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GS Paper: GS3

  • The perils of deregulated imperfect agrimarkets

    The article examine issue of agriculture produce marketing. The passage of FPTC Act 2020 sought to address the challenges faced by the farmers. However, these are several issues the Act fails to resolve. These issues are discussed here.

    Why do farmers sell outside mandis?

    • Official data show that even for paddy and wheat, respectively, only 29% and 44% of the harvest is sold in a mandi.
    • In other words a large proportion of Indian harvest is not directly sold in a mandi.
    • Farmers are forced to sell outside the mandis for two reasons.

    1) There are not enough mandis

    • The National Commission on Agriculture (NCA) had recommended that every Indian farmer should be able to reach a mandi in one hour by a cart.
    • Thus, the average area served by a mandi was to be reduced to 80 km2.
    • For this, the number of mandis was to increase to at least 41,000.
    • But there were only 6,630 mandis in 2019 with an average area served of 463 km2.
    • Using another set of criteria, a government committee in 2017 had recommended that India should have at least 10,130 mandis.
    • So, by all counts, India needs not less but more mandis.

    2) Transport cost

    • Most small and marginal farmers, do not find it economical to bear the transport costs to take their harvests to mandis.
    • Thus, they end up selling their harvest to a village trader even if at a lower price.
    • Even if private markets replace mandis, small and marginal farmers will continue to sell to traders in the village itself.
    • The situation will change only if economies of scale rise substantially at the farm-level.

    Why there is poor private investment in markets?

    • Already, 18 States have allowed the establishment of private markets outside the APMC; 19 States have allowed the direct purchase of agricultural produce from farmers; and 13 States have allowed the establishment of farmer’s markets outside the APMC.
    • Despite such legislative changes, no significant private investment has flowed in to establish private markets in these States.
    • The reason for poor private investment in markets is the presence of high transaction costs in produce collection and aggregation.
    • When private players try to take over the role of mandis and the village trader, they incur considerable costs in opening collection centres and for salaries, grading, storage and transport.
    • Corporate retail chains face additional costs in urban sales and storage, as well as the risk of perishability.
    • This is why many retail chains prefer purchasing from mandis rather than directly from farmers.

    Issue of mandi tax

    • Many commentaries treat taxes in mandis as wasteful. This assertion is not fully true for two reasons:
    • 1) Much of the mandi taxes are reinvested by APMCs to improve market infrastructure.
    • A fall in mandi taxes would reduce the surplus available with APMCs for such investment.
    • 2) In States such as Punjab, the government charges a market committee fee and a rural development fee.
    • The Punjab Mandi Board uses these revenues to construct rural roads, run medical and veterinary dispensaries, supply drinking wate etc.
    • Such rural investments will also be adversely affected if mandis are weakened.

    Weakening of MSP regime

    • Many policy signals point to a strategic design to weaken the MSPs.
    • 1) Rising input and labour costs necessitates a regular upward revision of MSPs to keep pace with costs of living.
    • However, MSPs are rising at a far slower rate over the past five to six years than in the past.
    • 2) The government has not yet agreed to fix MSPs at 50% above the C2 cost of production.
    • As a result, farmers continue to suffer a price loss of ₹200 to ₹500 per quintal in many crops.
    • 3) The Commission for Agricultural Costs and Prices (CACP) has been recommending to the government that open-ended procurement of food grains should end.
    • These policy stances have set alarm bells ringing among farmers.
    • The farmers Punjab, Haryana and western Uttar Pradesh feel that if mandis weaken and private markets with no commitment to MSPs expand, they fear a gradual erosion of their entitlement to a remunerative price.

    Steps to be taken

    • 1) India needs an increase in the density of mandis, expansion of investment in mandi infrastructure and a spread of the MSP system to more regions and crops.
    • 2) This increase in density should happen hand-in-hand with a universalisation of the Public Distribution System.
    • 3) APMCs need internal reform to ease the entry of new players, reduce trader collusion and link them up with national e-trading platforms.
    • The introduction of unified national licences for traders and a single point levy of market fees are also steps in the right direction.

    Consider the question “The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 was passed with a view to address the challenges faced by the farmers in selling their produce. However, there are concerns with the provision of the Act and its efficacy to addresss these challenges. What are the issues with the Act? Suggest the measures to address these issues.” 

    Conclusion

    The government’s must try to allay the fears of farmers over the Farm Bills and it is never too late to rethink. Unconditional talks with farmers would be an appropriate starting point.

