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  • [Sansad TV] Perspective: Cluster Farming

    [Sansad TV] Perspective: Cluster Farming

    Central idea

    • Five private firms have been allowed by the Central Government to engage in cluster farming of specific horticulture crops on a pilot basis.
    • The goal of this initiative is to enhance the competitiveness of Indian produce on a global scale and increase the earnings of farmers.
    Overview of the Horticulture Sector in India

    India is the world’s second-largest producer of horticulture crops. It is a leading producer of fruits such as Mango, Banana, Pomegranate, Sapota, Acid Lime and Amla.
    UP was the top state in horticulture production in 2021-22, followed by MP and West Bengal. West Bengal, UP and MP were the top states in vegetable production.
    Maharashtra followed by AP and UP were the top states in fruit production.
    The area under horticulture crops increased to 27.74 million hectares in 2021-22, producing around 341.63 million tonnes.

    What is Cluster Farming?

    • Cluster farming is a strategy aimed at improving the global competitiveness of Indian produce and boosting farmers’ income.
    • It involves the regional concentration of targeted horticulture crops to allow for specialization in production, post-harvest management, marketing, and exports.

    Features of cluster farming include

    • Collaboration: It is a collaborative effort where farmers work together to share resources, knowledge, and expertise to achieve common goals.
    • Resource sharing: It involves sharing resources such as land, water, labor, and equipment to achieve economies of scale and reduce the cost of production.
    • Specialization: It allows farmers to specialize in particular crops or livestock, which enables them to become experts in their chosen areas and increase their productivity.
    • Marketing: It enables farmers to market their products more effectively by pooling their resources and creating a unified marketing strategy.
    • Infrastructure development: It involves the development of shared infrastructure such as irrigation systems, warehouses, and processing facilities, which improves efficiency and reduces costs.
    • Environmental sustainability: It promotes environmental sustainability by encouraging farmers to adopt eco-friendly farming practices, such as conservation agriculture and integrated pest management.

    Why need Cluster Farming in India?

    There are several reasons why cluster farming is needed in India:

    • Income push for small farmers: India has a high percentage of small and marginal farmers who own less than 2 hectares of land. Cluster farming can help small farmers pool their resources and achieve better access to inputs, services, and markets.
    • Youth retention: Many young people are leaving rural areas in search of better economic opportunities in urban areas. Cluster farming can help create job opportunities in rural areas and improve the livelihoods of rural communities.
    • Supply chains utilization: India’s agriculture supply chain is fragmented, resulting in low prices for farmers and high prices for consumers. Cluster farming helps farmers create a unified supply chain and market their products effectively, reducing intermediaries and improving prices.
    • Filling infrastructure gap: Many parts of rural India lack basic infrastructure such as roads, irrigation systems, and storage facilities. Cluster farming can help farmers share the cost of building and maintaining such infrastructure, which can improve efficiency and reduce costs.
    • Mitigate climate change: Climate change is increasingly affecting India’s agriculture sector, with frequent droughts, floods, and extreme weather events. Cluster farming can help farmers adopt climate-resilient farming practices and reduce their vulnerability to climate change.

    Key initiative: Horticulture Cluster Development Programme

    • The CDP is a recently launched central scheme with an outlay of Rs 2,200 crore.
    • It is a central sector programme aimed at growing and developing identified horticulture clusters to make them globally competitive.
    • Under the CDP, financial assistance of up to Rs 100 crore will be provided to projects based on their size.

    Implementation strategy

    • The National Horticulture Board (NHB) is responsible for implementing it.
    • The list of 55 clusters, each with a focus on specific crops, includes states such as Arunachal Pradesh, Assam, West Bengal, Manipur, Mizoram, Jharkhand, and Uttarakhand.
    • During the pilot phase, it was implemented in 12 clusters across 11 states and union territories.

