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  • Understanding the opposition of farmers to agriculture Bills

    The article analyses the issue of farmers opposition to the three agricultural bills.

    Context

    • Farmers have been protesting against the three bills related to agriculture.
    • These three Bills are-
    • 1) The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020
    • 2) The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020.
    • 3) The Essential Commodities (Amendment) Bill, 2020.

    What are the aims of the bills?

    • The Bills aim to do away with government interference in agricultural trade by creating trading areas outside the structure of Agricultural Produce Market Committees (APMCs).
    • One of the bills aims at removing restrictions of private stockholding (under Essential Commodities Act 1955) of agricultural produce.
    • One of the bills deals with the regulation of contract farming.

    Issues with the Bills

    • The government has failed to hold any discussion with the various stakeholders including farmers and middlemen.
    • The attempt to pass the Bills without proper consultation adds to the mistrust among various stakeholders including State governments.
    • Farmer organisations see these Bills as an attempt to weaken the APMCs and eventual withdrawal of the Minimum Support Prices (MSP).
    • Farmers in Punjab and Haryana have genuine concern about the continuance of the MSP-based public procurement given the large-scale procurement operations in these States.

    Understanding the role of APMC

    • APMCs do play an important role of price discovery essential for agricultural trade and production choices.
    • The middlemen are a part of the larger ecosystem of agricultural trade, with deep links between farmers and traders.
    • The preference for corporate interests at the cost of farmers’ interests and a lack of regulation in these non-APMC mandis are cause for concern.
    • To understand the role of APMC, consider the example of Bihar.
    • After Bihar abolished APMCs in 2006, farmers in Bihar on average received lower prices compared to the MSP for most crops.
    • Despite the shortcomings and regional variations, farmers still see the APMC mandis as essential to ensuring the survival of MSP regime.

    Conclusion

    The protests by farmers are essentially a reflection of the mistrust between farmers and the stated objective of these reforms.

  • Roles, functions and limitations of Parliamentary Committees

    The government pushed through two crucial agriculture Bills in Rajya Sabha, rejecting Opposition demands to refer them to a Select Committee of Rajya Sabha.

    Try this PYQ:

    With reference to the Parliament of India which of the following Parliamentary Committees scrutinizes and reports to the House whether the powers to make regulations, rules, sub-rules, bylaws, etc. conferred by the Constitution or delegated by the Parliament are being properly exercised by the Executive within the scope of such delegation?(CSP 2018)

    (a) Committee on Government Assurances

    (b) Committee on Subordinate Legislation

    (c) Rules Committee

    (d) Business Advisory Committee

    What is a Parliamentary Committee?

    • It means a Committee which is appointed or elected by the House or nominated by the Speaker and which works under the direction of the Speaker and presents its report to the House or to the Speaker and the Secretariat for which is provided by the Lok Sabha Secretariat.

    By their nature, Parliamentary Committees are of two kinds: Standing Committees and Ad hoc Committees.

    1. Standing Committees are permanent and regular committees which are constituted from time to time in pursuance of the provisions of an Act of Parliament or Rules of Procedure and Conduct of Business in Lok Sabha. The work of these Committees is of continuous nature. The Financial Committees, DRSCs and some other Committees come under the category of Standing Committees.
    2. Ad hoc Committees are appointed for a specific purpose and they cease to exist when they finish the task assigned to them and submit a report. The principal Ad hoc Committees are the Select and Joint Committees on Bills. Railway Convention Committee, Joint Committee on Food Management in Parliament House Complex etc also come under the category of ad hoc Committees.

    Why need Parliamentary Committee?

    • Parliament scrutinizes legislative proposals (Bills) in two ways. The first is by discussing it on the floor of the two Houses.
    • This is a legislative requirement; all Bills have to be taken up for debate.
    • The time spent debating the bills can vary. They can be passed in a matter of minutes, or debate and voting on them can run late into the night.
    • Since Parliament meets for 70 to 80 days in a year, there is not enough time to discuss every Bill in detail on the floor of the House.