  • Future of 5G in India

    India, which has the highest average monthly mobile data traffic per smartphone, is expected to surpass 350 million 5G subscriptions by 2026, according to a report by Swedish telecom equipment maker Ericsson.

    Also read:

    [Burning Issue] 5G Technology

    Ericsson Mobility Report, 2020

    • As per the report, four out of every ten mobile subscriptions in 2026 will be 5G globally with 5G subscriptions forecast to reach 3.5 billion.
    • In the India region, LTE (long-term evolution technology) subscriptions are forecast to increase from 710 million in 2020 to 820 million in 2026” by which time 3G will be phased out.
    • LTE remains the dominant technology in 2020, accounting for 63%.
    • Based on the reported timeline for spectrum auction for 5G services, India could have its first 5G connection in 2021.

    Internet usage in India

    • In India, the reliance of people on mobile networks to stay connected as well as work from home during the pandemic has resulted in average traffic per smartphone is the global highest.
    • Low prices for mobile broadband services, affordable smartphones and increased time spent by people online all contribute to monthly usage growth in India.

    Back2Basics: 5G Technology

    • It is the next-generation cellular technology that will provide faster and more reliable communication with ultra-low latency.
    • A government panel report points out that with 5G, the peak network data speeds are expected to be in the range of 2-20 Gigabits per second (Gbps).
    • This is in contrast to 4G link speeds in averaging 6-7 Megabits per second (Mbps) in India as compared to 25 Mbps in advanced countries.
    • Once 5G becomes commercial, users will be required to change their current devices in favour of 5G-enabled ones.
    • However, it is likely that the primary use of the technology will go beyond the delivery of services on personal mobiles devices.

  • Japan’s Hayabusa2 Probe

    A Japanese spacecraft is nearing Earth after a yearlong journey home from a distant asteroid with soil samples. It is set to land in Australia.

    Try this PYQ:

    Which of the following is/are cited by the scientists as evidence/evidence for the continued expansion of the universe?

    1. Detection of microwaves in space
    2. Observation of redshirt phenomenon in space
    3. Movement of asteroids in space
    4. Occurrence of supernova explosions in space

    Codes:

    (a) 1 and 2 only

    (b) 2 only

    (c) 1, 3 and 4

    (d) None of the above can be cited as evidence.

    Hayabusa2 Probe

    • Hayabusa2is an asteroid sample-return mission operated by the Japanese space agency, JAXA.
    • It follows on from the Hayabusa mission which returned asteroid samples in 2010.
    • It was launched on 3 December 2014 and rendezvoused with near-Earth asteroid 162173 Ryugu on 27 June 2018.
    • It surveyed the asteroid for a year and a half and took samples. It left the asteroid in November 2019.
    • It carries multiple science payloads for remote sensing, sampling, and four small rovers that investigated the asteroid surface to inform the environmental and geological context of the samples collected.

  • Cultivation of ‘Wild’ Arunachal Kiwi

    Recently, the ‘Wild’ Arunachal Kiwi has received organic certification by the Mission Organic Value Chain Development for the North East Region.

    Try this PYQ:

    Q.Among the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years?

    (a) Spices

    (b) Fresh fruits

    (c) Pulses

    (d) Vegetable oils

    Arunachal Kiwi

    • The kiwifruit (Actinidia deliciosa Chev.) is a deciduous fruiting vine native to Yangtze River valley of south and central China.
    • In Arunachal Pradesh, a domesticated variety of kiwi was introduced as a commercial fruit only in 2000.
    • The Ziro Valley specifically located at 1,500-2,000 metres above sea level is the most ideal for kiwi.
    • It is also called “China’s miracle fruit” and “Horticulture wonder of New Zealand”.

    Benefits of certification

    • Certification helps producers and handlers; they receive premium prices for the products and have access to fast-growing, local, regional and international markets.

    Organic certification in India

    • An agricultural practise/product is considered organic when there are no chemical fertilizers or pesticides involved in its cultivation process.
    • Such certifications in India can be obtained after a strict scientific assessment done by the regulatory body, Agricultural and Processed Food Products Export Development Authority (APEDA).

  • Zebrafish and its heart regeneration capacity

    Indian scientists have used the Zebrafish model and identified its genes that can promote heart regeneration.

