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GS Paper: GS3

  • What is the National Security Act, 1980?

    Punjab Advocate General has confirmed the invocation of National Security Act (NSA) to Amritpal Singh’s case.

    National Security Act, 1980

    • The NSA was passed by the Parliament in 1980 and has been amended several times since then.
    • It empowers the state to detain a person without a formal charge and without trial.
    • It is invoked when a person is taken into custody to prevent them from acting in any manner prejudicial to “the security of the state” or for “maintenance of the public order”.
    • It is an administrative order passed either by the Divisional Commissioner or the District Magistrate.

    Grounds for detention under NSA

    • NSA can be invoked to prevent a person from acting in any manner prejudicial to the defence of India, relations of India with foreign powers or the security of India.
    • Among others, it can also be applied to prevent a person from acting in any manner prejudicial to the maintenance of supply and services essential to the community.
    • An individual can be detained without a charge for a maximum period of 12 months.
    • The detained person can be held for 10 to 12 days in special circumstances without being told the charges against them.

    Protection available under the Act

    • One crucial procedural safeguard under the NSA is granted under Article 22(5).
    • All the detained persons have the right to make an effective representation before an independent advisory board.
    • The board is chaired by a member who is, or has been, a judge of a high court.
    • The DM who passes the detention order is protected under the Act and no prosecution or any legal proceeding can be initiated against the official who carries out the orders.

    Cases for misuse

    • The Supreme Court in earlier cases had held that to prevent “misuse of this potentially dangerous power, the law of preventive detention has to be strictly construed”.
    • “Meticulous compliance with the procedural safeguards” has to be ensured.

    Criticism of NSA

    • Human rights groups have said in the past that the Act vitiates Article 22 of the Constitution and various provisions under the CrPC that safeguard the interest of an arrested person.
    • Under the CrPC, the arrested person has to be produced before the nearest Magistrate within 24 hours, but the NSA carves out an exception.
    • Some human rights groups argue that it is often misused by authorities to silence political opponents or those who are critical of the government.
    • There have been calls for the Act to be repealed or amended to prevent its abuse.
    • However, there is an opposing view that the Act cannot be construed to be a draconian law as it protects the larger interest of the state and is therefore likely to stay.

    Try this MCQ:

    Which of the following is a true statement about the National Security Act, 1980?

    A) The Act allows preventive detention only for specific violations of the law.

    B) The detained person has the right to move a bail application before a criminal court.

    C) A person can be detained under the Act only if he/she has been charged with a crime.

    D) The Act can be invoked to prevent a person from acting in any manner prejudicial to the defence of India, relations of India with foreign powers or the security of India.

     

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  • HDI: Addressing India’s Subnational Human Development

    Central Idea

    • India is now one of the fastest-growing economies globally. However, this growth has not resulted in a corresponding increase in its Human Development Index (HDI). According to the Human Development Report of 2021-22, India ranks 132 out of 191 countries, behind Bangladesh (129) and Sri Lanka (73).

    Facts for Prelims: Human Development Index (HDI)

    • Composite statistical measure by UNDP: The HDI is a composite statistical measure created by the United Nations Development Programme to evaluate and compare the level of human development in different regions around the world.
    • As an alternative with broader aspects: It was introduced in 1990 as an alternative to conventional economic measures such as Gross Domestic Product (GDP), which do not consider the broader aspects of human development.
    • Aspects: The HDI assesses a country’s average accomplishment in three aspects 1. A long and healthy life, 2, knowledge, and 3. A decent standard of living.
    • India ranks 132 out of 191 countries in the HDI 2021.

    The subnational HDI: A new index

    • Given India’s large size and population, it’s critical to address subnational or state-wise disparities in human development.
    • A new index has developed by using the methodology suggested by the UNDP and the National Statistical Office (NSO), which measures human development on a subnational level for 2019-20.

