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  • Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

    Redefining a farmer

    10 September 2020 | op-ed snap | Agriculture
    Mains Paper 3: Transport & Marketing Of Agricultural Produce

    The article analyses the issues of multiple definitions of a farmer. The issues of ownership as a criterion for being a farmer and its impact on tenant farmers in discussed.

    Is land ownership right criterion

    • Traditionally, land ownership is a mandatory criterion for availing benefits under various agricultural schemes in India.
    • Laws governing land leasing operate at different levels across India.
    • The Model Agricultural Land Leasing Act, 2016 was introduced to formalise land leasing.
    • However, except a few States, a majority of State governments have not extended the scope of the Act to farmers.
    • According to the 2015-16 agricultural census, about 2.65 million operational holdings are either partially or wholly leased.

    How this impact tenants

    • The impact of agrarian distress is felt disproportionately by tenant farmers.
    • The tenant farmer incurs the costs and faces the risks, while the owner receives the rent, subsidies and other support.
    • The lessees do not benefit from loan waivers, moratorium and institutional credit, and are forced to be at the mercy of moneylenders.
    • The distress is reflected in the fact that tenant farmers account for a majority of farmer suicides reported in the NCRB data.

    Multiple definitions of farmers

    • There are multiple definitions for a ‘farmer’ in official data published by the Government of India.
    • The population census defines ‘cultivators’ as a person engaged in cultivation of land either ‘owned’ or held in kind or share.
    • The 59th round of the Situation Assessment Survey (SAS) of farmers also stresses on ‘possession of land’ either owned or leased or otherwise possessed for defining ‘farmers’.
    • Delinking of land as the defining criterion for a ‘farmer’ was done in the 70th round of SAS carried out by the NSSO.
    • The 70th Round of NSSO refined the definition of a farmer as one who earns a major part of the income from farming. 

    Conclusion

    Access to land as a policy instrument in bringing about equitable growth of rural economies needs no further emphasis. However, until the time ‘land to the tiller’ remains just wishful thinking, adopting a broader definition of a ‘farmer’ is a short-term solution to ensure inclusive and sustainable growth.

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  • Seeds, Pesticides and Mechanization – HYV, Indian Seed Congress, etc.

    Analysing the impact of Bt cotton

    10 September 2020 | op-ed snap | Science and Technology
    Mains Paper 3: Awareness in various sc and tech fields, Major Crops & Cropping Patterns

    After almost 20 years of adoption of Bt cotton in India, its time to review the claimed benefits of the Bt.

    Hybrid cotton seeds and issues

    • Until the 20th century the indigenous ‘desi’ variety, Gossypium arboreum was used.
    • From the 1990s, hybrid varieties of G. hirsutum were promoted.
    • These hybrids cannot resist a variety of local pests and require more fertilizers and pesticides.
    • Cotton suffers from plenty of infestation from moth pests such as the Pink Bollworm (PBW) and sap-sucking (Hemipteran) pests such as aphids and mealy bugs.
    • With increasing pressure to buy hybrid seeds, the indigenous varieties have lost out over the years.

    Resistant pests and introduction of Bt cotton

    • The increasing use of synthetic man-made pesticides to control pests and the rising acreage under the American long-duration cotton led to the emergence of resistant pests.
    • Resistant Pink and even American Bollworm (ABW), a minor pest in the past, began increasing, leading to a growing use of a variety of pesticides.
    • Rising debts and reducing yields, coupled with increasing insect resistance, worsened the plight of cotton farmers.
    • It was in this setting that Bt cotton was introduced in India in 2002.

    What is Bt cotton

    • The plant containing the pesticide gene from the bacteria Bacillus thuringiensis (Bt), has been grown in India for about twenty years.
    • This pesticide, now produced in each Bt plant cell, ought to protect the plant from bollworm, thereby increasing yields and reducing insecticide spraying on the cotton plant.

