Professional Documents
Culture Documents
Consumer Awareness in Rural India
Consumer Awareness in Rural India
- An Empirical Study
Project Directors
Prof. Suresh Misra
Ms. Sapna Chadah
Project Associates
Dr. Amit Kumar Singh
Virendra Nath Mishra
Sponsored by
Conducted by
Preface
The welfare of the consumers lies in the fulfilment of their
their normal and legitimate
expectation with regards to the goods they purchases and the services they avail. In a
country like India where all the consumer protection laws are in place, the consumers are
not really aware of them and the mechanism in place to redress their grievances. Those
who know the laws know that the process is very slow and cumbersome. There are a
number of steps taken to protect the rural consumer but without much impact due to the
prevailing socio - economic conditions of the rural consumers.
consumers. They generally base their
purchasing decisions on the advertisement campaigns and promotional strategies
employed by the organizations and also lack choice.
choice.
The rural markets, which were earlier ignored by most of the big international
market players,
players, are now being seen as a land of great business opportunity. As the
disposable income of the masses is growing, more and more corporate houses are entering
into the rural markets with their new goods and products. Due to this marketing for rural
consumers
consumers is becoming more complex.
number of the rural people are living below the poverty line, having high level of
unemployment and poor literacy level; consumer awareness continues to remain low.
Several studies
studies have shown that rural consumers are generally ignorant and also
unorganised. Under these circumstances, the sellers or the manufacturers, exploit the
consumers.
Though, the consumers in India have been provided with various safety measures
against their
their exploitation, still the sellers and producers are hoarding and blackblackmarketing the essential goods, resorting economic corruption and frequently cheating
the consumers. Rural markets are full of subsub-standard goods and duplicity of branded
goods is another
another major problem in rural areas. As there is no check on production and sale
of such products in the rural markets, many of these products have become health
hazards. The expansion of service sector has added to the problem. Services like insurance,
banking,
banking, electricity, medical have expanded in the rural areas without any checks and
balances and the rural consumers continue to be exploited by the service providers.
Deficiency in services is a major area of concern. Spurious drugs are causing major
health hazards.
hazards. The vulnerable sections are mainly women, children and farmers. It is
common to find that farmers are supplied defective seeds, adulterated pesticides and other
sub standard commodities. In the rural markets and hats spurious goods are very
common. The expansion of mass media has further given impetus to consumerism in the
rural areas. Therefore, now it is widely believed that the fate of the consumers cannot be
left to the market forces. In view of this the Government of India has taken a number of
legal measures to protect the consumers by enlarging the scope of consumer protection. Of
the various legal remedies, the Consumer Protection Act, enacted on 24th December 1986 is
the principal legal remedy available to the consumers. This is an important Act which
seeks to provide better protection of the interests of the consumers.
According to experts, the four factors which influence demand in rural India areareaccess, attitude, awareness and affluence. Some companies have successfully used this to
influence
influence the rural market for its shampoos in sachets. The sachet strategy has proved so
successful that, according to an ORG - MARG data, 95 percent of total shampoo sale in
rural India is by sachets. The company had developed a direct access to markets through
through
wholesale channel and created awareness through media, demonstration and on ground
contact. This changed the attitude of the villagers. Today, the young and the educated in
the villages are already large in number and this number is increasing. Already,
Already, 40
percent of all those graduating from colleges are rural youth. They are the decision
makers and are not very different in education, exposure, attitudes and aspirations from
their counterparts at least in smaller cities and towns.
Consumers are exploited
exploited when they are cheated in any form or when not informed
adequately about the product. Consumer exploitation is in many ways. They may be
exploited by giving incomplete or wrong information. They may be exploited by sellers
who may weigh less or measure
measure wrongly. Sometimes, a consumer may be given low
quality of goods. One of the very common and a serious problem by which a consumer
may be exploited and cheated by the shopshop-keeper is by providing impure or adulterated
goods with harmful substances. Food adulteration
adulteration is a serious problem in the rural
markets where the administrative machinery is not able to tackle this menace. As far as
the service sector is concerned a large number of complaints regarding medical services,
banking, insurance and electricity
electricity go unreported as the consumer is unaware of the
redressal mechanism. Cases of medical negligence are common in the rural areas but
then the consumer has no choice.
ii
The present study has been conducted in five states of India namely Uttarakhand
from North,
North, Maghalaya from East, Gujarat from West, Tamilnadu from South and
Madhya Pradesh from Central India. The study attempts to evaluate the changing
profile of the rural consumers in India, assess the level of awareness, of rural consumers
on various consumer
consumer protection measures initiated by the Government of India and other
agencies, assess the rural consumers current knowledge, attitudes, behaviour and
practices while purchasing goods or availing services, examine the nature of unfair trade
practices in the
the rural areas, assess the level of satisfaction of the rural consumers on
various products and services available in the rural areas and to draw conclusions from
the study and suggest remedial measures for better protection of the rural consumers.
We would
would like to acknowledge the support extended by the Department of
Consumer Affairs, GoI in conducting this study. We are particularly thankful to Shri.
Rajiv Agarwal, Secretary, Shri Rakesh Kakkar, Additional Secretary and Shri G.N
Shreekumaran, Joint Secretary,
Secretary, Department of Consumer Affairs, GoI for their help. We
would also thank Dr. Rakesh Hooja, Director IIPA, New Delhi for his encouragement and
guidance. Our thanks are due to our colleagues in the Centre for Consumer Studies
particularly Amit, Virendra and Pankaj for not only providing valuable inputs and
rendering support in completing the study but also in taking up most of the field work..
We also acknowledge the use of data from various sources for which appropriate references
are given.
We are confident
confident that this report will be useful to various stakeholders and policy
makers to reorient policies and programmes for better protection of the rural consumers.
Unless the consumer movement reaches the village, the consumers will continue to be
exploited.
exploited.
Suresh Misra
Sapna Chadah
20.9.2009
New Delhi
iii
Contents
Page No.
Preface
i-iii
1.
Chapter I
Introduction
1-14
2.
Chapter II
15-42
3.
Chapter III
43-84
4.
Chapter IV
85-91
5.
Annexure
92-94
iv
CHAPTER I
INTRODUCTION
Globalisation, liberalisation and privatisation have transformed the Indian
economy into a vibrant, rapidly growing consumer market. As a result the markets
are flooded with different kinds of goods and services, substantially effecting and
changing the purchasing pattern of the consumers. The rural markets, which were
earlier ignored by most of the big international market players, are now being seen
as a land of great business opportunity. As the disposable income of the masses
is growing, more and more corporate houses are entering into the rural markets
with their new goods and products. Due to this marketing for rural consumers is
becoming more complex.
In a country like India, where a substantial number of the rural people are
living below the poverty line, having high level of unemployment and poor literacy
level; consumer awareness continues to remain low. Several studies have shown
that rural consumers are generally ignorant and also unorganised. Under these
circumstances, the sellers or the manufacturers, exploit the consumers. Though,
the consumers in India have been provided with various safety measures against
their exploitation, still the sellers and producers are hoarding and black-marketing
the essential goods, resorting economic corruption and frequently cheating the
consumers. Rural markets are full of sub-standard goods and duplicity of branded
goods is another major problem in rural areas. As there is no check on production
and sale of such products in the rural markets, many of these products have
become health hazards. The expansion of service sector has added to the
problem. Services like insurance, banking, electricity, medical have expanded in
the rural areas without any checks and balances and the rural consumers continue
to be exploited by the service providers. Deficiency in services is a major area of
concern. Spurious drugs are causing major health hazards. The vulnerable
sections are mainly women, children and farmers. It is common to find that farmers
are supplied defective seeds, adulterated pesticides and other commodities. In the
rural markets and hats spurious goods are very common. The expansion of mass
1
media has further given impetus to consumerism in the rural areas. Therefore, now
it is widely believed that the fate of the consumers cannot be left to the market
forces. In view of this the Government of India has taken a number of legal
measures to protect the consumers by enlarging the scope of consumer protection.
Of the various legal remedies, the Consumer Protection Act, enacted on 24th
December 1986 is the principal legal remedy available to the consumers. This is
an important Act which seeks to provide better protection of the interests of the
consumers.
In the present situation, consumer protection, though as old as consumer
exploitation, has assumed greater importance and relevance. Now there are laws
and policies which focus on consumer protection and welfare. Special emphasis is
being given to consumer education so that people become aware about their rights
and responsibilities as consumers and how to redress their grievances. In India
various Acts intended to protect the consumers directly or indirectly against
different forms of exploitation were enacted from time to time. However, except for
the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969, all the other
Acts were mainly punitive and preventive in nature. Inspite of these Acts the
consumers did not have any effective mechanism or institutional arrangements for
the speedy redressal of their grievances and also the lack of effective popular
movement isolated the consumer and his plight only increased. Seeing the
pressure mounting from various consumer protection groups and the consumers
themselves the Parliament enacted the Consumer Protection Act in 1986.
Consumer Awareness in India
The Consumer Protection Act enacted on 24th December, 1986 is a
benevolent, unique and highly progressive piece of social welfare legislation
providing for simple, speedy and less expensive remedy for the redressal of
consumer grievances in relation to defective goods and deficient services.
Consumer Protection Act is a weapon in the hands of consumers to fight against
exploitation by traders, manufacturers and sellers on one hand and providers of
services on the other. The Act provides effective, people oriented, broad based
and efficient remedy to consumers against unfair dealings and exploitation. It was
2
At present,
there are 662 District Forums, 35 State Commissions with apex body as a National
Consumer Disputes Redressal Commission (NCDRC). These quasi-judicial bodies
are required to follow summary procedure and Principles of Natural Justice to
provide quick and speedy justice to the consumers.
After the enactment of the Consumer Protection Act, 1986, the first
independent evaluation study of the implementation of this Act was done through a
study conducted by IIPA in 1994. It was found that large majority of the consumers
belonging to various categories and income groups were completely ignorant of
the existence of the CPA and the redressal agencies created under it. Eleven
years later, according to a survey commissioned through ORG Centre for Social
Research by the C&AG, the position had improved only marginally. The survey
was conducted in July-August, 2005 in 25 States/ UTs covering 48,732
consumers, 6237 complaints, 249 manufacturers / service providers, 39 NGOs and
34 laboratories. The report of ORG-MARG revealed that: 1
Nearly 49 percent of the aware consumers had come to know about the Act
only in the last 4 years though the Act had been in existence for the past 18
years.
The consumers were not aware of the features of the simple and
inexpensive system of lodging complaint in the absence of any focused
awareness programme launched by the Ministry or the States in this regard.
The beneficiary survey carried out by ORG MARG revealed that 78
percent of the respondents were carrying a negative opinion of the efforts
made by the government or had no idea about the same and were not
aware that they could directly represent themselves in the Consumer
Forums. It is pertinent to note that lack of awareness in this regard had
deprived the consumers of the benefit of the adjudication mechanism as out
of the total expenditure of ` 3387 incurred by the consumers on each case
in the Consumer Forum on an average, as much as ` 2787 (82 percent)
was the expenditure on advocates.
Therefore, one of the major hindrances in the consumer movement in the
country is the lack of awareness among the consumers. The consumers apart from
being unorganized do not have the mechanism to understand their rights and
responsibilities. These studies reveal not only lack of awareness but lack of
consumer education as well. A lot more needs to be done on this front. The right to
consumer education has been recogonised under the Consumer Protection Act,
CAG, Performance Audit of the Implementation of the Consumer Protection Act and Rules-Report
of the Comptroller and Auditor General of India for the year ended March 2005, Union Government
(Civil), Performance Audit, 2006, p. 9
1986. However, unless awareness increases realizing the rights to the consumers,
consumer education remains a distant dream.
