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GS Paper: GS3

  •  An either-or approach won’t help quell food inflation 

    Why in the News?

    The recently released Consumer Price Index-Combined (CPI-C) data reveals that food inflation, particularly from pulses, vegetables, and cereals, is rising faster than the overall CPI inflation.

    • The Consumer Price Index-Combined (CPI-C) is the index used to calculate headline inflation in India. It is calculated and published monthly by the Bureau of Labor Statistics.

    Key Highlights of the CPI-C Data:

    • On Current Inflation Rates: The general CPI inflation stands at 3.54%, while food inflation is notably higher at 5.06%, driven by increases in prices of pulses, vegetables, and cereals.
    • On Inflation Dynamics in the Past: Over the past decade, food inflation has contributed to the overall volatility of prices. In 52 of the 124 months analyzed, food inflation exceeded the general CPI rate, indicating a significant and fluctuating impact on overall inflation.
    • Expectations by the report: The RBI has highlighted that food inflation significantly influences inflationary expectations, which remain unanchored, often exceeding actual inflation rates.

    (*Note: These data don’t include income taxes or investment items like stocks, bonds, and life insurance.)

    Recently impact of good Monsoon on Food Production and Inflation: 

    • Increased Sowing Due to Robust Monsoon: India has reported a significant increase in the sowing of paddy and pulses, with paddy sowing up by 16% to 39 million hectares and pulses by 7% to 12 million hectares as of August 23, 2024, driven by a strong monsoon.
    • Potential Impact on Food Inflation: Despite concerns over rising food inflation, the expanded cultivation area for staple crops like rice and pulses could positively impact the agriculture sector and support government efforts to enhance farm productivity.

    Present Situation of Inflation in the Agri-Food Sector

    • Volatility in Food Prices: Food inflation has been volatile, with instances of both high and low inflation. For example, food inflation was above 6% in 52 out of 124 months, while it was below 2% in 20 months, including periods of negative inflation.
    • Supply-Side Factors: The disparities between food and retail inflation can be attributed to supply-side issues such as monsoon variability, crop failures, and government policies like minimum support prices (MSPs). Excess demand for specific food categories, such as oils and fats, has also contributed to higher inflation.
    • Regional Disparities: Rural CPI inflation is higher (5.43%) compared to urban CPI (4.11%), reflecting the impact of agricultural conditions and market dynamics on rural households.

    How Can the Gap Between Farmer and Consumer Be Reduced?

    • Market-Driven Pricing: The government should reconsider its intervention in agricultural markets through MSPs, allowing market forces to determine food prices. This could help reduce production distortions and improve price signals for farmers.
    • Enhancing Agricultural Productivity: Government expenditure should focus on increasing agricultural productivity through better technology and irrigation practices, which can lead to more stable food supplies and prices.
    • Reducing Middlemen: Implementing measures to eliminate middlemen in the supply chain can help narrow the gap between what farmers receive and what consumers pay.
    • Infrastructure Development: Improving infrastructure for storage and transportation can help reduce food wastage and ensure that food products reach consumers efficiently, further stabilizing prices.

    Conclusion: Need to encourage the adoption of advanced agricultural technologies and sustainable farming practices to boost productivity and reduce the impact of supply-side disruptions, ensuring more consistent food supplies and stable prices.

    Mains PYQ:

    Q Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments.  (UPSC IAS/2017)

  •  Advancing equity, from COVID-19 to Mpox  

    Why in the News?

    The recent declaration of Mpox (formerly monkeypox) as a Public Health Emergency of International Concern (PHEIC) by the WHO highlights several critical lessons learned from the COVID-19 pandemic.

