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Distribution: yearly

  • InfoCrop v2.1: Indigenous Crop Simulator

    infocrop

    Central idea: Scientists at the Indian Agricultural Research Institute conducted an experiment using InfoCrop version 2.1 to quantify the impact of hot weather on crop yield in Punjab and Haryana.

    What is InfoCrop v2.1?

    • InfoCrop version 2.1 is India’s only dynamic crop simulation model developed and released by the IARI in 2015 to study the long-term impact of climate change and crop management practices on yield.
    • InfoCrop is more suited for India as it has the life cycle data for almost all the local varieties of 11 crops: paddy, wheat, maize, sorghum, pearl millet, pigeon pea, chickpea, soybean, groundnut, potato and cotton.

    How does it work?

    • In InfoCrop, the parameters are already calibrated to Indian crop varieties and they are updated at regular intervals by the institute.
    • The parameters deal with aspects of-
    1. Weather (precipitation, temperature, radiation and others)
    2. Crop growth (phenology, grain characteristics, leaf growth, temperature and flooding sensitivity and others)
    3. Soil (texture and organic carbon, water holding characteristics and pH levels) and
    4. Pests and crop management (organic matter, fertiliser and irrigation).

    Efficiency of InfoCrop model

    • The model has an 85 per cent accuracy rate.
    • This is on par with widely used dynamic models such as the Decision Support System for Agrotechnology Transfer model, developed by the US, and Agriculture Production Systems sIMulator, developed by Australia.

    Utility of this tool

    • Prevent on-field corruption: India currently relies on field trials, which are expensive and resource-intensive as well as highly corrupt practise.
    • Crop insurance prediction: Government and insurance companies can use this for climate impact projections and for pre- or in-season crop yield forecasts to improve accuracy.
    • Assess crop loss: Besides forecasting, simulation models can be used to assess crop loss in the aftermath of an extreme weather event, which can then be used to provide relief packages.

     

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  • Marburg Virus

    Central idea: Equatorial Guinea has confirmed its first-ever outbreak of Marburg virus disease.

    Where is Equatorial Guinea located?

    marburg

    • Equatorial Guinea is a country located in Central Africa.
    • It is situated on the west coast of Africa, bordered by Cameroon to the north and Gabon to the south and east. It also includes two small islands, Bioko and Annobon, which are located in the Atlantic Ocean.

     

    Marburg Virus

    • The Marburg virus is a highly dangerous pathogen that targets several organs and reduces the body’s ability to function on its own.
    • Depending on the strain and case management, the fatality rates for the virus range from 24% to 88%.

    Transmission and Prevention

    • The natural carrier of the Marburg virus is the African fruit bat, which carries the virus but does not fall sick from it.
    • Human-to-human transmission occurs through contact with blood or other bodily fluids.
    • Rehydration treatment to alleviate symptoms can improve the chances of survival.

    Its outbreaks

    • The virus has caused simultaneous outbreaks of disease in laboratories in Marburg, Germany and Belgrade, Serbia in 1967, resulting in seven deaths.
    • During an outbreak in Angola in 2004, the virus killed 90% of the 252 people who were infected, and in Ghana last year, two people died of Marburg.

     

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    https://indianexpress.com/article/explained/explained-health/equatorial-guinea-confirms-marburg-virus-outbreak-explained-8443753/

  • ‘BIMARU’ Tag: What does this term mean?

    Central idea: While addressing a summit in UP, PM recalled the tag of ‘BIMARU’, once used to describe the state.

    What are BIMARU states?

    • The term “BIMARU” is an acronym formed from the first letters of five states – Bihar, MP, Rajasthan, and UP – that were believed to be economically and socially backward in the 1980s and 1990s.
    • The term was popularized by economist Ashish Bose in the 1980s to describe the poor economic and social indicators of these states.
    • He coined this term in a paper presented to then-PM Rajiv Gandhi.
    • These states were characterized by low literacy rates, poor infrastructure, high poverty rates, and low levels of industrialization.
    • The term “BIMARU” itself is an amalgamation of the Hindi words “bimar” (sick) and “ru” (a suffix meaning “land of”).