    Review of the utility of Bt cotton

    • Review  was published in the scientific journal Nature Plants, analysing the entire picture of the use of Bt cotton in India.
    • Earlier studies had attributed to Bt the tripling of cotton yield between 2002-2014 in India.
    • However, one detail that raises concerns over such a conclusion was that yield differences between farmers who were the early adopters of Bt cotton and those who were not suffered from selection bias.
    • Controlling for such bias showed (in 2012) that the contribution of Bt cotton to yield increase was only about 4% each year.
    • Since yields vary annually by over 10%, the benefits claimed were dubious.
    • There are discrepancies between yield and the deployment of Bt cotton.
    • For instance, the Bt acreage was only 3.4% of the total cotton area in 2003, not sufficient to credit it for the 61% increase in yield in 2003-2004.
    • The rise in cotton yields can be explained by improvements in irrigation, for instance in Gujarat, and a dramatic growth across the country in the use of fertilizers.
    • The PBW developed a resistance by 2009 in India. In a few years, the situation was dreadful.
    • A technology that works in the lab may fail in fields since real-world success hinges on multiple factors.

    Way forward

    • The cost of ignoring ‘desi’ varieties for decades has been high for India.
    • Research suggests that with pure-line cotton varieties, high density planting, and short season plants, cotton yields in India can be good and stand a better chance at withstanding the vagaries of climate change.
    •  But government backing for resources, infrastructure and seeds is essential.

    Conclusion

    It is time to pay attention to science and acknowledge that Bt cotton has failed in India, and not enter into further misadventures with other Bt crops such as brinjal or herbicide resistance.

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  • Minority Issues – SC, ST, Dalits, OBC, Reservations, etc.

    Explained: Maratha quota — the agitation, the politics

    10 September 2020 | | Polity
    Mains Paper 2: Government Scheme/Policies

    The Supreme Court has referred to a Constitution Bench the question of whether states can exceed the 50% limit on quotas that were set by a nine-judge Bench in the landmark Indra Sawhney vs Union of India (1992) case.

    Practice question for mains:

    Q.The quota policy for OBCs needs an urgent revisit. Comment.

    Marathas and their ‘backwardness’

    • The Marathas are a politically dominant community who make up 32% of Maharashtra’s population.
    • They have historically been identified as a ‘warrior’ caste with large landholdings. Eleven of the state’s 19 chief ministers so far have been Marathas.
    • While the division of land and agrarian problems over the years have led to a decline of prosperity among middle- and lower-middle-class Marathas, the community still plays an important role in the rural economy.
    • The discontent in the community was a spillover into protests and unrest until the quota was announced.
    • The second phase of the protest saw a spate of suicides. The backward Marathwada region was the worst affected by the protests.

    What was the case?

    • A Bench of the SC heard a batch of petitions challenging reservations for Marathas in education and jobs in Maharashtra.
    • The petitions appealed a 2019 Bombay High Court decision that upheld the constitutional validity of the Maratha quota under the Socially and Educationally Backward Classes (SEBC) Act, 2018.
    • The Bench also heard a petition challenging admission to postgraduate medical and dental courses under the quota in the state.

    Earlier Bombay HC ruling

    • The Bombay HC ruled last year that the 16% quota granted by the state was not “justifiable”, and reduced it to 12% in education and 13% in government jobs, as recommended by the Maharashtra State Backward Class Commission (MSBCC).
    • The Bench ruled that the limit of the reservation should not exceed 50%.
    • However, in exceptional circumstances and extraordinary situations, this limit can be crossed subject to availability of quantifiable and contemporaneous data reflecting backwardness, the inadequacy of representation and without affecting the efficiency in administration.
    • The court relied heavily on the findings of the 11-member MSBCC, which submitted in November 2018 that the Maratha community is socially, economically and educationally backwards.

    Existing reservation

    • Following the 2001 State Reservation Act, the total reservation in Maharashtra was 52%: SCs (13%), STs (7%), OBCs (19%), Special Backward Class (2%), Vimukta Jati (3%), Nomadic Tribe B (2.5%), Nomadic Tribe C (3.5%) and Nomadic Tribe D (2%).
    • The quotas for Nomadic Tribes and Special Backward Classes have been carved out of the total OBC quota.
    • With the addition of 12-13% Maratha quota, the total reservation in the state went up to 64-65%.
    • The 10% quota for Economically Weaker Sections (EWS) announced by the Centre last year is also effective in the state.