    Major Learnings from the COVID-19 Pandemic

    • Vaccine Manufacturing Capabilities: The COVID-19 pandemic exposed significant gaps in vaccine manufacturing capabilities, particularly in the Global South. This inadequacy was exacerbated by limited technology transfers and a lack of know-how to produce vaccines developed in high-income countries.
      • The current response to the Mpox outbreak reflects similar challenges, emphasizing the need for robust local manufacturing capabilities to ensure equitable access to vaccines.
    • Global Cooperation: The pandemic underscored the necessity of international collaboration in health emergencies. The WHO’s declaration of Mpox as a PHEIC aims to foster this cooperation, encouraging countries and organizations to share information and resources to combat the outbreak.
    • Equity in Health Responses: The recent amendments to the International Health Regulations (IHR) include equity as a core principle, which is crucial for ensuring that all countries, particularly those in lower-middle-income regions, have access to essential medical products during emergencies.

    Recent Initiatives by India’s Drug Regulatory Agency:

    • On August 7, 2024, India’s Central Drugs Standard Control Organization (CDSCO) decided that drugs already approved in developed countries like the U.S. and those in the EU can be used during pandemics in India without needing to go through clinical trials here.
    • This regulatory change is expected to expedite the availability of critical vaccines like MVA-BN (Jynneos) in India, facilitating faster access to vaccines necessary to combat the Mpox outbreak.

    What could be the more improved solution for it?

    • Scaling Up Production: The demand for pox vaccines is anticipated to surge, with estimates by AfricaCDC, suggesting that 10 million doses are needed to control the outbreak. However, only 0.21 million doses are currently available.
      • Indian manufacturers, such as the Serum Institute of India and Bharat Biotech, have the potential to rapidly scale up production of the MVA-BN vaccine using established processes and supply chains.
    • Comprehensive Technology Transfer: Effective technology transfer involves sharing not only the vaccine but also the necessary biological resources, manufacturing know-how, and patents. This is essential to enable lower-middle-income countries to produce vaccines independently, reducing reliance on high-income countries.
    • Collaborative Negotiations: The Indian government, in collaboration with international organizations like WHO and Gavi, should negotiate with Bavarian Nordic for technology transfer to technology transfer for developing the vaccine.

    Way forward: 

    • Strengthen Local Manufacturing: Encourage Indian manufacturers like the Serum Institute of India and Bharat Biotech to rapidly scale up production of the MVA-BN vaccine, ensuring timely and sufficient supply to meet both domestic and global demand during the mpox outbreak.
    • Facilitate Technology Transfer: The Indian government should lead collaborative efforts with international organizations to secure comprehensive technology transfers, enabling domestic production of vaccines and reducing dependency on high-income countries.

    Mains PYQ:

    Q COVID-19 pandemic has caused unprecedented devastation worldwide. However, technological advancements are being availed readily to win over the crisis. Give an account of how technology was sought to aid the management of the pandemic.  (UPSC IAS/2016)

  • Chile’s Atacama Salt Flat sinking due to Lithium Mining

    Why in the News?

    • A recent study published in journal IEEE Transactions on Geoscience and Remote Sensing has found that Chile’s Atacama salt flat (Salar de Atacama) is sinking at a rate of 1 to 2 centimetres per year due to lithium brine extraction.
      • Lithium brine extraction involves pumping salt-rich water to the surface and letting it evaporate in ponds to collect lithium.

    About Salar de Atacama  

    • The Salar de Atacama in Chile boasts the highest lithium concentration (0.15% by weight) among all brine sources worldwide.
    • Argentina boasts more than half of the world’s total lithium resources.
    • It holds the distinction of having the 2nd-largest lithium resources, the 3rd-largest lithium reserves, and the 4th-largest lithium production in the world.
    • It is a part of the Lithium Triangle comprising of Uyuni (Bolivia) and Hombre Muerto (Argentina).

    Key Findings of the Study:

    • Researchers analyzed satellite data from 2020 to 2023 to observe deformations in the Earth’s crust in the salt flat.
    • The area experiencing subsidence measures approximately 8 km north to south and 5 km east to west.
    • The study indicates that subsidence occurs because the rate of lithium brine pumping is faster than the recharge rate of aquifers, leading to the ground sinking.

