From UPSC perspective, the following things are important :
Mains level: Provisions of the Bharatiya Nagrik Suraksha Sanhita (BNSS) that replaces the Code of Criminal Procedure (Cr.PC.)
Why in the news?
Despite objections from the Opposition-ruled States, three new criminal laws took effect nationwide. Union officials emphasized States’ autonomy to amend certain provisions of the Bharatiya Nagrik Suraksha Sanhita (BNSS)
New Laws Introduced:
Bharatiya Nagrik Suraksha Sanhita (BNSS) replaces the Code of Criminal Procedure (CrPC).
Bharatiya Nyaya Sanhita (BNS) replaces the Indian Penal Code, 1860.
Bharatiya Sakshya (BS) replaces the Indian Evidence Act, 1872.
Procedural and Evidence Reforms:
Cognisable Offences: From July 1, cognisable offences will be registered under Section 173 of BNSS instead of Section 154 of CrPC.
Audio-Video Recording: Mandatory audio-video recording of search and seizure operations and compulsory forensic examinations for offences with punishments of seven years or more, with electronic submission of evidence to the court.
Some provisions of the Bharatiya Nagrik Suraksha Sanhita (BNSS) that replace the Code of Criminal Procedure (Cr.PC.)
Procedure for Arrest and Custody: BNSS prescribes new procedures and conditions for arrest, including bail provisions and custody arrangements.
Evidence Handling: Mandatory audio-video recording of search and seizure operations in all criminal cases, ensuring transparency and accountability. Compulsory forensic examinations in cases where the offence attracts a punishment of seven years or more.
Electronic Submission: All recordings and forensic evidence must be submitted electronically to the court without delay, enhancing efficiency and reducing paperwork.
About handholding and electronic evidence
Training and Support: The Union government has provided comprehensive training and hand-holding for all States to facilitate the transition to the new criminal justice system under BNSS, BNS, and BS.
Crime and Criminal Tracking Network Systems (CCTNS): Upgrades to CCTNS enable the filing of e-FIRs and zero FIRs, allowing for remote registration of complaints without the need to visit a police station. CCTNS software has been modified to support FIR registrations in languages other than English and Hindi, ensuring accessibility across linguistic barriers.
eSakshya Mobile Application: Under testing, the eSakshya app assists police in recording crime scenes, search operations, and gathering evidence. It facilitates the secure uploading of recorded data to a cloud-based platform hosted by the National Informatics Centre, ensuring data integrity and accessibility.
State-Level Preparations: States like Delhi have developed specific applications, such as e-pramaan, to aid in the recording of crime scenes and the generation of digital certificates under the new laws. Some states have distributed necessary equipment like tablets and mobile devices to police stations to ensure compliance with recording and evidence collection requirements.
Forensic Capability Timeline: While the BNSS mandates forensic examinations for offences punishable by over seven years imprisonment, states have been given until June 2029 to enhance their forensic capabilities. This includes training police officials in proper evidence collection methods and the use of available resources until full upgrades are completed.
Way Forward:
Continued Collaboration and Feedback Mechanism: Establish a structured feedback mechanism between the Union government and States to address implementation challenges and refine the new criminal laws, ensuring effective collaboration.
Enhanced Public Awareness and Training: Conduct extensive public awareness campaigns and provide ongoing training sessions for law enforcement personnel on the use of new technologies and procedures introduced under BNSS, BNS, and BS.
From UPSC perspective, the following things are important :
Prelims level: Bretton Woods Conference
Mains level: Functions of IMF and Recent Challenges Faced by Developing Countries
Why in the news?
Once again, mass protests in Kenya, where at least 30 people were fatally shot by police, highlight opposition to an IMF-supported finance Bill proposing essential goods tax hikes.
Bretton Woods Conference of 1944
The Bretton Woods Conference was held in 1944 in New Hampshire, USA. It established the International Monetary Fund (IMF) and the World Bank.
The IMF was designed to aid economic development and promote monetary cooperation and stability globally.
Criticism: It has been criticized for reflecting and perpetuating power dynamics favouring Western financial interests, with voting rights disproportionately allocated based on financial contributions rather than equal representation.
Functions of IMF and Recent Challenges Faced by Developing Countries
Functions: The IMF aims to provide financial assistance and policy advice to member countries facing balance of payments problems.
Challenges:
Austerity Measures: IMF loans often come with conditions such as austerity measures (like tax hikes and spending cuts) that can be unpopular and detrimental to social services and economic stability.
Dependency: Many developing countries face criticism for being overly dependent on IMF loans, which come with stringent conditions that may not always align with local priorities.
Public Backlash: There is often a public and political backlash against IMF policies perceived as imposing Western economic ideologies without adequate consideration for local contexts.
SAP (Structural Adjustment Programs) and Its Impacts
Definition: SAPs are economic policies imposed by the IMF and World Bank on developing countries in exchange for loans.
Impacts:
Economic Restructuring: SAPs typically involve privatization, deregulation, and liberalization policies aimed at restructuring national economies towards export-led growth.
Social Consequences: They often lead to job losses, reduced public spending on health and education, and increased poverty and inequality.
Criticism of SAPs: SAPs have been criticized for exacerbating social inequalities and benefiting Western financial interests over local populations.
Way forward:
Policy Transparency: The IMF could enhance transparency in its loan conditions and negotiations, ensuring that the terms and impacts of loans are clearly communicated to the public and local stakeholders.
Local Consultation: Before implementing major policy changes or austerity measures, the IMF could mandate extensive consultation with local governments, civil society organizations, and affected communities to ensure that proposed measures align with local economic priorities and social needs.
Mains PYQ:
Q The World Bank and the IMF, collectively known as the Bretton Woods Institutions, are the two inter-governmental pillars supporting the structure of the world’s economic and financial order. Superficially, the World Bank and the IMF exhibit many common characteristics, yet their role, functions and mandates are distinctly different. Elucidate. (UPSC IAS/2013)
From UPSC perspective, the following things are important :
Prelims level: About Zika Virus
Mains level: India’s Lack of Significant Zika Surveillance and Other Diseases
Why in the news?
The detection of a Zika virus infection in Pune has once again raised concerns regarding India’s readiness to diagnose emerging infectious diseases.
Recent Outbreaks in Various Regions of India
Zika Virus: Recent cases of Zika virus in Pune and previous outbreaks in Kerala and Uttar Pradesh highlight sporadic but concerning outbreaks across India.
Avian Influenza: Ongoing outbreaks affecting poultry, with occasional human cases reported, indicating challenges in surveillance and testing.
Nipah Virus: Multiple outbreaks in Kerala and sporadic cases in West Bengal underscore the recurrent nature of Nipah virus outbreaks in India.
India’s Lack of Significant Zika Surveillance and Other Diseases
Limited Diagnostic Capabilities: India faces challenges with the absence of approved diagnostic tests for the Zika virus, relying on clinical symptoms and selective testing, which may lead to underreporting.
Surveillance Gaps: There is a notable gap in systematic surveillance systems specifically tailored for Zika and other emerging infectious diseases, hampering early detection and containment efforts.
