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GS Paper: GS3

  • Price Support Mechanism under MSP Operations

    The Centre will spend ₹1,061 crore to reimburse the Cotton Corporation of India (CCI) and its sub-agent in Maharashtra for procuring cotton at the minimum support price in that State since 2014.

    Why Centre reimburses to states?

    In the event of fall in market prices, the Centre intervenes through following schemes-

    Market Intervention Scheme

    • Similar to MSP, there is a Market Intervention Scheme (MIS), which is implemented on the request of State Governments for procurement of perishable and horticultural commodities in the event of fall in market prices.
    • The Scheme is implemented when there is at least 10% increase in production or 10% decrease in the ruling rates over the previous normal year.
    • Proposal of MIS is approved on the specific request of State/UT Government, if the State/UT Government is ready to bear 50% loss (25% in case of North-Eastern States), if any, incurred on its implementation.
    • Under MIS, funds are not allocated to the States.
    • Instead, central share of losses as per the guidelines of MIS is released to the State Governments/UTs, for which MIS has been approved based on specific proposals received from them.

    Price Supports Scheme (PSS)

    • The Department of Agriculture & Cooperation implements the PSS for procurement of oil seeds, pulses and cotton, through NAFED which is the Central nodal agency, at the MSP declared by the government.
    • NAFED undertakes procurement as and when prices fall below the MSP. Procurement under PSS is continued till prices stabilize at or above the MSP.
    • Losses, if any incurred by NAFED in undertaking MSP operations are reimbursed by the central Government.
    • Profit, if any, earned in undertaking MSP operations is credited to the central government.

    Back2Basics

    Minimum Support Price (MSP)

    • MSP is a form of market intervention by the GoI to insure agricultural producers against any sharp fall in farm prices.
    • The MSP are announced at the beginning of the sowing season for certain crops on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP).
    • MSP is price fixed to protect the producer – farmers – against excessive fall in price during bumper production years.
    • In case the market price for the commodity falls below the announced minimum price due to bumper production and glut in the market, govt. agencies purchase the entire quantity offered by the farmers at the announced minimum price.
    • The minimum support prices are a guarantee price for their produce from the Government.
    • The major objectives are to support the farmers from distress sales and to procure food grains for public distribution.

    Methods of calculation

    • In formulating the level of MSP and other non-price measures, the CACP takes into account a comprehensive view of the entire structure of the economy of a particular commodity or group of commodities.
    • The CACP makes use of both micro-level data and aggregates at the level of district, state and the country.
    • Other factors include cost of production, changes in input prices, input-output price parity, trends in market prices, demand and supply, inter-crop price parity, effect on industrial cost structure, effect on cost of living, effect on general price level, international price situation, parity between prices paid and prices received by the farmers and effect on issue prices and implications for subsidy.

    Procurement agencies

    • Food Corporation of India (FCI) is the designated central nodal agency for price support operations for cereals, pulses and oilseeds.
    • Cotton Corporation of India (CCI) is the central nodal agency for undertaking price support operations for Cotton.

  • Stages in a COVID-19 Pandemic

    Over the past few weeks, India has been dreading the possibility that the novel coronavirus outbreak will move to the stage of community transmission.

    What are the stages of a pandemic?

    Stage I

    • In the first stage of a disease epidemic that eventually takes the form of a pandemic sweeping the globe, cases are imported into a country in which the infection did not originate.
    • An infection whose spread is contained within the boundaries of one or a few countries is obviously not a pandemic.

    Stage II

    • The second stage is when the virus starts being transmitted locally.
    • Local transmission means that the source of the infection is from within a particular area and the trajectory the virus has taken from one person to the next is clearly established.