    HDI Calculation

    • The HDI is calculated using four indicators: life expectancy at birth, mean years of schooling, expected years of schooling, and Gross National Income (GNI) per capita.
    • The subnational HDI uses GSDP per capita as a proxy indicator for GNI since GNI per capita estimates are unavailable at the subnational level.
    • The methodology involves calculating the geometric mean of the normalised indices for the three dimensions of human development while applying the maximum and minimum values recommended by the UNDP and NSO.

    Subnational HDI Findings

    • The subnational HDI shows that while some states have made considerable progress, others continue to struggle. Delhi occupies the top spot and Bihar occupies the bottom spot.
    • The five states with the highest HDI scores are Delhi, Goa, Kerala, Sikkim, and Chandigarh. Nineteen states, including Kerala, Maharashtra, Tamil Nadu, Haryana, Punjab, Telangana, Gujarat, and Andhra Pradesh, have scores ranging between 0.7 and 0.799 and are classified as high human development states.
    • The bottom five states are Bihar, Uttar Pradesh, Madhya Pradesh, Jharkhand, and Assam, with medium levels of human development.

    Reasons for Discrepancies

    1. The economic growth has been unevenly distributed, with the top 10% of the Indian population holding over 77% of the wealth. This has resulted in significant disparities in access to basic amenities, healthcare, and education.
    2. While India has made significant progress in reducing poverty and increasing access to healthcare and education, the quality of such services remains a concern.

    Conclusion

    • The government needs to prioritize human development alongside economic growth to ensure that the benefits of growth are more evenly distributed, and it requires a multi-faceted approach to address various issues such as income inequality, gender inequality, access to quality social services, environmental challenges, and social infrastructure investment. India must prioritize investments in human development and job creation, particularly for its youth, to realize its demographic dividend.

    Mains Question

    Q. Analyze the performance of different states in terms of their Human Development Index (HDI) and suggest measures that could be taken to address the disparities in human development in the country

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  • World’s 1st Sand Battery developed in Finland

    sand

    Finland has successfully installed the world’s first sand battery that can store heat from various energy sources for months.

    What is the Sand Battery System?

    • The battery is a massive steel silo, 7 m tall and 4 m wide with 100 tonnes of sand, and was installed in Finland’s Kankaanpaa town in June 2022.
    • It is connected to the town’s centralised heating network that keeps buildings and public water systems warm.
    • The storage system has three main components:
    1. Sand silo,
    2. Electrical air heater, and
    3. Air-to-water heat exchanger

    Working principle

    • For charging the sand silo, air is heated to 600°C in the electrical air heater.
    • The hot air is then circulated inside the silo using a heat-exchange pipe and blowers to raise the temperature of the sand at the silo’s core to 600°C.
    • When the storage enters the discharging stage, the blowers are used to pump air into the pipe inside the sand silo.
    • Once the air reaches 200°C, it is transferred to the air-to-water heat exchanger, where it is used to boil water.
    • It is then sent to the heating network.

    Electricity Requirements and Capacity of the Battery

    • The storage system requires electricity at all times to charge the battery, monitor the temperature during standby, and run the blowers when the battery is used.
    • The installed battery can store 8 megawatt-hours (MWh) of energy and release heat at 0.1 MW, which is enough to provide heating and hot water for about 100 homes and a public swimming pool.

    Advantages of Sand as a Heat Storage Material

    • The Finnish researchers replaced water with sand in the battery system because of its advantages.
    • Sand can be heated up to 600 degrees Celsius (°C), whereas water starts to boil at 100°C.
    • It also has low heat conductivity, which reduces energy loss.

    Importance of Heat Energy

    • Heat accounts for half of the world’s energy use, followed by transport (30 per cent) and electricity (20 per cent), as per the International Energy Agency (IEA).
    • Currently, 80 per cent of the world’s energy comes from dirty fossil fuels.

     

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  • What is Generative AI?

    generative ai

    Central idea: Google and Microsoft have added generative AI to their search engines and browsers, as well as to consumer products such as Gmail, Docs, Copilot 365, Teams, Outlook, Word, Excel, and more.