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  • Modern Indian History-Events and Personalities

    Centenary of Aligarh Muslim University

    10 September 2020 | Prelims Only |
    Mains Paper 1: Modern Indian History

    In its centenary year, Aligarh Muslim University is planning to bury a time capsule, containing its history and achievements for posterity.

    Try this PYQ:

    Q.Consider the following:

    1. Calcutta Unitarian Committee
    2. Tabernacle of New Dispensation
    3. Indian Reforms Association

    Keshab Chandra Sen is associated with the establishment of which of the above?

    (a) 1 and 3 only

    (b) 2 and 3 only

    (c) 3 only

    (d) 1, 2 and 3

    Aligarh Muslim University

    • AMU is a public central university in Aligarh, India, which was originally established by Sir Syed Ahmad Khan as the Muhammadan Anglo-Oriental College in 1875.
    • Muhammadan Anglo-Oriental College became Aligarh Muslim University in 1920, following the Aligarh Muslim University Act.
    • It has three off-campus centres in Malappuram (Kerala), AMU Murshidabad centre (West Bengal), and Kishanganj Centre (Bihar).

    Its establishment

    • The university was established as the Muhammadan Anglo-Oriental (MAO) College in 1875 by Sir Syed Ahmad Khan, starting functioning on 24 May 1875.
    • The movement associated with Syed Ahmad Khan and the college came to be known as the Aligarh Movement, which pushed to realize the need for establishing a modern education system for the Indian Muslim populace.
    • He considered competence in English and Western sciences necessary skills for maintaining Muslims’ political influence.
    • Khan’s vision for the college was based on his visit to Oxford University and Cambridge University, and he wanted to establish an education system similar to the British model.

    About Syed Ahmad Khan

    • He was an Islamic pragmatist, reformer, and philosopher of nineteenth-century British India.
    • Born into a family with strong debts to the Mughal court, Ahmed studied the Quran and Sciences within the court.
    • He was awarded an honorary LLD from the University of Edinburgh in 1889.
    • In 1838, Syed Ahmed entered the service of East India Company and went on to become a judge at a Small Causes Court in 1867, retiring from 1876.
    • During the Indian Rebellion of 1857, he remained loyal to the British Raj and was noted for his actions in saving European lives.
    • In 1878, he was nominated to the Viceroy’s Legislative Council.
    • He supported the efforts of Indian political leaders Surendranath Banerjee and Dadabhai Naoroji to obtain representation for Indians in the government and civil services.

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  • Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

    [pib] ARISE-ANIC Initiative

    10 September 2020 | PIB | Economics
    Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

    Atal Innovation Mission (AIM), NITI Aayog, has launched Aatmanirbhar Bharat ARISE-Atal New India Challenges, to spur applied research and innovation in Indian MSMEs and startups.

    The name ARISE typically sounds some social sector or HRD related initiative. This is where one has to be cautious.

    ARISE ANIC Initiative

    • The program is a national initiative to promote research & innovation and increase the competitiveness of Indian startups and MSMEs.
    • Its objective is to proactively collaborate with esteemed Ministries and the associated industries to catalyse research, innovation and facilitate innovative solutions to sectoral problems.
    • It also aims to provide a steady stream of innovative products & solutions where the Central Government Ministries / Departments will become the potential first buyers.
    • It is in line with the PM’s mandate of “Make in India”, “Startup India”, and “Aatmanirbhar Bharat” to fast track the growth of the Indian MSME sector.

    Its implementation

    • The programme will be driven by ISRO, four ministries—Ministry of Defence; Ministry of Food Processing Industries; Ministry of Health and Family Welfare; and Ministry of Housing and Urban Affairs.
    • It will support deserving applied research-based innovations by providing funding support of up to Rs 50 lakh for speedy development of the proposed technology solution and/or product.

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  • Banking Sector Reforms

    EASE Banking Reforms Index

    10 September 2020 | DOMRPIB | Economics
    Mains Paper 3: Indian Economy

    Union Minister of Finance & Corporate Affairs has felicitated best performing banks on EASE Banking Reforms Index.

    Note the various themes under which the index works.