    Behind the slang name ‘BIMAR’

    The BIMARU states of Bihar, Madhya Pradesh, Rajasthan, and Uttar Pradesh are characterized by several economic and social features that distinguish them from other states in India. Some of these features include:

    • Low per capita income: These have traditionally had low per capita income levels compared to other states in India, with Bihar having the lowest per capita income among Indian states.
    • High poverty rates: They have a high percentage of people living in poverty, with Bihar and Uttar Pradesh having some of the highest poverty rates in the country.
    • Low literacy rates: They have lower literacy rates than the national average, with Bihar having the lowest literacy rate among Indian states.
    • Poor healthcare indicators: They have traditionally had poor healthcare indicators, with high infant and maternal mortality rates.
    • Agriculture-based economy: These states are primarily agricultural states, with a significant percentage of the population engaged in agriculture and related activities.
    • Significant population: They are among the most populous states in India, with Uttar Pradesh being the most populous state in the country.

    Overall, the BIMARU states have traditionally lagged behind other states in India in terms of economic and social development, although in recent years, there has been progress in improving development indicators.

    Persisting challenges

    These states still face significant challenges, including high levels of poverty and unemployment.

    • Still a national laggard: There is still a significant development gap between these states and the more developed regions of the country. For example, in 2019-20, per capita income in Bihar was only about a third of the national average, and in UP, only about half of the population has access to basic sanitation facilities.
    • High Population: The share of BIMARU states in the absolute increase in India’s population during 2001-26 will be of the order of 50.4 per cent while the share of the south will be only 12.6 per cent.

    How are these states faring now?

    • In recent years, some of these states, such as Rajasthan and Madhya Pradesh, have shown significant improvement.
    • In terms of economic growth, several of these states have experienced high growth rates in recent years, with Madhya Pradesh and Bihar recording growth rates of over 10% in 2019-20.
    • Uttar Pradesh and Rajasthan have also recorded growth rates of over 7% in recent years.
    • There has also been progress in improving social indicators such as literacy rates and healthcare infrastructure.
    • For example, Bihar has seen a significant increase in literacy rates, with the state’s literacy rate increasing from 47% in 2001 to 63% in 2011.

    Alternatives to ‘BIMARU’ terms

    • PM has urged to refrain the use of such terms as they only serves to reinforce negative stereotypes and inhibit progress towards more equitable development across the country.
    • He coined the term such as ‘Aspirational Districts/Blocks’ as alternative to such negative word.

    Way forward

    This involves several key strategies to address the economic and social challenges that these states face. Some of these strategies include:

    • Enhancing economic growth: The BIMARU states need to focus on enhancing economic growth through policies that encourage investment, job creation, and entrepreneurship. This can include measures such as improving the ease of doing business, providing infrastructure, and investing in sectors with high growth potential.
    • Improving social indicators: They need to focus on improving social indicators such as literacy rates, healthcare, and sanitation. This can involve investing in education and healthcare infrastructure, and implementing programs that target poverty reduction and social inclusion.
    • Enhancing agricultural productivity: Given that agriculture is a major contributor to the economy of BIMARU states, efforts should be made to enhance agricultural productivity and efficiency. This can include investments in irrigation and modern agricultural techniques, and support for small and marginal farmers.
    • Encouraging inclusive development: In order to reduce disparities and ensure inclusive development, policies and programs should be targeted towards the most vulnerable and marginalized sections of society. This can include measures to promote gender equality, social inclusion, and address issues such as caste-based discrimination.
    • Leveraging technology: The BIMARU states can leverage technology to enhance economic and social development. This can involve the use of digital technologies to improve access to education and healthcare and promote entrepreneurship and innovation.

    Conclusion

    • Overall, while the BIMARU states have made progress in recent years, there is still a long way to go in terms of achieving more equitable development across the country.

     

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  • What is ‘Office of Profit’?

    Central idea: Jharkhand CM’s chair remains uncertain as the Election Commission (EC) is understood to have conveyed its decision in an office-of-profit complaint against him to the Governor.

    Why in news?

    • Under Section 9A of the Representation of the People Act, 1951, the CM could face disqualification for entering into a government contract.
    • The Constitution of India does not define the Office of Profit. It has only mentioned it under Article 102 (1) and Article 191 (1).

    What is ‘Office of Profit’?

    • In India, the concept of an “Office of Profit” refers to a situation where a person holds a government position that brings them financial gain or other advantages, while at the same time they hold an elected or other public office.
    • The idea behind this concept is to prevent any conflict of interest and ensure that elected representatives do not hold positions that may compromise their independence and impartiality.