Need for Consumer Education
The need for consumer education has increased over time as today the
consumers operate in an increasingly complex marketplace and are faced with
increasing amounts of information and an expanding choice of complex products
and services. As a consequence they are more exposed to fraud and require a
wider range of skills and knowledge than ever before. Consumer education is a
potent tool for empowering consumers as it equips consumers with information and
skills necessary to meet challenges posed by the markets. Through education,
consumers obtain information about the products and the services and empower
them and makes them aware of their rights and responsibilities and helps to
ensure their welfare.
Consumer education improves the position of the consumers in the
marketplace and helps them make informed choice and thereby enhance their
welfare. It also contributes to the well functioning of the markets by promoting
effective competition. It is thus in the common interest of governments, consumers
and businesses to empower the individual consumer as much as possible through
awareness of his/her rights, knowledge of how to defend himself against various
pitfalls and to cope with the subsequent consequences, as well as the ability to act
proactively in the marketplace. According to Wells and Atherton consumer
education can be defined as:
a process of gaining skills, knowledge and understanding needed by
individuals in a consumer society such that they can make full use of
consumer opportunities presented in todays complex marketplace. 2
Most countries consider consumer education as an important tool for
consumer protection. However, the scope of consumer education differs
significantly among countries depending on the socio-economic and cultural
conditions prevailing there. Yet it generally covers one or more of the following
2
Wells, J and Atherton, M., Consumer Education : Learning for Life, Consumer 21, Autumn,
1998,pp. 15-20,
areas: consumer protection, consumer skills to help them make more informed
decisions and protection of public interest which relates to environmental and
social issues. Countries have articulated consumer education objectives in various
ways, such as laws on consumer protection; education on trade; government
programmes and strategies; and school and college curricula. High quality
programmes focused on stimulating relevant issues can engage the interest of
consumers and help equip them with the skills and knowledge to make better
choices and to resolve problems when things go wrong. Empowered consumers
are knowledgeable, confident, assertive and self reliant. Consumer education has
an important role to play in supporting those with less developed consumer
knowledge and skills. By demanding high standards from business, consumers
help promote vigorous, competitive, markets. As a tool for empowerment,
consumer education is therefore important to make markets work well for
consumers.
Structure of Consumer Education
Available literature indicates that consumer education takes many forms
and takes place in many different settings, from formal courses in schools or
universities to informal experience in families, communities and workplaces. Three
forms of consumer education are being implemented in OECD member countries
and some non-member economies which are as follows: 3
OECD, Promoting Consumer Education Trends, Policies and Good Practices, OECD, 2009 pp.
11-31;
with parent-teacher
from the cradle to the grave which aims to improve the knowledge and
competencies of all individuals who participate in learning activities. A prerequisite
for lifelong learning is a sound foundation in basic educational competencies
acquired in formal education and opportunities for further learning once persons
leave initial education and training. Practically, this includes education available at
community centres as well as loosely organized education. Lifelong learning may
take place at the individual level (e.g. self-directed learning) or at the group level
(e.g. at the workplace or within the family).
One of the fundamental features of lifelong learning is a systematic and
interconnected approach to the organization of learning rather than a fragmented
approach in which separate policies are implemented for each stage of education.
This is appropriate for consumer education, since consumers knowledge and
information needs to be frequently updated, and the attainment of informed and
knowledgeable consumption is a cumulative process. The adult consumers face a
more complex environment than young consumers, the range of knowledge they
need also becomes broader and more complex as they grow older.
for particular consumer groups that are considered vulnerable (e.g. women, the
disabled and the poor) to help protect them against fraudulent or deceptive
practices in the marketplace or other specific consumerrelated issues. Specific
groups which are targeted in various countries in their major initiatives are: young
children, the elderly, women, people with a limiting or longstanding illness or
handicapped, populations in rural areas, unemployed persons and tourists.
These three concepts are not mutually exclusive. Lifelong education is a
broad concept that encompasses both formal and targeted education. At the same
time, several countries implement formal and/or targeted education but do not
support the lifelong learning concept. Lifelong and targeted consumer education
may be non-formal or informal:
Media
OECD, Promoting Consumer Education Trends, Policies and Good Practices, OECD, 2009 pp.
39-40
10
efforts of the consumers themselves. The problem is more acute in the rural areas.
In fact, an educated and aware person is an empowered consumer. Education
equips a person with the skill to make discerning choices, to sort out problems
effectively and to seek further information and help appropriately.
In this backdrop of ongoing efforts of Government of India to disseminate
the consumer rights to the people and to protect them from the exploitation of
market forces, the focus of the present research work is to evaluate the level of
consumers awareness in different parts of rural India. The reports of National
Commission for Applied Economic Research clearly reveal that the rural growth
rates have already outpaced urban ones and will continue to do so through the
next decade. Rural India accounts for more than 50% of the GDP. Out of 62.97
million households of India those are getting more than 5 lakhs per annum, nearly
28.68 million households (46%) live in Rural India. The rural market in India is
projected to be bigger than the urban market for fast moving consumer goods;
rural consumption expenditure is accounted for around 60 percent of the country's
total consumption expenditure. Hence, it is imperative to analyse the social, legal
and other measures taken in rural areas to protect the interest of consumers, as
more and more companies will try to sell their goods and products in rural markets.
The rural consumers need to be educated about their rights and adequate steps
are taken to ensure that they get the value for their money as consumers.
Objectives of the Study
The main objectives of the study are as follows:
1.
2.
3.
4.
11
5.
6.
To draw conclusions from the study and suggest remedial measures for
better protection of the rural consumers.
Methodology
The present study is an empirical research based on both primary and
secondary data. It is a blend of both descriptive and analytical methods of study.
The secondary data was collected from government publication, books, journals,
newspapers and various prominent Voluntary Consumer Organisations working in
this area. The information regarding level and satisfaction, awareness, attitude and
behaviour of rural consumers at individual and household level was gathered
through primary surveys. For the purpose an interview schedule was prepared.
Besides focus group interaction was also done. The questionnaire was subjected
to reliability by pre-testing the constructed tools by administering it to 100
consumers randomly. The questionnaire was modified based on the responses got
from the consumers.
The sample areas were selected in a way that they can best represent the
entire geographical regions of the country. Consequently, five states from different
regions of India were selected for the study. They were: Uttarakhand from North,
Maghalaya from East, Gujarat from West, Tamilnadu from South and Madhya
Pradesh from Central India. It is true that geographical location may not
necessarily be the influencing factor of peoples awareness but such a selection is
necessary to know the level of awareness among consumers, from all the parts of
the country. The sample was selected from these five states using the random
sampling technique. From each State two Districts and from each district two
blocks were randomly selected. From each block four villages were randomly
selected. It was not difficult to identify a consumer as everyone is a consumer and
either buys a product or avails of a service for consideration. The households from
these villages were selected by random sampling technique. Total sample of 2000
households was taken for investigation from 80 villages (25 household from each
village) spreading across ten Districts of five selected states. The data so collected
12
District
Gujarat
Ahmedabad
Junagarh
Madhya
Pradesh
Bhopal
Jabalpur
Phanda
Sihore
Berasia
Kundam
Meghalaya
Mylliem
Umsning
Mawryngkneng
Umling
Tamilnadu
Kanyakumari
Viudhnagar
Agasteeswaram
Aruppukottai
Thovalai
Kariapatti
Uttarakhand
Nainital
Pauri Garhwal
Bhimtal
Pauri
Dhari
Kot
All India
(2000)
Gujarat
(400)
MP
(400)
Mehalaya
(400)
Tamilnadu
(400)
Uttarakhand
(400)
(4x20 = 80)
25 HH from each village
(25x4 = 100)
13
Work Plan
Months
14
CHAPTER II
PROFILE OF RURAL CONSUMERS
Introduction
India lives in numerous villages, scattered throughout the country. Rural
areas currently are home to nearly 70 percent of Indias population and have
historically accounted for more than half of Indian consumption. Even with
increasing urbanization and migration, it is estimated that 63 percent of Indias
population will continue to live in rural areas by 2025. In terms of economic output,
rural India accounts for almost half (48%) of the countrys economy, and the rural
markets have the potential to reach $500 billion by 2020. Thus rural areas will
continue to remain vitally important to the Indian economy. However, it is
unfortunate truth that a large percentage of this population lives in high risk and
unpredictable environment. Large section of the population lacks even basic
services like education, health, drinking water, sanitation and employment.
Providing rural India with better access to services, technology, education and
health care will reduce inequality, alleviate poverty for hundreds of millions of
Indias citizen and add an additional engine of growth to Indias bulging economy.
The rural population in India comprises the core of Indian society and
represents the real India. According to the 2001 census, there are 5, 80,779
villages in India and about 74% of Indian population lives in these villages. The
number of people living in each of these villages also varies considerably. It is
found that most of the Indian villages have a population of less than 10,000 while
there are only a few villages where more than 10,000 people live (Table 1). The
country opened up its economy in 1992 and since then due to globalisation and
liberalisation the market is flooded with new products and services. Technological
revolution and information explosion have also given tremendous boost to
consumer culture. The consumers have been sucked into the market economy and
today the market determines the needs and preferences of the consumers. This
15
consumer culture and the changing consumption pattern is now not only confined
to the urban areas but is going deep down to the rural markets. The rural markets
are the new hunting grounds for the business.
Table 1
Location and Concentration of Rural Population
Population
Range (No of
Persons)
Less than 200
200 to 499
500 to 9991
1000 to 1999
2000 to 4999
5000 to 9999
10000 and above
Total
Number of
Villages
103952
141143
144998
114395
62915
10597
2779
580779
Proportion to
Total Village
17.9
24.3
25
19.7
10.8
1.8
0.5
100
Proportion to
total Rural
Population
1.7
7.8
16.8
25.7
29.8
11.2
7.0
100
Given the rapidity with which urban population is growing, the share of rural
population may come down to 70 percent by the turn of this century. While a
quarter (25.70 percent) of population of India is classified as urban (in 1991), only
20.83 percent of the labour force lives in cities. Rural areas thus sustain four-fifth
of the total labour force (main workers) of the country. More than two thirds (63.2
percent) of the working population is engaged in agriculture and allied activities (as
cultivators, agricultural labourers and live-stock farmer, etc. (Table 2 and Figure 1)
Table 2
Occupational Pattern of Rural population
Occupation
Agricultural
Agricultural labour
Business
Non-agricultural labour
Salary earners
Not gainfully employed
Total Rural Population
16
17
Figure 2
Sources of Income of Rural Population
18
There are more poor in rural than in urban areas whether one looks at
poverty in terms of absolute number or in terms of percent of population below the
poverty line.
The
during 1991-92 and 1.67 hectares in 1981-82. Marginal holdings (of size 1 hectare
or less) in 2002-03 constituted 70% of all operational holdings, small holdings (size
1 to 2 hectares) constituted 16%, semi-medium holdings (2 to 4 hectares) were
9%, medium holdings (4 to 10 hectares) were 4%, and large holdings (over 10
hectares) less than 1%. The share of marginal holdings in total operated area
climbed by 6-7 percentage points since 1991-92 to reach 22-23%, drawing level
with the shares of the semi-medium and medium holdings, which had the largest
shares in 1991-92. Tenant holdings, that is, holdings with partly or wholly leasedin land, formed about 10% of operational holdings during 2002-03 compared to
11% in 1991-92. On an average, a tenant holding operated 0.7 hectares of
tenanted land in 2002-03. The share of leased-in land in total operated area, which
has been declining more or less steadily from 10.7% in 1960-61, was 6.5% for the
kharif season of 2002-03. Today land has become the most valuable asset for the
rural inhabitants due to lack of employment as a result there are serious protests
as a result of land acquisition.