    Its role in the passage of a Bill

    • The debate in the house is mostly political and does not go into the technical details of a legislative proposal.
    • The second mechanism is by referring a Bill to a parliamentary committee. It takes care of the legislative infirmity of debate on the floor of the House.
    • However, referring to Bills to parliamentary committees is not mandatory.

    And what is a Select Committee?

    • India’s Parliament has multiple types of committees.
    • They can be differentiated on the basis of their work, their membership and the length of their tenure. First are committees that examine bills, budgets and policies of ministries.
    • These are called departmentally related Standing Committees. There are 24 such committees and between them, they focus on the working of different ministries.
    • Each committee has 31 MPs, 21 from Lok Sabha and 10 from Rajya Sabha.
    • The main purpose is to ensure the accountability of Government to Parliament through a more detailed consideration of measures in these committees.
    • The purpose is not to weaken or criticize the administration but to strengthen by investing in with more meaningful parliamentary support.

    When does a committee examine a Bill?

    • Bills are not automatically sent to committees for examination. There are three broad paths by which a Bill can reach a committee.
    • The first is when the minister piloting the Bill recommends to the House that his Bill be examined by a Select Committee of the House or a joint committee of both Houses.
    • Last year Electronics and IT Minister moved a motion in Lok Sabha referring the Personal Data Protection Bill to a Joint Committee.
    • If the minister makes no such motion, it is up to the presiding officer of the House to decide whether to send a Bill to a departmentally related Standing Committee.

    What happens when a bill goes to a Committee?

    • Sending a Bill to any committee results in two things.
    • First, the committee undertakes a detailed examination of the Bill. It invites comments and suggestions from experts, stakeholders and citizens.
    • The government also appears before the committee to present its viewpoint.
    • All this results in a report that makes suggestions for strengthening the Bill. While the committee is deliberating on a Bill, there is a pause in its legislative journey.
    • It can only progress in Parliament after the committee has submitted its report. Usually, parliamentary committees are supposed to submit their reports in three months, but sometimes it can take longer.

    What happens after the report?

    • The report of the committee is of a recommendatory nature. The government can choose to accept or reject its recommendations.
    • Very often the government incorporates suggestions made by committees. Select Committees and JPCs have an added advantage.
    • In their report, they can also include their version of the Bill. If they do so, the minister in charge of that particular Bill can move for the committee’s version of the Bill to be discussed and passed in the House.
  • New versions of labour codes – key proposals and concerns

    The government has introduced new versions of three labour codes – Industrial Relations Code Bill, 2020, Code on Social Security Bill, 2020 and Occupational Safety, Health and Working Conditions Code Bill, 2020.

    Try this PYQ:

    Q.Disguised unemployment generally means:

    (a) A large number of people remain unemployed

    (b) Alternative employment is not available

    (c) Marginal productivity of labour is zero

    (d) Productivity of workers is low

    What are the key proposals?

    (1) Industrial Relations Code Bill, 2020

    • In this, the government has proposed to introduce more conditions restricting the rights of workers to strike, alongside an increase in the threshold relating to layoffs and retrenchment.
    • The Code has raised the threshold for the requirement of a standing order — rules of conduct for workmen employed in industrial establishments — to over 300 workers.
    • This implies industrial establishments with up to 300 workers will not be required to furnish a standing order, a move which experts say would enable companies to introduce arbitrary service conditions for workers.
    • These steps are likely to provide more flexibility to employers for hiring and firing workers without government permission.

    (2) Social Security Code

    • It proposes a National Social Security Board which shall recommend to the central government for formulating suitable schemes for different sections of unorganised workers, gig workers and platform workers.
    • Also, aggregators employing gig workers will have to contribute 1-2 per cent of their annual turnover for social security, with the total contribution not exceeding 5 per.