    Indian context to this

    • MPs and MLAs, as members of the legislature, hold the government accountable for its work.
    • The essence of disqualification is if legislators hold an ‘office of profit’ under the government, they might be susceptible to government influence, and may not discharge their constitutional mandate fairly.
    • The intent is that there should be no conflict between the duties and interests of an elected member.
    • Hence, the office of profit law simply seeks to enforce a basic feature of the Constitution- the principle of separation of power between the legislature and the executive.

    What governs the term?

    • At present, the Parliament (Prevention of Disqualification) Act, 1959, bars an MP, MLA or an MLC from holding any office of profit under the central or state government unless it is exempted.
    • However, it does not clearly define what constitutes an office of profit.
    • Legislators can face disqualification for holding such positions, which bring them financial or other benefits.
    • Under the provisions of Article 102 (1) and Article 191 (1) of the Constitution, an MP or an MLA (or an MLC) is barred from holding any office of profit under the Central or State government.

    An undefined term

    • The officials of the law ministry are of the view that defining an office of profit could lead to the filing of a number of cases with the Election Commission and the courts.
    • Also, once the definition is changed, one will also have to amend various provisions in the Constitution including Article 102 (1) (a) and Article 109 (1) (a) that deal with the office of profit.
    • It will have an overarching effect on all the other sections of the Constitution.

    Factors constituting an ‘office of profit’

    • The 1959 law does not clearly define what constitutes an office of profit but the definition has evolved over the years with interpretations made in various court judgments.
    • An office of profit has been interpreted to be a position that brings to the office-holder some financial gain, or advantage, or benefit. The amount of such profit is immaterial.
    • In 1964, the Supreme Court ruled that the test for determining whether a person holds an office of profit is the test of appointment.

    What is the ‘test of appointment’?

    Several factors are considered in this determination including factors such as:

    1. whether the government is the appointing authority,
    2. whether the government has the power to terminate the appointment,
    3. whether the government determines the remuneration,
    4. what is the source of remuneration, and
    5. power that comes with the position

     

    Try this MCQ:

    Q. What is an “Office of Profit” in India?

    a) A position that is controlled by the government and comes with no financial gain or other benefits.

    b) A position that is controlled by the government and comes with some financial gain or other benefits.

    c) A position that is controlled by the private sector and comes with no financial gain or other benefits.

    d) A position that is controlled by the private sector and comes with some financial gain or other benefits.

     

    [wpdiscuz-feedback id=”u4ubskrwwm” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

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  • India’s first Law Minister Dr. Ambedkar’s resignation letter missing from records

    ambedkar

    Dr. BR Ambedkar was India’s first Law Minister after independence. The letter of his resignation is now missing from official records.

    Dr Ambedkar as Law Minister

    • Dr. B.R. Ambedkar served as Independent India’s first law minister.
    • He was an Indian jurist, economist, politician, and social reforme, who was posthumously awarded the Bharat Ratna in 1990.
    • It is believed that Sardar Patel and Mahatma Gandhi proposed Dr. Ambedkar’s name for the post of Law Minister in the Nehru Cabinet.

    Why was he selected for the post?

    • Being father of our Constitution: Sardar Patel, then deputy PM, had a high regard for Dr. Ambedkar’s intellectual abilities and his contributions to the drafting of India’s Constitution.
    • Political urge for inclusivity: Additionally, Dr. Ambedkar’s role in the Dalit movement and his fight against caste discrimination also made him a significant political figure.
    • Representation of the marginalized: His appointment as the Law Minister was seen as a symbol of inclusivity and representation of marginalized communities in the government.

    Why did Dr. Ambedkar resign?

    • Political differences with Nehru: He resigned as Law Minister, due to differences with the then PM, Jawaharlal Nehru, over the Hindu Code Bill. He specifically wanted to reform Hindu Personal Laws and not every personal laws in India.
    • Row over reforming Personal Laws: The bill aimed to reform Hindu personal laws related to marriage, divorce, and inheritance, but Dr. Ambedkar believed that it did not go far enough in granting women’s rights and wanted more radical changes.
    • Injustice to women: Ambedkar had proposed a more comprehensive set of reforms that would have given women greater rights in matters such as property ownership and inheritance, but his proposals were met with resistance from Nehru and other members of the government.