The report of the global Hunger Index 2007 from International Food Policy
Research Institute (IFPRI) has ranked India 94th, well behind neighboring China
and Pakistan, in its overall list. Worse, while much is being made out of India being
a young country, the report said that 40 percent of the worlds underweight children
below five years live in India while more than half of all children with low birth
weight are born in South Asia. The report said that though India has improved its
score of 25.03 on the index compared to 33.73 in 1990, it is lagging behind China
and Pakistan ranked at 47 and 88 respectively, in the list of 118 countries. The
index is primarily based on a comparison of the undernourished out of the total
population of a country and prevalence of under weight children below five years.
One in seven people go to bed hungry every day, which counts up to 854 million
people worldwide. Hunger is one of the worlds major problems and therefore one
of its most important challenges, the report states.
Besides, Indias score on the progress indicator of the Global Hunger Index
is 0.496. It reduced hunger by 8.7 since 1990 whereas the reduction target was
20
17.6 for the period from 1990-2015. In India where a large majority of the South
Asias population lives, economic growth in the agricultural sector has lagged
considerably behind the growth in other sectors in recent years. This has a
negative effect on the progress in alleviating poverty and hunger in rural areas,
the report stated. Further, it added that members of the lower castes and certain
ethnic minorities continue to be discriminated against in the society and are
therefore in a disadvantageous position in regard to educational opportunities and
the labour market. The report published by the National Commission for
Enterprises in the Unorganized Sector (NCEUS) in August 2007 had come out with
similar findings. The NCEUS report had stated that agricultural labourers are
among the most marginalized group among the rural poor, at the lowest rung of
poverty levels.
On malnutrition in the South Asian Region, the IFPRI report said that in
some parts of India, for instance, male and women make do with the leftovers. This
results in children of undernourished and anemic mothers too have a higher risk of
being born underweight.
Rural Consumers
The rural consumer is generally seen as the less affluent, as compared to
his urban cousin but things are changing in rural India over the last ten years. Like
any market that has seen a demand and awareness boom, rural India has also
been witnessing considerable rise in purchasing power. A change in consumption
patterns and access to communication media have made rural market a vital cog in
the sales-growth wheel, especially with demand for many categories of products
and services plateau in the urban markets. In spite of increasing number of rural
consumers, provisions for consumer protection and welfare are often based on the
general standard and circumstances of those living in big cities and towns.
Although consumers as a whole are in an equal bargaining position, there are
certain recognizable groups which are disadvantaged in more ways than the
others. Disadvantaged consumers are those who are less able to assert their rights
and rural consumers comprise one such group. Rural consumers remain
disadvantaged as their right to information, choice, redress, and consumer
21
education are not sufficiently fulfilled. Consequently such consumers need support
in maintaining their rights so that they can bargain equally with the producers or
the service providers.
Marketing and Research Team, (MART) an organization involved for
decades in rural marketing research, has over the years built up a veritable trove of
research on rural consumers and their consumption patterns. Some of the findings
were presented by the President, MART at the
findings of MART:
1.
The rural consumer may not be very educated, but he is certainly astute,
with a lot of common sense and practical experience of handling the
vagaries and uncertainties of life. He displays great ingenuity and
adaptability as evidenced by his learning to repair his tractor, hand pump
and motorbike, and finding a host of local solutions in everyday life.
2.
3.
4.
22
5.
6.
7.
8.
9.
10.
23
11.
12.
While culture and social norms have a greater hold on rural consumer
than urban ones, perceptions, traditions and values vary from state to
state, sometimes from region to region. It is, therefore, difficult to work
with a pan rural Indian communication package. Two step flow of
communication, using opinion leaders and mass media both, seems to
work better in rural settings. These observations made on the basis of a
host of research based inputs make it very clear that rural marketing
effort cannot be visualized as a simple extension of the urban marketing
process. It is a different market and presents a different set of premises
on the basis of which suitable marketing.
Impact of globalisation
The impact of globalisation is being felt in rural India as much as in urban.
But it is slow. However, in the long run it will have its impact on target groups like
farmers, youth and women. In some states the affluent farmers, today 'keep in
touch' with the latest information and maximise both ends. Animal feed producers
no longer look at Andhra Pradesh or Karnataka. They keep their cell phones
constantly connected to global markets. Surely, price movements and products'
availability in the international market seem to drive their local business strategies.
On youth its impact is on knowledge and information and while on women it still
depends on the socio-economic aspect.
Rising Rural Prosperity
Rural consumers have acquired importance as India is now seeing a
dramatic shift towards prosperity in rural households. Rural India with its traditional
perceptions has grown over the years, not only in terms of income but also in
terms of thinking. The purchasing power in rural India is on steady rise and it has
24
resulted in the growth of the rural markets. The market has been growing at 3-4
percent per annum adding more than one million consumers every year. According
to a study by the National Council for Applied Economic Research (NCAER), there
are as many middle incomes and above households in the rural areas as are in the
urban areas. Moreover, there are almost twice as many lower middle income
households in the rural areas as in the urban areas. At the highest income level
there are 2.3 million urban households against 1.6 million households in rural
areas. As per the NCAER projections, the number of middle income and high
income households in rural India was expected to grow from 80 million to 111
million by 2007. In urban India, the same is expected to grow from 46 million to 59
million. Thus, the absolute size of rural India is expected to be double that of urban
India.
percent while 27.4 percent constitute the urban households with a population of
25.4 percent.
Table 4
Percentage Distribution of Households
Area
Households
Population
Rural
72.6
74.6
Urban
27.4
25.4
All-India
100
100
Source: Social Changes and the growth of Indian Rural Market: An Invitation to FMCG Sector
by S. John Mano Raj & Dr. P Selvaraj
Table 5
Income-wise Distribution of Population
Income groups
2001-02
2006-07
Total
Rural No.
Total
Rural No.
High
1.48
0.41
27.7
2.96
0.7
23.6
Middle
69.18
4.83
64.8
90.25
59.85
66.3
Low
32.29
29.52
91.42
20.41
95.8
95.7
Total
102.95 74.76
72.6
114.52
80.96
70.7
Source: NCAER cited in Social Changes and the growth of Indian Rural Market: An Invitation to FMCG Sector
by S. John Mano Raj & Dr. P Selvaraj
25
Figure 3
Growth of Rural Population by Income Groups
Growth of Rural Population by Income Groups
66.3
64.8
80
72.6
100
70.7
91.42
95.7
120
2001-02
60
2006-07
23.6
27.7
40
20
0
High
Middle
Low
Total
Income Groups
Figure 4
Growth in the Number of Rural Households
Growth in the number of rural households (% )
119
Highest
76
185
Upper-middle
35
75
Middle
Lowe-middle
113
2009-10 to 2015-16**
2004-05 to 2008-09
1112
Lowest
5132-
26
Figure 5
Age wise Growth of Rural Population
(All Figure in Million)
1996
70.6
31.1
26.40
50
62.30
2001
85.70
73.3
121.60
104
141.9
90.20
82.1
100
109.00
90.7
119.5
150
108.5
200
156.60
250
239.10
233.3
300
60+
55 to 59
45 to 54
35 to 44
25 to 34
20 to 24
15 to 19
5 to 14
0-4
Age Group
Gone are the days when the rural consumer went to the nearby city to buy
branded products and services. The rural consumer is growing and the global
players in the market are trying to grasp the market share whether it is into
FMCGs sector or retail sector. Some FMCG products like toothpaste, hair oil and
other like shampoos have done much better in rural areas than in the urban and
the semi urban areas. The estimated annual business from rural markets is around
1, 23000 crores, comprising 65000 crores of FMCG ` 5000 crores of durables, `
45000 crores of agricultural inputs including tractors and ` 8000 crores of two
wheeler and four wheelers. Similarly the retail sector has a huge potential for
growth and the opportunities in retail sector is expected to touch $43 billion by the
year 2010.
27
Average MPCE (`
`)
Rural
Urban
816
1550
799
598
582
875
1034
592
819
1383
634
868
559
1273
801
834
680
702
772
1452
1080
1503
1471
1628
1395
1668
1948
1190
1709
1438
1633
1265
1410
1121
1452
1472
28
Table 7
Size of Rural Markets
States
Market Size
(Crores)
Gujarat
Tamilnadu
Madya Pradesh
Uttrakhand
Mizoram
Andhra Pradesh
Assam
Arunanchal Pradesh
Andman & Nicobar
Bihar
Chhttisgarh
Chandigarh
Delhi
Dadar & Nagar Haveli
Daman & Diu
Goa
Himachal Pradesh
Haryana
Jharkhand
Jammu & Kashmir
Kerala
Karnataka
Lakshadweep
Maharashtra
Manipur
Nagaland
Orissa
Punjab
Pondicherry
Rajasthan
Sikkim
Tripura
Uttar Pradesh
West Bengal
86,451
61,422
51,102
14,796
773
130,611
36,880
1,831
623
57,062
33,859
525
4,944
349
545
4,292
18,404
53,455
37,721
15,307
60,327
70,044
349
126,313
3,845
4,078
57,254
39,867
814
62,082
1,278
6,593
146,528
122,703
Rural population
(Millions), 2001
Census
31,740,467
34,921,681
44,380,878
6,310,275
447,567
55,401,067
23,216,288
870,087
239,954
74,316,709
16,648,056
92,120
944,727
170,027
100,856
677,091
5,482,319
15,029,260
20,952,088
7,627,062
23,574,449
34,889,033
170,027
55,777,647
1,590,820
1,647,249
31,287,422
16,096,488
325,726
42,292,813
480,981
2,653,453
131,658,339
57,748,946
Market Size
per Capita
(`)
27,237
17,589
11,514
23,447
17,271
23,576
15,885
21,044
25,963
7,678
20,338
56,991
52,333
20,526
54,037
63,389
33,570
35,567
18,003
20,069
25,590
20,076
20,526
22,646
24,170
24,756
18,299
24,768
24,990
14,340
26,571
24,847
11,129
21,248
29
Table 8
Average Monthly Expenditure per person (`) at Current Prices
(in `)
Non-food
Total
Food
Non-food
Total
Years
27th round
(oct1972-sept 1973)
32th round
(July 1977 to June 1978)
38th round
(January 1983 to December 1983)
43rd round
(July 1987 - June 1988)
50th round
(July 1993 - June 1994)
55th round
(July1999 to June 2000)
61th round
(July 2004-June 2005)
Urban
Food
Rural
32.16
12.01
44.17
40.84
22.49
63.33
44.33
24.56
68.89
57.67
38.48
96.15
73.63
38.68
112.31
97.31
68.49
165.8
100.82
57.28
158.1
139.73
110.18
249.91
177.8
103.6
281.4
250.3
207.7
458
288.8
197.36
486.16
410.84
444.08
854.92
307.6
251.19
558.79
447.14
604.95 1052.09
Source : Source: NSS Report No.508, Level and Pattern of Consumer expenditure, 2004-05
Figure 6
(a)
(b)
Expenditure onNon-FoodItems
Rural
307.6
300
139.73
200
61th round
55th round
50th round
100.82
43rd round
177.8
73.63
38th round
57.67
44.33
32.16
32th round
100
288.8
97.31
40.84
61th roun d
250.3
400
55th roun d
500
50th roun d
447.14
43rd round
410.84
600
Expenditure (Rs.)
700
27th round
Expenditure (Rs.)
