(a) Any substance added to a food item to reduce its quality in order to increase its quantity is called an adulterant. This act of addition of the adulterant in food item is known as food adulteration.
The addition of adulterant may be intentional or accidental. But generally the adulterant addition is intentional. The major reason for the intentional addition of these adulterants is for increasing the profit margin on the expense of the health of the public or consumer.
Example—
1. In the name of original ghee, it is adulterated with vanaspati.
2. Honey is adulterated with sugar.
Harmful effects of food adulteration
1. It leads to serious health hazarding like cancer, cardiac problems, insomnia and paralysis and other neurological problems or even death as well.
2. It reduces the quality of commodity as well as create economic loss to the consumer. Measure formulated to prevent the problem of food Adulteration in India Prevention of Food Adulteration Act, 1954—It was enacted to eradicate rampant evil of food adulteration and to ensure purity in food articles so as to maintain public health.
(b) The two methods adopted by commercial banks to advance loans to the general public are as under—
1. Overdraft—The overdraft facility is allowed to the depositor maintaining a current account with the bank. According to this facility a borrower is allowed to withdraw more amount than what he has deposited. The excess amount so withdrawn has to be repaid to the bank in a short period and that too with interest. The rate of interest is usually charged more than that charged in case of loans.
2. Discounting of Bills of Exchange—The banks provide financial help to the merchants and exporters by way of discounting their bills of exchange. However, these merchants and exporters must be the customers of that bank. In such facility, the bank pays the amount of bill presented by the customer, after deducting the.usual hank discount. This way, the customer gets the amount of the bill before the date of its maturity. As such, the bank assists its customers to a great extent by accepting their bills and providing them with liquid assets. Usually a bill matures after 90 days or so and then the bank presents it to the acceptor and receives full amount of the bill.
