Government and Industry Meet on Amendments in Standards of Weights and Measures (Packaged Commodities) Rules, 1977
December 26, 2006, New Delhi

Welcome Address by Shri Vivek Bharati, Advisor, FICCI

Ms Alka Sirohi, Additional Secretary, Department of Consumer Affairs
Shri Bejon Misra, CEO, Consumer VOICE
Shri Ashok Gupta, Vice-President-Legal, Hindustan Lever Limited
Shri Pranay Sinha, Co-Chairman, FICCI Retail Committee.
Senior Government Officials,
Distinguished Participants,
Ladies and Gentlemen,

I take this opportunity to thank Ms Alka Sirohi, Additional Secretary for accepting our request to be the chief guest and deliver the inaugural address at today's Government-Industry interface on one of the most vital topic of economic legislation that has wider ramification not only on consumer's interests but also on manufacturers, inspite of her busy and hectic schedule. I am also thankful to Mr Mathurbhootham for sparing his valuable time and be with us to chair the plenary session.

Today's meet assumes added significance, as Government would shortly enforce the new Rules pertaining to Packaged Commodities. The Department has ensured us that they would give serious consideration to the feedback from industry.

The Standards of Weight and Measures Act, 1976, not only establishes the standards of weights and measures, but also ensures correct measurements at all levels of trade or commerce and in the fields of health and security.

Keeping in view the rapid advancement of science and technology and future globalization, it would be in fitness of things to extend the scope of weights and measures and improving the weighing and measurement techniques with adoption of latest definitions of based units. It is a matter of great satisfaction that while formulating the Draft Rules, the Government has given due consideration on these vital aspects.

We, in FICCI, are indeed happy to note that the new Rules so formulated have been consulted extensively with various stakeholders. In the past, FICCI at the behest of Department of Consumer Affairs had organized meetings with representatives from government, industry and NGOs to deliberate on the Draft Rules. In order to simplify, modernize and to bring them in conformity with international standards, these rules were suitably amended.

The Rules so drafted, are simple, easy to understand and have taken into consideration the developments in the economies worldwide. The redundant provisions have been deleted and provisions of same nature scattered at different places have been clubbed. To meet the requirements of emerging environment, new explanations, provisions and provisos have been added. This indeed is an applaudable step that the government has taken and this will create a path for doing away with archaic laws and rules.

The modification in the Rules is a step towards making our economic statutes world class and would benefit all the stakeholders - manufacturers, wholesalers, retailers and consumers.

However, I would like to submit the following for the consideration of Government and participants.

One: The deletion of schedule IV which require information to be given on the package "when packed" requires more time for implementation rather than by 2008, as to comply with it manufacturers need not only new equipments & technologies but a world class backend support and supply chain management.

Second: Insertion of new definition of "industrial consumer" & "institutional consumer" in the explanation of Rule 2A clause (b) creates an anomaly whereby transactions between agents/Wholesalers/brokers/stockist and the buyer for commercial purpose are not exempted from applicability of rules. It narrows down the ambit & scope of the definition by excluding these transactions.

Third: Omission of word "or volume" from fifth schedule against item No 14 (ice creams), now it says ice creams to be packed by weight. Since the product Ice creams & Frozen Desserts are packed by volume all over the world and the machines packing ice creams also designed to pack by volume and the consumers at large accepted/knew the product by volume. The amendment may be reconsidered accordingly.

1. Without taking anymore of your time, may I now request Mr. Ashok Gupta, Vice-President-Legal, Hindustan Lever Limited to give brief overview.
2. May I now request Ms. Alka Sirohi to address the participants.