800
Urban
1000
604.95
900
800
444.08
700
600
500
207.7
400
251.19
300
197.36
110.18
200
68.49
103.6
38.48
22
.4
9
57
.2
8
100
12.01
24.56 38.68
0
38th roun d
900
32th round
1000
27th round
Rural
30
1983
1993-1994
1999-2000
2004-2005
1977-78
Expenditure on Food
72.9
64.3
65.6
64
63.2
59.4
55
Expenditure on Non-food
27.1
35.7
34.4
36
36.8
40.6
45
1987-88
1972-1973
Items
Table 9
Monthly Per capita Consumer expenditure (MPCE)
On Food & Non-food Item in Rural India (in %)
Expenditure as % of total consumer
Expenditure
Source: NSS Report No.508, Level and Pattern of Consumer expenditure, 2004-05
Figure 7
Monthly Per Capita Consumer Expenditure (MPCE) of Rural India
The share of food versus non food expenditure in the economy is one of the
measures of the extent of consumption sophistication in an economy. The NSS
data reveals that the share of expenditure in 2004-05 on food in rural India is still
55 percent of the total expenditure, while non-food expenditure is 45 percent. The
growth of food related expenditure has been much lower than the growth of nonfood expenditure. The increase in expenditure on non food items is much more
31
than food items. The monthly per capita expenditure on food in 1999-2000 was
288.8 which has increased to 307.6. The increase in MPCE was of 18.8. On the
other side MPCE on non-food was 197.36 in 1999-2000 which has increased to
251.19. The increase in MPCE was of 53.83. The fastest growing non- food
expenditure categories are education, healthcare. Consumer durables are another
category that is growing fast. Rural consumers are now opting for life improving
products & services of real quality or durables that enhance productivity and
increase earnings.
Table 10
Average monthly expenditure per person on Durable Goods
(in `)
Years
27th round (oct1972-sept 1973)
32th round (July 1977 to June 1978)
38th round (January 1983 to December 1983)
43rd round (July 1987 - June 1988)
50th round (July 1993 - June 1994)
55th round (July1999 to June 2000)
61th round (July 2004-June 2005)
Rural
0.95
4.82
2.6
5.64
7.7
12.76
19.23
Urban
1.4
8.55
4.55
10.6
15.2
30.85
42.81
Total
2.35
13.37
7.15
16.24
22.9
43.61
62.04
Source: Source: NSS Report No.508, Level and Pattern of Consumer expenditure, 2004-05
Figure 8
Expenditure on Durable Goods
70
42.81
50
30.85
40
Urban
30
Rural
10.6
4.55
2.6
50th round
38th round
32th round
5.64
43rd round
4.82
0.95
12.76
7.7
55th round
8.55
1.4
61th round
20
10
19.23
15.2
27th round
Expenditure (Rs.)
60
32
Table 11
Expenditure on Different Categories
(in % )
Items
Beverages
Cereals/cereal products & Substitutes
Clothing
Consumer Services excl. Conveyance
Consumer taxes and Cesses
Conveyance
Durable Goods
Edible Oil
Education
Egg, Fish and Meat
Entertainment
Footwear
Fruit
Fuel and light
Medical (institutional)
Medical (non-institutional)
Milk and Milk products
Paan, tobacco and intoxicants
Personal care and effects
Pulses and pulses products
Rent
Salt and spices
Sugar
Sundry articles
Toilet articles
Vegetables
Rural
2.59
11.56
4.75
6.48
0.39
6.63
3.79
2.95
1.92
2.16
1.11
0.51
1.12
18.28
2.23
5.92
5.52
1.7
0.55
2.06
0.94
1.35
149
4.77
5.09
4.14
Urban
3.09
5.68
3.56
10.57
1.34
9.96
3.68
1.94
3.29
1.55
3.11
0.42
1.19
15.87
1.14
4.21
4.51
0.91
0.53
1.28
9.19
0.8
0.84
3.89
4.38
2.79
33
Table 12
Where Rural Money Goes
Particulars
Personal care
Groceries
Saving
Interest Payment
Jewellery
Agri Input
Household maintenance
Home textiles
Vehicles
Home appliance
Consumer Durables
Apparel & Footwear
Hard Liquor & Tobacco
Entertainment & Music
Fuel
Medicines & Healthcare
Expenses (%)
5.2
34
3.1
3.9
1.7
14
2.5
0.5
5.2
0.3
1.6
8.1
2.3
1.7
6.4
9.5
Source: KSA Technopak cited in Consumers and Consumer
Protection by S.S. Kaptan
Figure 9
34
Table 13
Rural FMCG Market Projections
Category
Growth %
2001-02
Total
2006-Projected
Total
Rural
Share
18086
11291
Rural
market
share %
62.4
Toilet soaps
13.4
9645
Rural
Share
6021
Body Talcum
Powder
Toothpaste
23.65
1445
793
4237
2292
54.1
23.5
3198
1441
9376
4140
45.1
Cooking oil
10.91
20946
15731
35295
25806
73.4
Vanaspati
7.63
4549
2846
6648
4108
62.6
Source: NCAER cited in Social Changes and the growth of Indian Rural Market: An Invitation to
FMCG Secto by S. John Mano Raj & Dr. P Selvaraj
Figure 11
Source: NCAER cited in Social Changes and the growth of Indian Rural Market:
An Invitation to FMCG Secto by S. John Mano Raj & Dr. P Selvaraj
35
Table 14
Indian FMCG market-Brand Penetration
Category
Toilet soap
Washing cakes/Bar
Edible Oil
Tea
Washing poweder/Liquide
Salt
Biscuits
Skin cream
Talcum Poweder
Within category
(%)
91
88
84
77
70
64
61
58
65
Source: www.estratagicmarketing.com
Trends indicate that the rural markets are coming up in a big way and
growing twice as fast as the urban, witnessing a rise in sales of hitherto typical
urban kitchen gadgets such as refrigerators, mixer-grinders and pressure cookers.
According to one estimates the money available to spend on FMCGs (Fast Moving
Consumer Goods) products by urban India is ` 49,500 crores as against is
` 63,500 crores in rural India. The study on ownership of goods indicates the same
trend. It segments durables under three groups - (1) necessary products Transistors, wristwatch and bicycle, (2) Emerging products - B&W TV and cassette
recorder, (3) Lifystyle products - CTV and refrigerators. Marketers have to depend
on rural India for the first two categories for growth and size. Even in lifestyle
products, rural India will be significant over next five years. (Table 15)
Table 15
Ownership of Durables by Rural Consumer
Product
Bicycle
53
Fan (Ceiling)
19
Fan(table)
13
T.V (B&W)
16
Pressure Cooker
13
Wristwatch
76
Radio/Transistor
42
36
According to experts, the four factors which influence demand in rural India
are- access, attitude, awareness and affluence. Some companies have
successfully used this to influence the rural market for its shampoos in sachets.
The sachet strategy has proved so successful that, according to an ORG - MARG
data, 95 percent of total shampoo sales in rural India is by sachets. The company
had developed a direct access to markets through wholesale channel and created
awareness through media, demonstration and on ground contact. This changed
the attitude of the villagers. Today, the young and the educated in the villages are
already large in number and this number is increasing. Already, 40 percent of all
those graduating from colleges are rural youth. They are the decision makers and
are not very different in education, exposure, attitudes and aspirations from their
counterparts at least in smaller cities and town.
37
arent loyal to brands. To them, logos and symbols represent a brand, which gives
rise to so many fakes. The biggest market for fakes is the rural market.
39
quantity is not large enough for the buyer to discern its quality. This is especially so
in sachets of shampoo, hair oils, and detergents and so on.
Misleading Advertisements and Role of Media
The media has a greater responsibility towards the vulnerable sections of
the society. The rural consumers are one such. Rural consumers today have
access to diverse media with the advent of modern technology. Advertising is the
major or even the main sources of information about many new products or newly
introduced products. The changes in advertising are in part a response to the rapid
growth in markets due to globalization. Due to the entry of a large number of
players in the rural market and also due to stiff competition there are large
numbers of misleading advertisements in the print and electronic media resulting
into exploitation of the consumers.
The advertising firms are studying consumer behaviors to design effective
communication strategies without caring for the welfare of the consumer. In most
parts of the rural areas in the country there is considerable awareness on various
latest products that are available in the market. This has been possible due to the
penetration of cable and satellite channels that have brought down the world at the
finger tips of the common man. The media has influenced the mindset of the rural
consumers to such an extent that people who have money start purchasing the
products unmindful of the costs, just to satisfy their needs as well as their ego.
The problem is that there are no effective sanctions against misleading
advertisements. What needs to be emphasized is that the poor, uneducated
consumers in the rural areas are most likely to be harmed. More generally, as a
recent World Development Report rightly emphasized, information problems are
often at the core of the difficulties that poor people in developing countries
encounter in their daily struggle to survive and to improve their lives.
The government and its various agencies need to counter the misleading
claims of the producers/ service providers. Jago Grahak Jago is an important
mean to communicate with the consumers. However, to communicate effectively
40
with the rural audiences, we need to move further. It is important to understand the
aspirations, fears and hopes of rural consumers. Although the reach of television in
rural India is high, frequent power cuts restrict viewing time considerably. However,
rural India has high ownership of transistor radios and these can be expected to
become a popular medium for reaching the rural masses. Moreover, we also need
to have an effective regulator for advertisements so that the consumers are not
misled by claims and counter-claims.
The Consumer Protection Act, 1986 gives a comprehensive definition of
unfair trade practice. The consumer courts have given some excellent orders in
this area, but they cannot deal with misleading advertisements like the MRTPC as
the consumer court neither has the power nor the infrastructure to investigate, suo
motu into misleading advertisements nor take up such cases on their own as was
done by the MRTPC. The ASCI also has not been an effective regulator. Now that
MRTPC has ceased to exist, we need to think of some mechanism to check
misleading advertisements.
Sum up
The NGOs have an important role to play in consumer education and
empowerment. However, the task is gigantic and therefore, it is time to involve the
PRIs to reach the rural consumers. The meetings of the Gram sabhas can be
utilized as a forum to educate the consumers about their rights and obligations and
enhance their knowledge about fake and spurious products. An integrated
approach is needed to empower the rural consumers. As the largest consumer
base is in the rural areas, protecting the rural consumer has to be a priority in any
strategy to protect the consumers.
41
References
1.
S.John Mano Raj and P. Selvaraj; Social Changes and the Growth of
Indian Rural Markets: An Invitation to FMCG, International Marketing
Conference on Marketing and Society, April 8-10, 2007, IIM, Kozhikode
2.
3.
4.
5.
6.
7.
8.
9.
10.
Kaptan S.S, Rural Consumer and Consumer Protection, Sarup & Sons
Publication, 2004 (pp 19, 83), New Delhi
11.
the
Marketing
for
Rural
India,
42
CHAPTER III
Level of Awareness among Rural Consumers
Economic liberalization along with the rise in rural prosperity has opened the
flood gates for rural markets. The rural market is growing fast and touching the
lives of millions of the rural consumers. The rising prosperity in the rural areas and
the impact of media penetration has opened up the rural market for the
multinational companies and other producers. A range of products and services
are available to the rural consumers. However, due to ignorance and lack of
information the rural consumer has to endure with sub-standard products and
services, adulterated foods, short weights and measures, spurious and hazardous
drugs, and exorbitant prices along with unfulfilled manufacturing guarantees and
host of other ills. In a market driven economy like ours, the aspirations of the
consumers including the rural consumers is on the rise due to a number of
reasons. Today the rural consumers are being lured by advertisements which do
not really educate the consumer nor provides information to them but only exploit
his ignorance and in the process we forget that the consumer is an important
component of society and every business has an obligation to him/her. The
marketers resort to all sorts of tactics to cheat the consumers especially when the
goods are short in supply in the market. High prices are charged by the producers
and consumers have no choice other than to purchase what is available.
Therefore, the consumer is to be protected from unsafe products, poor quality of
goods and services, high prices, unfair trade practices and misleading
advertisements. The best way to empower the consumers is to educate them and
enhance their awareness, therefore if the consumers are to be protected it is
necessary to educate the consumers and make them aware about the various
mechanisms available to them so that they are able to make a rational decision
while making a purchase.