    (3) Occupational Safety, Health and Working Conditions Code

    • This code has defined inter-state migrant workers as the worker who has come on his own from one state and obtained employment in another state, earning up to Rs 18,000 a month.
    • The proposed definition makes a distinction from the present definition of only contractual employment.
    • The Code, however, has dropped the earlier provision for temporary accommodation for workers near the worksites.
    • It has though proposed a journey allowance — a lump sum amount of fare to be paid by the employer for to and fro journey of the worker to his/her native place from the place of his/her employment.

    What are the other proposals for workers?

    • The IR Code Bill has also proposed a worker re-skilling fund.
    • The contributions for the fund are only detailed from the employer of an industrial establishment amounting to fifteen days wages last drawn by the worker immediately before the retrenchment along with the contribution from such other sources.
    • The mention of ‘other sources’ for funding the re-skilling fund is vague.

    What are the concerns raised over the new labour codes?

    • Analysts say the increase in the threshold for standing orders will water down the labour rights for workers in small establishments having less than 300 workers.
    • The increase is uncalled for and shows the government is very keen to give tremendous amounts of flexibility to the employers in terms of hiring and firing.
    • Dismissal for alleged misconduct and retrenchment for economic reasons will be completely possible for all the industrial establishments employing less than 300 workers.
    • The Industrial Relations Code also introduces new conditions for carrying out a legal strike.
    • The time period for arbitration proceedings has been included in the conditions for workers before going on a legal strike as against only the time for conciliation at present.
  • Brucellosis: A bacterial disease

    As the novel coronavirus pandemic continues, the health commission has announced this week that a leak in a biopharmaceutical company last year caused an outbreak of brucellosis disease.

    Try this PYQ:

    Q.Consider the following kinds of organisms:

    1. Bacteria
    2. Fungi
    3. Flowering plants

    Some species of which of the above kinds of organisms are employed as bio-pesticides?

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

    What is Brucellosis?

    • Brucellosis is a bacterial disease that mainly infects cattle, swine, goats, sheep and dogs.
    • Humans can get infected if they come in direct contact with infected animals or by eating or drinking contaminated animal products or by inhaling airborne agents.
    • According to the WHO, most cases of the disease are caused by ingesting unpasteurized milk or cheese from infected goats or sheep.
    • Symptoms of the disease include fever, sweats, malaise, anorexia, and headache and muscle pain.
    • While some signs and symptoms can last for long periods of time, others may never go away. Human to human transmission of the virus is rare.
    • These include recurrent fevers, arthritis, swelling of the testicles and scrotum area, swelling of the heart, neurologic symptoms, chronic fatigue, depression and swelling of the liver or spleen.
  • [pib] E-Gram Swaraj Portal

    A unified tool e-Gram SWARAJ portal has been developed by the Ministry of Panchayati Raj for effective monitoring and evaluation of works taken up in the Gram Panchayats.

    e-Gram SWARAJ

    • It unifies the planning, accounting and monitoring functions of Gram Panchayats.
    • Its combination with the Area Profiler application, Local Government Directory (LGD) and the Public Financial Management System (PFMS) renders easier reporting and tracking of Gram Panchayat’s activities.
    • It provides a single-window for capturing Panchayat information with the complete Profile of the Panchayat, details of Panchayat finances, asset details, activities taken up through Gram Panchayat Development Plan (GPDP) etc.
  • [pib] SPICe+ Portal

    The Ministry of Corporate Affairs has notified and deployed a web-form namely ‘SPICe+’ as a part of Govt of India’s Ease of Doing Business (EODB) initiatives.

    Try this MCQ:

    Q.The SPICe+ Portal sometimes seen in news is related to which of the following Ministry?

