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GS Paper: GS3

  • Inflation in India is Driven by Food Prices

    Inflation in India

    Central Idea

    • The recent trajectory of inflation in India is attributed to the pricing power of five big corporates or ‘Big 5’ according to former Deputy Governor of Reserve Bank of India, Viral Acharya. However, the argument is flawed as the Indian inflation is different from the rest of the world, and it is driven by food price inflation. While corporate pricing power does exist, it is limited, and the extent to which it drives overall inflation is still debatable.

    The factor of food price inflation

    1. Divergence between Indian and Western inflation rates is not new:
    • Sudden surge of Inflation in India: After the global financial crisis of 2008, Indian inflation surged higher than the economies of the US and UK due to food price inflation caused by negative agricultural shocks and high procurement price hikes.
    • Core inflation: Food-price inflation tends to feed into core inflation, so it would be hasty to conclude that Indian inflation is higher than the West today due to corporate pricing power.
    • Food price inflation: Evidence suggests that in India, food price inflation affects core inflation, and food price inflation enters costs of the non-agricultural sector.
    1. Corporate pricing power in India:
    • Corporate pricing power and overall inflation: Corporate pricing power exists in Indian industry, but the extent to which it drives overall inflation in India is debatable. The question is how much corporate power is driving inflation beyond its obvious role in elevating the price level.
    • Prices of food: To measure inflation without considering the price of food is to exclude what matters most to the public, as opposed to central bankers.
    • Inflation control strategy: India’s inflation control strategy needs to address the challenge of ensuring the production of food at affordable prices.
    1. Comparing WP inflation with CP inflation
    • Comparing WP inflation with CP inflation is to acquiesce in a mismatch.
    • The commodity basket corresponding to CP includes items that do not enter the wholesale price index, so we would be comparing apples with oranges.

    Inflation in India

    The argument is based on a short time period

    • WP inflation has eased considerably in the six months preceding March 2023, but CP inflation has not. However, a mismatch between WP and CP inflations is not new.
    • So, the maintenance of high price increases by firms in the retail sector even after wholesale price inflation has declined in 2022-23 may just be a compensating mechanism, i.e., the rising input cost of the retail sector is being passed on with a lag.

    Facts for prelims: WP inflation VS CP inflation

    Aspect Wholesale Price (WP) Inflation Consumer Price (CP) Inflation
    Definition Measures the change in average price level of goods sold by producers at the wholesale level Measures the change in average price level of goods and services purchased by households
    Captures Changes in prices of goods before they reach the retail market Changes in prices of goods and services at the retail level
    Indicator of Early indicator of changes in overall price level of economy Inflation that households experience in their day-to-day lives
    Impact Affects production cost and supply chain Affects purchasing power of consumers
    Calculation Based on price changes of goods sold in bulk to retailers or other businesses Based on price changes of goods and services purchased by households
    Usage Used by policymakers to monitor changes in cost of production and production-level inflation Used by policymakers to monitor inflation and make decisions related to monetary policy
    Examples Wholesale prices of raw materials, oil, and other commodities Retail prices of food, clothing, transportation, and other consumer goods and services

    Rising food prices driving current inflation

    • Over 75% of the direct contribution to inflation in the first three quarters of the financial year came from sectors in which the Big 5 are unlikely to be represented in a big way.
    • The contribution of food products alone was close to 50% in most time periods.
    • Rising food prices are driving current inflation in India.

    The current inflation control strategy

    • Considerable rise in food prices: In India, food prices have only risen, and in recent years their rate of inflation has been very high. For all the reforms since 1991, the real price of food, i.e., its price relative to the general price level, has risen considerably.
    • What matters most to public must be considered: In the context, to measure inflation without considering the price of food is to exclude what matters most to the public, as opposed to central bankers.
    • Current strategy restricted to using the interest rate to dampen aggregate demand: India’s inflation control strategy is currently restricted to using the interest rate to dampen aggregate demand. This strategy avoids addressing the challenge of ensuring the production of affordable food.
    • Question mark on RBI’s ability to control inflation: The RBI has been unable to control even the core inflation which central banks are assumed to be able to control. A recent intervention explaining core inflation in India has highlighted the RBI’s inability to control inflation.