The welfare of the consumers lies in the fulfilment of their normal and
legitimate expectation with regards to the goods they purchases and the services
they avail. In a country like India where all the consumer protection laws are in
43
place, the consumers are not really aware of them and the mechanism in place to
redress their grievances. Those who know the laws know that the process is very
slow and has become cumbersome. There are a number of steps taken to protect
the rural consumer but without much impact due to the prevailing socio economic
conditions of the rural consumers. They generally base their purchasing decisions
on the advertisement campaigns and promotional strategies employed by the
organizations and also lack of choice.
Consumers are exploited when they are cheated in any form or when not
informed adequately about the product. Consumer exploitation is in many ways.
They may be exploited by giving incomplete or wrong information. They may be
exploited by sellers who may weigh less or measure wrongly. Sometimes, a
consumer may be given low quality of goods. One of the very common and a
serious problem by which a consumer may be exploited and cheated by the shopkeeper is by providing impure or adulterated goods with harmful substances. Food
adulteration is a serious problem in the rural markets where the administrative
machinery is not able to tackle this menace. As far as the service sector is
concerned a large number of complaints regarding medical services, banking,
insurance and electricity go unreported as the consumer is unaware of the
redressal mechanism. Cases of medical negligence are common in the rural areas
but then the consumer has no choice.
Consumers not only pay their hard earned money, but also have to undergo
the trauma of suffering from ill health and in some cases even risking their lives
due to spurious products. It is quite common that the rural consumers are unaware
about maximum retail price, expiry and manufacturing date and other information
that is to be provided on the products due to ignorance and illiteracy. The
consumers are at risk with such market practices. Sometimes the producers may
deliberately conceal information and circumstances in which the product must be
used or the accompanying devices to be used with the product or circumstances
during which a product would not work. In such situations the consumers feel
helpless and trapped.
44
There are many factors leading the consumer exploitation in rural areas.
Illiteracy and ignorance is just one of the many causes of exploitation. Illiterate
consumers can easily be cheated as they can neither read the name of the product
nor the instructions. Illiteracy also affects the level of consumer awareness. Lack of
information is another cause as the seller may take advantage of the freedom of
the market and keep away, the important or correct information from the consumer.
Price, composition, quantity, conditions of use, and terms of purchase all must be
given to the consumer. Monopoly is also a cause of consumer exploitation as the
consumers are forced to purchase the product or avail the services. In markets
where only one or few producers or sellers operate, the consumer is more
vulnerable. This is all the more so in case of essential commodities like life saving
drugs and food items without which the consumers cannot do. The consumers in
such areas are charged with high price; given a low quality and their problems and
complaints are not taken seriously. An economy, in which consumers are aware
and exercise their rights and obligations freely, will not only help the business but
also enable the economy and the society to flourish. An overall picture emerges
that it is due to lack of consumer education and awareness that consumers
continue to be exploited. We need to device new strategies to protect the rural
consumer
The study attempts to find out the level of awareness among the rural
consumers on various initiatives prevailing in the markets and also explore the
ignorance of the consumers relating to their basic rights and obligations. It also
examines the buying behaviour and the market practices of the rural consumers.
Socio-economic Profile of the Respondents
Sex, Educational Status and Age Profile
The socio- economic profiles of the respondents covered are from various
strata of the society so as to make it a representative sample. Males constituted
68.6 of the sample size whereas 31.5 percent were females. As far as the
educational level of the respondents is concerned, 23.1 percent had no schooling,
17.9 percent of them had attended school up to the primary level, 26 percent had
45
middle schooling, 16.3 percent had studied up to high school, 10.3 percent had
schooling up to intermediate level and 6.6 percent were Graduates. Post graduates
and Professionals consisted of 1 percent of the respondents. As far as the age is
concerned, only 1.6 percent of the respondents were below 20 years of age. 23.7
percent belonged to the age group between 20 -30 years, 38.5 were from the age
group of 30-40 years, 22.6 percent were within 40-50 years of age and 13.7
percent of the respondents were above 50 years of age. (Table 1)
Table 1
Sex, Education Status and Age Profile of the Respondents
30-40
40-50
Above 50
2.5
1.3
22.0
28.8
29.5
35.8
24.0
21.0
22.0
13.3
Gujarat
Meghalaya
79.5
72.3
0.3
1.3
22.8
19.3
49.0
49.5
21.3
22.5
6.8
7.5
Tamilnadu
53.5
2.8
25.8
28.5
24.3
18.8
Total
68.6
1.6
23.7
38.5
22.6
13.7
Male
Middle
64.8
72.8
Primary
Uttarakhand
M.P
Female
20-30
PG/Profession
al
Below 20
Age
Graduation
Intermediate
Educational Status
High School
Sex
No Schooling
States
Figure 1
Sex, Education Status and Age Profile of the Respondents (total sample)
46
Occupation
Owner/Cultivator
Marginal Farmers
Labour
Tenant/Share croppers
Traders/Shopkeeper
Self Employed
Government Employee
Teacher
Crafts man
Unemployed
Housewife
Others
Uttarakhand M.P
Gujarat Meghalaya Tamilnadu Total
9.9
17.0
14.8
6.8
5.5
5.3
16.2
11.8
25.3
20.8
13.8
9.5
25.0
15.0
25.5
16.5
27.5
40.5
1.4
0.8
0.5
4.8
0.3
0.8
4.9
1.5
1.5
7.5
11.0
2.8
12.9
10.5
7.5
16.8
19.3
10.3
5.5
13.8
3.0
5.3
1.8
3.8
1.9
2.3
2.3
0.5
1.3
3.0
1.6
0.5
1.0
2.3
4.3
0.0
4.3
8.5
1.8
1.5
4.3
5.5
13.8
17.5
14.5
13.0
10.8
13.3
2.8
1.0
2.5
4.5
0.5
5.5
Figure 2
Respondents Occupation (total)
47
Sates
Uttarakhand
M.P
Gujarat
Meghalaya
Tamilnadu
Total
Below
` 24,000
47.5
54.4
28.5
16.0
75.5
44.4
` 24,000/ to
60,000
30.5
35.3
46.0
73.5
15.0
40.1
` 60,000/- to
1,20,000/12.0
8.8
21.2
9.0
6.0
11.4
(in %)
Above
` 1,20,000
10.0
1.5
4.3
1.5
3.5
4.2
(in %)
States
Below
` 2000
Uttarakhand
M.P
Gujarat
Meghalaya
Tamilnadu
Total
` 2000 to
5,000
48.3
53.0
28.3
16.3
71.8
43.5
Above
` 10,000
` 5,000 to
10,000
30.3
40.5
56.5
80.8
19.3
45.5
16.3
5.0
11.8
1.8
7.5
8.5
5.3
1.5
3.5
1.3
1.5
2.6
48
Figure 3
Income & Expenditure wise Distribution of Respondents (total)
Monthly Expenditure (%)
49
Table 5
Purchase of Daily Goods as per Monthly Expenditure
States
Monthly Expenditure
Total
Tamilnadu
Meghalaya
Gujarat
M.P
Uttaranchal
Place
Below
` 2000
` 2000 to
` 5,000 to
5,000
10,000
Above ` 10,000
Village Shop
Weekly market/Local Haat
Nearby kasba/town
3.1
68.4
17.6
0.8
38.8
39.7
1.5
27.7
29.2
4.8
28.6
33.3
City
Village Shop
Weekly market/Local Haat
Nearby kasba/town
City
Village Shop
Weekly market/Local Haat
Nearby kasba/town
City
Village Shop
Weekly market/Local Haat
Nearby kasba/town
10.9
11.8
62.7
24.5
0.9
50.4
23.9
23.0
2.7
6.2
63.1
29.2
20.7
1.9
42.6
45.7
9.9
9.7
18.1
62.8
9.3
4.0
38.4
53.6
41.5
15.0
0.0
45.0
40.0
8.5
31.9
48.9
10.6
14.3
28.6
14.3
33.3
0.0
0.0
16.7
83.3
0.0
7.1
28.6
64.3
0.0
20.0
40.0
1.5
4.0
42.9
40.0
66.6
7.3
12.9
31.2
1.3
23.4
23.3
0.0
16.7
0.0
0.0
33.3
13.2
32.53
40.69
19.31
7.47
44.2
6.93
31.02
50.06
11.99
60.0
9.47
20.71
33.73
36.09
66.7
1.92
15.38
30.77
51.92
City
Village Shop
Weekly market/Local Haat
Nearby kasba/town
City
Village Shop
Weekly market/Local Haat
Near by kasba/town
City
50
Figure 4
Place of Purchasing Daily Goods as per Monthly Expenditure
States
Uttarakhand
M.P
Gujarat
Meghalaya
Tamilnadu
Total
Village
Shop
2.3
7.8
20.8
4.5
55.5
18.15
(In %)
Weekly
market/Local
Haat
50.8
50.5
21.0
42.0
5.5
34.0
Nearby
Kasba/town
27.0
34.0
48.8
48.8
15.5
34.8
City
20.0
7.8
9.5
4.8
23.5
13.1
51
Figure 5
Place of Purchasing Daily Goods
52
53
Figure 6
Consumers Satisfaction: Goods & Services
(Total percentage of five states)
No Response
Not at All
Some Extent
Fully Satisfied
FMCG
Health
Banking & Water/Ele
Education Insurance
products Services
Finance ctricity
Postal
Telephone
Agricultur
e
Fertilizers
Machineri
Seeds
Pesticides
No Response
1.9
1.7
5.2
68.4
42.8
21.2
25.3
39.5
76.1
63.8
63.7
61.8
Not at All
57.1
51.6
51.3
14.7
24.2
31.7
31.4
29.2
10.0
14.2
16.2
17.1
Some Extent
27.4
28.2
25.3
10.0
17.6
14.2
21.7
18.6
11.5
18.5
17.6
19.2
Fully Satisfied
13.6
18.5
18.2
6.8
15.3
33.0
21.6
12.7
2.4
3.4
2.6
2.0
The satisfaction level was not much different in the state of Madhya
Pradesh. 73 percent of the respondents were satisfied with FMCG products only
to some extent. With health services 73.8 percent, education 65.3 percent,
insurance 10.3 percent, banking 23.3 percent. The response has been low as
many of them do not avail these services. A Large percent of the respondents
(52.8 percent) were not satisfied with the services relating to electricity. The other
variations relate to fertilizes, seeds and pesticides where most of the respondents
were satisfied to some extent. It is interesting to note that in Gujarat satisfaction
level with the services was much higher. 37 percent of the respondents were fully
satisfied with the FMCG products while 59 percent were satisfied to some extent.
Agriculture is the main occupation in rural India. Most of the rural people
own land and do cultivation. Therefore, it is pertinent to know about the quality of
the agriculture services being availed by the rural people. On questions relating to
these services, only a few of them responded as most of them were unaware of
the quality and other related issues. 12.8 percent were not satisfied with the
services relating to the agricultural machinery. As far as fertilizers were concerned
only 24.8 percent were satisfied to some extent. Similar was in the case of seeds
(24.5 percent) and pesticides (29 percent) respectively.
As far as the service sector is concerned, 35.5 percent were fully satisfied
while 64 percent were satisfied to some extent with the health services. Similar is
the case with education services where 35.5 percentage were fully satisfied and
53.5 percent were satisfied to some extent. The satisfaction level was higher with
banking services. In Gujarat the satisfaction level with electricity was quite high
where 58.3 percent were fully satisfied and 33.8 percent were satisfied to some
extent. Even in the case of postal service and telephone the satisfaction level was
higher. However, as far as agriculture related services were concerned the
response has been less. 29 percent were satisfied to some extent as far as
fertilizer was concerned, 23 percent with seeds and 26.8 with pesticides
respectively.