    Stage III

    • The third stage is that of community transmission. It is usually localised.
    • According to the WHO community transmission is evidenced by the inability to relate confirmed cases through chains of transmission for a large number of cases, or by increasing positive tests through sentinel samples.
    • In layman terms, it means that the virus is now circulating in the community, and can infect people with no history either of travel to affected areas or of contact with an infected person.
    • If and when community transmission happens, there might arise the need for a full lockdown because in that situation it is theoretically possible for every person, regardless of where they are from and who they have been in contact with, to spread the disease.

    Stage IV

    • There is also a fourth stage in every pandemic. It is when the disease, COVID-19 in this case, becomes endemic in some countries.
    • The Indian government’s containment plan takes this possibility into account.
    • Among diseases that are currently endemic in India — meaning they occur round the year across the country — are malaria and dengue.

    How does categorising an outbreak in this manner help?

    • The stages of a pandemic are uniform the world over.
    • This is so because, in today’s interconnected world, it is important to have a standardised phraseology that conveys the same thing to every person around the world, and helps countries prepare better.
    • The categorization helps countries take specific actions that are necessary to target just that particular scenario.
    • For example, India imposed travel restrictions to China from very early on as the cases they were all imported from China.
    • Later, as cases started being imported from other European countries, flight and visa restrictions were put in place for those countries.
    • India has now shut itself to individuals coming from all countries — this is because the virus is now confirmed as circulating in at least 177 countries and territories.

    Worldwide, in which stage is the COVID-19 pandemic now?

    • The pandemic has spread to nearly every country on the planet. In most, though, it is in the stage of either imported cases or local transmission.
    • Among the countries where community transmission seems to be operating are China, Italy, Iran, South Korea and Japan.
    • China adopted a graded approach in dealing with the infection but the epicentre, Hubei, was in a state of complete lockdown at the peak of the infection.
    • It something that Italy has now effected in a bid to stop the virus from wreaking more havoc, given the country’s ageing population.

    How long before India enters community transmission?

    • It is totally unpredictable. Some doctors perceive that community transmission is inevitable; other experts feel it may have already happened.
    • There are some reports of one strain having less mortality. If indeed a milder strain has come to India, it could change the course of the epidemic.
    • There is another theory that all the various viruses circulating in South Asia and the generally lower levels of hygiene may give us some immunity.

  • Can Vitamin C prevent or cure novel Coronavirus infection?

  • The strategy of ‘Shelter in Place’

    What is the news: As India observed a “janata curfew” from 7 am to 9 pm on 22nd March refraining from making any non-essential movements, they are implementing a version of what is referred to, most commonly in the United States, as a “shelter in place” order.

    What exactly is a “Shelter in Place”?

    • In the context of the US, it is not a precise legal term, and its meaning and implications vary.
    • It conveys the broad idea of a set of restrictions being put into place, but follows not set definition.
    • Broadly, “shelter in place” orders everywhere social distancing, which is the key to “flattening the curve”, that is, spreading out the incidence of infection over a longer time so that healthcare systems are not overwhelmed.
    • Ultimately, the intent of the protocols is to decide what people should and shouldn’t do based on a particular threat to the public.

    Indian concept of self-imposed curfew

    • There is no exact definition of a “Janata curfew” — the PM has laid down guidelines for what Indians should not do, and authorities have taken steps to ensure compliance through appeals, advisories, and executive action such as invoking prohibitory orders.
    • In the cities, traders’ associations and housing societies have voluntarily put curbs on themselves in response to the PM’s call.

  • Species in news: Carissa carandas (the Great Hedge of India)

     

    Carissa carandas, a  multi-utility wild berry, whose thorny plant the British had used to build a barrier through India in the 1870s, has a hitherto unknown wilder cousin in Assam, a new study has revealed.