    What is Generative AI?

    • Like other forms of artificial intelligence, generative AI learns how to take actions from past data.
    • It creates brand new content – a text, an image, even computer code – based on that training, instead of simply categorizing or identifying data like other AI.
    • The most famous generative AI application is ChatGPT, a chatbot that Microsoft-backed OpenAI released late last year.
    • The AI powering it is known as a large language model because it takes in a text prompt and from that writes a human-like response.

    Generative AI products offered by Google and Microsoft

    generative ai

    • Google and Microsoft have added generative AI to their search engines and browsers, as well as to consumer products such as Gmail, Docs, Copilot 365, Teams, Outlook, Word, Excel, and more.
    • In Google’s Gmail and Docs, generative AI can help users write documents automatically, such as a welcome email for employees.
    • Copilot 365, a feature of Microsoft 365 apps, can generate spreadsheets on command or even write an entire article on Word, depending on the topic.
    • Both companies are making generative AI platforms and models a part of their cloud offerings, Microsoft Azure and Google Cloud.

    What are Google and Microsoft offering?

    • In Google’s Gmail and Docs, generative AI will help users write documents automatically.
    • For instance, an HR executive can simply ask the AI app to write a welcome email for employees, instead of typing out the document.
    • Similarly, Microsoft has ‘Copilot 365’ for its Microsoft 365 apps, which includes Teams, Outlook, Word and Excel.
    • Here, AI could generate a spreadsheet on command, or even write down an entire article on Word (depending on the topic).
    • Copilot can also match entries on Calendar with emails, and generate quick, helpful pointers that a person should focus on in their meetings.

    How can these developments impact human workforce?

    • The technology is currently not very accurate and often provides incorrect responses, despite being popular.
    • During the initial demonstrations of these products, Google and Microsoft were found to give inaccurate responses.
    • While these products may have utility, they are not yet capable of replacing humans in the workplace.
    • Humans are better suited to check information generated by AI.

    Various challenges posed

    • Bias: The data that is used to train generative AI systems can be biased, leading to biased outputs.
    • Misinformation: Since generative AI systems learn from the internet or training data which itself may have been inaccurate, they could increase the spread of misinformation online.
    • Security: Generative AI systems could be used to create deepfakes or other forms of digital manipulation that could be used to spread disinformation or commit fraud.
    • Ethics: There are ethical concerns around the use of generative AI, particularly when it comes to issues like privacy, accountability, and transparency.
    • Regulation: There is a need for regulatory frameworks to ensure that generative AI is used responsibly and ethically, and that it does not have any negative impacts on society.

     

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  • Finmin lifts bar on CPSUs issuing Letters of Comfort

    comfort

    Central idea: The Finance Ministry has allowed central public sector firms (CPSUs) to issue letters of comfort with a condition that they should clearly state that the Government of India will not be liable for any consequences arising from such letters.

    What is a Letter of Comfort?

    • A letter of comfort is a support document issued to a borrower that adds some strength to the transaction when giving loans.
    • Letter of comforts are usually issued by a third party or a stakeholder in the transaction.
    • For instance, a holding company can give a letter of comfort on behalf of its subsidiary or a government can issue a letter of comfort for public sector enterprises.
    • The letter of comfort can also be issued by banks, NBFCs and auditors.

    Obligation status of LoCs

    • The letter of comfort is not legally binding or an obligation by the holding company to repay the loans.
    • It is just an assurance to the lender that the holding company is aware of the transaction, the policies of the subsidiary and its intentions in seeking a loan.
    • This provides some comfort to the financial institution to lend money for short term or long term.
    • One can say that the letter of comfort could become a moral obligation and not a legal one.

    How is it different from letter of guarantee?