55
56
No Response
Not at All
Some Extent
Fully Satisfied
No Response
Tamilnadu
Not at All
Some Extent
Fully Satisfied
No Response
Not at All
Meghalaya
Some Extent
Fully Satisfied
No Response
Not at All
11.5
16.8
18.8
7.0
12.3
52.8
18.0
7.0
0.5
2.0
2.0
2.8
Gujarat
Some Extent
88.0
5.0
2.8
87.0
3.0
3.3
77.0
1.5 14.5
24.0
0.0 74.3
26.8
0.5 68.5
33.5 10.0 55.0
29.8
1.3 55.5
27.5
4.3 67.5
12.8
0.0 87.0
24.8
0.5 73.8
24.5
3.0 71.3
29.0
3.5 66.5
Not at All
Fully Satisfied
4.3
6.8
7.0
1.8
4.3
1.5
13.5
0.8
0.3
1.0
1.3
1.0
M.P
No Response
FMCG Products
Health Services
Education
Insurance
Banking Services
Electricity
Postal
Telephone
Agro-Machineries
Fertilizers
Seeds
Pesticides
Some Extent
Fully Satisfied
Uttarakhand
73.0 11.5
4.0 37.0 59.0
4.0
0.0 21.0 73.8
2.5
2.8 40.3 50.0
7.5
2.3
73.8
5.0
4.5 35.5 64.0
0.5
0.0 20.3 65.5 13.5
0.8 32.8 43.3 23.8
0.3
65.3
6.3
9.8 33.5 53.5 12.8
0.3 21.3 69.8
8.3
0.8 38.5 38.8 22.3
0.5
10.3
9.0 73.8 12.3 13.5 10.0 64.3 21.0 11.0
0.0 68.0 20.0 38.0 35.3
6.8
23.3
0.8 63.8 38.0 35.3
0.3 26.5
6.5 61.5
2.8 29.3 18.3 40.5 35.3
6.0
4.8
6.5 36.0 58.3 33.8
5.5
2.5 16.8 56.5 17.0
9.8 57.8 29.3 12.0
1.0
32.5
3.8 45.8 40.8 54.3
1.0
4.0 17.5 61.3
3.8 17.5 67.8 22.8
8.5
1.0
19.5 12.8 60.8 32.5 47.5
3.0 17.0 13.5 42.0
9.3 35.3 60.3 20.3 16.3
3.3
24.3
0.3 75.0
6.0 18.0
0.0 76.0
2.0 11.0
0.8 86.3 13.3 23.3
9.8 53.8
38.3
5.0 54.8
7.5 29.0
1.3 62.3
2.0 12.0
0.0 86.0 16.3 16.8 11.8 55.3
38.5
4.0 55.5
5.3 23.5
7.8 63.5
2.0 11.5
2.0 84.5 18.0 16.8
9.5 55.8
34.0 11.5 51.8
4.5 26.8
6.3 62.5
0.0 14.5
0.0 85.5
9.3 22.3 12.3 56.3
57
(in%)
States
Yes
Sometimes
No
Uttarakhand
27.8
31.5
40.8
Madhya Pradesh
18.0
26.0
56.0
Gujarat
21.5
21.5
57.0
Meghalaya
4.0
11.8
84.3
Tamilnadu
23.5
24.5
52.0
Total
19.0
23.1
58.0
Figure 7
Inquire about Terms & Condition (total)
58
More than half of the respondents (58 percent) did not make any inquiry
into the terms and conditions before purchasing goods or availing services, 23.1
percent inquired about it sometimes and only 19.0 percent inquired frequently
(Table 8). In Uttarakhand only 27.8 percent and Gujarat 21.5 percent of the
respondents actually inquired about the terms and conditions, while it was 18
percent in Madhya Pradesh. In Meghalaya just 4 percent inquired about the
terms and conditions before making a transaction while 84.3 percent did not
bother to know about the terms and conditions. 31.5 percent of respondents in
Uttarakhand, 26 percent in Madhya Pradesh, 21 percent in Gujarat, 11.8
percent in Meghalaya and 24.5 percent of the respondents in Tamil Nadu
inquired about the terms and conditions before making a purchase. The
dependence on the local shop keeper or the representatives of the service
provider is very high as most of them belong to the same area and know each
other. It has more to do with faith and trust. The other factor relates to
ignorance about various consumer rights and lack of literacy. As far as the
relationship with the level of education is concerned, the study indicates that
people who have attained some education are more aware about what they
intend to purchase and inquire about the terms and conditions before making a
purchase. According to the Table 9, only 7.7 percent of the respondents who
have not attended school inquired into the terms and conditions before
purchasing a product or availing a service. On the other hand 63.3 percent of
the graduate respondents sought information before purchasing goods or
availing a service.
59
Table 9
Inquire about Terms & Condition of Transaction before Purchasing Products or
Availing Services (Impact of Education Level)
Total
3.9
22.1
74.0
1.7
14.8
83.5
1.7
15.3
83.1
0.0
2.8
97.2
11.5
25.9
62.6
4.8
17.6
77.7
2.0
30.0
68.0
2.6
28.2
69.2
1.2
16.9
81.9
0.0
3.0
97.0
11.1
31.1
57.8
2.5
19.0
78.4
30.9
33.0
36.2
22.4
36.7
40.8
23.5
29.4
47.1
1.7
17.8
80.5
28.6
29.7
41.8
20.6
28.8
50.6
35.0
33.3
31.7
36.8
21.1
42.1
36.8
20.6
42.6
4.5
22.4
73.1
23.3
19.2
57.5
26.8
23.1
50.2
45.2
30.1
24.7
28.6
39.3
32.1
31.3
20.8
47.9
17.1
8.6
74.3
52.4
9.5
38.1
35.6
23.4
41.0
52.2
45.7
2.2
70.8
25.0
4.2
69.6
17.4
13.0
62.5
37.5
0.0
61.3
16.1
22.6
61.4
29.5
9.1
57.1
14.3
28.6
75.0
25.0
0.0
66.7
0.0
33.3
100.0
0.0
0.0
50.0
25.0
25.0
63.2
15.8
21.1
Total
Graduation
Tamilnadu
Intermediate
Meghalaya
High School
Gujarat
Middle
M.P
Primary
Uttarakhand
Yes
Sometimes
No
Yes
Sometimes
No
Yes
Sometimes
No
Yes
Sometimes
No
Yes
Sometimes
No
Yes
Sometimes
No
No
Schooling
Response
States
PG/Professi
onal
(In %)
27.8
31.5
40.8
18.0
26.0
56.0
21.5
21.5
57.0
4.0
11.8
84.3
23.5
24.5
52.0
19.0
23.1
58.0
60
and 18.8 percent in Tamil Nadu actually insisted on taking a cash memo (Table
10). The percentage of consumers who insist on the cash memo sometimes is
not much different than those who insist on the cash memo. The percent age of
consumers who do not insist on cash memo is quite high in all the states. It is
73.8 percent in Uttarakhand, 78.8 percent in Madhya Pradesh, 65.8 percent in
Gujarat, 88 percent in Meghalaya and 60 percent in Tamil Nadu respectively.
On the other hand 14.5 percent in Uttarakhand, 10.0 percent in Madhya
Pradesh, 18 percent in Gujarat, 8.8 percent in Meghalaya and 21.3 percent in
Tamil Nadu insisted on the cash memo sometimes. Thus among the total
sample respondents only 17.8 percent of the respondents always insisted on
taking a cash memo, 31.5 percent sometimes and more than half (50.8 percent)
never asked for cash memo. (Figure 8)
Table 10
Insistence on Cash Memo while Purchasing Durables
(in %)
States
No
Uttarakhand
Madhya Pradesh
Gujarat
Meghalaya
Tamilnadu
Yes
11.8
11.3
16.3
3.3
18.8
Sometimes
14.5
10.0
18.0
8.8
21.3
73.8
78.8
65.8
88.0
60.0
Total
17.8
31.5
50.8
Figure 8
60.0
88.0
65.8
78.8
73.8
Sometimes
No
50.8
Yes
40.0
31.5
35.0
18.0
3.3
8.8
10.0
10.0
11.3
14.5
11.8
15.0
16.3
20.0
18.8
21.3
25.0
17.8
30.0
5.0
0.0
Uttaranchal
MP
Gujarat
Meghalaya Tamilnadu
Total
States
61
62
Table 11
Information about the Product at the Time of Purchase
2.3
1.3
96.4
Always
Sometimes
Never
98.3
0.3
1.5
Always
Sometimes
Never
1.3
7.5
91.2
Gujarat
Total
Always
Sometimes
Never
Tamilnadu
42.2
32.8
25.0
Available choices
32.0
38.0
27.0
24.8
41.0
37.3
Contents
2.7
2.3
0.3
7.7
97.0
90.0
Price
94.5
86.0
1.8
9.8
3.8
4.3
Expiry date
2.3
10.8
19.3
32.8
78.4
56.4
Meghalaya
Always
Sometimes
Never
M.P
Response
Uttarakhand
(in %)
14.0
24.5
61.5
37.8
16.0
46.3
32.8
25.0
42.2
5.2
9.5
85.3
13.8
36.5
49.7
5.3
11.0
83.7
76.7
15.0
8.3
81.5
5.5
13.0
87.4
6.5
6.2
7.0
38.0
55.0
2.3
9.4
88.3
4.7
21.4
73.9
Figure 9
Information about the Product at the Time of Purchase (total)
(b)
Contents
63
(c) Price
States
Uttarakhand
Madhya Pradesh
Gujarat
Meghalaya
Tamilnadu
Total
Yes
41.2
40.0
43.2
37.8
41.3
40.7
(in %)
No
58.8
60.0
56.8
62.3
58.8
59.3
64
Table 13
Consumer Awareness about Bargaining on MRP
Sates
Uttarakhand
Madhya
Pradesh
Gujarat
Meghalaya
Tamilnadu
Total
(in%)
Bargain on MRP
Yes
No
Can't Say
25.8
56.3
18.0
24.3
28.8
17.8
25.3
24.4
50.8
48.3
61.8
38.8
51.2
25.0
23.0
20.5
36.0
24.5
Figure 10
(a) Awareness about MRP
65
No
Uttarakhand
41.2
58.8
13.0
87.0
2.8
97.2
0.8
99.2
2.3
97.8
M.P
37.6
62.4
11.0
89.0
6.5
93.5
0.8
99.3
1.0
99.0
Gujarat
48.5
51.5
15.2
84.8
16.5
83.5
1.0
99.0
2.0
98.0
Meghalaya
28.0
72.0
4.0
96.0
1.0
99.0
0.8
99.3
0.3
99.8
Tamilnadu
47.0
53.0
16.3
83.7
23.3
76.8
2.8
97.3
2.5
97.5
Total
40.5
59.5
11.9
88.1
10.0
90.0
1.2
98.8
1.6
98.4
BEE
Yes No
66
Figure 11
Awareness about Standard Marks and Labels (total)
Table 15
Consumer Awareness about ISI
(in %)
States
Uttarakhand
M.P
Gujarat
Meghalaya
Tamilnadu
Total
Uttarakhand
M.P
Gujarat
Meghalaya
Tamilnadu
Total
Consumers Response on
Agmark
Yes
No
13.0
87.0
11.0
89.0
15.2
84.8
4.0
96.0
16.3
83.7
11.9
88.1
68
local brands which certainly do not carry these markings. A few local brands of
sauce were visible in various shops during the survey but it was not an issue of
importance to them. Even though it is important that the consumers use quality
products but 98.8 percent of the respondents were not aware about the FPO
mark (Table 17).