    EASE Banking Reforms Index

    • EASE stands for ‘Enhanced Access and Service Excellence’. The index is prepared by the Indian Banking Association (IBA) and Boston Consulting Group.
    • It is commissioned by the Finance Ministry.
    • It is a framework that was adopted last year to strengthen public sector banks and rank them on metrics such as responsible banking, financial inclusion, credit offtake and digitization.

    Various themes and performance by the states

     

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  • Animal Husbandry, Dairy & Fisheries Sector – Pashudhan Sanjivani, E- Pashudhan Haat, etc

    Pradhan Mantri Matsya Sampada Yojana

    10 September 2020 | PIBSchemes | Agriculture
    Mains Paper 3: Economics Of Animal-Rearing

    PM will digitally launch the PM Matsya Sampada Yojana (PMMSY) today.

    PM Matsya Sampada Yojana

    • The PMMSY aims to bring about the Blue Revolution through sustainable and responsible development of the fisheries sector in India.
    • It has an estimated investment of Rs. 20,050 crores for its implementation during a period of 5 years from FY 2020-21 to FY 2024-25 in all States/UTs, as a part of AatmaNirbhar Bharat Package.
    • PMMSY aims at enhancing fish production by an additional 70 lakh tonne by 2024-25, increasing fisheries export earnings to Rs.1,00,000 crore by 2024-25.
    • Thus it aims doubling of incomes of fishers and fish farmers, reducing post-harvest losses from 20-25% to about 10% and generation of gainful employment opportunities in the sector.

    Aims and objectives of PMMSY

    • Harnessing of fisheries potential in a sustainable, responsible, inclusive and equitable manner
    • Enhancing of fish production and productivity through expansion, intensification, diversification and productive utilization of land and water
    • Modernizing and strengthening of the value chain – post-harvest management and quality improvement
    • Doubling fishers and fish farmers incomes and generation of employment
    • Enhancing contribution to Agriculture GVA and exports
    • Social, physical and economic security for fishers and fish farmers
    • Robust fisheries management and regulatory framework

    Implementation strategy

    The PMMSY will be implemented as an umbrella scheme with two separate components namely:

    (a) Central Sector Scheme and

    (b) Centrally Sponsored Scheme

    • Majority of the activities under the Scheme would be implemented with the active participation of States/UTs.
    • A well-structured implementation framework would be established for the effective planning and implementation of PMMSY.
    • For optimal outcomes, ‘Cluster or area-based approach’ would be followed with requisite forward and backward linkages and end to end solutions.

    Other inaugurations: e-Gopala App

    • e-Gopala App is a comprehensive breed improvement marketplace and information portal for direct use of farmers.
    • At present no digital platform is available in the country for farmers managing livestock including buying and selling of disease-free germplasm in all forms (semen, embryos, etc); availability of quality breeding services and guiding farmers for animal nutrition etc.
    • There is no mechanism to send alerts (on the due date for vaccination, pregnancy diagnosis, calving etc) and inform farmers about various government schemes and campaigns in the area.
    • The e-Gopala App will provide solutions to farmers on all these aspects.

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  • Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

    Coordinated strategy between government and RBI

    9 September 2020 | | Economics
    Mains Paper 3: Indian Economy

    The article analyses the relation between the response of fiscal authority and monetary authority to get the maximum payoff in the normal circumstance. But the pandemic would require different approach.

    Coordination between monetary and fiscal authority in India

    • Coordination between monetary and fiscal authorities has been a thorny issue globally in recent years.
    • If there is perfect coordination between the monetary and fiscal policy then there should be statistically significant negative correlation between the two. 
    • In the Indian context, for the 30-year period till FY2020, relation between the change in the consolidated fiscal deficit and the change in the growth rate of broad money reveals no coordination, substantiating the dominance of fiscal over monetary policy.
    •  Non-coordination between the two in India is also constrained by several policy targets and fewer instruments.