    (a) Ministry of Environment, Forest and Climate Change

    (b) Ministry of Commerce and Industry

    (c) Ministry of Corporate Affairs

    (d) Ministry of Agriculture & Farmers’ Welfare

    SPICe+ Portal

    • It offers 10 services by three Central Government Ministries and Departments (Ministry of Corporate Affairs, Ministry of Labour & Department of Revenue in the Ministry of Finance), one State Government (Maharashtra) and various Banks.
    • Thus it saves the procedure, time and cost for Starting a Business in India.
    • These 10 services are:-
    1. Name reservation
    2. Incorporation
    3. DIN allotment
    4. Mandatory issue of PAN
    5. Mandatory issue of TAN
    6. Mandatory issue of EPFO registration
    7. Mandatory issue of ESIC registration
    8. Mandatory issue of Profession Tax registration (Maharashtra)
    9. Mandatory Opening of Bank Account for the Company and
    10. Allotment of GSTIN (if so applied for)
  • Labour law Reforms

    This session of Lok Sabha has passed 3 Historic and path-breaking Labour Codes.

    UPSC may ask the major laws subsumed under these Labour Codes.

    What are the 3 bills?

    The 3 bills which were passed are

    1. Industrial Relations Code, 2020
    2. Code on Occupational Safety, Health & Working Conditions Code, 2020 &
    3. Social Security Code, 2020

    All the labour laws (29 in number) being amalgamated into 4 labour codes are :

    Name of the Code 

    Amalgamated laws

    Wage Code

     

    4 laws –

    1. The Payment of Wages Act, 1936
    2. The Minimum Wages Act, 1948
    3. The Payment of Bonus Act, 1965
    4. The Equal Remuneration Act, 1976
    IR Code

     

    3 laws –

    1. The Trade Unions Act, 1926
    2. The Industrial Employment (Standing orders) Act, 1946
    3. The Industrial Disputes Act, 1947
    OSH Code

     

    13 laws –

    1. The Factories Act, 1948
    2. The Plantations Labour Act, 1951
    3. The Mines Act, 1952
    4. The Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955
    5. The Working Journalists (Fixation of Rates of Wages) Act, 1958
    6. The Motor Transport Workers Act, 1961
    7. The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
    8. The Contract Labour (Regulation and Abolition) Act, 1970
    9. The Sales Promotion Employees (Conditions of Service) Act, 1976
    10. The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
    11. The Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981
    12. The Dock Workers (Safety, Health and Welfare) Act, 1986
    13. The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
    Social Security Code

     

    9 laws –

    1. The Employees’ Compensation Act, 1923
    2. The Employees’ State Insurance Act, 1948
    3. The Employees Provident Fund and Miscellaneous Provisions Act, 1952
    4. The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959
    5. The Maternity Benefit Act, 1961
    6. The Payment of Gratuity Act, 1972
    7. The Cine Workers Welfare Fund Act, 1981
    8. The Building and Other Construction Workers Welfare Cess Act, 1996
    9. The Unorganised Workers’ Social Security Act, 2008

     

    Here are the key features of these bills:

     (A) Social Security Code, 2020

    • The facility of ESIC would now be provided in all 740 districts. At present, this facility is being given in 566 districts only.
    • EPFO’s coverage would be applicable on all establishments having 20 workers. At present, it was applicable only on establishments included in the Schedule.
    • Provision has been made to formulate various schemes for providing comprehensive social security to workers in the unorganised sector.
    • A “Social Security Fund” will be created on the financial side in order to implement these schemes.
    • Work to bring newer forms of employment created with the changing technology like “platform worker or gig worker” into the ambit of social security has been done in the Social Security Code.
    • Provision for Gratuity has been made for Fixed Term Employee and there would not be any condition for minimum service period for this.
    • With the aim of making a national database for unorganised sector workers, registration of all these workers would be done on an online portal and this registration would be done on the basis of Self Certification through a simple procedure.

     (B) Occupational Safety, Health & Working Conditions Code, 2020

    • Free health checkup once a year by the employer for workers which are more than a certain age.
    • A legal right for getting Appointment Letter given to workers for the first time.
    • Cine Workers have been designated as Audio Visual Worker so that more and more workers get covered under the OSH code. Earlier, this security was being given to artists working in films only.