    • A letter of comfort is different from a letter of guarantee.
    • As spelled out in the name, the letter of guarantee acts as a commitment to the lender that the issuing company is taking responsibility for the repayment.
    • It is also legally binding and the transaction becomes an obligation for the guarantor.
    • Holding companies usually give letters of comfort when they are unable or unwilling to give letters of guarantees.

    Try this MCQ-

    Q. Which of the following statements is true about a Letter of Comfort?

    A) It is a legally binding document that obligates the holding company to repay the loan.

    B) It is issued only by banks and NBFCs.

    C) It is an assurance provided by a third party to the lender that adds strength to the transaction when giving loans.

    D) It is the same as a Letter of Guarantee in terms of its legal obligations.

     

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  • Latest Trade Data : India’s Merchandise Exports and Imports

    Central Idea

    • The Ministry of Commerce and Industry has released the latest trade data that shows a continued contraction in India’s merchandise exports and imports in February. It indicates a slowdown in both the global and domestic economies.

    Overview

    • The pace of contraction has deepened, and this has resulted in a further narrowing of the country’s merchandise trade deficit.
    • The disaggregated data shows that core-exports and core imports have continued to contract, and there has been a softening in imports of consumer and investment goods, pointing towards weakening domestic demand.

    What the data shows?

    • Deepening of Contraction: Both exports and imports have seen a deepening of the pace of contraction. Merchandise exports fell by 8.8% in February, while imports declined by 8.2% in the same month. These figures follow a decline of 6.6% and 3.6% in exports and imports respectively in January.
    • Narrowing Trade Deficit: The contraction has led to a further narrowing of the trade deficit to $17.4 billion in February.
    • Impact on Export Destinations: The report by Nomura reveals that the sharpest declines have been observed in India’s exports to the US, China, Japan, and the rest of Asia.
    • Overall Growth: The higher export growth in the first half of the financial year has pushed overall growth for the year so far (April-February) to 7.55%.

    Sectors Affected

    1. Exports side:
    • The disaggregated data reveals that core exports, which exclude exports of oil, gold, and gems and jewellery, have continued to contract.
    • 16 out of the 30 main export segments have fallen in February, including labour-intensive segments such as leather and textiles.
    • Non-oil non-gems and jewellery exports are almost at the same level as last year.
    1. On the imports side:
    • Core imports, which exclude oil, gold, and gems and jewellery, have also continued to contract.
    • The data points towards a softening of imports of consumer and investment goods, indicative of weakening domestic demand.

    Back to basics: Trade Deficit

    • A trade deficit occurs when a country’s imports of goods and services exceed its exports.
    • In other words, it is the amount by which the value of a country’s imports exceeds the value of its exports. It is often seen as an indicator of a country’s economic competitiveness and can have implications for the overall balance of payments and the strength of the domestic currency.

    How Narrowing of trade deficit is beneficial?

    • Narrowing of the trade deficit means that the country is importing fewer goods than it is exporting, which can improve the overall balance of payments and help to strengthen the domestic currency.
    • This can also have positive effects on the economy by reducing the dependence on foreign borrowing and boosting domestic production and employment.

    The outlook for exports remains subdued

    • According to a report by Crisil, India’s merchandise export growth is likely to moderate to 2-4 per cent in the coming fiscal year as two of the country’s biggest destinations for exports the US and EU are expected to slow down sharply.
    • As per the International Monetary Fund’s latest World Economic Outlook, the US economic growth is expected to slow down from 2 per cent in 2022 to 1.4 per cent in 2023, while the Euro region is expected to moderate from 3.5 per cent to 0.7 per cent over the same period.

    Conclusion

    • The trade data indicates a slowdown in the economy. Sluggish exports and tight monetary policy are expected to reduce growth further. This assessment by the World economic outlook implies that exports are unlikely to provide a fillip to growth. The overall economic momentum will be further weighed down as the full impact of the RBI’s tighter monetary policy will be felt across the country.
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  • Growth Prospects: India Better Positioned Than China

    India

    Central Idea

    • The Chinese government’s growth target of 5% for 2023 has disappointed observers, given that it is lower than last year’s target and below the expected GDP growth for India in 2023. This is all the more surprising if one considers that India is benefiting from the positive impact of the country reopening after COVID-19 lockdowns while China should benefit from its reopening only this year.