    Efforts to locate his resignation letter

    • The letter was not found in the National Archives of India and the Ministry of Home Affairs.
    • The Maharashtra government has also been unable to locate the letter in its archives.
    • RTI (Right to Information) requests were also unsuccessful.

    Significance of his letter

    • The missing letter is a matter of concern as it is an important historical document.
    • Ambedkar’s resignation was a significant event in India’s political history and the reasons behind it are still relevant today.
    • The letter could shed light on the differences between the visionary Dr. Ambedkar and then mainstream politicians.

     

     

    India’s first Provisional Government (Constitutionally)

     

    • Jawaharlal Nehru became the first Prime Minister of India after the country gained independence in 1947.
    • The members of his first cabinet, which was sworn in on August 15, 1947, were as follows:
    1. Jawaharlal Nehru – Prime Minister and Minister of External Affairs
    2. Vallabhbhai Patel – Deputy Prime Minister and Minister of Home Affairs
    3. Dr. B.R. Ambedkar – Minister of Law and Member of the Viceroy’s Executive Council
    4. C. Rajagopalachari – Minister of Industry and Supply
    5. John Mathai – Minister of Railways
    6. Liaquat Ali Khan – Minister of Finance
    7. Baldev Singh – Minister of Defence
    8. Sardar Baldev Singh – Minister of Communications
    9. Sardar Swaran Singh – Minister of Works, Mines and Power
    10. Jagjivan Ram – Minister of Labour and Rehabilitation
    11. Dr. Rajendra Prasad – Minister of Food and Agriculture
    12. Maulana Abul Kalam Azad – Minister of Education
    13. Sardar K.M. Panikkar – Minister of States
    14. Rafi Ahmed Kidwai – Minister of Communications (Independent Charge)
    15. Asaf Ali – Minister of Railways (Independent Charge)
    • It is worth noting that this was a provisional government, and the first general election to form a permanent government was held in 1952.

     

    Note: Azad Hind was not India’s first provisional government. The credit for establishing that – formally known as the ”Hukumat-i-Moktar-i-Hind” – in Kabul on 1st Dec, 1915, goes to Raja Mahendra Pratap and Maulana Barkatullah.

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  • MIIRA: India readies plan to popularise millets on world stage

    On the premises of G20, India is planning to propose the launch of a global initiative ‘MIIRA’ to encourage the consumption and production of millets.

    What are Millets?

    millet

    • Millets are a group of small-seeded grasses that are commonly cultivated and consumed as staple foods in many parts of the world, including Africa and Asia.
    • Millets are highly nutritious, gluten-free, and have a low glycemic index, making them an ideal food for people with various dietary requirements and health conditions.
    • They are cereals such as sorghum (jowar), pearl millet (bajra), foxtail millet (kangni/ Italian millet), little millet (kutki), kodo millet, finger millet (ragi/ mandua), proso millet (cheena/ common millet), barnyard millet (sawa/ sanwa/ jhangora), and brown top millet (korale).

    What is MIIRA?

    • “MIIRA” or Millet International Initiative for Research and Awareness will be aimed at coordinating millet research programmes at the international level.
    • For MIIRA to take off, India will contribute the “seed money” while each G20 member will later have to contribute to its budget in the form of a membership fee.
    • The secretariat will be in Delhi, the sources said, adding that this will, with India being a major producer of millets, ensure a flow of investment from the country’s industry and research bodies.
    • It is in line with the UN declaring 2023 as the International Year of Millets and the Centre’s plan to make India a global hub for millets.
    • It is launched keeping in mind the nutritional value and the climate-resilient nature of millets.

    Key objectives

    • MIIRA will aim to connect millet research organisations across the world while also supporting research on millet crops.
    • Besides setting up a web platform to connect researchers and holding international research conferences, the plan is also to promote millet consumption by raising awareness.