    Carissa carandas

    • The Carissa carandas was also among several thorny plants the British had grown 140 years ago for a 1,100-mile barrier apparently to enforce taxes and stop the smuggling of salt.
    • It has been used as a traditional herbal medicine for a number of ailments such as diarrhoea, anaemia, constipation, indigestion, skin infections and urinary disorders.
    • The leaves have been used as fodder for silkworms while a paste of its pounded roots serves as a fly repellent.
    • It is better known as karonda in Hindi, kalakkai in Tamil, koromcha in Bengali and karja tenga in Assamese, the Carissa kopilii is threatened by the very river it is named after — Kopili in central Assam.
    • The “sun-loving” plant was distributed sparsely, rooted in rocky crevices along the Kopili riverbed at altitudes ranging from 85-600 metres above sea level.

  • [pib] Desertification and Land Degradation Atlas of India

     

    The Union Minister for Agriculture and Farmers Welfare has provided useful information about land degradation in India citing the Desertification and Land Degradation Atlas.

    Desertification and Land Degradation Atlas of India

    • Space Applications Centre (SAC), ISRO has released out an inventory and monitoring of desertification of the entire country in 2016.
    • This Atlas presents state-wise desertification and land degradation status maps depicting land use, process of degradation and severity level.
    • This was prepared using IRS Advanced Wide Field Sensor (AWiFS) data of 2011-13 and 2003-05 time frames in GIS environment.
    • Area under desertification / land degradation for the both time frames and changes are reported state-wise as well as for the entire country.

    Degraded land in India

    • About 29.32% of the Total Geographical Area of the country is undergoing the process of desertification/land degradation.
    • Approximately 6.35% of land in Uttar Pradesh is undergoing desertification/degradation.

    Various move for land conservation

    • National Afforestation & Eco Development Board (NAEB) Division of the MoEFCC is implementing the “National Afforestation Programme (NAP)” for ecological restoration of degraded forest areas.
    • Various other schemes like Green India Mission, fund accumulated under Compensatory Afforestation Fund Management and Planning Authority (CAMPA), Nagar Van Yojana etc. also help in checking degradation and restoration of forest landscape.
    • MoEF&CC also promote tree outside forests realizing that the country has a huge potential for increasing its Trees Outside Forest (TOF) area primarily through expansion of agroforestry, optimum use of wastelands and vacant lands.

    Various institutions for land conservation

    • Indian Institute of Soil and Water Conservation (IISWC): Bio-engineering measures to check soil erosion due to run-off of rain water
    • Central Arid Zone Research Institute (CAZRI), Jodhpur: Sand dune stabilization and shelter belt technology to check wind erosion
    • Council through Central Soil Salinity Research Institute, Karnal: Reclamation technology, sub-surface drainage, bio-drainage, agroforestry interventions and salt tolerant crop varieties to improve the productivity of saline, sodic and waterlogged soils in the country

  • [pib] Scheme for Promotion of manufacturing of Electronic Components and Semiconductors (SPECS)

    The Union Cabinet has approved Scheme for Promotion of manufacturing of Electronic Components and Semiconductors.

    About SPECS

    • The scheme aims to offer the financial incentive of 25% of capital expenditure for the manufacturing of goods that constitute the supply chain of electronic products.
    • The scheme will help offset the disability for domestic manufacturing of electronic components and semiconductors in order to strengthen the electronic manufacturing ecosystem in the country.

    Benefits

    The proposal, when implemented, will lead to the development of electronic components manufacturing ecosystem in the country. Following are the expected outputs/outcomes in terms of measurable indicators for the scheme:

    • Development of electronic components manufacturing ecosystem in the country and deepening of Electronics value chain
    • New investments in Electronics Sector to the tune of at least Rs. 20,000 crore
    • Total employment potential of the scheme is approximately 6,00,000
    • Reducing dependence on import of components by large scale domestic manufacturing that will also enhance the digital security of the nation

  • [pib] Defence Procurement Procedure, 2020

    Raksha Mantri unveiled the draft Defence Procurement Procedure (DPP) 2020 that aims at further increasing indigenous manufacturing and reducing timelines for procurement of defence equipment.