    Objectives of the CDP

    • Export promotion: Improve exports of targeted crops by 20% and create cluster-specific brands to enhance competitiveness
    • Sectoral reform: Address all major issues related to the Indian horticulture sector including pre-production, production, post-harvest management, logistics, marketing and branding
    • Leverage geographical specialisation:  Promote integrated and market-led development of horticulture clusters
    • Converge with other government initiatives: Such as the Agriculture Infrastructure Fund
    • Attract investment

    Other initiatives

    (1) Mission for Integrated Development of Horticulture (MIDH)

    • MIDH is a centrally sponsored scheme for the holistic growth of India’s horticulture sector, covering fruits, vegetables, and other areas.
    • The government of India contributes 60% of the total outlay for developmental programs in all states (except North Eastern and Himalayan states where it contributes 90%), with 40% contributed by state governments.

    (2) Project CHAMAN

    • The project name stands for “Coordinated Horticulture Assessment and Management using Geo-informatics.”
    • It is focused on leveraging geo-informatics, which involves using spatial data, to provide assistance to farmers and improve the overall management of the horticulture sector.
    • It aims to provide farmers with accurate and up-to-date information on factors such as weather patterns, soil moisture levels, and disease outbreaks.

    (3) National Horticulture Board (NHB)

    • NHB is a government organization that provides financial assistance and other support to promote the development of the horticulture sector.
    • The NHB provides support for various activities, including production, post-harvest management, marketing, and export.

    Hurdles for horticulture development in India

    • Fragmented landholdings: Land fragmentation is a major issue in many horticulture clusters in India, which can make it difficult for farmers to achieve economies of scale and adopt modern farming practices.
    • Inadequate market linkages: Many farmers in horticulture clusters have limited access to markets, which can result in low prices for their produce. Improving market linkages is crucial for promoting the growth of the horticulture sector.
    • Pest and disease management: Pests and diseases can pose a major threat to horticulture crops, and managing these risks can be challenging for small-scale farmers who may lack access to information and resources.

    Way forward

    • Land consolidation: The government could encourage land consolidation in horticulture clusters, which would enable farmers to achieve economies of scale and adopt modern farming practices.
    • Facilitate access to finance: The government could work with financial institutions to provide credit and other financial services to small-scale farmers in horticulture clusters. This would enable farmers to invest in their farms and adopt new technologies.
    • Establish market linkages: The government could work with private sector players to develop market linkages for farmers in horticulture clusters. This would help farmers get better prices for their produce and improve their livelihoods.
    • Pest and disease management: The government could provide training and support to farmers in horticulture clusters on pest and disease management. This would help farmers adopt eco-friendly pest and disease management practices and reduce crop losses.

  • Supreme Court rulings on Encounters

    encounter

    Central idea: A gangster-turned-politician son and his aide were killed in an encounter in UP.

    Why discuss this?

    • The National Human Rights Commission (NHRC) and the Supreme Court have laid down proper guidelines and procedures to be followed to prevent any misuse of power by the law enforcement agencies.
    • However, this encounter has brought to the forefront the issue of extra-judicial killings or “encounters” by the police in India.

    Supreme Court Guidelines on Encounters

    • In September 2014, a bench of then CJI RM Lodha and Rohinton Fali Nariman issued detailed guidelines.
    • These guidelines came in the case “People’s Union for Civil Liberties v State of Maharashtra”.
    • The guidelines enumerated 16 points to be followed in the matters of investigating police encounters in the cases of death as the standard procedure for a thorough, effective and independent investigation-
    1. Registration of a first information report (FIR) as mandatory
    2. Magisterial inquiry
    3. Keeping written records of intelligence inputs
    4. Independent investigation by bodies such as the CID
    5. A Magisterial Inquiry must invariably be held in all cases of death which occur in the course of police action
    6. Next of kin of the deceased must invariably be associated in such inquiry
    7. In every case when a complaint is made against the police alleging commission of a criminal act on their part, which makes out a cognizable case of culpable homicide, an FIR to this effect must be registered under appropriate sections of the IPC
    8. Such an inquiry made under Section 176 of the Code of Criminal Procedure, 1973, must show “whether use of force was justified and action taken was lawful.”
    9. Whenever the police receives any intelligence or tip-off on criminal movements or activities relating to the commission of grave criminal offence, “it shall be reduced into writing in some form (preferably into case diary) or in some electronic form.”
    10. Following such tip-off or intelligence, if an encounter takes place and a firearm is used by the police party, resulting in death, then an FIR to that effect has to be registered and forwarded to the court under Section 157 without delay.
    11. Provisions for an independent investigation into the encounter
    12. The requirements/norms must be strictly observed in all cases of death and grievous injury in police encounters by treating them as law declared under Article 141 of Indian Constitution.
    13. The law declared by the Supreme Court shall be binding on all other courts in Indian Territory.
    14. NHRC’s involvement is not necessary, “unless there is serious doubt about independent and impartial investigation.”
    15. The information about the incident must be sent to NHRC or the State Human Rights Commission.