    Conclusion

    • Inflation is being discussed only in terms of core inflation, which excludes the inflation in food and fuel prices because these prices tend to fluctuate and even out the changes, so it is assumed that they do not require a policy response. However, this assumption is flawed in the context of India’s economy, as food and fuel prices have a significant impact on the economy and people’s livelihoods. Therefore, limiting the discussion to core inflation ignores the role of corporate pricing power and the impact of food and fuel prices on the economy.

    Mains Question

    Q. What is the factor that primarily drives inflation in India? Highlight the relationship between food price inflation and overall inflation in India?

  • AI Regulation in India: Ensuring Responsible Development and Deployment

    AI

    Central Idea

    • As the deployment of Artificial intelligence (AI) based systems continues to grow, it is important for India to develop and implement regulations that promote responsible development and deployment, while also addressing concerns related to privacy, competition, and job losses.

    The Potential of AI and its Risks

    • Limitless potential: The potential of AI is vast and encompasses a wide range of applications across various fields. AI has the potential to improve productivity, increase efficiency, and provide personalized solutions in many areas such as healthcare, finance, education, manufacturing, transportation, defense, space technology, molecular biology, deep water mining, and exploration.
    • Significant risks: While the potential of AI is immense, it also comes with significant risks that need to be addressed. Some of the risks associated with AI include biased algorithms, misdiagnosis or errors, loss of jobs for professionals, unintended harm or civilian casualties, and cybersecurity threats. It is important to ensure that AI development and deployment are carried out with caution and that potential risks are mitigated.

    AI

    Takeaway keyword Box from civilsdaily: AI applications in various fields, advantages, challenges and associated risks.

    Fields AI Applications Advantages Challenges Risks
    Healthcare Diagnosis and medical imaging, drug discovery, personalized medicine, virtual nursing assistants, remote monitoring of patients, health data analysis Improved accuracy and speed of diagnoses, personalized treatment plans, faster drug discovery, remote patient monitoring Integration with existing healthcare systems, ethical and regulatory concerns, data privacy and security Misdiagnosis or errors, biased algorithms, loss of jobs for healthcare professionals
    Finance Fraud detection, customer service chatbots, personalized financial advice, risk assessment and management, trading algorithms Improved fraud detection and prevention, personalized customer support, optimized risk management, faster trading decisions Integration with existing financial systems, ethical and regulatory concerns, data privacy and security Biased algorithms, systemic risks, cyber attacks
    Education Personalized learning, adaptive learning, intelligent tutoring systems, student engagement analytics, automated grading and feedback Improved student outcomes, personalized learning experiences, increased student engagement, reduced workload for educators Integration with existing education systems, ethical and regulatory concerns, data privacy and security Biased algorithms, loss of jobs for educators, lack of human interaction
    Manufacturing Quality control, predictive maintenance, supply chain optimization, collaborative robots, autonomous vehicles, visual inspection Increased efficiency and productivity, reduced downtime, optimized supply chains, improved worker safety Integration with existing manufacturing systems, ethical and regulatory concerns, data privacy and security Malfunctioning robots or machines, loss of jobs for workers, high implementation costs
    Transportation Autonomous vehicles, predictive maintenance, route optimization, intelligent traffic management, demand forecasting, ride-sharing and on-demand services Reduced accidents and fatalities, reduced congestion and emissions, optimized routing and scheduling, increased accessibility and convenience Integration with existing transportation systems, ethical and regulatory concerns, data privacy and security Malfunctioning autonomous vehicles, job displacement for drivers, cybersecurity threats
    Agriculture Precision agriculture, crop monitoring and analysis, yield optimization, automated irrigation and fertilization, pest management, livestock monitoring Increased crop yields, reduced waste and resource use, optimized crop health, improved livestock management Integration with existing agriculture systems, ethical and regulatory concerns, data privacy and security Malfunctioning drones or sensors, loss of jobs for farm workers, biased algorithms
    Defense Intelligent surveillance and threat detection, unmanned systems, autonomous weapons Improved situational awareness and response, reduced human risk in combat situations Ethical and legal concerns surrounding the use of autonomous weapons, risk of AI being hacked or malfunctioning in combat scenarios Unintended harm or civilian casualties, loss of jobs for military personnel
    Space technology Autonomous navigation, intelligent data analysis, robotics Increased efficiency and productivity in space exploration, improved accuracy in data analysis Risk of AI being hacked or malfunctioning in space missions, ethical and regulatory concerns surrounding the use of autonomous systems in space Damage to equipment or loss of mission due to malfunctioning AI
    Molecular biology Gene editing and analysis, drug discovery and development, personalized medicine Faster and more accurate analysis of genetic data, improved drug discovery and personalized treatment plans Ethical and regulatory concerns surrounding the use of AI in gene editing and personalized medicine Misuse of genetic data or personalized treatment plans, loss of jobs for medical professionals
    Deep water mining and exploration Autonomous underwater vehicles, intelligent data analysis Increased efficiency and productivity in deep sea exploration and mining, improved accuracy in data analysis High costs and technical challenges of developing and deploying AI systems in deep sea environments Malfunctioning AI systems, environmental damage or destruction due to deep sea mining activities