    Defence Procurement Procedure

    • The draft of DPP 2020 has been prepared by a Review Committee headed by Director General (Acquisition) based on the recommendations of all stakeholders, including private industry.
    • The first DPP was promulgated in 2002 and has since been revised a number of times to provide impetus to the growing domestic industry and achieve enhanced self-reliance in defence manufacturing.

    Features:

    • The government is constantly striving to formulate policies to empower the private industry including MSMEs in order to develop the eco-system for indigenous defence production.
    • The major changes proposed in the new DPP are:

     1) Indigenous Content ratio hiked

    • The draft proposes increasing the Indigenous Content (IC) stipulated in various categories of procurement by about 10% to support the ‘Make in India’ initiative.
    • A simple and realistic methodology has been incorporated for verification of indigenous content for the first time.

    2) New Category: “Buy Global” Manufacture in India

    • It has been introduced with minimum 50% indigenous content on cost basis of total contract value.
    • Only the minimum necessary will be bought from abroad while the balance quantities will be manufactured in India.
    • This would be in preference to the ‘Buy Global’ category as manufacturing will happen in India and jobs will be created in the country.

    3) Leasing introduced as a new category

    • Leasing has been introduced as a new category for acquisition in addition to existing ‘Buy’ & ‘Make’ categories to substitute huge initial capital outlays with periodical rental payments.
    • Leasing is permitted under two categories e, Lease (Indian) where Lessor is an Indian entity and is the owner of the assets and Lease (Global) where Lessor is a Global entity.
    • This will be useful for military equipment not used in actual warfare like transport fleets, trainers, simulators, etc.

    4) Product support

    • The scope and options for Product Support have been widened to include contemporary concepts in vogue, namely Performance Based Logistics (PBL), Life Cycle Support Contract (LCSC), Comprehensive Maintenance Contract (CMC), etc to optimize life cycle support for equipment.
    • The capital acquisition contract would normally also include support for five years beyond the warranty period.

  • [pib] Production Linked Incentive Scheme

    The Union Cabinet has approved the Production Incentive Scheme (PLI) for Large Scale Electronics Manufacturing.

    Production Incentive Scheme (PLI)

    • The scheme proposes production linked incentive to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components including Assembly, Testing, Marking and Packaging (ATMP) units.
    • The scheme shall extend an incentive of 4% to 6% on incremental sales (over a base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five (5) years subsequent to the base year as defined.
    • The proposed scheme is likely to benefit 5-6 major global players and few domestic champions, in the field of mobile manufacturing and Specified Electronics Components and bring in large scale electronics manufacturing in India.

    Benefits

    • The scheme has a direct employment generation potential of over 2,00,000 jobs over 5 years.
    • It would lead to large scale electronics manufacturing in the country and open tremendous employment opportunities.  Indirect employment will be about 3 times of direct employment as per industry estimates.
    • Thus, the total employment potential of the scheme is approximately 8,00,000.

  • [pib] Indian Institutes of Information Technology (IIIT) Laws (Amendment) Bill, 2020

    Lok Sabha passed the IIIT Laws (Amendment) Bill, 2020.

    About IIIT Act

    • IIITs are envisaged to promote higher education and research in the field of Information Technology.
    • The IIT Act of 2014 and IIIT (Public-Private Partnership) Act, 2017 are the unique initiatives of the govt. to impart knowledge in the field of IT to provide solutions to the challenges faced by the country.
    • Every Institute shall be open to all persons irrespective of gender, caste, creed, disability, domicile, ethnicity and social or economic background.

    What are the proposed Amendments?

    • Introduction of the Amendment 2020 will amend the principal acts of 2014 and 2017.
    • It will grant statutory status to five IIIT in PPP mode in Gujarat (Surat), Madhya Pradesh (Bhopal), Bihar (Bhagalpur), Tripura (Agartala), and Karnataka (Raichur).
    • It would declare them as Institutions of National Importance along with already existing 15 IIIT under the 2017 Act.