    NHRC Guidelines on Encounters

    • The National Human Rights Commission (NHRC) has asked all states and Union Territories to ensure that police follow a set of guidelines in cases where death is caused in police encounters.
    • These included the police’s duty to enter all information received about encounter deaths in an “appropriate register” and provisions for investigation by independent agencies like the State CID.

    Issues with such encounters

    • Defies rule of law: This practice undermines the rule of law and due process, and violates the right to life and other human rights.
    • Use of force: There have been allegations of police and security forces using excessive force.
    • Fake encounters: There have been instances of staging encounters, and conducting fake encounters to eliminate suspects without following the due legal process.
    • Autocracy: These incidents have raised concerns about impunity, lack of accountability, and the need for reforms to ensure that law enforcement officials are held accountable for their actions.
    • Distrust among the public: Public often tend to lose belief among the constitutional process of justice.

    Why are such encounters popular among public?

    • Lack of trust in the legal system: Some people may view extrajudicial killings and encounters as a way of bypassing the legal system which they may view as corrupt or inefficient.
    • Perception of safety: There may be a belief among some members of the public that such encounters can help to deter criminals and make their communities safer.
    • Frustration with the slow pace of justice: The Indian legal system can be slow and protracted, and some people may view extrajudicial killings and encounters as a way to expedite the process of justice.
    • Lack of awareness about human rights: Some people may not be aware of the human rights implications of such encounters, or may view them as a necessary means to an end.

    Conclusion

    • It is important to note, however, that extrajudicial killings and encounters are illegal, undermine the rule of law, and violate human rights.
    • They also carry the risk of abuse, and can result in innocent people being targeted or killed.
    • Therefore, such practices cannot be justified or condoned in a democratic and law-abiding society.

    Back2Basics: National Human Rights Commission

    • NHRC is an independent statutory body established in India on 12 October 1993 under the Protection of Human Rights Act, 1993.
    • It is responsible for the protection and promotion of human rights, and prevention of their violations.
    • It is empowered to investigate complaints of human rights violations and recommend appropriate remedial measures.
    • It also monitors the human rights situation in the country, undertakes research and advocacy, and conducts various educational and awareness programs to promote human rights awareness and sensitivity among various sections of society.

     

  • 14th Apr 23 | Prelims Daily with Previous Year Questions

    14th Apr 23 | Prelims Daily with Previous Year Questions

    [WpProQuiz 1317]

    [WpProQuiz_toplist 1317]

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  • Nikaalo Prelims Spotlight || Constitutional and Statutory bodies, Regulatory, Quasijudicial Bodies, RTI etc.

    Dear Aspirants,

    This Spotlight is a part of our Mission Nikaalo Prelims-2023.