Infrastructure Deficiencies: The country’s diagnostic infrastructure outside major institutes is inadequate, affecting the timely identification and response to outbreaks of diseases like Zika, Nipah, and avian influenza.
Dependency on Apex Institutes: Diagnostic facilities are largely concentrated in apex national institutes, limiting accessibility and delaying the implementation of crucial public health measures during outbreaks.
Impacts of Unavailability of Infrastructure
Delayed Response: Lack of accessible diagnostics delays the identification and isolation of cases, contact tracing, and implementation of containment measures during outbreaks.
Loss of Time: Delays in releasing genomic sequences and validating diagnostic tests impede the rapid development and deployment of effective diagnostics.
Way Forward (Role of ICMR)
Enhanced Surveillance: ICMR (Indian Council of Medical Research) should lead efforts to decentralize testing facilities, ensuring availability at district and sub-district levels.
Capacity Building: Develop accessible and affordable diagnostic tests for Zika, Nipah, and avian influenza, leveraging lessons from COVID-19 testing infrastructure expansion.
Genomic Surveillance: Establish a system for the rapid release of whole genome sequences into public repositories like GISAID to enhance understanding and response capabilities.
Collaboration: Foster collaboration with industry and research institutions to streamline diagnostic test approvals and improve preparedness for future outbreaks.
Mains PYQ:
Q COVID-19 pandemic has caused unprecedented devastation worldwide. However, technological advancements are being availed readily to win over the crisis. Give an account of how technology was sought to aid the management of the pandemic. (UPSC IAS/2020)
From UPSC perspective, the following things are important :
Prelims level: Santhal Hul
Why in the News?
The Santhal Revolt of 1855 was a revolt against imperialism led by four brothers, Sidho, Kanho, Chand, and Bhairav Murmu, along with sisters Phulo and Jhano.
June 30 marks the 169th anniversary of the beginning of the revolt.
About Santhal Hul
The Santhal people revolted against the British East India Company and the Zamindari system, also known as the Santhal Rebellion or Santhal Hul.
The rebellion began on June 30, 1855.
Martial Law was imposed on November 10, 1855, by the East India Company, lasting until January 3, 1856, when the rebellion was suppressed.
Who are the Santhals?
Santhals were agricultural people living in the Rajmahal Hills of Bihar.
Ol Chiki(Ol Chemet) is the writing script of Santhals.
The British asked them to clear forests for agriculture to increase revenue.
Damin-i-Koh (1832) was created as a designated area for Santhals, now known as Santhal Pargana.
Over time, the British began exploiting the Santhals, leading to the Santhal Rebellion.
What makes the revolt so unique?
Marginalized Indigenous Community: Led by the Santhal tribe, a marginalized indigenous community in mid-19th century India.
Agrarian Uprising: Primarily a fight against exploitative land laws, high taxes, and forced labor rather than political or religious issues.
Tribal Unity and Guerrilla Tactics: Characterized by a strong sense of tribal unity and guerrilla warfare tactics, making it unique and significant.
Causes of the Santhal Revolt:
Permanent Settlement System (1793): Introduced by the British East India Company, giving Zamindars long-lasting property rights.
Oppression by Zamindars: Zamindars misused their power to oppress and enslave peasants, leading to resentment.
Exploitation and Debt: Santhals faced exploitation through high-interest loans and lost their land and freedom.
Violent Suppressions: British police supported Zamindars and moneylenders in evicting Santhals violently.
Disruption of Traditional Structures: Traditional social and political structures of the Santhals were disrupted, pushing them into debt and poverty.
Economic Hardship: Led to the Santhals revolting against the British and Zamindars to escape their predicament.
About the Santhal Pargana Tenancy Act (1876) and Chhotanagpur Tenancy Act (1908)
Santhal Pargana Tenancy Act (1876): Enacted by the British as a result of the Hul.
Land Inheritance: Prohibits the transfer of Adivasi lands to non-Adivasis and allows land to be inherited only as per the Act.
Self-Governance: Retains the rights of Santhals to self-govern their land.
Chhotanagpur Tenancy Act (1908): Result of the Birsa Movement.
Land Transfer Restrictions: Allows land transfers within the same caste and geographical areas with District Collector’s approval.
Protection of Adivasi and Dalit Land: Restricts the sale of Adivasi and Dalit land but allows transfers within the same community.
PYQ:
[2018] After the Santhal Uprising subsided, what was/were the measure/measures taken by the colonial government?
The territories called `Santhal Parganas’ were created.
It became illegal for a Santhal to transfer land to a non-Santhal.
Select the correct answer using the code given below:
From UPSC perspective, the following things are important :
Prelims level: Patent process in India, COVAXIN
Why in the News?
Bharat Biotech International Limited (BBIL), maker of the indigenous coronavirus vaccine Covaxin, admitted to an “inadvertent error” in patent filings. The error involved failing to include scientists from the Indian Council of Medical Research (ICMR) as co-inventors in the patent filings.
COVAXIN Story
BBIL patented the process of making a batch of vaccines from virus strains provided by ICMR-NIV (National Institute of Virology).
ICMR-NIV’s role involved extracting viruses, identifying characteristics, conducting tests, and qualifying strains for vaccine development.
ICMR funded these clinical trials with ₹35 crore and incurred costs in developing Covaxin.
In return, ICMR was to receive 5% of the royalties BBIL earned from the sale of Covaxin.
Vaccine Patents in India
In India, patents, including those for vaccines, are governed by the Patents Act, 1970, and its subsequent amendments.
This act aligns with the TRIPS Agreement (Trade-Related Aspects of Intellectual Property Rights) under the World Trade Organization (WTO).
Key Provisions of the Patents Act, 1970:
Patentable Inventions:
An invention must be novel, involve an inventive step, and be capable of industrial application.
Section 3 of the Patents Act outlines what are not considered inventions, which includes methods of treatment, and processes for medicinal, surgical, curative, prophylactic, diagnostic, therapeutic, or other treatments of human beings.
India grants both process and product patents:
Product Patents: Grant a monopoly over a specific drug.
Process Patents: Prevent competitors from using the same sequence of steps to create a similar product.
Compulsory Licensing:
Under Section 84, compulsory licenses can be issued if the patented invention is not available to the public at a reasonably affordable price, or if the reasonable requirements of the public are not being met.
Bolar Provision:
Section 107A allows the use of patented inventions, including vaccines, for the purpose of research and development to obtain regulatory approval before the patent expires.
Why was the ICMR not included?
Bharat Biotech initially excluded ICMR from patent applications because they viewed the ICMR’s role primarily as providing virus strains and conducting clinical trials, rather than being directly involved in the technical processes of vaccine development.
There might have been a miscommunication or oversight regarding the understanding of intellectual property rights and inventorship between BBIL and ICMR initially.
PYQ:
[2013] Bringing out the circumstances in 2005 which forced amendment to the section 3(d) in Indian Patent Law, 1970, discuss how it has been utilized by the Supreme Court in its judgement in rejecting Novartis’ patent application for ‘Glivec’. Discuss briefly the pros and cons of the decision. (200 words)
[2014] In a globalized world, Intellectual Property Rights assume significance and are a source of litigation. Broadly distinguish between the terms—Copyrights, Patents and Trade Secrets.