    The Need for Regulation

    • Current regulatory system not well equipped: The current regulatory system may not be equipped to deal with the risks posed by AI, especially in areas such as privacy and competition.
    • Develop regulations in collaboration: Governments need to work with tech companies to develop regulations that ensure the responsible development and deployment of AI systems.
    • Balanced regulations: The regulation needs to be adaptive, flexible and balance between the benefits and risks of AI technology. This way, AI technology can be developed while taking into account societal concerns.
    • Privacy Concerns and responsible usage: AI-based systems, such as facial recognition technology, raise concerns related to privacy and surveillance. Governments need to develop regulations that protect citizen privacy and ensure that data is collected and used in a responsible way.
    • Risk assessment: Risk assessment could help in determining the risks of AI-based systems and developing regulations that address those risks.
    • For instance: Europe’s risk assessment approach may serve as a useful model for India to develop such regulations.

    Competition and Monopolization

    • AI powered checks and balance: The dominance of Big Tech in the tech landscape raises concerns of monopolization and the potential for deepening their control over the market. However, the presence of multiple players in the AI field generates checks and balances of its own.
    • Healthy market for AI technology: The development of new players and competitors can promote innovation and ensure a healthy market for AI technology.

    AI

    Conclusion

    • AI technology holds immense potential, but its risks need to be mitigated, and its development and deployment need to be carried out responsibly. Governments must work towards developing regulations that ensure that AI technology benefits society, while addressing concerns related to privacy, competition, and job losses. Responsible development and deployment of AI technology can lead to a brighter future for all.

    Mains Question

    Q. AI has limitless potential in various fields. In this light of this statement enumerate some of its key revolutionary applications in various fields and discuss challenges and associated risks of deploying AI in various fields.

  • Women Cadres (Maoist): Structural Violence and Exploitation

    Women Cadre

    Central idea

    • The Communist Party of India (Maoist) claims to fight for gender equality, but the reality is that women cadres are subject to structural violence and exploitation.

    Women’s representation in the party

    • Negligible representation in the council: Despite constituting 35%-40% of the party, women’s representation in the Central Committee and the Dandakaranya Special Zonal Committee (DKSZC) is negligible
    • Members in the cadre: Only one-woman cadre is a Central Committee member out of more than 20 members, and only two women cadres are DKSZC members out of approximately 20 members

    Concerns over women’s health and nutrition

    • Health challenges: Women face additional health challenges in the jungle and receive inadequate nutrition and healthcare. Most women become anaemic due to the lack of proper nutrition.
    • Menstrual hygiene challenges: Women cadres do not receive menstrual leave and need to be alert all the time with a gun. Only one loin cloth is provided to two women cadres to be shared as a sanitary napkin for six months.
    • Fundamental necessities are not adequate: Women cadres are not allowed to liberally use water and are at the mercy of the unit commander who carries some medical necessities