    Try this PYQ:

    Q.With reference to India’s Biodiversity, Ceylon frogmouth, Coppersmith Barbet, Gray-chinned minivet and White-throated redstart are-

    (a) Birds

    (b) Primates

    (c) Reptiles

    (d) Amphibians

    Zebrafish

    • Zebrafish is a small (2-3 cm long) freshwater fish found in the tropical and subtropical regions.
    • The fish is native to South Asia’s Indo-Gangetic plains, where they are mostly found in the paddy fields and even in stagnant water and streams.
    • The fish become adults at three months and survive 2-3 years in a laboratory condition.
    • Its unique characteristics lie in its transparency during its embryonic stages, allowing observing all organs, including beating heart and blood circulation.

    Ability to heal their heart

    • The ability of Zebrafish to heal their heart after injury makes them an attractive model to investigate mechanisms governing the regenerative process.
    • Researchers worldwide are actively working to understand the mechanism behind the heart regeneration in Zebrafish for the last two decades.
    • Years of efforts have helped them identify the cellular communication network factor 2a (ccn2a), a gene that can promote heart regeneration by enhancing cardiomyocyte proliferation.
    • They have also observed that this gene resolves the transient collagenous fibrotic scar resulting in faster regeneration.

    Significance for humans

    • Cardiovascular diseases are the number 1 cause of deaths globally, taking an estimated 17.9 million lives each year, according to the World Health Organisation.
    • Humans cannot regenerate their hearts upon myocardial damage and a person who suffered a heart attack cannot functionally heal the damaged heart muscle, resulting in reduced pumping efficiency.
    • While on the other hand, this unique fish has the full potential to regenerate its heart and restore its function after injury.
    • Till now, there is no treatment available to restore the damaged heart function in humans. Hence scientists have sought to decode the heart regeneration processes using this model animal.

  • The Paris agreement is no panacea

    The article highlights the fact that the provisions of the Paris Agreement would not be enough to avert the catastrophic and irreversible changes resulting from the global emissions. 

    Past efforts for environmental protection

    • The most hopeful time for global cooperation in protection of the planet was between the time of the Stockholm Conference (1972) and the time of the Rio Conference (1992).
    •  Scientific evidence about role anthropogenic emission in global warming led to political initiatives to harmonise development and environment.
    • The historic consensus in Rio led to the adoption of the UN Framework Convention on Climate Change (UNFCC).
    • A distinction was made between the “luxury emissions” of the developed countries and the survival emissions of the developed countries, which were allowed to increase.
    • Moreover, a huge financial package was approved to develop environment-friendly technologies in developing countries.

    Copenhagen Accord: Abandonment of Rio Principles

    • After the adoption of UNFCC, Conference of the Parties was held in Berlin in 1995 where developed countries backed off from their commitments.
    • Though the G-77 was split, the Rio principles were maintained.
    • The Kyoto Protocol enshrined the Rio principles.
    • It fixed emission targets for developed countries and a complex set of provisions was included to satisfy their interests.
    • The end of the Kyoto Protocol and the abandonment of the spirit of the Rio principles were reflected in the Copenhagen Accord (2009).
    • Argument given was that a global climate action plan would be possible only if all reductions of the greenhouse gases were made voluntary.

    Paris Agreement: Making emission reduction voluntary

    • The Paris Agreement moved away from the principle of common but differentiated responsibilities.
    • All countries were placed on an equal footing by making reduction of greenhouse gas emissions voluntary.
    • It requires all parties to put forward their best efforts through nationally determined contributions (NDCs)

    Shortcomings in Paris Agreement

    • The NDCs so far submitted will not result in the desired objective of limiting increase of global warming to below 2°C.
    • The Paris Agreement requires that all countries — rich, poor, developed, and developing — slash greenhouse gas emissions.
    • But no language is included on the commitments the countries should make.
    • Nations can voluntarily set their emissions targets and incur no penalties for falling short of their targets.
    •  Further temperature rise, even of 1.5°C, may result in catastrophic and irreversible changes.
    • Even a 1°C hotter planet is not a steady state, says a report of the Intergovernmental Panel on Climate Change (IPCC).

    Conclusion

    The IPCC report acknowledges that “the pathways to avoiding an even hotter world would require a swift and complete transformation not just of the global economy but of society too”. This will only be possible if the world rejects nationalism and parochialism and adopts collaborative responses to the crisis. The Paris Agreement falls short of that imperative.

  • Farmers’ protest

    Farmers all across the Punjab and Haryana have marched to New Delhi over the new legislations.

     Major cause of Farmers’ protest

    • Much of the opposition really is just to one of the three laws. It is the Farmers’ Produce Trade and Commerce (Promotion and Facilitation)  Act and its provisions that are seen as weakening the APMC mandis.
    • Even in that one — the act — there are only some contentious provisions, which, although key, can still leave doors open for negotiation.