Table 17
Consumer Awareness about FPO
(in%)
States
Uttarakhand
M.P
Gujarat
Meghalaya
Tamilnadu
Total
On
the other hand, if we want to sell our gold ornaments, they look very
suspiciously about the purity of gold. When we buy gold from a jeweller's shop,
we consumers never show mistrust to the jewellers. If we want to sell the same
gold, they look suspiciously that whether the gold is pure or not. We need to
put in place a scientific tamperproof instrument for checking the purity of gold
and also need an authority to check the gold's valuation, purity etc. under govt.
control so that the consumer should not feel cheated when they buy gold.
Government of India has identified BIS as sole agency in India to operate
this scheme. BIS hallmarking Scheme is voluntary in nature and is operating
under BIS Act, Rules and Regulations. It operates on the basis of trust and thus
69
70
Table 18
Consumer Awareness about Hallmark
(in%)
Consumers Response on
Hallmark
Yes
No
2.8
97.2
6.5
93.5
16.5
83.5
1.0
99.0
23.3
76.8
10.0
90.0
States
Uttarakhand
M.P
Gujarat
Meghalaya
Tamilnadu
Total
Source: Field survey
States
Uttarakhand
M.P
Gujarat
Meghalaya
Tamilnadu
Total
71
Yes
No
No
Yes
No
Yes
No
Yes
No
False information
regarding
Goods/Services
Spurious/Duplicate
Over charging
Under weight
Yes
Deficiency/Negligenc
e of services
Food adulteration
Sates
Yes
Uttarakhand
M.P
11.5
20.0
88.5
80.0
7.0
4.0
93.0
96.0
36.0
29.8
64.0
70.3
13.8
15.5
86.3
84.5
9.25
7.5
90.8
92.5
4.0
1.0
Gujarat
Meghalaya
Tamilnadu
Total
13.5
2.8
22.2
14.0
86.5
97.3
77.8
86.0
3.5
14.3
8.3
7.4
96.5
85.8
91.7
92.6
48.0
40.0
47.0
40.2
52.0
60.0
53.0
59.9
5.3
8.3
17.5
12.1
94.8
91.8
82.5
88.0
3
5.5
12.1
7.5
97.0
94.5
87.9
92.5
0.0
2.0
5.6
2.5
72
No
96.0
99.0
100.
0
98.0
94.4
97.5
Figure 12
Consumers' Experience on Different Issues
Short weighting
Uttaranchal
MP
12.1
2.5
7.5
7.4
5.6
12.1
14.0
17.5
Deficiency/Negligence of services
2.0
5.5
2.8
Gujarat
8.3
14.3
0.0
5.3
3.0
0.0
1.0
3.5
7.5
8.3
13.5
15.5
20.0
4.0
4.0
9.3
7.0
11.5
13.8
20.0
Over charging
22.2
30.0
10.0
Food adulteration
29.8
40.0
40.2
36.0
40.0
50.0
47.0
48.0
60.0
Meghalaya
Tamilnadu
Total
States
Table 21
Consumers Reaction to Exploitation
(In %)
States
29.3
28.5
35.8
17.8
31.3
28.5
14.5
15.3
9.0
3.5
39.0
16.3
1.0
0.3
0.0
0.0
2.8
0.8
0.0
0.0
0.5
0.0
0.0
0.1
Consumers Reaction
55.3
56.0
54.8
78.8
27.0
54.4
73
Some respondents said that they had mobilized people to put pressure
on the seller to address their grievances. 54.4 percent of the respondents tried
to replace the product. It is to be noted that in the rural areas the shopkeepers
give goods on credit therefore for the sake of convenience the consumers have
no option but to only replace the product and not refund the money.
Figure 13
Consumers Reaction to Exploitation (total)
74
Table 22
Awareness about Consumer Protection Act
States
Uttarakhand
MP
Gujarat
Meghalaya
Tamilnadu
Total
(in%)
Response on awareness about CP Act
Yes
No
7.5
92.5
6.5
93.5
8.3
91.8
6.3
93.8
9.5
90.5
7.6
92.4
Figure 14
Awareness about Consumer Protection Act (total)
75
Table 23
Source of Information about Consumer Protection Act
Cant say
NGOs
Neighbours
Hoardings
Television/Radio
Uttarakhand
M.P
Gujarat
Meghalaya
Tamilnadu
Total
Newspapers/Magazi
nes
(in %)
States
Figure 15
Source of Information about CPA (total)
34.2
Television/Radio
Newspapers/Magazines
Hoardings
48.4
Neighbours
NGOs
6.5
6.5
Can't say
2.2
2.17
76
redressal mechanism. Even those who knew about the Act were to a large
extent unaware about the main provisions of the Act. Only 7.6 percent of the
respondents knew about the Consumer Protection Act and when further asked
to enumerate the provisions of the Act they could only mention a few of them.
Only 22.6 percent of the respondents who were aware about the Act, knew
about the redressal mechanism under the Act. On the other hand 77.4 percent
of the respondents did not know about it. As far as the sampled states are
concerned the percentage of respondents who knew about the redressal
mechanism are: Uttarakhand 24.2 percent, Madhya Pradesh 21.7 percent,
Gujarat 26.2 percent, Meghalaya 13 percent and Tamil Nadu 27.7 percent
respectively. (Table 24)
Table 24
Awareness about Grievances Redressal Mechanism under CPA
(Responses from respondents aware about CPA)
(in %)
States
Yes
No
Uttarakhand
24.2
75.8
Madhya Pradesh
21.7
78.3
Gujarat
26.2
73.8
Meghalaya
13.0
87.0
Tamilnadu
27.7
72.3
Total
22.6
77.4
Source: Field survey
Figure 16
Awareness: System of Redressal of Consumer Grievances
77.4
Tota l
22.6
72.3
Ta milna du
Megha la ya
27.7
87.0
13.0
73.8
Guja ra t
26.2
78.3
Ma dhya Pra de sh
21.7
75.8
Utta ra ncha l
24.2
Yes
No
77
0.8
1.0
2.5
0.5
3.8
1.7
0.0
0.0
1.0
0.0
0.5
0.3
1.0
0.0
1.0
0.3
0.0
0.5
Others
14.0
12.5
15.0
9.3
16.5
13.5
84.2
86.0
80.3
90.0
78.0
83.7
Consumer
Uttarakhand
M.P
Gujarat
Meghalaya
Tamilnadu
Total
Dont Know
(in %)
Response on Awareness About Who can
File a Complaint
states
0.0
0.5
0.3
0.0
1.3
0.4
Figure 17
Consumer Awareness about Filing of Complaint
Don't Know
0.5
0.3
0.4
Consumer
1.7
13.5
78
No
Yes
No
Are consumers
aware about
consumer welfare
schemes?
Yes
Are consumers
well protected by
law?
No
Uttarakhand
M.P
Gujarat
Meghalaya
Tamilnadu
Total
Are Consumers
Aware about their
Rights?
Yes
States
6.7
6.5
13.4
1.4
17.8
9.2
93.3
93.5
86.6
98.6
82.2
90.8
13.4
13.5
49.7
53.3
33
32.6
86.6
86.5
50.3
46.7
67
67.4
16.8
12.8
21.3
7.3
17.2
15
83.2
87.2
78.7
92.7
82.8
85
79
percent knew about it while in Tamil Nadu it was only 15.8 percent of the
respondents who knew about it.
Table 27
Consumers Awareness about JAGO GRAHAK JAGO
(in %)
States
Uttarakhand
M.P
Gujarat
Meghalaya
Tamilnadu
Total
Yes
43.8
39.0
41.2
31.3
15.8
34.2
No
56.3
61.0
58.8
68.8
84.3
65.8
Figure 18
Awareness : 'JAGO GRAHAK JAGO'
65.8
Total
34.2
84.3
Tamilnadu
15.8
68.8
Meghalaya
31.3
58.8
Gujarat
41.2
61.0
MP
39.0
56.3
Uttaranchal
43.8
Ye s
No
80
Table 28
Consumers Opinion on Need for Awareness Programme (in %)
States
Uttarakhand
M.P
Gujarat
Meghalaya
Tamilnadu
Yes
85.3
80.0
93.0
96.5
61.3
Can't say
11.5
16.0
4.3
3.0
13.8
No
3.3
4.0
2.8
0.5
25.0
Total
83.2
9.7
7.1
Figure 19
Consumers' opinion on Need for Awarness Programme
70.0
60.0
0.0
Uttaranchal
MP
Gujarat
Meghalaya
Tamilnadu
9.7
7.1
3.0
0.5
4.3
16.0
4.0
10.0
3.3
20.0
11.5
30.0
25.0
40.0
13.8
50.0
2.8
Percentage
Can't s ay
61.3
80.0
No
83.2
93.0
96.5
Ye s
80.0
90.0
85.3
100.0
Total
State
81
Table 29
Consumers Opinion on Spreading Awareness by Different Agencies
(in %)
States
NGO
Government
Educational Institute
Gram Panchayat
No response
Uttarakhand
M.P
Gujarat
Meghalaya
Tamilnadu
Total
Citizen
0.5
1.5
1.5
0.3
4.0
1.6
0.0
0.0
0.0
0.0
0.5
0.1
11.0
15.3
22.8
23.8
31.5
20.9
3.0
3.0
5.8
10.8
22.5
9.0
78.5
71.8
68.8
59.3
34.8
62.6
7.0
8.5
1.3
6.0
6.8
5.9
Figure 20
Opinion on diffrent Agencies for spreading Consumer Awareness
59.3
70.0
62.6
68.8
80.0
71.8
78.5
90.0
60.0
Citizen
Government
50.0
No response
Tamilnadu
0.1
1.6
0.5
6.8
9.0
20.9
NGO
5.9
31.5
0.0
Meghalaya
4.0
6.0
10.8
Gujarat
Gram Panchayat
22.5
23.8
0.3
1.3
0.0
5.8
1.5
8.5
MP
0.0
3.0
7.0
Uttaranchal
1.5
0.5
3.0
10.0
0.0
11.0
20.0
15.3
22.8
30.0
0.0
34.8
Educational Institute
40.0
Total
States
Sum Up
Consumer protection initiatives by the Government hinge on 3 basic
parameters. Firstly ensuring a legal framework that comprises of Consumer
Protection Act. The Consumer Protection Act enacted in 1986 has been
recognised as one of the finest basis of legislation enacted in any part of the
world and India can boast of being the only country having such specialised
82
legislation for consumer protection. The CPA has a three tier, simple, quasi
judicial machinery at the National, State and District level for hearing cases
raised by consumers. Secondly, evolving standards for different products to
enable the consumers to make an informed choice about different products.
Standards which are the essential building block for quality play a key role in
consumer
protection.
Standard
could
be
on
technical
requirement
84
CHAPTER IV
Findings and Recommendations
Findings
1. The respondents covered various strata of the society so as to make it a
representative sample. Males constituted 68.6 of the sample size
whereas 31.5 percent were females.
2. As far as the educational level of the respondents is concerned, 23.1
percent had no schooling, 17.9 percent of them had attended school up
to the primary level, 26 percent had middle schooling, 16.3 percent had
studied up to high school, 10.3 percent had schooling up to intermediate
level and 6.6 percent were Graduates. Post graduates and Professionals
consisted of 1 percent of the respondents.
3. 1.6 percent of the respondents were below 20 years of age. 23.7 percent
belonged to the age group between 20 -30 years, 38.5 were from the
age group of 30-40 years, 22.6 percent were within 40-50 years of age
and 13.7 percent of the respondents were above 50 years of age.
4. As far as their occupational status is concerned, owner/cultivators
constituted 9.9 percent of the respondents while marginal farmers
constituted 16.2 percent. The major segment of the respondents, which
is 25 percent, consisted of labourers. Among the respondents, self
employed constituted 12.9 percent, unemployed 13.8 percent and
housewives 13.8 percent.