    (C)  Industrial Relations Code, 2020

    Efforts made by the Government for quickly resolving disputes of the workers include:

    • Compulsory facility for Helpline for redressal of problems of migrant workers.
    • Making a national database of migrant workers.
    • Provision for the accumulation of one day leave for every 20 days worked when work has been done for 180 days instead of 240 days.
    • Equality for women in every sphere: Women have to be permitted to work in every sector at night, but it has to be ensured that provision for their security is made by the employer and consent of women is taken before they work at night.
    • In the event of the death of a worker or injury to a worker due to an accident at his workplace, atleast 50 % share of the penalty would be given. This amount would be in addition to Employees Compensation.
    • Provision of “Social Security Fund” for 40 Crore unorganized workers alongwith GIG and platform workers and will help Universal Social Security coverage
    • Occupational Safety & Health Code to also can now over cover workers from IT and Service Sector.
    • 14 days notice for Strike so that in this period amicable solution comes out.
  • Hate speech in India

    Context

    • Sudarshan TV case will have several implication for the regulation of free speech.
    • In principle, Indian law allows prior restraint on broadcasting. This prior restraint should be used sparingly and must meet a high constitutional bar.
    • Indian law also allows regulation for hate speech.

    Maintaining the equilibrium

    • The government feared that if it did not have the power to regulate speech, it will threaten the stability of society.
    • The hate and violence got the state to betray its own liberal commitments
    • Liberals never acquired the confidence of people to let go of  state regulation in the name of defending the republic.
    • The spread of hate speech and its political consequences are now infinitely greater.
    • The situation, where communication mediums are used to target communities, are not outside the realm of possibility.
    •  It is for this reason we still have so many restraints on speech.

    Challenges in regulation of speech

    • Almost every regulation of speech, no matter how well intentioned, increases the power of the state.
    • But now, in the current context, empowering the state is a frightening prospect as well.
    • The issue is fundamentally political and we should not pretend that fine legal distinctions will solve the issue.
    • An over-reliance on legal instruments to solve fundamentally social and political problems often backfires.

    3 lessons to learn

    • 1) The more the state regulates, the more it politicises the regulation of speech, and ultimately legitimate dissent will be the victim.
    • 2) There is a whole bunch of laws and regulation already on the books for regulation, these have been ineffective because of institutional dysfunction.
    • 3) Social media operates on a set of monetising incentives. But broadcast media is also based on political economy.
    • The granting of licences has always been a political affair; the pricing structures set by the TRAI have perverse consequences for quality and competition.
    • Our current media landscape is neither a market nor a state. The more the underlying political economy of media is broken, the less likely it is that free speech will stand a chance.

    Way forward

    • Not post facto content regulation, but a market structure that can help provide more checks and balances.
    • Not let bad media drive out good.
    • The Court suo motu setting up a regulatory framework does not inspire confidence. It is not its jurisdiction to begin with.
    •  This is something for Parliament to think about.

    Conclusion

    The government must walk the tight rope of regulation and safeguarding the rights of all.

  • On the GST issue, the Centre must lead

    The article deal with the issue of GST compensation and analyses the various estimates of revenue shortfall given by the Centre.

    Context

    • The Goods and Services Tax (GST) Council meeting has now been deferred to the first week of October due to sharp disagreement between the States and the Centre.

    Background of GST

    • The Centre had brought the States on board GST by promising higher revenue collection.
    • States were lured by the promise of 14% annual growth in GST revenue over the base year of 2015-16.
    • Any shortfall from this (for five years) was to be compensated by levying a cess on luxury and sin goods.