From UPSC perspective, the following things are important :
Prelims level: Shyok and other tributaries of Indus River
Why in the News?
Five soldiers lost their lives when a tank was drowned away by powerful water currents in the Shyok River during a military training exercise in Ladakh.
About Shyok River
The Shyok River is a significant river flowing through the Ladakh region of India and the Gilgit-Baltistan region of Pakistan.
It is a tributary of the Indus River and is known for its length and the rugged terrain it traverses.
The Shyok River spans approximately 550 kilometres in length.
It has a drainage basin covering parts of both India and Pakistan, making it an essential water source for the regions it traverses.
Source and Course:
The river originates from the Rimo Glacier, located to the southeast of the Karakoram Pass.
It flows northwest to enter the Nubra Valley in Ladakh, a region known for its picturesque landscapes and sand dunes.
The river then turns southwest and flows through the disputed region of Gilgit-Baltistan, eventually joins the Indus River near Skardu.
Tributaries:
The Shyok River has several tributaries, the most notable being the Nubra River, which flows through the Nubra Valley.
Other significant tributaries include the Saltoro River, originating from the Siachen Glacier region.
Cultural and Historical Significance:
The river flows through that have been part of ancient trade routes between Central Asia and South Asia.
The Nubra Valley, through which the Shyok flows, is also known for its ancient monasteries and the Bactrian camels, which were used for trade along the Silk Route.
Geographical significance of Shyok River
Strategic Location: The Shyok River flows through the Ladakh region of India and serves as a vital geographical feature due to its proximity to the Line of Actual Control (LAC) between India and China. Its strategic location influences military deployments and infrastructure development in the region, particularly in the context of border disputes and security concerns.
Glacial Melt and Water Resources: Originating from the Rimo Glacier and fed by numerous tributaries, the Shyok River contributes significantly to the water resources of the region. Its flow is crucial for agriculture, hydroelectric power generation, and sustenance of local ecosystems, impacting the livelihoods and socio-economic activities of communities along its banks.
From UPSC perspective, the following things are important :
Prelims level: Nouka Baich
Why in the News?
With the southwest monsoon gradually setting in, Nouka Baich boat races will soon commence in West Bengal and Bangladesh.
About Nouka Baich
Nouka Baich is the traditional boat race of Bengal.
It is predominantly held in the rural pockets of West Bengal, including Murshidabad, Nadia, North 24 Parganas, and South 24 Parganas.
Historically male-dominated, recent years have seen increasing participation by women.
Timing and Duration:
Monsoon Season: The races commence with the onset of the south-west monsoon, usually starting in the middle of the rainy season.
Extended Period: The events continue until September, with some races extending into October and November, depending on the region.
Types of Boats Used:
Diverse Fleet: Unlike Kerala’s boat races, which typically feature a single type of boat, Bengal’s races use various traditional boats.
Common Boat Types: Chhip, Kaile Bachhari, Chande Bachhari, Chitoi, Sorpi, and Sorengi are commonly used in the races.
Unique Features: Each boat type has unique design features and historical significance, with some boats like the Sorengi being over 90 feet long and designed to mimic natural forms.
Similar festivals celebrated in other parts that highlight cultural similarities in India:
Location
Occasion
Highlights
Nehru Trophy Boat Race
Punnamada Lake, Alappuzha, Kerala
Second Saturday of August
Named after Jawaharlal Nehru; features snake boats (Chundan Vallams) accommodating over 100 rowers.
Champakulam Moolam Boat Race
Pampa River, Alappuzha, Kerala
June or July
One of the oldest boat races, commemorates the installation of Lord Krishna’s idol at Ambalappuzha Temple.
Aranmula Uthrattadi Vallamkali
Pampa River, Aranmula, Kerala
Onam (August or September)
Features Palliyodams (large snake boats); significant for the Parthasarathy Temple.
Payippad Jalotsavam
Payippad Lake, Alappuzha, Kerala
Onam (August or September)
Celebrates the installation of deity at Subramanya Swamy Temple; features snake boats and canoes.
Indira Gandhi Boat Race
Ernakulam, Kochi, Kerala
Last week of December
Part of Cochin Carnival; attracts tourists, named after Indira Gandhi.
Pongal Boat Race
Bhuvanagiri, Tamil Nadu
Pongal festival (January)
Vibrant cultural displays; local fishermen participate.
Hiyang Tannaba
Manipur
Lai Haraoba festival
Traditional boat race with long narrow boats, reflecting the Meitei community’s traditions.
Sithargal Boat Race
Chennai, Tamil Nadu
Pongal festival
Highlights the maritime culture of the region; attracts numerous participants and spectators.
From UPSC perspective, the following things are important :
Prelims level: Activated Carbon, Supercapacitors
Why in the News?
Researchers at Government College for Women, Thiruvananthapuram, have developed a way to make activated carbon from coconut husks, which are a common leftover from farming in Kerala. This activated carbon is well-suited for making supercapacitors.
Back2Basics: Supercapacitors
Supercapacitors, also known as ultra-capacitors or electrochemical capacitors, are energy storage devices that bridge the gap between conventional capacitors and batteries.
They store energy through the electrostatic separation of charges rather than through chemical reactions as in batteries.
This allows supercapacitors to charge and discharge much faster than batteries.
Key Characteristics:
High Power Density: Supercapacitors can deliver and accept charge much more rapidly than batteries.
Long Cycle Life: They can endure millions of charge-discharge cycles without significant degradation.
Wide Operating Temperature Range: Supercapacitors perform well in a broad range of temperatures, making them suitable for various applications.
Structure and Components:
Electrodes: Made of materials like activated carbon, carbon aerogels, or graphene, which have high surface areas.
Electrolyte: The medium that allows ionic conductivity between the electrodes, typically a liquid or gel.
Separator: A porous membrane that prevents electrical contact between the electrodes but allows ionic movement.
What is Activated Carbon?
Activated Carbon, also known as activated charcoal, is a highly porous form of carbon.
It is processed to have small, low-volume pores with increased surface area available for adsorption or chemical reactions.
It is widely used for purification, decontamination, and as a filtration medium.
Key Characteristics:
High Surface Area: Due to its extensive network of pores, activated carbon has a very high surface area, typically ranging from 500 to 1500 m²/g.
Porosity: The structure includes micropores, mesopores, and macropores, allowing it to adsorb a variety of molecules.
How is it produced?
Activated carbon is produced from carbonaceous source materials such as coconut shells, peat, wood, coir, lignite, coal, and petroleum pitch.
The production involves two main steps:
Carbonization: The raw material is subjected to high temperatures (600-900°C) in an inert atmosphere (usually nitrogen or argon) to remove volatile components.
Activation/Oxidation: The carbonized material is treated with oxidizing agents (such as steam or carbon dioxide) at high temperatures (800-1000°C) to develop a porous structure.
Types:
Powdered Activated Carbon (PAC): Finely ground carbon particles primarily used in liquid phase applications.