    What is Lithium?

    • Lithium is an alkali metal, often referred to as ‘white gold’ due to its value and color.
    • It is a soft, silvery-white metal, and notably, it is the lightest metal on the periodic table.
    • It is typically found in various minerals like spodumene, petalite, and lepidolite, from which it is extracted and refined.
    • The leading producers of lithium are Australia, Chile, China, and Argentina.

    Effects of Lithium Mining on Environment:

    • Water Use: Lithium mining, especially from salt flats and brine pools, requires substantial water usage, which can deplete local water resources in arid areas.
    • Ecological Disruption: The extraction process can alter the chemical balance of the natural environment, affecting local flora and fauna.
    • Pollution: Mining and processing lithium can release harmful chemicals into the environment, impacting air and water quality.

    PYQ:

    [2008] Which one of the following pairs of metals constitutes the lightest metal and the heaviest metal, respectively?

    (a) Lithium and mercury

    (b) Lithium and osmium

    (c) Aluminium and osmium

    (d) Aluminium and mercury

  • MUDRA 2.0 Loans

    Why in the News?

    The Union Budget 2024 has sought to increase the loan limit under the MUDRA scheme signifying the potential launch of MUDRA 2.0.

    What is MUDRA 1.0?

    Details
    Launch
    • Pradhan Mantri Mudra Yojana (PMMY)
    • Launched in 2015.
    Purpose To extend affordable credit to micro and small enterprises, bringing them into the formal financial system and funding the unfunded.
    Loan Providers Public Sector Banks (PSU Banks), Regional Rural Banks, Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions (MFI), and Non-Banking Finance Companies (NBFC).
    Eligibility Indian citizens with a business plan for non-farm sector income-generating activities in manufacturing, processing, trading, or services, requiring less than ₹10 lakh.
    Types of Loans • Shishu: Loans up to ₹50,000.
    • Kishor: Loans above ₹50,000 and up to ₹5 lakh.
    • Tarun: Loans above ₹5 lakh and up to ₹10 lakh.
    Subsidy
    • No direct subsidy;
    • Loans linked to Government schemes providing capital subsidies are eligible under PMMY.

    Achievements of MUDRA 1.0

    • Financial Inclusion: Disbursed over Rs 27.75 lakh crore to 47 crore small entrepreneurs, improving access to formal credit.
    • Support for Marginalized Groups: 69% of loans went to women, and 51% to SC/ST and OBC entrepreneurs, enhancing social equity and gender equality.
    • Job Creation: Helped create jobs and encouraged self-employment, especially in rural and semi-urban areas.
    • Reduction in NPAs: Reduced non-performing assets (NPAs) from 3.61% in FY21 to 2.1% in FY24, showing better loan management.

    Challenges Faced by MUDRA 1.0

    • Unequal Loan Distribution: In 2021-22, the top 10 districts received Rs 26,000 crore, about the same as the bottom 318 districts, showing uneven credit distribution.
    • High NPAs in Early Categories: The Shishu (loans up to Rs 50,000) and Kishore (loans between Rs 50,001 and Rs 5 lakh) categories had NPAs above 4% from FY20 to FY22 due to a lack of business skills among early-stage entrepreneurs.
    • Low Financial Literacy: Only 27% of the population is financially literate, leading to poor loan management and higher defaults.
    • Monitoring and Credit Appraisal Issues: Increased lending led to challenges in maintaining quality credit appraisal processes and monitoring, resulting in some misuse of funds.

    What is MUDRA 2.0?