    Ecological significance of millets

    • Drought resistance: Millets are drought-resistant crops, which means that they can grow in areas with low rainfall and are less susceptible to the effects of drought. This makes them an ideal crop for farmers in regions that are prone to drought and other climate-related risks.
    • Soil health: Millets have shallow roots and can grow in poor soil, which means that they can be cultivated in marginal lands that are unsuitable for other crops. Millets also improve soil health by enhancing soil organic matter, reducing soil erosion, and improving soil structure and fertility.
    • Low carbon footprint: Millets have a low carbon footprint compared to other crops because they require less water, fertilizer, and pesticides. They are also less energy-intensive to produce and transport.
    • Resilience to climate change: Millets are known for their resilience to climate change and extreme weather events, such as floods and droughts. By promoting the cultivation and consumption of millets, countries can build resilience to the impacts of climate change and ensure food security in the face of these challenges.
    • Biodiversity conservation: Millets are often grown in mixed cropping systems, which promote biodiversity and can help conserve natural resources. The cultivation of millets also supports the conservation of traditional knowledge and local agricultural practices, which can be important for the resilience of rural communities in the face of climate change.

    Recent initiatives to promote Millets

    • Finance Minister described various types of millets as ‘Shree Anna’ in her budget speech.
    • To make India a global hub for Shree Anna, the Indian Institute of Millet Research, Hyderabad will be supported as the Centre of Excellence.
    • In 2018, the Agriculture Ministry declared some millets as ‘Nutri Cereals’ for their “high nutritive value”.

    How popular are millets globally?

    • Now grown in more than 130 countries, millets are the traditional food for more than half a billion people in Asia and Africa.
    • Gobally, jowar is the most widely grown millet crop; its major producers are the US, China, Australia, India, Argentina, Nigeria, and Sudan.
    • Bajra, another major millet crop, is mainly grown in some African countries and India, where millets are mainly a kharif crop.

     

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  • Central agencies gear up for FATF mutual evaluations

    Central agencies, including the Financial Intelligence Unit (FIU) and the Directorate of Revenue Intelligence (DRI), have begun preparations for the Financial Action Task Force’s (FATF) mutual evaluation process of India.

    What is the news?

    • India is due to undergo the mutual evaluation process in the second half of 2022, which will assess the country’s compliance with international anti-money laundering and counter-terror financing standards.

    What is FATF?

    • FATF is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering.
    • The FATF Secretariat is housed at the OECD headquarters in Paris.
    • It holds three Plenary meetings in the course of each of its 12-month rotating presidencies.
    • As of 2019, FATF consisted of 37 member jurisdictions.

    India’s say in FATF

    • India became an Observer at FATF in 2006. Since then, it had been working towards full-fledged membership.
    • On June 25, 2010, India was taken in as the 34th country member of FATF.

    What is FATF’s mutual evaluation process?

    • The mutual evaluation process is a review of a country’s legal and institutional framework to combat money laundering and terrorist financing, as well as its implementation of measures to prevent these crimes.
    • During the process, the FATF assesses a country’s compliance with its 40 recommendations on anti-money laundering and counter-terror financing, as well as the level of effectiveness of these measures in practice.
    • The outcome of the mutual evaluation is a report that highlights a country’s strengths, weaknesses, and areas for improvement, and assigns a rating based on the level of compliance and effectiveness.

    How will FATF evaluate India?

    • The FATF’s evaluation will cover a wide range of areas, including India’s legal framework, regulatory system, law enforcement efforts, and international cooperation.
    • Central agencies have been working to ensure that India’s anti-money laundering and counter-terror financing laws are in line with international standards, and that their implementation is effective.

    Significance of this evaluation

    • The outcome of the evaluation will be a report that highlights India’s strengths, weaknesses, and areas for improvement, and assigns a rating based on the level of compliance and effectiveness.
    • The mutual evaluation process is an important tool in the global fight against money laundering and terrorist financing.
    • Its outcome can have significant implications for a country’s access to international financial markets and its reputation in the global community.

     

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  • Geo-heritage Sites and Geo-relics Bill, 2022

    The draft Geo-heritage Sites and Geo-relics (Preservation and Maintenance) Bill, 2022, aimed at protecting India’s geological heritage that includes fossils, sedimentary rocks, natural structures, has raised alarm in India’s geo-sciences and palaeontology community.

    Geo-heritage Sites and Geo-relics Bill, 2022

    Objectives

    • Protect and preserve the geo-heritage sites and geo-relics of national importance in India.
    • Empower the central government to identify, declare, acquire, preserve, and maintain geo-heritage sites and geo-relics.
    • Ensure that the valuable geological specimens and formations are not damaged or destroyed by human activity or natural disasters.
    • Promote research, education, and awareness about the significance and value of geo-heritage sites and geo-relics.
    • Provide a legal framework for the protection and management of geo-heritage sites and geo-relics, to ensure their long-term preservation and maintenance.