Granular Activated Carbon (GAC): Larger particles used in both liquid and gas phase applications, such as water and air filtration.
Extruded Activated Carbon (EAC): Cylindrical pellets used mainly for gas phase applications due to their low pressure drop and high mechanical strength.
Impregnated Activated Carbon: Activated carbon treated with chemicals to enhance its adsorption capacity for specific contaminants.
Applications:
Water Treatment: Removes contaminants like chlorine, odors, and organic compounds from drinking water.
Air Purification: Adsorbs volatile organic compounds (VOCs), odors, and airborne pollutants.
Medical Uses: Used in poisoning cases to absorb toxins in the gastrointestinal tract.
Industrial Processes: Utilized in the recovery of solvents, purification of gases, and in gold purification.
Food and Beverage: Helps in decolorization and purification processes in sugar, wine, and juice production.
About Coconut Husk-Derived Activated Carbon
Coconut husk-derived activated carbon is a sustainable and efficient green solution for high-performance supercapacitors.
This material is readily available, low-cost, and eco-friendly.
It was produced by Microwave-Assisted Method designed at the Centralised Common Instrumentation Facility (CCIF) at the college.
Importance of Supercapacitors
Energy Storage: Supercapacitors have significantly higher capacitance and energy storage capacity compared to conventional capacitors.
Search for Ideal Material: Finding the ideal supercapacitor electrode material has been a significant challenge in sustainable energy storage solutions.
Research Findings:
Efficiency: Prototype supercapacitors made from coconut husk-derived activated carbon are four times more efficient than existing supercapacitors.
Cost-Effective and Efficient: Activated carbon produced using this technology is inexpensive and exhibits exceptional supercapacitor capability.
From UPSC perspective, the following things are important :
Prelims level: Location of Gardi Sugdub
Mains level: How fast is the global sea level rising?
Why in the news?
In early June, approximately 300 families were relocated from the island of Gardi Sugdub in Panama’s Guna Yala province due to concerns about rising sea levels.
What is happening in Gardi Sugdub?
Location and Community: Gardi Sugdub, home to about 1,300 members of the Guna community, is an island in Panama’s Guna Yala province.
Sea Level Rise: The Caribbean region, where Panama is situated, is experiencing sea level rise at an average rate of 3 to 4 millimetres per year. This rate is expected to accelerate to 1 centimetre per year or more by 2100.
Flooding: Annually, particularly in November and December, seawater floods houses and streets on Gardi Sugdub, despite efforts to fortify the island.
Relocation: The Panamanian government constructed 300 new houses on the mainland in a development called Nuevo Cartí to relocate affected families.
How are other island nations affected by sea level rise?
Small island developing states (SIDS) are particularly vulnerable due to their low elevation and reliance on marine resources. SIDS in the Caribbean, Pacific, Atlantic, Indian Ocean, and South China Sea face existential threats from rising sea levels.
Examples of Impact: Islands such as Tuvalu, the Marshall Islands, and Kiribati are experiencing significant land loss and threats to their culture and economies.
Consequences: Coastal erosion, salinization of freshwater resources, and increased vulnerability to extreme weather events due to rising sea levels, storm surges, and ‘king tides.’
How fast is the global sea level rising?
Since 1880, global sea levels have risen by approximately 21–24 centimeters. The rate of increase has accelerated in recent decades.
Causes: The primary drivers are global warming, thermal expansion of seawater, and the melting of land-based ice such as glaciers and ice sheets.
Due to the Global Temperature Increase: The global average temperature has increased by at least 1.1 degrees Celsius since 1880, contributing to rising sea levels.
Way forward:
Strengthen Coastal and Environmental Defenses: Construct seawalls, breakwaters, and other barriers to protect against storm surges and coastal erosion. Restore and preserve natural coastal barriers such as mangroves, coral reefs, and wetlands to enhance natural protection.
Develop and Implement Climate Adaptation Strategies: Create comprehensive climate adaptation plans that include relocation strategies for vulnerable communities.
Mains PYQ:
Q Explain the causes and effects of coastal erosion in India. What are the available coastal management techniques for combating the hazard? (UPSC IAS/2022)
From UPSC perspective, the following things are important :
Prelims level: Why Are Methane Emissions a Problem?
Mains level: Significance of tax
Why in the news?
Denmark will impose a tax on its livestock farmers for the greenhouse gases (GHGs) emitted by their cows, sheep, and pigs from 2030.
What is it?
Denmark plans to impose a tax on livestock farmers for greenhouse gases (GHGs) emitted by their cows, sheep, and pigs starting in 2030.
Tax Rates: Farmers would initially pay about $43 per metric ton of carbon dioxide equivalent produced by their livestock, increasing to around $108 by 2035.
Actual Cost: Due to a 60% income tax deduction, the actual cost per ton will start at 120 kroner ($17.3) and rise to 300 kroner ($43) by 2035.
Use of Tax Collection: The funds collected from the tax between 2030 and 2031 will be returned to the industry to support its green transition. The handling of proceeds will be revisited in 2032. The proposal includes the development of over 600,000 acres of new forest areas.
How Do Cows and Sheep Produce Methane?
Ruminants like cows, sheep, goats, and buffaloes have a specialized digestive system with four stomach compartments, including the rumen. In the rumen, partially digested food ferments, producing methane.
Methane is released primarily through burping and farting as the animals regurgitate and chew cud to complete the digestive process. Ruminant digestive systems are responsible for 27% of all methane emissions from human activity.
Why Are Methane Emissions a Problem?
Climate Impact: Methane is a potent greenhouse gas, responsible for 30% of warming since preindustrial times, second only to carbon dioxide. Over a 20-year period, methane is 80 times more potent at warming than carbon dioxide.
Ground-Level Ozone: Methane is the primary contributor to ground-level ozone formation, a highly irritating gas just above the Earth’s surface, contributing to 1 million premature deaths annually.
Rising Levels: Atmospheric methane levels have dramatically increased in recent years, with the NOAA reporting a record 17 parts per billion increase in 2021, surpassing the previous record set in 2020.
Way forward:
Dietary Adjustments: Introduce feed additives, such as seaweed or other natural supplements, that can reduce methane emissions during digestion in ruminants. This approach can significantly lower methane production without negatively impacting livestock health or productivity.
Improved Manure Management: Utilize advanced manure management practices, such as anaerobic digestion, to capture and convert methane emissions from decomposing animal waste into biogas. This not only reduces methane emissions but also provides a renewable energy source.
Mains PYQ:
Q Describe the major outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference? (UPSC IAS/2021)
From UPSC perspective, the following things are important :
Prelims level: Panchsheel policy
Why in the News?
China is set to commemorate the 70th anniversary of the Five Principles of Peaceful Coexistence, a foreign policy concept initially outlined in a 1954 agreement with India, with special events scheduled for Friday, June 28th.
How it started?
Historical Context: India attained independence from British rule in 1947, and the People’s Republic of China was established in 1949 after a civil war victory by the Chinese communists. Nehru aimed to establish good relations with China based on trust and mutual respect, a sentiment reciprocated by China initially.