    Conditions for marriage and reproduction

    • Marriage is not to enjoy family life: The party permits marriage only between willing partners to fight together, not to enjoy family life.
    • Forced vasectomy: Male cadres are forced to undergo vasectomy either before marriage or immediately after marriage.
    • Forced abortion: If a woman cadre gets pregnant, she has to undergo an abortion
    • Silent on divorce and polygamy: The party is silent on issues of divorce and polygamy

    Sexual exploitation and ill-treatment of women

    • Sexual exploitation and ill treatment: Sexual exploitation of women is not uncommon in the party, and instances of suicide by women cadres due to ill-treatment and suspicion are reported.
    • Nominal punishment: Disciplinary action is taken against cadres for moral turpitude, but the maximum punishment is only suspension for a year or demotion.

    Conclusion

    • Women who join the Communist Party of India (Maoist) in the hope of bringing about a revolution for the proletariat and the landless class are often subject to the same structural violence that they are supposed to fight. The party needs to ensure gender equality in reality, not just in its claims, and provide better conditions for women cadres.

    Mains Question

    Q. How do structural inequalities and power dynamics within political movements impact the fight for gender equality? Illustrate.

  • What is Large Hadron Collider (LHC)?

    hadron

    Central idea: The article provides an overview of the LHC, its construction, how it works, and what it has discovered. It also discusses the future of the LHC, including plans to upgrade it and build a bigger version.

    Large Hadron Collider (LHC)

    • The Large Hadron Collider (LHC) is the world’s largest science experiment built by the European Organisation for Nuclear Research (CERN).
    • It is a collider that smashes two beams of particles in opposite directions and these particles are hadrons.
    • The LHC is on the energy frontier of physics research, conducting experiments with highly energized particles.
    • Currently, the LHC is being warmed up for its third season of operations following upgrades that have made it more sensitive and accurate.

    How does the LHC work?

    • Hadrons are subatomic particles made up of smaller particles, and the LHC typically uses protons.
    • Protons are energized by accelerating them through a narrow circular pipe that is 27 km long.
    • The pipe encircles two D-shaped magnetic fields created by almost 9,600 magnets.
    • Protons are accelerated through the beam pipe by rapidly switching the direction of the magnetic field.
    • Eventually, protons move at 99.999999% of the speed of light, according to the special theory of relativity.

    What happens when particles are smashed?

    • When two antiparallel beams of energized protons collide head-on, the energy at the point of collision is equal to the sum of the energy carried by the two beams.
    • The highest centre-of-mass collision energy the LHC has achieved so far is 13.6 TeV.
    • At the moment of collision, there is chaos, and energy coalesces into different subatomic particles under the guidance of the fundamental forces of nature.
    • Different particles take shape depending on the amount and flavour of energy available.

    What has the LHC found so far?

    • The LHC consists of nine detectors, and they study particle interactions in different ways.
    • The ATLAS and CMS detectors discovered the Higgs boson in 2012 and confirmed their findings in 2013.
    • Using the data from collisions, scientists have tested the predictions of the Standard Model of particle physics, observed exotic particles, and pieced together information about extreme natural conditions.

    What is the LHC’s future?

    • The LHC has not been able to find ‘new physics’ that can explain the nature of dark matter or why gravity is such a weak force.
    • One way forward is to improve the LHC’s luminosity by 10x by 2027 through upgrades.
    • Another idea is to build a bigger and more powerful version of the LHC, based on the hypothesis that it can find ‘new physics’ at even higher energies.
    • Physicists are divided on whether to invest in building a bigger machine or less expensive experiments with guaranteed results.

    B2BASICS

    What is Hadron?

    • Hadron is any member of a class of subatomic particles that are built from quarks and thus react through the agency of the strong force. The hadrons embrace mesons, baryons (e.g., protons, neutrons, and sigma particles), and their many resonances.