    • MUDRA 2.0 is the proposed next phase of the scheme, aiming to expand and enhance support for micro-entrepreneurs, especially in underserved regions.
    • Features of MUDRA 2.0:
      • Expanded Outreach: Establish new centers in rural and semi-urban areas to provide financial literacy, mentorship, and business support.
      • Enhanced Financial Literacy: Launch nationwide programs covering budgeting, savings, credit management, and digital literacy to help entrepreneurs manage their finances better.
      • Improved Credit Support: Introduce the Enhanced Credit Guarantee Scheme (ECGS) to reduce risks for banks and encourage more lending to small enterprises.
      • Stronger Monitoring: Implement a robust monitoring framework using data analytics to track loan disbursements, usage, and repayments in real-time, ensuring transparency and reducing misuse.

    PYQ:

    [2016] Pradhan Mantri MUDRA Yojana is aimed at:

    (a) Bringing the small entrepreneurs into formal financial system.

    (b) Providing loans to poor farmers for cultivating particular crops.

    (c) Providing pension to old and destitute persons.

    (d) Funding the voluntary organizations involved in the promotion of skill development and employment generation.

  • What was the Great Moon Hoax of 1835?

    Why in the News?

    The Great Moon Hoax of 1835 is a series of fabricated news reports published by The New York Sun, an American newspaper, claiming that life had been discovered on the moon.

    What is the Great Moon Hoax of 1835?

    • The Great Moon Hoax was a series of newspaper articles falsely claiming that John Herschel, an astronomer, had discovered life on the moon.
    • The hoax was created and published by The New York Sun, a daily newspaper in New York City, starting on August 25, 1835.
    • It described various fantastical creatures, such as bat-winged humanoids (called Vespertilio-homo), unicorns, and upright beavers, along with detailed landscapes and other features of the moon.
    • These reports were entirely fictional and intended as satire.
    • However, they were widely believed by the public and reprinted in other newspapers.

    Why the Hoax was conceived?

    • To Mock Religious Influence on Science: It aimed to satirize the blend of religious beliefs with scientific claims, especially in astronomy.
    • Boost Readership: The hoax was a tactic to increase The New York Sun’s circulation from 8,000 copies a day.
    • Challenge Public Credulity: It highlighted how easily the public could be deceived by sensational stories without verifying their accuracy.

  • Simple Medical Tools of an OPD Visit

    Why in the News?

    • These medical tools—thermometers, stethoscopes, weighing scales, and sphygmomanometers—are essential for diagnosing and monitoring basic health parameters.
      • Each tool has its own function and specific way of operation, which helps healthcare professionals make informed decisions about patient care.

    Here is the list of tools used in a Doctor’s Diagnosis:

    Function Description and Working Principle
    Thermometer Measures body temperature.
    • Mercury Thermometer: Features a mercury-filled bulb and a glass capillary with numerical markings. Temperature changes cause the mercury to expand or contract, moving through the capillary to indicate temperature.
    • Digital Thermometer: Utilizes sensors like infrared or thermistors to detect temperature changes, which are then converted into digital readings.
    Stethoscope Listens to internal body sounds.
    • Acoustic Stethoscope: Comprises a diaphragm for high-frequency sounds and a bell for low-frequency sounds, connected by a tube to earpieces.
    • Electronic Stethoscope (Stethophone): Amplifies body sounds electronically and may include recording capabilities and additional diagnostics such as electrocardiograms. These devices transmit sound data to smartphones or other devices.
    Weighing Scale Measures body weight.
    • Spring Scale: Uses a spring under a plate; weight is measured by the degree of spring compression or extension. Requires calibration to account for local gravity variations.
    • Electronic Scale: Converts the mechanical force of weight into electrical signals using load cells or strain gauges, displayed as weight readings on a digital screen.
    Sphygmomanometer Measures blood pressure.
    • Manual Sphygmomanometer: Includes an inflatable cuff, linked to a mercury or aneroid manometer. Uses a stethoscope to detect blood flow sounds (Korotkov sounds) for determining systolic and diastolic pressures.
    • Electronic Sphygmomanometer: Uses oscillometric technology to sense pressure oscillations caused by arterial blood flow, automating blood pressure measurement. Easier for home use but may have accuracy issues in patients with certain cardiovascular conditions.