Origins and Proposal: The Five Principles of Peaceful Coexistence, known as Panchsheel in India, were proposed by Chinese Premier Zhou Enlai during bilateral talks with India over Tibet in 1954. This initiative was favored by Indian Prime Minister Jawaharlal Nehru.
Panchsheel Agreement: The agreement, formally titled “The Agreement on Trade and Intercourse with Tibet Region,” was signed on April 29, 1954. It was intended to enhance trade and cooperation, establishing trade centers and pilgrimage routes while recognizing Tibet as part of China.
Principles: The five guiding principles laid out in the agreement were mutual respect for territorial integrity and sovereignty, mutual non-aggression, mutual non-interference, equality and mutual benefit, and peaceful coexistence.
Bandung Conference: The Five Principles featured prominently in the 1955 Bandung Conference in Indonesia, which included 29 Asian and African countries. The principles were co-opted into a 10-point declaration and later became central to the Non-Aligned Movement (NAM).
Present Scenario:
After the India-China War of 1962: The principles of Panchsheel were severely undermined by the Sino-Indian War in 1962, leading to criticism of Nehru for misjudging Chinese intentions.
China’s Foreign Policy Shift: Over the past three decades, especially under President Xi Jinping, China has adopted a more aggressive foreign policy. This includes territorial claims in the South China Sea and hostile situations with neighbouring countries.
China’s Relations with the U.S: China’s relationship with the United States has been marked by hostility, characterized by trade and diplomatic challenges to American dominance globally.
India-China Relations Today: Since 2020, Indian and Chinese forces have been in a standoff along the Line of Actual Control (LAC) in Ladakh, with repeated but unsuccessful attempts to resolve the conflict.
Commemoration of 5 Principles by China: Despite the current strained relations, China commemorates the 70th anniversary of the Five Principles with a forward-looking theme, emphasizing building a community with a shared future for mankind.
Way forward: (What can India do?)
Engage in Diplomatic Dialogue: Despite historical tensions, maintaining open lines of diplomatic communication with China is crucial. India can continue efforts to engage in dialogue at multiple levels to manage and resolve bilateral disputes, including the ongoing situation along the Line of Actual Control (LAC) in Ladakh.
Strengthen Regional Alliances: Enhancing partnerships with other countries in the region and beyond can provide India with strategic leverage. Strengthening alliances through economic cooperation, military partnerships, and cultural exchanges can help counterbalance China’s influence and foster stability in the region.
Focus on Economic and Technological Development: Investing in economic growth and technological advancement can bolster India’s position on the global stage. Developing robust infrastructure, promoting innovation and entrepreneurship, and advancing sustainable development goals can strengthen India’s resilience and competitiveness in the face of geopolitical challenges.
Mains PYQ:
Q China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’, In the light of this statement, discuss its impact on India as her neighbor. (UPSC IAS/2017)
From UPSC perspective, the following things are important :
Prelims level: Starliner mission
Mains level: Cause of delay of Starliner Crew Flight Test mission
Why in the News?
The scheduled return of the Starliner spacecraft, which transported NASA astronauts Sunita Williams and Butch Wilmore to the International Space Station (ISS) earlier this month, has been delayed.
What is the Starliner mission?
Objective: The Starliner Crew Flight Test mission aimed to transport NASA astronauts Sunita Williams and Butch Wilmore to the International Space Station (ISS) and demonstrate the spacecraft’s capability to safely ferry crew to and from low-Earth orbit (LEO).
Craft Description: CST-100 Starliner, developed by Boeing in collaboration with NASA’s Commercial Crew Program, is designed to accommodate up to seven passengers or a mix of crew and cargo for LEO missions. It is reusable up to 10 times with a turnaround time of six months.
Significance: Marks Boeing’s contribution to NASA’s efforts since the retirement of the Space Shuttle Program in 2011, alongside SpaceX’s Dragon spacecraft, which first delivered cargo in 2012 and transported astronauts in 2020.
What has caused the delay?
Technical Issues: Multiple setbacks delayed the mission, including a faulty pressure valve on the Atlas V upper stage, engineering problems with other mechanisms, and issues with a spacecraft valve regulating oxidisers.
Specific Challenges: Post-launch, Starliner encountered five helium leaks, malfunctioning maneuvering thrusters, and a propellant valve failure, necessitating mid-mission fixes and assessments.
What would happen to the astronauts?
Current Status: Sunita Williams and Butch Wilmore remain aboard the ISS, where they are conducting research and experiments. The spacecraft can stay docked for up to 45 days, and the ISS has sufficient supplies for extended periods.
Contingency Plan: If safety concerns persist or the Starliner issues cannot be resolved in time, the astronauts may return to Earth aboard SpaceX’s Dragon spacecraft, currently also docked at the ISS.
Way forward ( what can NASA do?)
Thorough Technical Review: NASA should conduct a comprehensive technical review of the Starliner spacecraft’s systems and components to identify the root causes of the multiple issues encountered during the mission.
Enhanced Mission Preparedness: NASA should prioritise enhancing mission preparedness protocols for commercial crew missions, including stricter pre-launch checks, contingency planning for mid-mission anomalies, and robust communication and coordination between mission control and astronauts aboard the ISS. This proactive approach can mitigate risks and ensure smoother operations in future missions.
Mains PYQ:
Q What is India’s plan to have its own space station and how will it benefit our space programme? (UPSC IAS/2019)
Karnataka’s Tourism Department plans to highlight Somanathapura Temple, part of the Hoysala temples, in the Mysuru tourism circuit ahead of Dasara, leveraging its UNESCO World Heritage status.
Note: There are 42 World Heritage Sites in India. Out of these, 34 are cultural, seven are natural, and one, Khangchendzonga National Park, is of mixed type.
About Keshava Temple, Somanathapura
The Keshava Temple is considered one of the last grand structures built by the Hoysala dynasty.
This Trikuta (three-shrined) temple is dedicated to Lord Krishna and is represented in three forms: Janardhana, Keshava, and Venugopala.
The main Keshava idol is missing, and the Janardhana and Venugopala idols are damaged.
Historical Background:
The Keshava Temple was constructed by Somanatha, a commander of the Hoysala Army, during the reign of Hoysala King Narasimha III.
Somanatha, who had established a town named Somanathapura after himself, sought the king’s permission and resources to build this grand temple.
With the king’s blessing, construction commenced and was completed in 1268 AD.
An inscription in old Kannada on a stone slab in the temple provides details of its construction and consecration.
After demolitions by invaders, it no longer serves as a place of worship.
Architecture:
The temple is constructed from soapstone, which allows for the fine detailing seen in the carvings.
It is built on a raised platform with an outer Pradakshina pathway, allowing devotees to circum-ambulate the sanctum.
The temple features a stellar (star-shaped) plan, which creates multiple corners and niches, providing numerous canvases for the sculptors to showcase their intricate work.
The temple has three shrines, each crowned with a Vimana (tower).
The Hoysala emblem, depicting a warrior fighting a lion, is prominently displayed.
The walls of the temple are adorned with beautiful friezes depicting scenes from Hindu epics, figures of elephants, and battle scenes with cavalry.