    CERN

    • European Organisation for Nuclear Research (CERN) is the world’s largest nuclear and particle physics laboratory.
    • CERN is based in Geneva on the French-Swiss border. It has 23 member states.
    • India in 2016 became an associate member of the CERN. Indian scientists have played a significant role in the ALICE experiment, which is a dedicated experiment for search and study of Quark Gluon Plasma (QGP).

    Try this MCQ

    Which of the following is a subatomic particle made up of smaller particles and is commonly used in the Large Hadron Collider (LHC)?

    (a) Protons

    (b) Electrons

    (c) Neutrons

    (d) Photons

     

    [wpdiscuz-feedback id=”uv5cuojqwi” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

  • Exercise Cope India 23

    The Indian Air Force (IAF) fighters, including Light Combat Aircraft (LCA), Rafale, SU-30MKI, and Jaguars, are set to participate in bilateral air Exercise Cope India 23 with US Air Force (USAF) F-15 fighters and B-1B long-range bombers.

    Exercise Cope India

    • Cope India began in 2004 as a fighter training exercise held at Air Station Gwalior.
    • The exercise has evolved to incorporate subject matter expert exchanges, air mobility training, airdrop training and large-force exercises, in addition to fighter-training exercises.
    • The exercise was last held in 2009.
    • The exercise showcases US and India’s efforts and commitment to a free and open Indo-Pacific region.

    Highlights of the 2023 version

    • The exercise will be conducted in two phases, with the first phase practicing the air-mobility component involving transport aircraft of both countries.
    • The IAF element will include the Su-30MKI, Rafale, Tejas, and Jaguar fighter aircraft, while Japan is taking part in the exercise as an observer.
    • The second phase of the exercise will witness the participation of B-1B bombers of USAF, and F-15 fighter aircraft of the USAF will join the exercise subsequently, according to an IAF statement.
    • The exercise will be supported by aerial refuellers, Airborne Warning and Control System, and Airborne Early Warning and Control aircraft of the IAF.

     

  • ESA to launch Jupiter Icy Moons Explorer (JUICE) Mission

    juice

    The European Space Agency (ESA) is all set to launch the Jupiter Icy Moons Explorer, or Juice, mission from its spaceport in French Guiana on an Ariane 5 launcher.

    What is the Juice Mission?

    • Jupiter Icy Moons Explorer (Juice) mission is a project by the European Space Agency (ESA) to explore the Solar System’s largest planet Jupiter and its three largest moons, Ganymede, Callisto, and Europa.
    • Juice is constructed by an industrial consortium led by Airbus Defence and Space and is planned to reach Jupiter in 2031 using remote sensing, geophysical, and in situ instruments.

    Goals of the Juice mission

    • Juice aims to create a detailed map of the surfaces of Jupiter’s moons and to look beneath them to probe their potential habitability by creating a comprehensive picture of Jupiter.
    • One of the primary goals of the Juice mission is to gain insight into how planetary systems form and evolve over time and how possibly habitable environments can arise in Jupiter-like systems around other stars.
    • Juice will also analyze the chemistry, structure, dynamics, weather, and climate of Jupiter and its ever-changing atmosphere.

    Ganymede: Focus of the Juice mission

    • Ganymede is the largest moon in the Solar System and the only one to generate its magnetic field.
    • Juice will move into Ganymede’s orbit after approximately four of arriving at Jupiter.
    • Juice will use its suite of ten sophisticated instruments to measure how Ganymede rotates, its gravity, its shape and interior structure, its magnetic field, its composition, and to penetrate its icy crust using radar down to a depth of about nine km.

    Can Juice detect life?

    • Juice is not equipped to detect life on Jupiter or its moons.
    • It is, however, capable of finding out whether there could be places around Jupiter, inside the icy moons, where the necessary conditions, such as water, biological essential elements, energy, and stability, to sustain life are present.
    • Scientists believe that there is a possibility that life is present on Jupiter’s moons, in the form of microbes or more advanced species, such as those found in deep-sea trenches and at hydrothermal vents on Earth.