    Key Features

    • Declaration of geoheritage sites: The central government may declare a site as a geoheritage site of national importance. Geoheritage sites must contain features of geological significance, such as geo-relics or natural rock sculptures. Geo-relics are movable relics such as fossils or meteorites.
    • Protection of geoheritage sites: The draft Bill empowers the central government to acquire, preserve, and maintain geoheritage sites. The Director General of the Geological Survey of India will be given powers for this purpose, such as surveying and excavation. Construction on these sites will be prohibited. However, it may be authorised by the Director General to preserve the site or to repair a structure that predates the declaration of the site.
    • Protection of geo-relics: The central government may declare that a geo-relic cannot be moved from its site, by notification, unless permitted by the Director General. The Director General may direct the acquisition of a geo-relic to protect it.
    • Offences and penalties: Offences under the Bill include (i) destruction or misuse of a geoheritage site, (ii) illegal construction, and (iii) damaging or illegally moving a geo-relic. These offences are punishable with a fine of up to five lakh rupees or imprisonment of up to six months, or both.

    Issues raised with this legislation

    • Narrow definition of “geo-relics”: The bill defines “geo-relics” as movable geological specimens, but does not include other important geological features, such as geological formations or landscapes.
    • No academic participation: The bill gives exclusive powers to the Geological Survey of India (GSI) for identifying, declaring, acquiring, preserving, and maintaining geo-heritage sites and geo-relics, without any role for state geological departments or universities.
    • Excessive powers vested to GSI: Experts have criticized the draft bill for vesting exclusive powers in the GSI, without any role for state geological departments or universities. The GSI will be responsible for identifying, declaring, acquiring, preserving, and maintaining geo-heritage sites and geo-relics.
    • Lack of public participation: The bill has been criticized for lacking any legal framework for the involvement of local communities or civil society organizations in the protection and management of geo-heritage sites.
    • Lacks transparency: The bill has been criticized for lacking transparency and public consultation, with some experts suggesting that it should be redrafted to ensure a more participatory and inclusive approach to the protection and management of geo-heritage sites.

    Way forward

    • Inclusion of state geological departments and universities: The bill should include the participation of state geological departments and universities in the identification, declaration, acquisition, preservation, and maintenance of geo-heritage sites and geo-relics.
    • Public participation: The bill should be amended to include a legal framework for the participation of local communities and civil society organizations in the protection and management of geo-heritage sites.
    • Accountability and oversight: The bill should be revised to include provisions for greater accountability and oversight of the GSI, to ensure that its powers are not misused or abused.
    • Expanded definition of “geo-relics”: The bill should be amended to include a broader definition of “geo-relics” that encompasses a wider range of important geological features.
    • Wider consultation: The drafting and implementation of the bill should be made more transparent and inclusive, with greater consultation with all stakeholders to ensure that their interests are adequately represented.

     

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  • 1st Saudi Women to space via Axiom-2 Mission

    saudi

    Central idea: Saudi Arabia will send its first-ever woman astronaut on the US-led Axiom 2 space mission later this year, in the latest move to revamp the kingdom’s ultra-conservative image.

    Axiom Mission 2

    • Axiom Mission 2 is a private spaceflight mission organized by Axiom Space, a Houston-based aerospace company.
    • The mission is scheduled to launch in 2023 and aims to send four private individuals on a 10-day trip to the International Space Station (ISS).
    • Rayyana Barnawi will join fellow Saudi male astronaut Ali Al-Qarni on a mission to the International Space Station (ISS) during the second quarter of 2023.
    • The mission is the second private crewed flight to the ISS, following the Inspiration4 mission by SpaceX.
    • The crew is expected to undergo months of training, including simulations, physical conditioning, and emergency procedures.
    • The mission is part of Axiom Space’s plan to establish a private space station attached to the ISS, which is expected to be launched in 2024.

     

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  • India’s Agricultural Farm Exports data expected to reach a new high

    export

    India’s agricultural exports are poised to scale a new peak in the financial year ending March 31, 2023. But so are imports, bringing down the overall farm trade surplus.