From UPSC perspective, the following things are important :
Prelims level: FATF, Mutual Evaluation; Grey and Black Lists
Why in the News?
India has achieved an outstanding outcome in the 2023-24 Mutual Evaluation by the Financial Action Task Force (FATF).
India is placed in the “regular follow-up” category, a distinction shared by only four other G-20 countries.
FATF Evaluation:
The reason behind India’s Achievements
High Level of Compliance: The FATF stated that India reached a high level of technical compliance with its requirements.
Effective Regimes: India’s AML (anti-money laundering), CFT (countering the financing of terrorism), and CPF (counter-proliferation financing) regimes achieved good results.
International Cooperation: Notable achievements include international cooperation, access to basic and beneficial ownership information, use of financial intelligence, and depriving criminals of their assets.
Need Improvement
Non-Financial Sectors: The FATF noted that improvements are needed to strengthen the supervision and implementation of preventive measures in some non-financial sectors.
Prosecution Delays: India needs to address delays in concluding ML (money laundering) and TF (terrorist financing) prosecutions.
Non-Profit Sector Risks: Ensure CFT measures prevent the non-profit sector from being abused for TF, including conducting outreach to NPOs on their TF risks.
Mitigation Efforts taken
Mitigating ML/TF Risks: FATF recognized India’s efforts in mitigating risks from ML/TF, including corruption, fraud, and organized crime.
Digital Economy Transition: Effective measures have been implemented to transition from a cash-based to a digital economy, reducing ML/TF risks.
JAM Trinity Implementation: The JAM (Jan Dhan, Aadhaar, Mobile) Trinity, along with stringent cash transaction regulations, has increased financial inclusion and digital transactions, making them more traceable.
About Financial Action Task Force (FATF)
FATF was established in 1989 through the initiative of the G7 nations.
Its Secretariat is headquartered at the OECD headquarters in Paris, France.
FATF conducts 3 Plenary meetings during each of its 12-month rotating presidencies.
As of 2019, FATF consists of 37 member jurisdictions.
India’s Engagement with FATF
Observer Status: India became an Observer at FATF in 2006, marking the beginning of its association with the organization.
Full Membership: On June 25, 2010, India officially became the 34th country to attain full membership in FATF, signifying its active participation and commitment to the organization’s objectives.
Understanding the Mutual Evaluation Process
FATF’s mutual evaluation assesses countries’ frameworks against money laundering and terrorist financing, reviewing compliance with its 40 recommendations and effectiveness, resulting in a report with strengths, weaknesses, and improvement suggestions.
FATF’s Evaluation of India
Comprehensive Assessment: FATF’s evaluation of India encompasses various aspects, including the nation’s legal framework, regulatory system, law enforcement efforts, and international collaboration.
Alignment with Global Standards: Central agencies in India have been actively working to ensure that the country’s anti-money laundering and counter-terrorism financing laws align with international standards and that their practical implementation is effective.
Back2Basics: FATF Grey and Black List
FATF maintains two primary lists to identify countries with deficiencies in their anti-money laundering and counter-terrorist financing (AML/CTF) regimes: the Grey List and the Black List.
Grey List (Jurisdictions under Increased Monitoring):
It includes countries that have strategic deficiencies in their AML/CTF regimes but have committed to resolving these issues swiftly within agreed timeframes. These jurisdictions are subject to increased monitoring by the FATF. Ex. Turkey, Panama etc. (Pakistan and UAE have exited this list.)
Impact:
Countries on the Grey List are required to work closely with the FATF to address the identified deficiencies.
Being on the Grey List can lead to economic repercussions such as reduced foreign investment and increased scrutiny from financial institutions and regulators globally.
The FATF regularly reviews the progress of these countries and updates the list accordingly.
Black List (High-Risk Jurisdictions subject to a Call for Action):
It includes countries with significant strategic deficiencies in their AML/CTF regimes and have not made sufficient progress in addressing these issues. These jurisdictions are subject to a call for action to protect the international financial system from the risks emanating from these countries.
Impact:
Countries on the Black List face severe economic and financial consequences. They are subject to enhanced due diligence and, in the most serious cases, counter-measures by FATF member states.
This listing can result in limited access to the international financial system such as IMF, World Bank; reduced foreign investment, and increased difficulty in conducting international business.
Current Black List Countries:
North Korea
Iran
Myanmar (Burma) (added in February 2023)
PYQ:
[2021] Discuss how emerging technologies and globalisation contribute to money laundering. Elaborate measures to tackle the problem of money laundering both at national and international levels.
From UPSC perspective, the following things are important :
Prelims level: Bhuvan Panchayat; NDEM
Why in the News?
The Union Ministry of Science and Technology launched two Geoportals: ‘Bhuvan Panchayat (Ver. 4.0)’ for rural land records and ‘National Database for Emergency Management (NDEM Ver. 5.0)’.
These portals were developed by the Indian Space Research Organization (ISRO).
These geospatial tools provide high-resolution satellite imagery of 1:10K scale for various locations across the country.
About Bhuvan Panchayat (Ver. 4.0)
This portal supports “Space-based Information Supportfor Decentralized Planning (SISDP)”.
It aims to empower citizens at the grassroots level by providing real-time land record data and reducing dependency on local administration and corruption.
It promotes ease of living through digitalisation and better land revenue management.
By providing real-time data accessible to citizens, it reduces opportunities for corruption at the local level.
It enhances transparency and efficiency in land record management, aiding in effective governance and planning.
About National Database for Emergency Management (NDEM Ver. 5.0)
This portal provides space-based inputs on natural disasters, aiding in disaster risk reduction in India and neighbouring countries.
It establishes an effective early warning system to proactively prevent disasters and monitor land use changes.
A command centre has been established to monitor situations and provide valuable inputs continuously.
The portal is designed to assist not only India but also neighbouring countries in disaster management.
It enhances coordination between various agenciesand local authorities for effective disaster response and management.
PYQ:
[2023] With reference to the Digital India Land Records Modernisation Programme, consider the following statements :
To implement the scheme, the Central Government provides 100% funding.
Under the Scheme, Cadastral Maps are digitized.
An initiative has been undertaken to transliterate the Records of Rights from local language to any of the languages recognized by the Constitution of India.
From UPSC perspective, the following things are important :
Prelims level: MND and its causes; NIMHANS.
Why in the News?
The annual conference on Motor Neuron Disease (MND) ‘Awareness, Care and Management’ was held at NIMHANS.
What is Motor Neuron Disease (MND)?
MND is a condition that affects the nerves in the brain and spinal cord, which are responsible for controlling your muscles.
Over time, these nerves (called motor neurons) stop working properly, leading to muscle weakness and wasting away.
Types of MND:
Amyotrophic Lateral Sclerosis (ALS): The most common type. It affects both upper and lower motor neurons, leading to weakness in various body parts.
Progressive Bulbar Palsy (PBP): Affects the nerves in the brainstem, leading to problems with speaking and swallowing.
Progressive Muscular Atrophy (PMA): Affects only the lower motor neurons, causing muscle weakness and wasting.
Primary Lateral Sclerosis (PLS): Affects only the upper motor neurons, causing stiffness and movement difficulties.