    Reasons for China’s lower growth target?

    • Risk of undershooting growth target again: The Chinese government does not want to run the risk of undershooting its growth target again, as it happened in 2022.
    • Weak external demand and doubts about private investment: Even if consumption is recovering, external demand remains weak and it is hard to know whether private investment will indeed rise given the doubts about the role of the private sector in the Chinese economy as well as increasingly cautious sentiment being expressed by foreign investors.
    • Real estate sector dragging down growth: The real estate sector is still dragging down growth.

    Sustainable growth

    • The Chinese government recognizes that too high a growth rate is no longer desirable, as it only aggravates financial imbalances.
    • Instead, they are promoting sustainable growth, which involves a structural shift of the Chinese economy and the implementation of tighter regulatory measures to contain financial risks and achieve more social objectives, such as a green economy and food security.

    Job creation and foreign investment

    • China emphasises the importance of job security as an objective of sustainable growth, with a higher target for new jobs set by the Chinese government.
    • China’s recent charm offensive to retain foreign direct investment in China is an important source of job creation, given the country’s concern about the job market, especially young workers.
    • However, investors are looking at new pastures, with India likely to be a major beneficiary. Foreign investors are beginning to contribute more substantially to job creation in India, which could pose challenges for China as it tries to hold on to foreign direct investment within the country.

    Comparison of India and China’s growth prospects

    • The growth prospects of India and China, with a focus on job creation and competition for foreign direct investment.
    • while India and China may not be too different in size and population, growth prospects differ substantially.
    • The Chinese government’s cautious growth targets are consistent with the current challenges facing the Chinese economy, but they face more competition than before, especially from India, which has a larger market size and labor pool.
    • This pattern of India’s resilient growth and China’s cautious growth targets will accelerate in the next few years, especially if the reshuffling of the value chain continues, pushed by geopolitics and high costs in China.

    Conclusion

    • The Chinese economy could be facing structural deceleration while India enjoys the benefits of its demographic dividend. China’s structural deceleration and tighter regulatory measures may also affect its future growth prospects. As a result, India may be better positioned for sustained growth compared to China in the coming years.
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  • Return of the Net Neutrality debate in India

    net neutrality

    Since November 2022, India’s Cellular Operators Association (COAI) has been requesting that platforms like YouTube and WhatsApp pay a share of revenue to offset network costs, reigniting the net neutrality debate.

    What is Net Neutrality?

    • Net Neutrality is the concept that all traffic on the internet should be treated equally, without discrimination or preference given to certain types of content, websites, or users.
    • This means that internet service providers (ISPs) should not be allowed to block, slow down, or prioritize traffic based on the source, destination, or content of that traffic.
    • Net Neutrality is considered important for ensuring a level playing field for all internet users and promoting innovation, competition, and freedom of expression online.
    • It has been a subject of debate and regulatory action in many countries, including India, the United States, and the European Union.

    Features of Net Neutrality

    The following are some of the features of net neutrality:

    • Non-discrimination: All data should be treated equally, and internet service providers (ISPs) should not discriminate or prioritize any type of content, application, service, or device based on its source, destination, or ownership.
    • Transparency: ISPs should provide customers with clear and accurate information about their internet services, including their network management practices, terms of service, and fees.
    • No blocking: ISPs should not block or censor lawful content, applications, services, or devices that customers want to access, use, send, receive, or offer on the internet.
    • No throttling: ISPs should not intentionally slow down or degrade the quality of any lawful content, application, service, or device that customers want to access, use, send, receive, or offer on the internet.
    • No paid prioritization: ISPs should not offer faster or better access to any content, application, service, or device in exchange for payment or other consideration from content providers, developers, or users.
    • Competition: Net neutrality promotes competition among ISPs by preventing them from using their control over access to the internet to favor their own content, applications, services, or devices or those of their partners, affiliates, or subsidiaries over those of their competitors.