     

    PYQ:

    [2019] In the context of wearable technology, which of the following tasks is/are accomplished by wearable devices?

    1. Location identification of a person
    2. Sleep monitoring of a person
    3. Assisting the hearing-impaired person

    Select the correct answer using the codes given below:

    (a) 1 only

    (b) 2 and 3 only

    (c) 3 only

    (d) 1, 2 and 3

  • Tackling the frictions in cross-border payments  

    Why in the News?

    Despite being worth $181.9 trillion in 2022, cross-border payments still have inefficiencies prompting the G-20 to focus on improving them for economic growth.

    Present Status of the Global Cross-Border Payments Market

    • The cross-border payments market was valued at approximately $181.9 trillion in 2022 and is projected to reach $356.5 trillion by 2032, reflecting a compound annual growth rate (CAGR) of 7.3% from 2023 to 2032.
    • The growth is driven by increasing globalization, the rise of e-commerce, and technological innovations in the financial sector. The demand for faster, more secure, and transparent payment solutions is compelling banks and fintech companies to enhance their offerings.
    • The market includes various channels such as bank transfers, money transfer operators, and card payments, with a significant share coming from business-to-business (B2B) transactions.

    Difference Between Old and New Systems

     

    Cross-Border Payment 

    		 Features Challenges
    Old System Cross-border payments relied on manual processes involving letters of credit, checks, and extensive documentation. It faced challenges such as high transaction costs, slow processing times, and limited access due to regulatory burdens.
    New System Incorporates technological advancements such as blockchain, digital wallets, and instant payment systems.

    Example:  peer-to-peer transactions and interlinked payment infrastructures

    		 challenges around scalability, security, regulation and standardization.

    Challenges to Cross-Border Payments

    • High Costs: Transaction fees remain a significant barrier, with various financial institutions imposing different charges that complicate cost-effectiveness.
    • Low Speed: Processing times can vary greatly, often taking several days due to intermediary banks and regulatory checks, which can frustrate users seeking rapid transactions.
    • Limited Access: Many individuals and businesses still face obstacles in accessing cross-border payment services, particularly in underbanked regions.
    • Insufficient Transparency: Users often lack clarity regarding fees, processing times, and the overall transaction process, leading to mistrust and reluctance to engage in cross-border transactions.
    • Regulatory Compliance: Navigating diverse legal frameworks across jurisdictions complicates transactions, with anti-money laundering (AML) and counter-terrorist financing (CFT) regulations adding layers of complexity.

    Way forward: 

    • Adoption of Emerging Technologies: Leveraging blockchain, digital currencies, and AI can streamline processes, reduce transaction costs, and enhance transparency, making cross-border payments faster and more accessible.
    • Regulatory Harmonization and Collaboration: Promoting global regulatory alignment and fostering collaboration between financial institutions and governments can simplify compliance, improve transaction efficiency, and broaden access to underbanked regions.

  • What is Sonoluminescence? 

    Why in the News?

    Recent studies have provided deeper insights into the mechanics of Sonoluminescence, particularly the conditions under which light is emitted from collapsing bubbles in liquids.

    What is Sonoluminescence?

    • Sonoluminescence is a phenomenon in which small gas bubbles in a liquid emit short bursts of light when exposed to intense sound waves.
    • The light is produced when the bubble undergoes rapid compression and expansion.
    • This is due to the alternating high- and low-pressure phases of the sound waves, causing the gas inside to heat up and emit light.
    • This phenomenon was discovered in 1934 by two German engineers while they were studying sonar technology, which uses sound waves to detect objects underwater.
    • They noticed that when a tiny bubble in a liquid was hit by strong sound waves, it emitted a brief flash of light.

    Mystery behind Sonoluminescence

    • Although the general mechanism is understood, the exact details of how the light is produced remain a mystery. 
    • Scientists are still exploring the precise processes that cause the gases inside the bubble to ionize and emit light at such high temperatures.