    Agriculture trade in a nutshell

    • India’s agricultural exports are expected to reach a new high in FY 2022-23.
    • The value of farm exports from April-December 2022 was 7.9% higher than the same period of the previous year, totalling $39 billion.
    • Imports of agricultural produce have also grown 15.4% from $24.1 billion in April-December 2021 to $27.8 billion in April-December 2022, resulting in a shrinking of the overall farm trade surplus.
    • As a result, there has been a further shrinking of the surplus on the farm trade account.

    Note: This newscard provides useful insights regarding agricultural exports-import balance. Aspirants are not advised to memorize the numbers but imbibe the trend.

    Drivers of Exports

    The two big contributors to India’s agri-export growth have been rice and sugar.

    (1) Rice

    • India in 2021-22 shipped out an all-time-high 21.21 million tonnes (mt) of rice valued at $9.66 billion.
    • That included 17.26 mt of non-basmati (worth $6.12 billion) and 3.95 mt ($3.54 billion) of basmati rice.
    • In the current fiscal, the growth has been primarily led by basmati rice.
    • Its exports have gone up by 40.3% in value (from $2.38 billion in April-December 2021 to $3.34 billion in April-December 2022).
    • The corresponding increases have been less for non-basmati exports: 3.3% in value ($4.51 billion to $4.66 billion) and 4.6% in quantity (12.60 mt to 13.17 mt).

    (2) Sugars

    • Sugar exports hit a record value of $4.60 billion in 2021-22, as against $2.79 billion, $1.97 billion, $1.36 billion, and $810.90 million in the preceding four fiscals.
    • This fiscal has seen a further surge of 43.6%, from $2.78 billion in April-December 2021 to $3.99 billion in April-December 2022.
    • India exports of rice and sugar are well on course to touch, if not top, $11 billion and $6 billion respectively in 2022-23.

    Key imports

    More than a general export slowdown, it’s the growth in imports that should be cause for concern.  This has come mainly from three commodities-

    (1) Edible oils

    • The first is vegetable oils, whose imports shot up from $11.09 bn in 2020-21 to $18.99 bn in 2021-22.
    • Imports now account for over 60% of the country’s estimated 22.5-23 mt annual oil consumption.

    (2) Cotton

    • India has turned from a net exporter to a net importer of cotton.
    • India’s cotton exports reached an all-time-high of $4.33 bn back in 2011-12.
    • It remained at reasonably high levels until 2013-14 ($3.64 bn), before plunging to $1.62 bn by 2016-17 and $1.06 bn in 2019-20.
    • There was a recovery thereafter to $1.90 bn in 2020-21 and $2.82 bn in 2021-22.
    • But during this fiscal, imports have also soared from $414.59 million to $1.32 billion for the same period.

    Policy implications

    export

    • It can be seen how closely India’s farm performance is linked to international commodity prices.
    • The UN Food and Agriculture Organization’s (FAO) Food Price Index — having a base value of 100 for the 2014-16 period — averaged 122.5 points in 2012-13 and 119.1 points in 2013-14.
    • Those were the years when India’s agri-exports were at $42-43 billion. As the index crashed to 90-95 points in 2015-16 and 2016-17, so did exports to $33-34 billion.
    • The exports recovery in 2020-21 and 2021-22 happened along with — rather, on the back of — rising global prices and the FAO index averaging 102.5 points and 133 points in the two years.

    Inferences from this trend

    Ans. India’s farm exports will slow down in the months ahead.

    • Moreover, this could be accompanied by increased imports, as was the case from 2014-15 to 2017-18.
    • In the event, the focus of policymakers too, may have to shift from being pro-consumer (to the extent of banning/ restricting exports) to pro-producer (providing tariff protection against unbridled imports).

    Way forward

    • The government needs to do something about cotton and edible oils.
    • India’s cotton production has declined from the high of 398 lakh bales in 2013-14 to a 12-year low of 307.05 lakh bales in 2021-22.
    • Clearly, the effects of not allowing new genetic modification (GM) technologies after the first-generation Bt cotton are showing, and impacting exports as well.
    • A proactive approach is required in edible oils as well, where planting of GM hybrid mustard has been permitted with great reluctance — and which is now a matter before the Supreme Court.

     

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