    A fight for privilege

    • Farmers, if anything, would gain from removal of stocking restrictions on the trade, as it potentially translates into unlimited buying and demand for their produce.

    The contentious one: FPTC Act

    • The FPTC Act is a bone of contention. It permits sale and purchase of farm produce outside the premises of APMC mandis.
    • Such trades (including on electronic platforms) shall attract no market fee, cess or levy “under any State APMC Act or any other State law”.
    • An issue here is the very right of the Centre to enact legislation on agricultural marketing.
    • Article 246 of the Constitution places “agriculture” and “markets and fairs” in the State List.
    • But entry 42 of the Union List empowers the Centre to regulate “inter-State trade and commerce”.

    An example of Central hegemony

    • While trade and commerce “within the State” is under entry 26 of the State List, it is subject to the provisions of entry 33 of the Concurrent List.
    • Under this, the Centre can make laws that would prevail over those enacted by the states.
    • Entry 33 of the Concurrent List covers trade and commerce in “foodstuffs, including edible oilseeds and oils”, fodder, cotton and jute.
    • The Centre, in other words, can very pass any law that removes all impediments to both inter- and intra-state trade in farm produce, while also overriding the existing state APMC Acts. The FPTC Act does precisely that.

    Farmers question

    • Some experts make a distinction between agricultural “marketing” and “trade”.
    • Agriculture per se would deal with everything that a farmer does — right from field preparation and cultivation to also sale of his/her own produce.
    • The act of primary sale at a mandi by the farmer is as much “agriculture” as production in the field.
    • “Trade” begins only after the produce has been “marketed” by the farmer.

    The centre’s overriding logic behind

    • Going by this interpretation, the Centre is within its rights to frame laws that promote barrier-free trade of farm produce (inter- as well as intra-state) and do not allow stockholding or export restrictions.
    • But these can be only after the farmer has sold.
    • Regulation of first sale of agricultural produce is a “marketing” responsibility of the states, not the Centre.

    What do farmers’ want?

    • Farmers would want no restrictions on the movement, stocking and export of their produce.
    • For example, Maharashtra’s onion growers have vehemently opposed the Centre’s resort to ban on exports and imposition of stock limits whenever retail prices have tended to go up.
    • But these restrictions relate to “trade”.
    • When it comes to “marketing” — especially dismantling of the monopoly of APMCs — farmers, especially in Punjab and Haryana, aren’t very convinced about the “freedom of choice to sell to anyone and anywhere” argument.

    Where lies the major issue?

    • Much of government procurement at minimum support prices (MSP) — of paddy, wheat and increasingly pulses, cotton, groundnut and mustard — happens in APMC mandis. 
    •  In a scenario where more and more trading moves out of the APMCs, these regulated market yards will lose revenues.
    • They may not formally shut, but it would become like BSNL versus Jio.
    • And if the government stops buying, farmers will be left with only the big corporates to sell to.

    What could be negotiated?

    • If the protesting farmer union leaders were to sit down at the negotiating table, the government can possibly get them to agree to drop the demand on repealing all the three laws.
    • Their problem is essentially about the FPTC Act and its provisions that they see as weakening the APMC mandis.
    • These may be just fears, but they aren’t small.
    • From the government’s standpoint, the elephant in the room would be if the farmers insist on an additional demand: Making MSP a legal right.
    • This  would be still impossible to meet, even if the three farm laws were to be put on hold.

     

  • RT-LAMP: a new technology for detecting COVID-19

    Indian Council of Medical Research has recently validated the LAMP technology for COVID-19 testing.

    What is RT-LAMP?

    • RT-LAMP stands for Reverse Transcriptase loop-mediated isothermal amplification) technology.
    • Agappe Diagnostics has recently developed the technology indigenously, and their kit has been validated and approved by the ICMR for marketing.
    • It is named LUME Screen nCoV.

    How does it work?

    • RT-LAMP technology is a one-step nucleic acid amplification method to multiply specific sequences of RNA of the coronavirus.
    • The RNA is first made into cDNA (copy DNA) by the usual reverse transcription. Then, the DNA is amplified by the LAMP technique.

    Current method

    • •The current method diagnosis is the real time reverse transcription polymerase chain reaction (RT-PCR) test which detects the presence of viral nucleic acids in nasopharyngeal swab samples.
    • But it has certain shortcomings.
    • The test requires complex and costly equipment. It requires extensive training for potential users.