    Examples of Sonoluminescence

    • Controlled Experiments: In laboratory settings, scientists create sonoluminescence by trapping a bubble in a liquid and subjecting it to high-frequency sound waves.
    • Pistol Shrimp: When the shrimp (marine creature with a specialized claw) snaps its claw shut, it shoots out a jet of water that moves so fast it creates a low-pressure bubble. The bubble then collapses, producing a loud sound, intense heat, and sometimes a brief flash of light.

  •  Time to reset the GST system   

    Why in the News?

    Most states appear to be opposed to altering the current five primary GST rate slabs: 0%, 5%, 12%, 18%, and 28%.

    About Goods and Service Tax (GST):

    • The Goods and Services Tax (GST) in India was introduced by the Constitutional (One Hundred and First Amendment) Act of 2017. It is a unified tax system that replaced multiple indirect taxes levied by both the Central and State Governments.
    • Under GST, the Central (CGST) and state government (SGST) share the authority to levy and collect taxes on goods and services. In the case of Inter-state transactions, Integrated GST (IGST) is applicable.

    Essential Features of GST

    • Multiple Tax Levels: India’s GST system has multiple tax rates, with four primary tax rates (5%, 12%, 18%, and 28%). Additionally, there is a “zero rate” for certain essential goods and services (e.g. exports).
    • One Nation, One Tax: GST is based on the principles of value-added tax and applies to the supply of goods and services across the nation. It brings uniformity in the tax structure across India, eliminating the cascading effect of taxes.
    • Destination-Based Tax: This means that the revenue generated from GST is collected by the state where the goods or services are consumed, rather than where they are produced.
    • Eliminating Cascading Effect: Under the Indian GST system, businesses can claim input tax credit for the GST they paid on their purchases. This ensures that taxes are levied only on the value added at each stage of the supply chain.
    • Sector-specific Exemptions: Certain sectors, such as healthcare, education, and basic necessities like food grains, are either exempted from GST or have reduced tax rates to ensure affordability and accessibility.
    • Threshold Exemption: Small businesses with a turnover below a specified threshold (currently, it is 20 lakhs: supplier of both goods & services and 40 lakhs: for supplier of goods (Intra–State) in India) are exempt from GST.

    Present Challenges in GST Rates

    • Complexity and Confusion: The existence of multiple GST slabs creates confusion for businesses and consumers alike. Different rates for similar items lead to complications in compliance and classification, resulting in litigation and disputes.
      • For instance, the GST on cement is 28%, while essential items like milk are exempt, yet products derived from milk, such as skimmed milk powder, are taxed at 5%.
    • Anomalies in Taxation: There are notable inconsistencies in the application of GST rates. For example, the taxation of medical and life insurance premiums at 18% is seen as burdensome for individuals seeking financial protection against uncertainties.

    Need to simplify the current GST Slabs

    • Rationalization Proposal: There is a growing consensus among industry experts and some government officials that the GST structure should be simplified to a maximum of three slabs. 
      • This would not only streamline compliance but also reduce the administrative burden on businesses and the government alike.
    • Economic Stimulus: Simplifying GST rates could potentially stimulate economic activity by lowering indirect tax burdens, encouraging consumption, and ultimately leading to higher tax revenues.

    Why are states resisting?

    • Fear of Revenue Loss: Many states are apprehensive about the implications of changing the GST structure, fearing that it might lead to a decrease in their revenue streams.
    • Political Considerations: The political landscape also plays a role in the resistance to change. With upcoming elections and the need to maintain fiscal health, state governments may prioritize short-term revenue stability over long-term structural reforms.

    Way forward: 

    • Phased Implementation: Start by introducing pilot programs in select states or sectors to test the impact of GST simplification. This approach can help address specific concerns and refine the model before a nationwide rollout.
    • Revenue Protection Schemes: Develop robust mechanisms to compensate states for any potential revenue losses during the transition. This could involve a formula-based compensation fund or a temporary revenue guarantee.