    Why in news?   

    Ans. BIF responds to COAI’s demands

    • The Broadband India Forum (BIF), which represents Internet firms such as Meta and Google, responded to the COAI’s demands by refuting them.
    • The COAI’s argument that the current demand has nothing to do with Net neutrality was contested by the BIF.
    • The COAI argued that Net neutrality pertains to the non-discriminatory treatment of content that has no nexus to the usage fee issue.

    Arguments for and against the usage fee

    • Net neutrality activists and content providers argue that imposing a usage fee, even on a limited number of large players, would be a distortion of the Internet’s architecture.
    • They contend that content providers and telecom operators enjoy a symbiotic relationship without charging each other.
    • On the other hand, the COAI argues that a network fee is not related to Net neutrality and suggests that the government reduce spectrum fees and support telecom companies with the Universal Service Obligation Fund (USOF).
    • Worldwide, telecom operators in the European Union are also demanding similar usage fees from content providers.

    TRAI ruling and the Unified License

    • In 2016, the Telecom Regulatory Authority of India (TRAI) ruled in favour of Net neutrality, which requires that all traffic on an Internet network be treated equally.
    • In 2018, the Department of Telecommunications embedded the net neutrality concept into the Unified License, which binds all telecom operators and Internet providers.

     

     

  • Background Radiation high in Kerala: Study

    Central idea: The article discusses a pan-India study conducted by scientists at the Bhabha Atomic Research Centre (BARC) which found that background radiation levels in parts of Kerala are nearly three times more than what’s been assumed.

    What is Background Radiation?

    • Background radiation is a measure of the level of ionizing radiation present in the environment at a particular location which is not due to deliberate introduction of radiation sources.
    • Background radiation originates from a variety of sources, both natural and artificial.

    Nuclear Radiation and its Types

    radiation

    There are three main types of nuclear radiation: alpha particles, beta particles, and gamma rays.

    1.      Alpha particles are made up of two protons and two neutrons and are essentially helium nuclei. They have a positive charge and are relatively large and heavy, which means they can be stopped by a piece of paper or the outer layer of skin.

    2.      Beta particles are high-energy electrons that are emitted from the nucleus of an atom. They have a negative charge and are much smaller than alpha particles, which means they can penetrate through the skin and into the body.

    3.      Gamma rays are high-energy electromagnetic radiation, similar to X-rays. They are emitted from the nucleus of an atom and have no charge. They are extremely penetrating and can travel long distances through air and most materials, including the human body.

     

    How is it measured?

    • The International Atomic Energy Agency (IAEA) specifies maximum radiation exposure levels and this has also been adopted by India’s atomic energy establishment.
    • Public exposure shouldn’t exceed 1 milli-Sievert every year, those who work in plants or are by virtue of their occupation shouldn’t be exposed to over 30 milli-Sievert every year.
    • Generally it is measured in nanogray per second. A (nGy/s) is a decimal fraction of the SI-derived unit of ionizing radiation absorbed dose rate.

    Natural sources-

    1. Cosmic radiation
    2. Environmental radioactivity from naturally occurring radioactive materials (such as radon and radium)

    Man-made sources-

    1. Medical X-rays,
    2. Fallout from nuclear weapons testing and nuclear accidents.

    Factors affecting such radiation

    • Natural background radiation is all around us.
    • Background radiation varies from place to place and over time, depending on the amount of naturally occurring radioactive elements in soil, water and air.
    • Weather conditions also affect radiation levels, as snow cover may shield these elements, and radioactive particulates can wash out of the air during rain storms.
    • Cosmic radiation from the sun, our galaxy, and beyond is constantly around us and contributes to natural background radiation.
    • Altitude and latitude can also influence the level of background radiation at any one site.

    How threatening is it?