    You can check the broad timetable of Nikaalo Prelims here

    Session Details

    YouTube LIVE with Parth sir – 7 PM  – Prelims Spotlight Session

    Evening 04 PM  – Daily Mini Tests

    Join our Official telegram channel for Study material and Daily Sessions Here

    14th Apr 2023

    Constitutional bodies

      Appointment Tenure Removal Process of removal Eligibility for reappointment w/i govt
    Attorney general (Advocate general) President (governor) Pleasure of President (governor) President (governor) No reason needs to be mentioned Yes
    Election Commission (SEC) President (governor) 6 years/ 65 President CEC and SEC by a special majority

    Other ECs on the recommendation of CEC

    		 Yes
    Finance commission (SFC) President (governor) Specified by president NA NA Yes
    UPSC (SPSC) President (governor) 6 years/ 65 President After enquiry by supreme court Members can become Chair, state members can become chair or member or chair of UPSC
    CAG President 6 years/ 65 President Special majority No

    Statutory bodies

      Appointment Committee members Other members Tenure Removal
    NHRC (SHRC) President (Governor) 6 (PM + LOP Lok Sabha) Speaker, Deputy CP RS, LOP RS, home minister 3 years*/ 70 President after Supreme Court inquiry
    CIC (SIC) President (Governor) 3 ((PM + LOP Lok Sabha) Cabinet Minister nominated by PM As prescribed by the Central Govt*./ 65 President (governor for SIC) after supreme court inquiry
    CVC President (governor) 3 ((PM + LOP lok sabha) Home minister 4 years/ 65 President after Supreme court inquiry
    Lokpal President 5 (PM + LOP lok sabha Speaker, CJI, eminent jurist 5 years/ 70 Like a Supreme Court judge

    Regulatory Bodies

    Regulatory bodies in India Sector Functions
    Telecom Regulatory Authority of India – TRAI Telecommunication and Tariffs To make regulations to ease competition and enhance the  efficiency in the operation of telecommunication services
    Competition Commission of India (CCI) Company affairs To protect the interest of consumers,  prevent some practices having harmful effect on competition
    Securities and  Exchange Board of India Securities (Stock) and Capital Market To safeguard the interests of investors and to regulate the securities market.
    Food Safety and Standards Authority of India (FSSAI)

    		 Food industry To ensure the food quality, to watch and regulate the processing, manufacture, distribution, sale and import of food.
    Medical Council of India Medical education To regulate and set up high and uniform standards of medical education
    Reserve Bank of India (RBI)

    		 Banking and Monetary regulations It executes multiple functions as a custodian to regulate all the banking and the monetary function in country
    Insurance Regulatory & Development Authority of India – IRDAI

    		 Insurance To regulate and enhance insurance business and reinsurance business in India.
    National Bank for Agriculture and Rural Development (NABARD)

    		 Financing Rural Development Functions as a supreme body for catering  the credit needs of all types of rural development

    and agricultural
    Central Board of Film Certification (CBFC)

    		 Certification and Censorship To regulate and monitor the public exhibition of movies.
    Pension Fund Regulatory and Development Authority

    		 Pension and welfare To regulate promote and develop the pension sector in the country.
     

    Quasi-judicial Bodies

    A quasi-judicial body can be an individual or body with powers resembling a court of law.

    • They can adjudicate and decide penalties on the guilty.
    • They are different from judicial bodies in that their field is limited compared to a court.
    • They can be formed on a matter pending in court, by court order if the court considers it necessary; the court reserves the right to appoint members of such a body.
    • They can be tribunals for a specific domain, or like an arbitrator.
    • Quasi-judicial bodies have adjudicating powers in such matters as:
      • Breach of discipline
      • Trust in money matters or otherwise
      • Conduct rules
    • Their authority is limited to specific areas like:
      • Financial markets
      • Land use and zoning
      • Public standards
      • Employment law
      • Specific set of regulations of an agency
    • Decisions of a quasi-judicial body are often legally enforceable under the laws of a jurisdiction.

    List of Quasi-Judicial Bodies in India are:

    1. National Green Tribunal
    2. Central Information Commission
    3. National Human Rights Commission
    4. Tribunal
    5. SEBI

    Difference between Judicial and Quasi-judicial Bodies

    • Judicial decisions are bound by precedent in common law, whereas quasi-judicial decisions are generally not.
    • Judicial decisions may create new laws, but quasi-judicial decisions are based on existing law.
    • Quasi-judicial needn’t adhere to strict judicial rules (of procedure and evidence).
    • Quasi-judicial bodies can hold formal hearings only if they are mandated to do so as per their governing laws.