Causes of MND:
Genetic Factors: In some families, MND can be inherited due to specific gene mutations.
Environmental Factors: Exposure to certain toxins, viruses, or physical injuries might contribute, but this is less clear.
Age and Gender: It usually affects people between the ages of 50 and 70 and is slightly more common in men.
Symptoms:
Muscle Weakness: Starts in one part of the body, like an arm or leg, and gradually spreads.
Muscle Cramps and Twitching: Small, involuntary muscle movements.
Difficulty Speaking and Swallowing: Due to weakness in the muscles used for these functions.
Breathing Problems: In advanced stages, muscles that control breathing can be affected.
Emotional Changes: Some people might experience changes in behavior or thinking.
Diagnosis:
Clinical Examination: A doctor examines your symptoms and medical history.
Electromyography (EMG): Tests the electrical activity of your muscles.
Nerve Conduction Studies (NCS): Checks how well your nerves send signals.
MRI: Scans to rule out other conditions.
Genetic Testing: To check for inherited forms of MND.
Treatment:
There is no cure for MND, but treatments can help manage symptoms and improve quality of life.
Medications:
Riluzole: Can slow down the progression of ALS.
Edaravone: Another drug that may slow down the decline in daily activities.
Symptomatic Treatments: For muscle cramps, excess saliva, and emotional symptoms.
Therapies:
Physical Therapy: Helps maintain muscle strength and mobility.
Occupational Therapy: Aids in performing daily activities.
Speech Therapy: Assists with speech and swallowing difficulties.
Respiratory Therapy: Supports breathing issues.
Back2Basics: National Institute of Mental Health and Neuro-Sciences (NIMHANS)
Details
Location
Bangalore, India
Affiliation
Autonomous institute under the Ministry of Health and Family Welfare, Government of India
Ranking
Ranked 4th best medical institute in India by the “National Institutional Ranking Framework (NIRF)”
History
Founded in 1847 as the Bangalore Lunatic Asylum.
Renamed as the Mental Hospital in 1925.
Amalgamated with the All India Institute of Mental Health (AIIMH) in 1974 to form NIMHANS.
Conferred with deemed university status by the University Grants Commission in 1994.
Declared an Institute of National Importance by an act of parliament in 2012.
Governance
Operates with academic autonomy under the “Societies Registration Act, 1860”.
Prioritises service, manpower development, and research in mental health and neurosciences.
A multidisciplinary integrated approach was adopted for translating research results into practice.
Funding
Receives resources for academic and research activities from national and international funding organisations.
Outreach
Engages in mental health outreach initiatives including critiquing mental health reports and collaborating with government agencies for training and counseling.
Known for diagnosing and treating various mental health conditions including depression and neurobiological disorders.
From UPSC perspective, the following things are important :
Mains level: What has the Commission done on the PPAs so far?
Why in the news?
On June 27, the Telangana High Court postponed the hearing on a petition filed by Bharat Rashtra Samiti (BRS) president and former Telangana Chief Minister K Chandrashekar Rao. The petition sought to halt all future proceedings of the Justice (retired) L Narasimha Reddy Commission until Friday.
What is the Narasimha Reddy Commission?
Formation: Appointed by the Congress government of Chief Minister A Revanth Reddy in March 2024.
Purpose: To investigate Power Purchase Agreements (PPAs) made with Chhattisgarh in 2014-15 and construction of power projects at Yadadri and Bhadradri. Allegations of irregularities in the Kaleshwaram irrigation project.
What is Power Purchase Agreements (PPAs)?
Power Purchase Agreements (PPAs) are long-term contracts between electricity producers (such as power plants) and purchasers (such as utilities, governments, or large industrial consumers).
These agreements stipulate the terms under which electricity is to be generated, delivered, and sold over a specified period.
What has the Commission done on the PPAs so far?
Notice Issued: On June 11, the Commission issued a notice to K Chandrashekar Rao (KCR) requesting a response by June 15 regarding the PPAs made during his tenure (2014-2023).
KCR’s Response: KCR accused the Commission of bias and political motivation, requesting Justice Reddy to recuse himself.
Legal Action: Anticipating a personal summons, KCR filed a petition in the Telangana High Court seeking a stay on all proceedings of the Commission.
Energy Minister Notice: G Jagdish Reddy, Energy Minister in KCR’s Cabinet, was also issued a notice to appear before the Commission to provide a statement regarding the PPAs.
Allegations Regarding the Power Plants
Irregularities in Construction: The Narasimha Reddy Commission is investigating allegations of irregularities in the construction of the Bhadradri Thermal Power Plant at Manuguru and the Yadadri Thermal Power Plant at Damaracherla.Both projects were executed by the Telangana State Power Generation Corporation (TG GENCO).
Specific Concerns: The focus is on potential discrepancies and irregularities during the construction process, which may involve issues related to project execution, costs, and adherence to regulatory norms.
Way forward:
Fair and Transparent Investigation: The Narasimha Reddy Commission should ensure a fair and transparent investigation into the allegations concerning Power Purchase Agreements (PPAs) and the construction of power projects.
Collaboration and Accountability: Stakeholders, including former government officials and current authorities involved in the projects under scrutiny, should cooperate fully with the Commission.
From UPSC perspective, the following things are important :
Prelims level: Leader of Opposition in Lok Sabha and Rajya Sabha
Mains level: Significance of the Leader of Opposition
Why in the news?
For a decade, the Leader of Opposition in Lok Sabha remained vacant due to the absence of any party meeting the customary threshold of one-tenth of the House’s strength, now filled by Rae Bareli MP Rahul Gandhi.
Leader of Opposition in the past:
Who can serve as Leader of Opposition in Lok Sabha and Rajya Sabha?
Legal Definition: According to The Salary and Allowances of Leaders of Opposition in Parliament Act, 1977, the Leader of the Opposition is a member of the Lok Sabha or Rajya Sabha who leads the largest party in opposition to the government, recognised by the Speaker (Lok Sabha) or Chairman (Rajya Sabha).
Needed Strength: The leader must lead the party with the greatest numerical strength among the opposition parties in the respective House.
Recognition: The Speaker (Lok Sabha) or Chairman (Rajya Sabha) is mandated to recognize the leader of the largest opposition party as the Leader of the Opposition, irrespective of the party having a minimum threshold of 10% seats in the House.
Significance of the positions and its significant role in Indian Political Democracy
Voice of the Opposition: The Leader of the Opposition serves as the primary spokesperson for the opposition in the House, articulating their views, criticisms, and alternative policies to those of the government.
Role in Committees: The Leader of Opposition plays a crucial role in high-powered committees responsible for appointments to key posts like the Director of CBI, Central Vigilance Commissioner, and others. This ensures a bipartisan approach in crucial appointments.
Ceremonial Role: The Leader of Opposition enjoys ceremonial privileges such as sitting in the front row during important occasions like the President’s Address to Parliament, symbolizing their role as a significant political figure.
Constitutional Checks and Balances: By providing an institutionalized position for the opposition, the Leader of Opposition ensures checks and balances on the ruling party’s power, fostering democratic accountability and oversight.