     

  • India Must Take Khalistan Extremism Seriously and Address The Root Causes

    Central Idea

    • The resurgence of Sikh extremism in the form of the self-styled Sikh extremist preacher Amritpal Singh, modelling himself on Bhindranwale of yore, has raised concerns in areas with a significant Sikh diaspora. The real cause for concern is that the current security dispensation has not learnt from past mistakes and needs to take appropriate action before the situation spirals out of control.

    Background: Bhindranwale Phenomenon

    • The resemblance of the self-styled Sikh extremist preacher, Amritpal Singh, to Bhindranwale is limited to style and lacks substance.
    • However, the extremist fringe among Sikh youth, including the Sikh diaspora in Australia, Canada, the UK, and the US, seems to be galvanized by the imposter’s attempts to revive the Bhindranwale mystique.
    • The links have been established by this ‘core group’ with pro-Khalistan groups such as the Sikhs for Justice (SFJ), the Babbar Khasla, and the Khalistan Liberation Force (KLF).

    Lessons from the Past

    • Inadequate current security dispensation: The current security dispensation does not appear to have learnt the right lessons from past mistakes.
    • Operation Blue Star: The Bhindranwale phenomenon was not a sudden development, and if it were properly handled, it could have been checkmated well before 1984, and the subsequent violence leading to ‘Operation Blue Star’ and the damage caused to Akal Takht could have been avoided.

    What was the Khalistan movement?

    • Dates to pre-independence era: The Khalistan movement, which started in the 1940s during British rule, calls for establishing a separate nation for Sikhs. When India became independent and Punjab was partitioned, its leaders demanded a special status for the state. However, the Central Government did not pay attention to these demands, and Sikhs felt betrayed, leading to the idea of a separate nation growing substantially.
    • Rise of Bhindranwale: Many individuals and organizations contributed to the Sikh revivalist movement; however, Jarnail Singh Bhindranwale emerged as a charismatic leader after becoming the head of Damdami Taksal on August 25, 1977.
    • Failure to fulfil regional demand: Punjabi political parties, such as the Sikh Akali Party, failed to fulfil the regional demands concerning river waters and the transfer of Chandigarh as a capital city to Punjab. The devolution of power gave rise to Bhindranwale’s image among the masses.
    • Finally Military Operation: The military mission, OBS, was carried out between June 1 to June 10, 1984, to take control of key gurdwaras, including the Golden Temple in Amritsar, from Bhindranwale’s supporters. Bhindranwale was killed during the operation; however, in recent times, his image remains alive and well.

    Why is it being revived?

    • Political instability: Punjab in recent years has witnessed a political crisis leading to a change in governments, ruling political parties and CM’s giving chance for radical outfits to grow.
    • Economic challenges: Punjab state has a high employment rate (According to data from the Centre’s Periodic Labour Force Survey 2019-20, Punjab’s unemployment rate is higher than the national average). Also, the year-long Farmers’ protest in 2021 and railways blockades have led to the creation of negative sentiments among investors about the state’s investment environment leading to decreasing investments in Punjab and rising unemployment.
    • Rising communalism: multiple events of blasphemy have taken place in the state which is flaming the fire of communalism among the people of the state.
    • Provocation from Pakistan: Investigations by security agencies suggest links between Khalistani groups and Pakistan’s Inter-Services Intelligence (ISI) – further increasing the likelihood of feelings of separatism due to drug trafficking and networking through Sikh pilgrimages.
    • Feeling to of persecuted minority: images of the 1984 anti-sikh riots and the topic of the non-persecution of culprits of the riots are being used to suggest that Sikhs are persecuted minority and thus they must have their own land in form of Khalistan.

    Cause of concern

    • Threat to national security and integrity: the resurgence of the Khalistan movement is a threat to national security similar to the Kashmir and NE insurgency.
    • May darken Punjab’s future: a poor law and order situation may deter investors to invest in Punjab thus further deteriorating its economy and leading to spillover effects in social and political sectors.
    • Involvement of diaspora: The idea of forming a separate state for Sikhs has died down in Punjab; however, it has attracted the attention of a large audience in the diaspora who now have settled in other nations for long and thus have lost their affinity with India as their homeland.
    • Misuse of social media: which defies any international boundary, thus misused by separatists in Pakistan and other nations.
    • Bilateral relations may be harmed: the Khalistan issue has already harmed Indo- Canada relations and now straining Indo-UK due to the conduction of Referendum 2020 in these countries despite the Indian Government’s objection.

