Thursday, December 23, 2010

The Plight of Street Vendors

Street vendors represent one of the lower strata of the Indian society. Most vendors are people who have left their villages with the hope of eking out a living. More often than not, they are the bread winners and have a great responsibility towards their families. Most hawkers sell goods of everyday use. A large part of the urban population is dependent on the goods sold by them including vegetables. Some hawkers sell home made crafts and can be considered as a part of the small scale industries. Their business involves a lot of creativity as they sell their goods despite all odds. As such, they can be considered as micro entrepreneurs. And even though the elite may consider them as traffic hazards, they are indispensable due to the service they provide to the masses.

Despite the increase in number of retail chains in cities, especially in the last decade or so, street vendors continue to be popular. This is because a common man is willing to trade quality for a more affordable price that the street vendor provides him. Sometimes, customers even complain about how genetically modified vegetables sold in retail outlets look better but are not as healthy as those in their local
bazaar. Also as vending is an unorganized trade, haggling is possible. This makes it more attractive for a customer who cringes every time he has to pay more for the same item when he is in a retail outlet. Moreover, street vendors are found everywhere. Usually vendors selling a particular item set up their stalls together and it becomes very convenient for a customer to get the best price. Thus, considering the economic situation of the masses in our country, it is impossible to have a blanket ban on street vending.

For ages, the
bazaar has been an integral part of the Indian way of life. Foreign writers have been amazed by the sights and sounds of the bazaar and have penned numerous stories revolving around them. Sometimes even the local hero from the Bollywood blockbusters is a street vendor. The ‘Incredible India’ ads, which have attracted so many foreign tourists, continue to use the bazaar as one of their themes.

Despite the services offered by such a large segment of society to the common man and its integration in popular culture, the plight of the street vendors goes unnoticed. The hawker continues to be harassed at the hands of the corrupt administration. Hawkers lose up to 10-20% percent of their earnings in the form of bribes to policemen. While the civic authorities continue to mint money; neither the problems to society, such as traffic congestion and illegal shanties, nor the problems of hawkers are solved.

This is reported to be continuing even after the ruling of the Supreme Court that “if properly regulated according to the exigency of the circumstances, the small traders on the side walks can considerably add to the comfort and convenience of the general public, by making available ordinary articles of everyday use for a comparatively lesser price. An ordinary person, not very affluent, while hurrying towards his home after a day’s work can pick up these articles without going out of his way to find a regular market. The right to carry on trade or business mentioned in Article 19(1)g of the Constitution, on street pavements, if properly regulated cannot be denied on the ground that the streets are meant exclusively for passing or re-passing and no other use.” Also according to Articles 39 (a) and (b), the government should protect the right of street vendors to earn their livelihood.
Given the current situation, the National Policy on Urban Street Vendors 2009 seems to be a step in the right direction. Also the Street Vendors Bill, which has been sent to States/UTs since, must be implemented immediately. According to the policy, street vending is considered as a legal urban activity and provisions must be made for demarcation of areas where street vendors can conduct their businesses taking all factors into account. Also the policy is forward looking and provides for education and social welfare schemes for the vendors.
National Association of Street Vendors of India (NASVI), which is registered under the Societies Registration Act of 1860, is a body committed to struggle for creating a supportive environment for the street vendors to carry out their legitimate vending. NASVI in unsatisfied by the steps being taken by the government. Instead of amending the policy, which has existed since 2004, NASVI has called for quick implementation of the policy. Unfortunately so far, only 5 states and 15 cities have implemented the policy.

Models, as encompassed under the policy, already exist in certain places in the country. Fashion Street on Mahatma Gandhi Road, Mumbai is an excellent example. Every collegian knows about it. Most people go to Fashion Street at least once, whenever they are in Mumbai. Vendors in Kolkata who serve open-air food have taken lessons in basic hygiene under a pilot project run by the All India Institute of Health And Hygiene. A micro – enterprise undertaken on the beaches of Chennai and in Karnataka to provide solar photovoltaic solar lanterns to street vendors has been very successful. A “Hawkers Common Fund”, from the money earned through the lighting business, has since been constituted to give small loans to the vendors. IMA Bazaar in Imphal is run by women alone who have been given licences by the Municipal Corporation to carry out their trade. More success stories can be scripted if the policy is implemented properly.

It is amply clear that hawkers exist only because the costumers want them to exist. Therefore, it is pertinent for states to make necessary amendments to their municipal corporation/police rules to accommodate such a large segment of society and legalise their trade. So instead of evicting street vendors from their ‘natural markets’ such as railway stations and bus stations, they must be provided with vending zones to carry out their trade. Providing licences to the vendors is the first step in this regard. After their trade has been established as a legal profession, social and economic welfare schemes can be implemented with the help of the state government, NGOs, microfinance institutions and the like. Following such a policy through the length and breadth of the country will have wide implications. Firstly and most importantly, the basic needs of the street vendors will be met. The police, corrupt officials and local gangsters will lose their stranglehold over them and the vendors will not lose substantial parts of their salaries in the form of bribes. With the introduction of microfinance and welfare schemes, these vendors can be uplifted to make their business more economically viable. Also in due course of time, some of them might move on to more profitable professions. Secondly, the consumers i.e. the
aam aadmi or the common man will not be inconvenienced and will still have places to get cheap goods of everyday use. Thirdly, the cash – strapped municipal corporations can earn several hundreds of crores annually through levies and fees.

Although different scenarios may exist in each instance where the trade has to be legitimized, broad guidelines which have been formulated under the National Policy on Street Vendors must be implemented immediately.

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