    Mains PYQ: 

    Q Explain the rationale behind the Goods and Services Tax (Compensation to States) Act of 2017. How has COVID-19 impacted the GST compensation fund and created new federal tensions? (2020)

  • The road to 2047 for Indian agriculture   

    Why in the News?

    India’s 100th independence anniversary in 2047 is approaching, and the goal to become ‘a developed nation’ has a significant focus.

    Goals of Indian Agriculture by Vision 2047:

    • Comprehensive Goal: India’s centennial year of independence requires a six-fold increase in per capita Gross National Income (GNI), emphasizing the need for comprehensive development, especially in agriculture.
    • Trade Goal: India’s agricultural and processed food exports have gone up to more than USD 50 billion in 2022-23.
      • The Vision 2047 aims to improve the availability of nutritious foods by enhancing the processing of fruits and vegetables, and augment the proportion of value-added products in India’s export portfolio.
    • Sustainable Goal: Transforming Indian agriculture will hinge on adopting sustainable practices such as precision farming, genetically modified crops, and advanced irrigation techniques (e.g., drip and sprinkler systems).

    Present starking Imbalance in the Indian Economy

    • Workforce vs. GDP Contribution: Despite agriculture engaging nearly 46% of the workforce, it contributes only about 18% to the GDP, revealing a significant imbalance.
    • Growth Disparity: While the overall GDP has grown at 6.1% annually since 1991-92, agricultural GDP has lagged at 3.3%. In the last decade (2013- 2023), overall GDP growth was 5.9%, with agriculture growing at 3.6%, which is insufficient for the sector’s socio-economic importance.
    • Future Projections: By 2047, agriculture’s share in GDP might shrink to 7%-8%, but it could still employ over 30% of the workforce, necessitating significant structural changes to avoid exacerbating the disparity.

    Government Initiatives:

    • For Water Management: The Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) has promoted water-use efficiency through micro-irrigation, covering 78 lakh hectares with a ₹93,068 crore allocation for 2021-26.
    • For Risk Management: The Pradhan Mantri Fasal Bima Yojana (PMFBY) offers financial assistance for crop losses, with 49.5 crore farmers enrolled and claims totalling over ₹1.45 lakh crore.
    • For Market Access: The Electronic National Agriculture Market (eNAM) integrates existing markets through an electronic platform, benefiting 1.76 million farmers and recording trade worth ₹2.88 lakh crore by September 2023.
    • For better Farmer Support: The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme, disbursing ₹6,000 annually to farmers, has benefited over 11.8 crore farmers.
    • For enhanced Soil Health: The Soil Health Card (SHC) scheme aims to optimize soil nutrient use, enhancing productivity, with over 23 crore SHCs distributed.

    Need for Strategic Planning

    • Population Growth: India’s population is projected to reach 1.5 billion by 2030 and 1.59 billion by 2040, increasing the demand for food by approximately 2.85% annually.
    • Future Demand: By 2047-48, food grain demand is projected to range from 402 million tonnes to 437 million tonnes, requiring sustainable production exceeding demand by 10%-13% under the Business-As-Usual scenario.

    Way Forward: 

    • Investment in R&D: To meet future demands sustainably, significant investments in agricultural research, infrastructure, and policy support are necessary.
    • Budget Allocation: The Budget for 2024-25 includes ₹20 lakh crore for targeted agricultural credit and the launch of the Agriculture Accelerator Fund, highlighting a proactive approach to fostering agricultural innovation and growth.
    • Enhance Digital Infrastructure: Support and expand digital platforms like eNAM to improve market access, provide real-time data, and facilitate better price realization for farmers.

    Mains PYQ: 

    Q Give the vulnerability of inidan agriculture to vagaries of nature, discuss the need for crop insurance and bring out the salient features of the Pradhan Mantri Fasal Bima Yojana (PMFBY). (2016)