    Avoiding Misreading of Sentiments

    • Wider perspective: Treating all that is happening now as evidence of a foreign conspiracy instead of facing up to the reality that this may be more than a mere emotional outburst of the Sikh extremist fringe is a grave mistake.
    • Finding the real cause: Blaming the current violence on the drug mafia with links to Pakistan can at best be a proximate, but not the real cause.

    Confronting the Threat

    • Innovative ways: India needs to find ways and means to defeat the ‘siren call’ of radical extremists of every hue, whether they be Khalistanis or other kinds of extremists.
    • Ensure balance and sense of unity: It needs to steer between the extremes of the right and left and ensure a greater sense of unity within the country, according to individual dignity and human progress, and demonstrating leadership in the comity of nations.

    Way ahead

    • The resurgence of Sikh extremism and the growing insecurity among Sikh youth and discontent prevailing among the Sikh peasantry needs to be addressed to prevent a repeat of the violent events that took place in the late 1970s to the 1990s.
    • Intelligence analysis should be prioritized to detect the signs of growing insecurity and discontent.
    • There is need for good intelligence to deal with the situation.

    Conclusion

    • India should not yield to the temptation of resorting to hard measures without understanding the true causes and join the ranks of nations that solely believe in strong-arm methods. India needs to effectively confront the threat posed by radical extremists, such as the Khalistan Liberation Force (KLF) and the Sikhs for Justice (SFJ), while respecting liberal values and ensuring unity within the country.

  • What is the Amul versus KMF controversy?

    amul

    Central idea

    • Amul, the country’s largest dairy player, announced on April 5 that it would supply milk and curd through e-commerce portals in Bengaluru.
    • The announcement was met with opposition from Kannadigas, who saw it as an attempt to threaten the iconic Nandini milk brand of the Karnataka Milk Federation (KMF).

    Political Controversy

    • The Amul vs. KMF row turned into a political tool in poll-bound Karnataka.
    • Dissenting sections expressed fears that Amul would eat into the market of Nandini and pose a threat to its business in the state.
    • The ruling government was accused of attempting to privatize the milk sector and “finish off” a home-grown product.

    A quick backgrounder

    • Both Amul Dairy and KMF are successful examples of adopting the three-tiered ‘Anand’ model of dairy procurement.
    • Farmers supply milk to dairy cooperatives at the village level, which is then procured by milk unions at the district and state levels.
    • There are 16 district milk unions in Karnataka supplying milk to the dairy cooperatives.
    • KMF provides competitive prices to dairy farmers.
    • KMF corners most of the market share for surplus milk provided by farmers in the state.

    Anand Model of Dairy Procurement

    • It is a system of milk collection and distribution pioneered by the Amul cooperative in Anand, Gujarat, India.
    • This model has revolutionized the dairy industry in India by providing a fair price to dairy farmers, eliminating the need for middlemen, and improving the quality of milk.
    • Under the Anand model, farmers are organized into dairy cooperatives, which collect and market their milk.
    • The cooperatives are managed by the farmers themselves and are supported by the infrastructure and marketing expertise of the Amul cooperative.
    • The farmers are paid a fair price for their milk, which is based on its quality and quantity, and they receive regular payments for their milk.

    Why are people protesting?

    • Overpricing: The pricing difference between Amul’s toned milk and Nandini’s toned milk was highlighted, with Amul’s milk priced at ₹54 per litre and Nandini’s at ₹39 per litre.
    • Unhealthy competition: KMF’s online presence in the state could create unhealthy competition with Amul’s online presence, despite the pricing difference, according to the federation.

    The turf war

    • The KMF is the second-largest milk cooperative in India after Amul.
    • While Amul and KMF compete in neutral regions like Mumbai, Nagpur, Goa, Hyderabad, and Chennai markets, they have not clashed on home turfs.
    • Karnataka is a milk-excess market that meets the needs of the state and exports surplus to other states.
    • KMF plans to write to the National Dairy Development Board, requesting it to direct Amul not to venture into the Bengaluru market and concentrate on milk-deficient states.