  • Dr. B.R. Ambedkar’s Vision Continues to Inspire Present Day Governance

    B.R. Ambedkar

    Central idea

    • The 132nd birth anniversary of B.R. Ambedkar is an occasion to recognize his ideas and actions which continue to inspire and guide the present and future generations.

    B.R. Ambedkar’s Legacy

    • R. Ambedkar was more than an individual, and his ideas and actions continue to illuminate the present and are a guiding light for the future.
    • He epitomised the spirit of justice and stressed establishing institutions for a just society.

    Ambedkar’s contribution to nation-building

    • Multidimensional contribution: The centenary of Ambedkar’s work, The Problem of Rupee: Its Origin and its Solution, paved the foundation of the Reserve Bank of India in 1934. During that time, the country was trying to come out of the clutches of colonialism, and Ambedkar vigorously advocated for significant nation-building measures in a multidimensional manner.
    • Tirelessly work to safeguarding the interests of the people: From his work on the Simon Commission to representing the Depressed Classes in the Round Table conferences and chairing the Constitution’s drafting committee, Ambedkar tirelessly worked towards safeguarding the interests of the people.

    Quick knowledge box from civilsdaily: Dr. B.R. Ambedkar’s literary work

    Literary Works

    Description
    Castes in India: Their Mechanism, Genesis and Development A paper presented by Ambedkar to an anthropology seminar at Columbia University, which discusses the caste system in India and its origins
    The Problem of the Rupee: Its Origin and Its Solution A work that proposed a solution to the problem of currency fluctuations in India and paved the way for the establishment of the Reserve Bank of India
    Annihilation of Caste A speech delivered by Ambedkar that strongly criticized the caste system in Hindu society and advocated for its annihilation
    What Congress and Gandhi Have Done to the Untouchables A book that criticized the Indian National Congress and Mahatma Gandhi for their treatment of the untouchables in India
    States and Minorities A book that analyzes the relationship between the majority and minority communities in India and argues for the protection of minority rights
    The Untouchables: Who Were They and Why They Became Untouchables? A book that traces the history of the untouchables in India and argues for their social and economic upliftment
    Buddha and His Dhamma A book that describes the life and teachings of the Buddha and how they can be applied to contemporary society
    Who Were the Shudras? A book that examines the origins and history of the Shudra caste in Hindu society

    Present government’s commitment to Ambedkar’s vision

    • Ambedkar’s vision in planning and implementation: The present-day government led by PM Modi has been committed to adhering to Ambedkar’s vision from planning to implementation.
    • People-centric policy measures: The government has taken steps towards the ease of life of citizens, such as the implementation of pro-poor and people-centric policy measures.
    • For instance: Schemes such as Stand-Up India, Start-Up India, PM Awas Scheme, BHIM, Mudra, and JAM trinity, which show that the government is leaving no stone unturned to fulfill the assigned targets and ensure saturation-level implementation.
    • Government’s efforts to preserve Ambedkar’s legacy: Government’s has adopted a sensitive approach towards preserving Ambedkar’s legacy. The National Research for Conservation of Cultural Property has preserved Ambedkar’s belongings for posterity, which will be showcased at the upcoming Dr B R Ambedkar Socio-Economic & Culture Centre. The Centre will serve as a sacred place highlighting glimpses of Ambedkar’s contribution to building the nation.

    Ambedkar’s relevance to present-day India

    • Panch Pran mantra: There are parallels between Ambedkar’s ideas and the Prime Minister’s Panch Pran mantra for making a developed India.
    • Azadi Ka Amrit Mahotsav: Ambedkar believed that the constitutional ideals and social philosophy of liberty, equality, and fraternity have Indian cultural roots, and the government’s initiatives, such as Azadi Ka Amrit Mahotsav, reflect this belief.

    Conclusion

    • India’s commitment to Ambedkar’s vision would have resulted in greater public welfare if earlier governments had accepted him in this manner. On Ambedkar’s 132nd birth anniversary, it is essential to recognize his legacy and commitment to establishing institutions for a just society. The legacy of B.R. Ambedkar is a guiding light for India, and his ideas and actions continue to inspire and provide a moral force for justice.