    Optimal combination of monetary and fiscal strategy

    • Both the government and the RBI have two options between them — either a contraction or an expansion.
    • Thus, we effectively have four policy options, and each of the options will have a particular benefit.
    • Our endeavour is to find out which policy option can result in a Nash Equilibrium.
    • A Nash equilibrium occurs when neither the government nor the RBI can increase its benefit by unilaterally changing its action.
    • The payoff scenarios are hypothesised as benefits accruing to the government and the RBI separately when they are deciding on either of the policy options: Contraction or expansion.
    •  The government favour an expansionary policy and gets maximum payoffs from a fiscal expansion, either with monetary expansion or contraction.
    • The monetary authority ideally wants to contract the economy to fight inflation and gets maximum payoffs from a monetary contraction.

    So, what is optimal combination of fiscal and monetary strategy

    •  If the RBI opts for monetary expansion, the government also opts for expansion as the payoff is higher.
    • But this will compel the RBI to then opt for contraction, since that gives it a higher payoff.
    • Knowing this, the government’s best strategy will be then an expansion — so the outcome will always be a fiscal expansion with a simultaneous monetary contraction.
    •  This is the only Nash equilibrium for this game.

    Responding to the pandemic

    • The current pandemic is resulting in behavioural changes of individuals in terms of risk-taking.
    • In the Indian context too, there are behavioural changes in terms of risk-taking.
    • Many of the current companies were also born during the financial crisis, like Uber (2009), Microsoft (1975), Disney (1923), General Motors (1908) and General Electric (1890).
    • Echoing such “procedural rationality” in the current unprecedented circumstances, we thus believe fiscal expansion and monetary expansion is the desirable outcome.

    Conclusion

    The RBI has been largely successful in communicating to the market about its intentions and we now expect the government to manage expectations with coordinated communication and leave matters of financing the fiscal deficit, through measures like monetisation, to the RBI.

    B2BASICS

    NASH EQUILBRIUM

    Simply put, it is a situation where no player can increase his payoff by deviating alone (from the situation). That is,it is a situation where both players are involved in mutual best replies.

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  • Foreign Policy Watch: India-United States

    Finding alternative to non-alignment

    9 September 2020 | op-ed snap | International Relations
    Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    The article analyses role of non-alignment in India’s foreign policy and India’s struggle to find the alternative to the non-alignment.

    Background

    • Non-alignment was a policy fashioned during the Cold War, to retain the autonomy of policy between two politico-military blocs.
    • The Non-Aligned Movement (NAM) provided a platform for newly independent developing nations to join together to protect this autonomy.
    • NAM campaigned for de-colonisation, universal nuclear disarmament and against apartheid.
    • After the end of the Cold War, the NAM countries were able to diversify their network of relationships across the erstwhile east-west divide.

    Non-alignment and India’s foreign policy in the present context

    • For a few years now, non-alignment has not been projected by our policymakers as a tenet of India’s foreign policy.
    • India has not yet found a universally accepted alternative to the non-alignment yet.
    • “Strategic autonomy” as an alternative soon acquired a connotation similar to non-alignment, with an anti-U.S. tint.
    •  Multi-alignment has not found universal favour, since it may convey the impression of opportunism, whereas we seek strategic convergences.
    • Seeking issue-based partnerships or coalitions is a description that has not stuck.
    • “Advancing prosperity and influence” was a description External Affairs minister settled for, to describe the aspirations that our network of international partnerships seeks to further.

    Role of geography and politics

    • Two major imperatives flow from India’s geography-1) economic and security interests in the Indo-Pacific space. 2) the strategic importance of the continental landmass to its north and west.
    • The Indo-Pacific has inspired the Act East policy of bilateral and multilateral engagements in Southeast Asia and East Asia and the Pacific.
    • Shared India-U.S. interests in dealing with the challenge from China in the maritime domain have been a strategic underpinning of the bilateral partnership since the early 2000s.

    Issues in India’s engagement with the U.S.