    Clarification by Amul

    • Amul clarified that it was launching its fresh milk and curd only for a niche market through e-commerce channels and not through the mass market distribution network.

     

  • Zojila Tunnel to revolutionise connectivity to Ladakh

    zojila

    Union Transport Minister recently visited the Zojila Tunnel In Jammu & Kashmir which is Asia’s longest as well as highest.

    About Zojila Tunnel

    • The Zojila tunnel is an upcoming 14.15 km road tunnel that will connect Srinagar and Leh in the Union Territory of Ladakh.
    • It is being constructed as part of a project to improve connectivity in the region, with a connecting tunnel from Z-Morh to the Zojila tunnel also being built.
    • The tunnel is being built at a cost of more than Rs 4,600 crore and is expected to be completed by December 2023.

    Need for the tunnel

    • All weather connectivity: The Zojila Pass is closed during harsh winters due to fears of avalanches, landslides, and slippery roads, cutting off areas beyond the pass from the rest of the country for at least five months.
    • Military mobilization: The upcoming Zojila tunnel will provide perennial connectivity between Ladakh and the rest of the country and benefit both civilians and the military.
    • Time and effort saving: The distance from Baltal to Minamarg, currently 40 km, will come down to 13 km, with travel time expected to be cut by an hour and a half.

  • Lessons Learned: Transition To A Self-reliant Clean Energy System

    Central Idea

    • Lessons learned from the liberalization of upstream petroleum sector can guide India’s transition to a self-reliant clean energy system.

    Background

    • In 1980, then-Prime Minister Indira Gandhi took a significant step in liberalizing the upstream petroleum sector in India. This move aimed to reduce the country’s reliance on external sources for petroleum and protect it from supply shocks. However, the liberalization did not bridge the gap between domestic demand and indigenous supply.
    • In 2020, Prime Minister Narendra Modi introduced the production-linked incentive (PLI) scheme to promote investment in minerals, components, and equipment required for the generation and consumption of clean energy. This decision was driven by the strategic imperative to transition to a self-reliant clean energy system and reduce dependence on external sources of energy.

    Bridging the gap between demand and supply in the clean energy sector

    • Demand and supply gap: The liberalization of upstream petroleum did not bridge the gap between the domestic demand for petroleum and indigenous supply.
    • Capital is not enough: The clean energy sector must not presume that the availability of technical talent and capital will be enough to create a world-class hub for the manufacture of batteries, solar cells, wafers, and modules.

    Efficient Implementation of Technology in Clean Energy Sector

    • India’s oil and gas producing average: The recovery rate of oil and gas from India’s producing fields has averaged between 25-30%, while fields of comparable geology across the world have a recovery rate between 40-60%.
    • China’s dominance in clean energy value chain: China’s dominance of the clean energy value chain is because its process engineers have perfected the implementation of the several technological steps required to convert raw material into end product.

    Reduce entry barriers and improve business condition

    • India cannot compete on the size of the incentive package, and the endeavor should instead be to lower entry barriers, ease business conditions and remove the perception that India offers a high-cost operating environment.

    India’s Dependency on External Market and Two-Track Policy with China

    • India remains dependent on the external market for supplies of petroleum, but the country should desist from building a high-cost, domestic, clean energy hub that is forever dependent on subsidies.
    • India should continue with its two-track policy and strengthen its trading relationship with China.

    Conclusion

    • India can learn from the lessons of the last 40 years to transition to a self-reliant clean energy system. The country needs to focus on creating an enabling ecosystem, efficiently utilizing technology, and easing business conditions to attract international investment. India should focus on trading relationships and not build a high-cost, domestic clean energy hub dependent on subsidies.

    Mains Question

    Q. India’s clean energy sector has enormous potential for growth, however there is a gap between domestic demand and indigenous supply. What specific measures can India take to bridge this gap and emerge as global leader in renewable energy?