    Benefits of LAMP over RT-PCR

    • The LAMP technology is superior to the PCR technology–based COVID-19 kits where specificity is around 95% only.
    • As the specificity and sensitivity of the test is about 95%, there is a possibility of false negative results.
    • The turnaround time is about 10 hours, so that the result will be available only by the next day.
    • In remote places, the turnaround time further increases depending on the distance the samples need to travel.
    • In short, the RT-PCR does not have the capacity to keep pace with the increasing demand.
    • The LAMP technology does not need laborious preparation as in the case of RT-PCR. LAMP is cost effective and does not need complex expensive equipment.

     

  • To be taken seriously, Quad needs military heft

    The article suggests projection of naval power to ensure the stability in the Indian Ocean. 

    Quad conducts Malabar exercise

    • In November, the Quad converged to continue the Malabar series, with a total of just eight ships.
    • The idea of Quad is to form a grouping of democratic nations in the Indian Ocean, and use naval power to convey a message to Beijing.
    • The message a grouping of eight ships would convey to a nation thinking in terms of five aircraft carriers remains would not be taken seriously.

    Importance of naval power in ensuring oceanic stability

    • There is no substitute for naval power to ensure oceanic stability, but one alternative lies in the area of Maritime Domain Awareness (MDA). 
    • Perhaps, some thought may already have been given to MDA in the twin agreement to BECA (Basic Exchange and Cooperation Agreement), and Maritime Information Sharing Technical Agreement (MISTA) signed between India and the US.
    • There is little information available in the public domain about MISTA.
    • But MISTA should cover an omnibus agreement for Maritime Patrol Aircraft (MPA) operating and information sharing for the entire Indo-Pacific.
    • The Pacific has a high density of MPA assets, while they are sparse in the Indian Ocean, particularly the western Indian Ocean.
    • The Australians can cover the Malacca Straits, but for the west Indian Ocean, the US will probably have to base a squadron of P-8 aircraft at Masirah or Diego Garcia.
    • Today, the primary weapon system of most warships is the surface-to-surface missile, with ranges of up to 200 km.
    • The ships’ sensor range is only up to 100 km.
    • So, accurate target information has to be supplied beyond 100 km by aircraft or helicopters in what is called Over the Horizon Targeting (OTHT).
    • With the Indo-Pacific fully covered by the MPAs of the Quad, a PLAN ship in the Indian Ocean is in imminent danger of being sunk at will

    Conclusion

    A public announcement of a division of the Indo-Pacific into areas of responsibility for MDA, between members of the Quad will send an unmistakable signal to Beijing. With a desultory Quad naval exercise, once a year of a few ships, Beijing will only be amused that a “threat” exists to its ambition to become a global power.

  • Stepping out of the shadow of India’s malnutrition

    The article takes stock of the food insecurity and malnutrition in India with the aid of two recently published reports.

    Reports about food security in India

    • Two recent reports — “The State of Food Security and Nutrition in the World 2020” by the Food and Agricultural Organization of the United Nations and the 2020 Hunger report, “Better Nutrition, Better Tomorrow” by the Bread for the World Institute  – document staggering facts about Indian food insecurity and malnutrition.
    • The reports use two globally recognised indicators, Prevalence of Undernourishment (PoU) and the Prevalence of Moderate or Severe Food Insecurity (PMSFI).
    • Using these indicators, the reports indicate India to be one of the most food-insecure countries, with the highest rates of stunting and wasting among other South Asian countries.

    Comparing rate of reduction in malnutrition with neighbouring countries

    • Malnutrition in India has not declined as much as the decline has occurred in terms of poverty.
    • On the contrary, the reduction is found to be much lower than in neighbouring China, Pakistan, Nepal and Bangladesh.
    • The decline in China is way higher than that of India, even though it had started with lower levels of PoU in 2000.

    Food security during pandemic and National Food Security Act 2013

    • Two crucial elements still got left out in the National Food Security Act – 2013.
    • These two elements are the non-inclusion of nutritious food items such as pulses and exclusion of potential beneficiaries.
    • Because of this, the current COVID-19 pandemic would make the situation worse in general, more so for vulnerable groups.
    • Though States have temporarily expanded their coverage in the wake of the crisis, the problem of malnutrition is likely to deepen in the coming years.
    • Hence, a major shift in policy has to encompass the immediate universalisation of the Public Distribution System which should definitely not be temporary in nature.

    Conclusion

    The need of the hour remains the right utilisation and expansion of existing programmes to ensure that we arrest at least some part of this burgeoning malnutrition in the country.