    What are the options given by the Centre

    •  The transfers due since April 2020 have been withheld.
    • In the last GST Council meeting held on August 27, the Centre gave the States two options.
    • First, they could borrow ₹97,000 crore (the shortfall in the GST revenue compensation) from the Reserve Bank of India (RBI) under a special window at a low rate of interest.
    • Second, borrow ₹2.35-lakh crore (the total compensation shortfall) from the market with the RBI facilitating it.
    • The burden of repayment would be borne by the future collections from the compensation cess.
    • It was proposed that this cess which was to end in June 2022 could be extended to facilitate the repayment of the debt.

    Issues with the estimates

    • Given the uncertainty, how accuracy of the estimates of ₹97,000 crore and ₹2.35-lakh crore offered to the States is questionable.
    • When the Ministry of Finance is refusing to give a figure for growth in 2020-21, how such estimates are arrived at gains significance.

    Budgetary calculations

    • The Union Budget presented on February 1, 2020 assumed a nominal growth of 10%.
    • But optimistically, the Centre’s budgetary calculations will be off by at least 20%.
    • Revenue will fall by much more than 20%.
    •  So, income tax collection will also be short by much more than 20%.
    • The direct tax/GDP per cent may be expected to fall from 5.5% last year to less than 4% this fiscal.
    • Thus, at an optimistic guess, if the economy declines by only 10%, the total tax collection will be down by about ₹12-lakh crore in 2020-21.

    Conclusion

    As many predictions are that the economy will be down by much more than 10% used in the calculations above, the revenue shortfall is likely to be far greater. This points to the dire position of the Centre (and the States) and the inevitability of a large borrowing programme. Only the Centre is in a position to do such massive borrowing.


    Back2Basics: Two options for the GST compensation

    • Option 1 has a special window for states, coordinated by the Finance Ministry, to borrow the projected shortfall of Rs 97,000 crore only on account of GST implementation — and not the Covid-19 pandemic.
    • This amount can be fully repaid from the compensation cess fund, without being counted as states’ debt.
    • Option 2 takes into account the impact of the pandemic, proposing states to borrow the entire Rs 2.35 lakh crore and bearing the interest burden though principal will be repaid from the cess proceeds.
    • The GST shortfall amount (Rs 97,000 crore) will not be counted as states’ debt, while the rest of the amount of Rs 1.38 lakh crore will be counted in the books of the states.

    Source:

    https://indianexpress.com/article/business/economy/gst-compensation-centre-gives-states-2-options-easier-terms-for-lower-borrowing-6575499/

  • Role for India in Afghan peace push

    The U.S. objectives

    • Following  4 were the states as objectives of the Afghan peace process.
    • 1) An end to violence by declaring a ceasefire.
    • 2) An intra-Afghan dialogue for a lasting peace.
    • 3) The Taliban cutting ties with terrorist organisations such as al Qaeda.
    • 4)  U.S. troop withdrawal.

    Evolving Indian stand in the peace process

    • India’s vision of a sovereign, united, stable, plural and democratic Afghanistan is one that is shared by a large constituency in Afghanistan, cutting across ethnic and provincial lines.
    • At Doha meeting, India’s External Affairs Ministerreiterated that the peace process must be “Afghan led, Afghan owned and Afghan controlled”.
    • But Indian policy has evolved from its earlier hands-off approach to the Taliban.
    • U.S. and Russian representatives suggested if India had concerns regarding anti-India activities of terrorist groups, it must engage directly with the Taliban. In other words.

    Limited interest of the major powers

    • Major powers have limited interests in the peace process.
    • The European Union has made it clear that its financial contribution will depend on the security environment and the human rights record.
    • China can always lean on Pakistan to preserve its security and connectivity interests.
    • For Russia, blocking the drug supply and keeping its southern periphery secure from extremist influences is key.
    • That is why no major power is taking ownership for the reconciliation talks, but merely content with being facilitators.

    Conclusion

    A more active engagement will enable India to work with like-minded forces in the region to ensure that the vacuum created by the U.S. withdrawal does not lead to an unravelling of the gains registered during the last two decades.