    • In the immediate-term, Indian and U.S. perspectives are less convergent in India’s continental neighbourhood.
    • Connectivity and cooperation with Afghanistan and Central Asia need engagement with Iran and Russia, as well as with the Russia-China dynamics in the region.
    • Russia extends to the Eurasian landmass bordering India’s near and extended neighbourhood.
    • A close Russia-China partnership should move India to broad-base relations with Russia.
    • A strong stake in relations with India could reinforce Russia’s reluctance to be a junior partner of China.
    • As the U.S. confronts the challenge to its dominance from China, classical balance of power considerations would dictate accommodation with Russia.
    •  U.S. should see ties with India as a joint venture not an alliance in which they could pursue shared objectives to mutual benefit and accept that differences of perspectives will have to be addressed.
    • This template could have wider applicability for bilateral relations in today’s world order, which former could be described as militarily unipolar, economically multipolar and politically confused. 
    • The U.S. could acknowledge that India’s development of trade routes through Iran which could provide it route to Afghanistan and Central Asia, bypassing Pakistan and Russia, respectively.

    Consider the question “India has not been able to find an alternative to NAM which has been described as the basic tenet of India’s foreign policy. Discuss.”

    Conclusion

    India should find the alternative to the non-alignment which accommodate its interest in relations with the U.S. at the same time allow it “strategic autonomy”.

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  • Electoral Reforms In India

    Making the local governance strong

    9 September 2020 | op-ed snap | Polity
    Mains Paper 2: Parliament & State Legislatures

    The article analyses the issues faced by democracy in India and suggests the way out in the form of strong local governments.

    Issues being faced by Indian democracy

    1. Issue of use of money power

    • Around the world, electoral democracies face the issues of funding political parties and elections.
    • Money is required to win elections legitimately, even when people are not bribed to vote, which is illegitimate.
    • Communications with citizens can be very expensive.
    • Advertisements have to be paid for as well as teams of professionals for managing social media.
    • The race to raise more money for legitimate electioneering purposes can corrupt the process of funding parties and elections.
    • Solutions are not easy because the right to free speech cannot be denied.

    2.Issues with deliberations by the representatives

    • Debates within India’s Parliament hardly inspire citizens’ confidence in their representatives’ ability to govern the country.
    • The problem in electoral democracies is also in the conduct of their deliberations when they come together.
    • This problem is not due to the quality of the individuals, it is inherent in the design of the process for electing representatives.
    • Representatives of the people must be chosen by smaller electorates within geographical constituencies.
    • But when they meet together in the national chamber, they are expected to govern the whole country.
    • They must shed the interest of their constituency and consider what will be best for the whole country.
    • Constituency favouring leads to challenges for equitable solutions for sharing of river waters, and to railway stations.
    • Electing good representatives to Assemblies is not enough to ensure good decisions will be made.

    3.Role of political parties: Lack of inner democracies

    • Function of parties: Political parties in electoral democracies provide a solution to the problem of creating an alignment of views among representatives from hundreds of constituencies around the country.
    • A party’s point of view on fundamental matters can unite many.
    •  However, when there are too many parties and too many contradictory points of view to be accommodated within a coalition, governance can break down.
    • Therefore, political parties are not evil.
    • However, when political parties are not internally democratic, they become a source to amass power and wealth, and democratic nations suffer.

    So, should we adopt direct form of democracy

    • For the reason stated above, it has become very difficult in representative democracies to arrive at good and fair decisions for the governance of a large state or country.
    • New Internet technologies make adoption of direct form of democracy possible.
    • But, if all voters have not understood what is at stake, they cannot decide well this is what happened in hasty Brexit referendum.

    Way Forward

    1.Need for the strong local governance

    • Complex issues, where many interests collide, must be resolved by reason, not settled by the numbers.
    •  Hence there is no alternative to good local governance, wherein citizens manage their local affairs democratically.
    • One-size solutions devised by experts at the centre cannot fit all.
    • Local systems solutions are essential to solve global systemic problems of environmental sustainability and inclusive growth.

    2.Funding and Intra-Party Democracy related reforms

    • Electoral funding must be cleaned up, and democracy within political parties improved to make representative democracy work better.
    • This will require big changes to entrenched systems.
    • Citizens must appreciate that they have to be the source of solutions, and not become only the source of problems.
    • Citizens must learn to listen to each other’s perspectives in their villages and in their urban neighbourhoods.

    What are the challenges the electoral process in India faces? Suggest the solution to the issues democracy in India faces.

    Conclusion

    Since India’s Independence 73 years ago when the power of government was transferred from a centre in London to a centre in Delhi, strong local governance remains the unfinished agenda to make India’s democracy strong and deep.

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