    • All rocks and soils contain some trace amount of natural radioactivity and can sometimes be ingested or inhaled if disturbed.
    • Radon is a gas that can concentrate indoors and be inhaled, along with its decay products.
    • We can also ingest radioactivity from the food we eat and the water we drink.
    • A number of factors determine the annual dose you and your family receive from background radiation.
    • Typically, Gamma rays are a type of such radiation that can pass through matter unobstructed, and are harmless in small doses, but can be dangerous in concentrated bursts.

    Findings of the BARC Study

    • The study found that the average natural background levels of gamma radiation in India was 94 nGy/hr (nano Gray per hour) (or roughly 0.8 millisievert/year).
    • The last study conducted in 1986 computed such radiation to be 89 nGy/hr.
    • The study found that the levels in Kollam district, Kerala were 9,562 nGy/hr, or about three times more than what was assumed.
    • This computes to about 70 milliGray a year, or a little more than what a worker in a nuclear plant is exposed to.
    • This however does not necessarily mean that those at Kollam are being exposed to dangerous levels of radiation, as past studies have not found any higher rates of cancer or mortality.

    Reasons for Higher Radiation Levels in Kerala

    • The higher radiation levels in Kollam are attributed to monazite sands that are high in thorium, which is part of India’s long-term plan to sustainably produce nuclear fuel.
    • Southern India has higher levels of radiation due to the presence of granite and basaltic, volcanic rock, which contains uranium deposits.

     

     

  • How India’s Sugar Exports to the world are surging?

    sugar

    Central idea:  India’s success story in sugar exports

    • India’s sugar exports have soared from $810.9 million in 2017-18 to $4.6 billion in 2021-22, and could cross $5.5 billion in the fiscal year ending March 31.
    • The increase is significant in quantity terms too, with India’s shipments increasing from a mere 0.46 lakh tonnes in 2016-17 to 110 lakh tonnes in 2021-22.
    • India has gone from being a marginal player in sugar exports five years ago to No. 2 in the world currently, behind only Brazil.

    Favourite destinations

    • The biggest importers of Indian raw sugar were Indonesia (16.73 lt), Bangladesh (12.10 lt), Saudi Arabia (6.83 lt), Iraq (4.78 lt) and Malaysia (4.15 lt).
    • The country also exported 53.71 lt of white/ refined sugar, the leading destinations for which included Afghanistan (7.54 lt), Somalia (5.17 lt), Djibouti (4.90 lt), Sri Lanka (4.27 lt), China (2.58 lt), and Sudan (1.08 lt).
    • The highest decline in exports has been registered by the European Union (which produces sugar from beet, unlike India and Brazil that only crush cane): from 39.74 lt in 2017-18 to 8.02 lt in 2021-22.

    Which grades of sugar does India export?

    • Raw sugar is what mills produce after the first crystallization of juice obtained from crushing of cane.
    • This sugar is rough and brownish in color, with an ICUMSA value of 600-1,200 or higher.
    • ICUMSA is a measure of the purity of sugar based on color.
    • This raw sugar is processed in refineries for removal of impurities and de-colorization.
    • The end product is refined white cane sugar having a standard ICUMSA value of 45.
    • Till 2017-18, India mainly shipped plantation white sugar with 100-150 ICUMSA value, also known as low-quality whites or LQW in international markets.

    Reasons behind India’s surge in sugar exports

    • Indian raw sugar is free of dextran, unlike Brazilian raws.
    • Indian mills can supply raws with a very high polarization of 98.5-99.5%, which is higher than the polarization of raws from Brazil, Thailand, and Australia.
    • Indian raws today fetch a 4% premium over the global benchmark (New York No. 11 futures contract) price, while LQW sells at a $40/tonne discount to the world price (London No. 5 futures) for 45 ICUMSA whites.
    • Indonesia agreed to tweak its norms in December 2019 to enable imports from India, which further boosted India’s efforts to push exports of raws.

     

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