Precedence and Protocol: In the order of precedence, the Leader of Opposition ranks alongside Union Cabinet Ministers and other senior officials, reflecting their role in the functioning of the parliamentary democracy.
Conclusion: The Leader of Opposition in Lok Sabha and Rajya Sabha, recognized per the 1977 Act, leads the largest opposition party, ensuring a vital role in governance oversight, committee appointments, and parliamentary protocol, crucial for democratic checks and balances.
Mains PYQ:
Q The Indian Constitution has provisions for holding joint sessions of the two houses of the Parliament. Enumerate the occasions when this would normally happen and also the occasions when it cannot, with reasons thereof. (UPSC IAS/2017)
From UPSC perspective, the following things are important :
Prelims level: NAFED, Open Market
Mains level: How Buffer in Chana Helped
Why in the news?
Sales of wheat and chana in the open market have effectively curbed soaring inflation in cereals and pulses.
What is an Open Market?
An open market is an economic system with little to no barriers to free-market activity. An open market is characterized by the absence of tariffs, taxes, licensing requirements, subsidies, unionization, and any other regulations or practices that interfere with free-market activity. Open markets may have competitive barriers to entry, but never any regulatory barriers to entry.
Present State of Inflation:
Overall CPI Inflation: Stood at 4.75% year-on-year in May, the lowest in 12 months, but food inflation remained elevated at 8.69%.
Cereals and Pulses: Inflation rates were 8.69% for cereals and 17.14% for pulses in May 2024.
Impact of Buffer Stocks: Buffer stocks of wheat and chana moderated inflation by ensuring sufficient supply during periods of price volatility.
How Buffer in Gram(Chana) Helped:
NAFED Procurements: Procured large quantities of chana during surplus years at MSP, preventing prices from soaring during crop failures.
Distribution: Sold chana through various channels including open market e-auctions and ‘Bharat Dal’ at subsidized rates, stabilizing prices for consumers.
Current Stock Levels: Despite recent sales, NAFED still maintains a buffer stock of 4.01 lakh tonnes of chana as of now.
Significant Role Played by FCI:
Wheat Offloading: FCI offloaded a record 100.88 lakh tonnes of wheat in fiscal 2023-24 through open market sales, stabilizing prices and reducing inflation.
Retail Price Management: Sales under schemes like ‘Bharat Atta’ ensured wheat and cereal inflation was reduced from peak levels earlier in 2023.
Buffer Management: Despite reduced stocks from previous years, FCI’s interventions have been crucial in managing price volatility in essential commodities.
Need to Adopt Buffer Policy and Better Procurement:
Buffer Stock Strategy: Proposal to expand buffer stocks beyond rice, wheat, and select pulses to include oilseeds, vegetables, and even milk powder to mitigate price spikes.
Enhanced Procurement: Advocates for increased procurement during surplus years to build adequate buffer stocks for future market stabilization.
Policy Impact: Buffer stocking can moderate price volatility influenced by climate change-induced agricultural uncertainties, benefiting both consumers and producers.
Way forward:
Enhanced Diversification of Buffer Stocks: There is a need to diversify buffer stocks beyond traditional items like rice and wheat to include a broader range of essential commodities such as oilseeds, vegetables, and milk powder. This expansion would help in better managing price spikes and supply shocks across various sectors.
Strengthened Procurement Mechanisms: Improving procurement strategies during surplus production years is crucial. This involves proactive measures to purchase larger quantities of commodities at minimum support prices (MSPs), ensuring adequate buffer stocks for future market stabilization and price moderation during scarcity periods.
Mains PYQ:
Q Food Security Bill is expected to eliminate hunger and malnutrition in India. Critically discuss various apprehensions in its effective implementation along with the concerns it has generated in WTO. (UPSC IAS/2013)
From UPSC perspective, the following things are important :
Prelims level: Small Savings Schemes
Mains level: Impact of Stable Interest Rates on Small Savings Schemes
Why in the news?
The central government of India is set to announce the interest rates for various small savings schemes, including the Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), National Savings Certificate (NSC), Sukanya Samriddhi Yojana (SSY), and Post Office Monthly Income Scheme (POMIS), for the July-September 2024 quarter by June 30, 2024.
Current Interest Rates and Expected Changes
Public Provident Fund (PPF)
Current Rate: 7.1%
Expected Rate: Despite the benchmark 10-year bond yield averaging 7.02% from March to May 2024, which would suggest a rate of 7.27% according to the formula, experts believe the government will likely maintain the status quo.
Reason: Factors such as controlled inflation, stable 10-year G-Sec yields, and historical precedence of the government not strictly following the recommended formula indicate a low probability of rate hikes.
2. Senior Citizen Savings Scheme (SCSS)
Current Rate: 8.2%
Expected Rate: Unlikely to see significant changes.
Reason: With a spread of 100 basis points, the SCSS offers a substantial return, and experts predict the government will maintain existing rates to manage fiscal policies effectively.
3. Sukanya Samriddhi Yojana (SSY)
Current Rate: 8.0%
Expected Rate: Expected to remain stable.
Reason: The SSY enjoys a spread of 75 basis points. Given the controlled inflation and fiscal policies, a rate hike is not anticipated.
Factors Influencing Interest Rates
Benchmark Yields: The interest rates for small savings schemes are linked to the yields of 10-year government securities.
Market Conditions: Prevailing market yields and inflation rates play a crucial role in determining these rates.
Government Policy: The central government’s fiscal strategy and policies, such as those outlined in the Union Budget, impact decisions on interest rates.
Impact of Stable Interest Rates on Small Savings Schemes
Investor Sentiment and Returns
PPF: Investors in PPF may feel disappointed due to the stagnation in interest rates despite a slight uptick in benchmark yields. However, PPF still offers tax-free returns under the Exempt-Exempt-Exempt (EEE) status, making it an attractive long-term investment.
SCSS and SSY: Stability in interest rates ensures a predictable income stream for senior citizens and parents of girl children, maintaining their trust in these schemes.
Government Fiscal Management: Maintaining the current interest rates helps the government manage its fiscal deficit more effectively. Higher rates would increase the interest burden on the government, especially for widely subscribed schemes like PPF.
Inflation Control: Stable interest rates reflect the government’s confidence in managing inflation. By not increasing rates, the government signals that it sees inflation as under control, thus aiming to keep borrowing costs stable for both the government and the public.
Market Stability: Consistent interest rates contribute to market stability. Predictable returns on small savings schemes help in the planning of household finances, ensuring steady savings and investments. This stability can also foster overall economic stability by maintaining consumer confidence.
Conclusion: Investors in PPF, SCSS, and SSY should prepare for the possibility that interest rates will remain unchanged for the July-September 2024 quarter. While the formula indicates room for an increase in PPF rates, historical trends and expert opinions suggest that the government may maintain the current rates to balance fiscal control and market stability.
Mains PYQ:
Q Pradhan Mantri Jan-Dhan Yojana (PMJDY) is necessary for bringing the unbanked to the institutional fiancé fold. Do you agree with this for the financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion. (UPSC IAS/2016)