5. The survey revealed that majority of the respondents (44.4) percent had
an annual income of less than ` 24,000. The group with annual income
between ` 24, 000 - 60,000 consisted of 40.1 percent. 11.4 percent of
the respondents had income between ` 60,000 1,20,000. Those whose
income was above ` 1, 20, 000 constituted 4.15 percent of the sample
size.
6. As far as the monthly expenditure of the respondents is concerned, 43.5
percent spent below ` 2,000, 45 percent spent between ` 2,000 to 5,000,
8.45 percent of the respondents expenditure was between ` 5, 000 to
10,000. Those whose expenditure was above ` 10,000 constituted 2.6
percent of the sample size.
7. The survey reveals that a major portion of the respondents (34.9
percent) depend upon the local haat or weekly markets, 34.8 percent
depend upon nearby town or kasba. Only 18.15 percent depend upon
village shops and 13 percent go to city for shopping.
85
86
were unaware about it. Of the total respondents aware about the Act,
83.7 percent did not know as to who can file a complaint, 13.5 percent
knew that the complaint can be filed by consumer and 1.7 percent said
that any VCO can file a complaint.
14. Only 9.2 percent of the respondents agreed that the consumers were
aware about their rights and 90.84 percent answered in negative. 32.6
percent respondents said that the consumers were well protected by law
while 67.4 percent could not answer this question. Only 15 percent
agreed that consumer welfare schemes are well implemented by the
government and 85 percent respondents answered the question in
negative.
15. Awareness about Jago Grahak Jago was quite high. 34.2 percent of the
respondents knew about the slogan. However, majority of respondents
(65.8 percent) did not know what was being conveyed through the
advertisement. 83.2 percent of the respondents agreed that there is a
need to create awareness among the consumers. To the question as to
who should be given the responsibility of educations consumers 62.6
percent of the respondents were of the view that it should be
responsibility of the gram panchayats, 20.9 percent of the view that this
task should be carried by the government and 9 percent felt that the
educational institutions can play a role in this.
Recommendations
1. Rural Markets are flooded with substandard goods, adulterated food
items and unsafe products. The rural markets are dumped with look alike
and pass off products. The quality of service being provided is not only
poor, but lacks transparency resulting in consumer exploitation.
Therefore, there is a need to prioritise the protection of rural consumers
by strengthening the enforcement mechanism.
2. Lack of choice is a major problem in the rural areas as the consumers do
not have access to a variety of products. The dependence of the rural
consumers on the neighbourhood shops, who sell on credit, is adding to
the problem. Therefore standardisation of products and availability of
packed commodities will help the rural consumers to a large extent.
3. The consumers in the rural areas lack awareness about various
measures taken by the government. The multimedia campaign has not
been able to educate the consumers to a large extent. The government
should launch vigorous campaign to educate the consumers with the
involvement of local NGOs, schools and colleges. Awareness about the
consumer rights and obligations should be emphasised in such
programmes. The Panchayati Raj Institutions should also be involved in
the consumer movement and the Gram Sabha should play an active role
in generating consumer awareness. The Panchayats must be
encouraged to celebrate atleast the National Consumer Day.
Organisations like Nehru Yuva Kendras, NSS and NCC should be
87
involved in consumer education at the grass root level as they can play
an important role in enhancing awareness. The strategy should be to use
various organisations to take forward the consumer movement.
4. Rural consumers are not aware about various standardisation marks and
therefore, unable to read and understand the labels on the products.
Both print and electronic media must be used to propagate this message
among the rural consumers.
5. The survey reveals that inspite of 25 years of the CP Act, rural
consumers are largely unaware about the Act and its various provisions.
It would be appropriate that a chapter on consumer protection is
incorporated in the school curriculum so that the children become aware
about the Act and they could act as change agents.
6. The rural markets are mostly unorganised. Therefore, there is also a
need to regulate the rural markets in terms of quality, safety and weights
and measures. The balance used in the rural markets is not of standard
quality. Stones are still being used to weight the products and in most of
the cases the balance is never calibrated properly. The Department of
Legal Metrology (Weights and Measures) in the states has to play a
proactive role in this. Pamphlets and leaf lets should be distributed in the
rural markets periodically highlighting these points and what the
consumers can do to prevent being cheated.
7. The SIRDs (State Institute of Rural Development) have the mandate to
organise training programmes for the elected representatives and other
local functionaries of various departments implementing programmes
and schemes. The SIRDs should include a module on consumer welfare
in their training programmes to educate the participants on the need and
importance of consumer protection.
8. Its time that rural consumers are not viewed as a homogeneous group.
Rural women, children and farmers have specific problems and specific
policies should be in place to educate and protect them.
9. The District Forums should play a more active role and the members
should be involved in consumer literacy. The consumers must be made
awareness about the various decisions of the consumer forums so that
their confidence in the redressal mechanism can be enhanced. The
District Forums should have circuit benches at the block level so that the
rural consumers can have easier access to justice and the redressal
mechanism.
10. Preference should be given to rural areas while setting up consumer
advisory and mediation centres. The rural consumers should also have
the benefit of ADR as it will save both money and time. Such centres
should be funded by the state/central government and set up at each
block headquarters to start with. The local VCOs can be involved in
88
managing the advisory centres. This will help the rural consumers to a
large extent.
Sum Up
Rural Consumers: Need for Education and Empowerment
In the emerging scenario it is necessary to protect the rural consumers
by educating them about their rights and empowering them to make decisions
based on information about the goods and services. Awareness has to be
created among the rural consumers. So far the consumer movement has
largely been confined to the urban centers, and with the expanding rural
markets now the focus has to shift to protect the rural consumer.
Consumer organizations and similar civil society groups have an
important role to play in consumer education. They have the means to provide
consumers with information and help them to make informed choices.
Consumer information needs to be available at the right time and in the right
place before or when purchasing decisions are made. Several NGOs are very
active in the rural areas in advocating for consumer rights but due to their
limited ability to put enough pressure on policy makers, they lack consumer
support. This is the dilemma of NGOs in consumer protection. Regardless of
these limitations consumer empowerment programmes through regular training
and education are very crucial. It is also time to consider consumer education
as part of the school and college curriculum.
There is also a need for the effective implementation of various
provisions of the legislations enacted to protect the consumers from fake and
adulterated products from entering the markets so that the consumers interests
could be safeguarded. Various business houses, NGOs and the governmental
agencies have to come together to join hands to combat counterfeiting.
Strengthening Redressal Mechanism
Redress of complaints is a major concern for consumers. Having a right
to access the redressal mechanism is of prime importance. For the right to
redress to have a practical value, a mechanism must exist to ensure that it can
be exercised effectively. If consumer confidence is to be built up they need
89
assurances that if things go wrong they can seek redress. The District
Consumer Disputes Redressal Forums which act as the first point of contact in
case of a complaint have to play a pro-active role in building consumer
confidence. The district forums should be strengthened and initiatives aimed at
promoting access to simple, swift, effective and inexpensive legal channels be
taken up. In many states the District forums are short of members and also
lack the required infrastructure. The state governments should address the
problems of district forums as well as the consumers to make the redressal
mechanism more effective and also responsive. Moreover, it becomes difficult
for a rural consumer to go to the district headquarters to file a complaint and
then pursue his complaint. It will be better if the concept of circuit benches for
the district forums is also introduced as in the case of National Commission and
the State Commissions so that access to justice is ensured for the rural
consumers. There is also a need to set up more than one district forum in a
district to clear up the pendency of complaints, which has increased
substantially. Any further delay in disposal of the complaints will only shatter the
faith of consumers in the redressal mechanism.
Role of Panchayati Raj Institutions
To reach the rural consumers, it is imperative to involve the panchayati
raj institutions in not only educating consumers but also ensuring that fake and
spurious products are not sold in the rural markets. These institutions can play
a meaningful role in consumer protection and consumer welfare and this has
been recogonised by the policy makers. The recommendations contained in the
20th Report of the Standing Committee on Food, Consumer Affairs and Public
Distribution (14th Lok Sabha) on the subject Consumer Movement in the
Country needs to be effectively implemented. It recommended that the
Department of Consumer Affairs should take the desired initiatives to involve
panchayat raj institutions in various programmes related to consumer
awareness. The publication of the Department specifically UPBHOKTA
JAGARAN should be brought out in regional languages and distributed to the
elected representatives of the PRIs.
90
The Committee further recommended that the best forum to educate the
rural masses about their rights as consumers as well as the techniques to
redress to their grievances is the meetings of the gram sabha. It felt that the
Department of Consumer Affairs in consultation with the Ministry of Panchayati
Raj should take desired initiatives to have mandatory meetings of the Gram
Sabha on 24th December (National Consumer Day) where the villagers could
properly be educated about their rights as consumers. No doubt some initiatives
have been taken in this direction and capacity building and awareness
programmes are being organized through the State Institutes of Rural
Development. But to reach such a large number of rural consumers, a vigorous
campaign with the involvement of the panchayats needs to be taken up.
Specific capacity building programmes for the elected members of the PRIs are
to be developed with adequate financial sanctions. All stakeholders need to
coordinate their activities and ensure that adequate literature is also made
available in the local languages. Street plays and folk songs can be meaningful
instruments to create awareness in the rural areas. Apart from these there is
also a need to formulate appropriate policies and strategies to protect the rural
consumers particularly the farmers, women and children.
91
Annexure
Table 17
Statement Indicating Number of Samples Tested of Drugs, Found
Substandard / Spurious During the Period of 1995-2003
Year
1995-1996
1996-1997
1997-1998
1998-1999
1999-2000
2000-2001
2001-2002
2002-2003
Sample
Not of
Tested Standard
quality
32770
38936
32936
38936
35570
36947
38824
36314
3490
3189
2979
3189
3666
3088
3458
3395
Spurious
100
94
157
94
115
112
96
125
Not of
Standard
quality
(%)
10.65
8.19
9.04
8.19
10.31
8.36
8.91
9.35
Spurious
(%)
0.31
0.24
0.48
0.24
0.32
0.30
0.25
0.34
92
Table 16
Financial Loss due to Counterfeit Products Market of Different Sector
Sector
Pharma
FMCG
The FMCG industry alone has been facing losses of over ` 5,000
crore per year, due to counterfeit products Of the ` 113,000-crore
FMCG market in India (February 2, 2010, India PRwire).
Counterfeit products result in an annual loss of approximately `
30,000 crore to the industry and ` 15,000 crore to the Government
exchequer.
Statistical Facts
15-25% of all medicines sold in India are counterfeit
Estimates put the counterfeit drug industry ranging
from 0.25 to 25 per cent of the overall pharma
industry
Every 5th, if not 4th medicine being sold in over
600,000 retail chemist shops is fake.
The spurious drug market is estimated at INR20-60
billion in 2008 in a market of ` 900 billion, including
exports.
Estimated, the total fake market business is of `
6,500 crores every year!
Estimated that about 38% of medicines supplied in
government hospitals in India are counterfeit, and
40% of all drugs sold in India are counterfeit.
Pass-offs are look-alike products that resemble the
original products, mainly through misspelling of the
trademark. For example, Sunslik instead of Sunsilk,
Clemic Plus or Climic Plus or Cosmic Plus instead
of Clinic Plus, Collegiate for Colgate, Vips Rub or
Vives Rub as a pass-off for Vicks Vaporub.
a global marketing research firm, 10-30 per cent of
cosmetics, toiletries and packaged food are
counterfeits (AC Nielsen)
10% of all major soft drinks sold are spurious, while
10-30% of cosmetics and packaged food are
counterfeits, as per a slew of media reports.
Fake gold and precious metals are worth Rs60
billion in India.
93
Media &
Entertainment
The ` 6,000 crore Indian film industries loses ` 2,500 crore annually
to piracy.
Auto Mobile
Software
th
94