcane per hectare varies quite substantially from region to region. There is enormous scope of increasing productivity of sugarcane per hectare. What is required is to make varietal changes looking at agro-climatic factors of each region.

In the end, I would like to congratulate all the factories which are getting efficiency awards this year. I hope that this will motivate the recipient of the awards to improve further their performance and other factories to make all out efforts to get the awards in the coming year. With these words, I inaugurate the 52nd annual meeting of the National Federation of Cooperative Sugar Factories.

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SPEECH AT THE RASHTRAPATI BHAWAN ON “PUBLIC-PRIVATE PARTNERSHIPS FOR RURAL INFRASTRUCTURE IN MARKETING AND VALUE ADDITION”:

SPEECH OF PROF. K.V. THOMAS, MINISTER OF STATE (I/C) CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION AT THE WORKSHOP HOSTED BY HON’BLE PRESIDENT OF INDIA ON WEDNESDAY, THE 15TH FEBRUARY, 2012 AT THE RASHTRAPATI BHAWAN ON “PUBLIC-PRIVATE PARTNERSHIPS FOR RURAL INFRASTRUCTURE IN MARKETING AND VALUE ADDITION”:


Hon’ble President of India, Hon’ble Governors, my esteemed colleagues in the Government, Shri Bhupinder Singh Hooda, Hon’ble Chief Minister of Haryana, senior officials, Agricultural scientists and experts, Vice- Chancellors of Agricultural Universities, industrial representatives in the field of agriculture, friends from the media, ladies and gentlemen:

First of all, I would like to convey my sincere thanks to the Hon’ble President of India for hosting an important workshop with its focus on resurgence of agriculture through a holistic approach, and also for having invited me to express my v iews on a topic that has utmost relevance and significance to our collective effort to ensure a hunger-free India.

If ensuring food security for citizens of the country is our vision, our mission consists of (i) management of the food economy of the country through efficient procurement, storage and distribution of foodgrains (cereals); (ii) ensuring availability of food-grains, sugar and edible oils through appropriate policy instruments; and (iii) making foodgrains accessible at reasonable prices, especially to the weaker and vulnerable sections of the society. With the introduction of the Food Security Bill, 2011 in the Lok Sabha recently, our responsibility grows manifold. As we strive for an effective and all-encompassing infrastructure, the most important challenges that we come across are in areas concerning an ideal warehousing, proper cold storage facilities, safe transportation of food-grains, smooth and fast road and rail links, and efficient material handling.
Agriculture sector needs well functioning markets to drive growth, employment and economic prosperity in rural areas of the country. In order to provide dynamism and efficiency to the marketing system, large investments are required for the development of post harvest and cold chain infrastructure nearer to the farmer’s field. Market infrastructure is important not only for the performance of various marketing functions and expansion of the size of the market but also for transmission of appropriate price signals leading to more efficient markets. A marketing system backed by strong, adequate infrastructure is at the core of agricultural marketing. It must be accepted that our marketing infrastructure is not strong enough to be an effective link to provide the life-supporting system to the scheme of things under our responsibility. Innovation that focuses on improving existing processes, procedures, products or services is the need of the hour.
High investment and entrepreneurial skills are required for creation and management of modern markets. Much as the Government would like to contribute to meet the enormous task at hand, the private industry’s intervention will help in setting up the infrastructure facility. In pursuance of this goal, the Government envisages a substantive role for Public Private Partnerships (PPP’s) as a means for harnessing private sector investment and operational efficiencies in the provision of public assets and services. The PPP can not only fill-in the gaps, it can help the Public and Private organizations to come together, complement and strengthen each other in as varied areas as infrastructure, Research & Development, management techniques, knowledge management and in finding ways and means of optimum utilization of resources through collective strength. Insofar as agriculture is concerned, the PPP can play an effective role in product diversification, processing, value addition and efficient marketing infrastructure.

This assumes significance when we know that agriculture sector contributes around 15% of the GDP and employs about 52% of the workforce in the country. The agriculture production of foodgrains which was 51 million tonnes in 1950-51 is expected to touch a record 250 million tonnes in 2011-12. The total output of oilseeds in 2009-10 went up to 28 million tonnes. The production of fruit and vegetables increased to more than 202.52 million tonnes during 2008-09. The increasing productivity demands that the farming community is provided with better marketing facilities with suitable infrastructure which will help them get remunerative prices for their produce. Here, there is a need for the private industry and the farmer to come together to understand strengths and weaknesses for their mutual benefits and the economic development of the country.

A very significant step has been taken by Government of India to facilitate agri-reforms by enacting the Warehousing Development and Regulation Act. The Act makes warehouse receipts negotiable and thereby empowers farmers to hedge their produce against market volatility and depressed prices during harvesting time by keeping their produce in warehouses registered under the Act and obtain a Negotiable Warehouse Receipt (NWR). The NWR can also be used to raise credit from banks at favorable terms. A Warehousing Development and Regulatory Authority (WDRA) has already been set up to register warehouses and facilitate issue of NWRs. A large number of warehouses in private sector have got themselves registered under the Warehousing Development & Regulatory Act.

India has already witnessed considerable growth in PPPs in the last one and half decade. Further, to tackle the situation arising out of sudden spurt in procurement levels which was a result of increase in MSP during last three years, Government had formulated a scheme for Construction of Godowns through private entrepreneurs under PPP mode in 2008. A capacity of about 150 lakh tonnes is to be created under the scheme through private entrepreneurs and Central and State Warehousing Corporations. The PEG scheme is one of the most successful examples of Public-Private Partnership wherein such a huge infrastructure is being created by the Private Sector for government use in the form of storage facilities. Under a similar PPP model, in the National Policy on Handling, Storage and Transportation of Foodgrains, creation of integrated bulk handling, storage and transportation facilities to the tune of 5.5 lakh MTs at identified locations in producing and consuming areas was completed through private sector participation on Build-Own-Operate (BOO) basis.

The Government proposes to initiate a special purpose vehicle for a dedicated freight corridor to link railways with road and port services for smooth transportation of foodgrains. There is also a proposal to re-distribute the storage centres from producing States to the consuming States. The country will have an additional storage capacity of 10 million tonnes by March 2013. Of this storage capacity, 3 million tonnes will be ready for utilization by March this year. The Department of Food & Public Distribution would welcome every initiative that would prove to be worthy of contributing towards operational efficiencies guaranteeing outputs, and on terms agreeable to all stakeholders. We are open to flexibility in the context of all-round “inclusive growth.”

A vibrant economy is the secret of success of any nation. A nation that cannot take along its each and every citizen to welfare cannot succeed in its efforts of becoming a powerful nation. A successful partnership based on mutual trust and understanding can make wonders as they result in the overall development of the country. To quote Hendry Ford, “Coming together is the beginning; staying together is the progress; and working together is the success.” I am sure the day is not far when India on the threshold of becoming an economic super power will do everything in its hold, in accordance with the democratic principles governing the country, to reach its ultimate aim of providing a welfare State to all its citizens. I hope the discussions that are going to follow now in all related issues will prove to be quite useful to all of us in understanding the critical issues at hand.

I once again thank the Hon’ble President of India for giving me an opportunity to share my views on an important subject concerning development of agriculture infrastructure, and all of you for your valuable time.
JAI HIND!