    Mains Question

    Q. Discuss the relevance of B.R. Ambedkar’s ideas to present-day India. How has the present government committed to adhering to Ambedkar’s vision in planning and implementation of policies?

  • Dabba Trading and its impact on the Economy

    dabba

    Central idea

    • The National Stock Exchange (NSE) has issued a series of notices warning retail investors about entities involved in ‘dabba trading’.
    • The NSE cautioned investors not to subscribe or invest using these products offering indicative, assured or guaranteed returns in the stock market as they are prohibited by law.
    • The entities involved in dabba trading are not recognized as authorized members by the exchange.

    What is Dabba Trading?

    • Dabba (Box) trading refers to informal trading that takes place outside the purview of the stock exchanges.
    • It involves betting on stock price movements without incurring a real transaction to take physical ownership of a particular stock as is done in an exchange.
    • In simple words, it is gambling centred around stock price movements.

    How does it work?

    • In dabba trading, investors place bets on stock price movements at a certain price point.
    • If the price point rises, they make a gain, and if it falls, they have to pay the difference to the dabba broker.
    • The broker’s profit from the investor’s loss, and vice versa.
    • Transactions are facilitated using cash and unrecognised software terminals or informal records, which helps traders stay outside the regulatory mechanism.

    What are the problems with dabba trading?

    • Since dabba traders do not maintain proper records of income or gain, they are able to escape taxation, which results in a loss to the government exchequer.
    • The use of cash also means that they are outside the purview of the formal banking system.
    • Investors in dabba trading do not have formal provisions for investor protection or grievance redressal mechanisms available within an exchange, which exposes them to the risk of broker defaults or insolvency.
    • Dabba trading also perpetuates a parallel economy, potentially encouraging the growth of black money and criminal activities.

    What is the current scenario?

    • Industry observers have reported that dabba brokers harass clients for default payments and refuse payments upon profit.
    • Potential investors are lured by aggressive marketing, ease of trading using apps with quality interfaces, and lack of identity verification.
    • Brokers keep their fees and margins open to negotiation depending on an individual’s trading profile.
    • The mechanism could potentially induce volatility and cause losses for the regulated bourse when dabba brokers look to hedge their exposures.

    What are the legal implications?

    • Dabba trading is recognised as an offence under Section 23(1) of the Securities Contracts (Regulation) Act (SCRA), 1956.
    • Upon conviction, it can invite imprisonment for a term extending up to 10 years or a fine up to ₹25 crore, or both.

     

  • What is MUDRA Scheme?

    mudra

    PM hit out at people ridiculing the Pradhan Mantri Mudra Yojana (PMMY) and said those who gave loans to big businessmen “over phone” never understood the power of microfinance.

    MUDRA Scheme

    • MUDRA (Micro Units Development and Refinance Agency) Scheme is a financial initiative launched by the Government of India in April 2015 to provide financial support to micro-enterprises in India.
    • The scheme is designed to cater to the financial needs of the non-corporate, non-farm sector enterprises in the country.
    • The objective of the scheme is to promote entrepreneurship, employment generation, and to provide access to finance to small and micro-businesses in India.

    Range of loans

    • The MUDRA scheme provides loans ranging from Rs. 50,000 to Rs. 10 lakhs to small and micro-businesses.
    • These loans are provided through various financial institutions such as banks, microfinance institutions, and non-banking financial companies (NBFCs).
    • The scheme also offers refinance support to these institutions.
    Category Loan Amount
    Shishu Up to Rs. 50,000
    Kishore Rs. 50,001 to Rs. 5 lakhs
    Tarun Rs. 5 lakhs to Rs. 10 lakhs

    Key features of the MUDRA scheme

    • Refinance support: The scheme offers refinance support to various financial institutions, such as banks, microfinance institutions, and non-banking financial companies (NBFCs), to provide loans to small and micro-businesses.
    • Employment generation: The scheme aims to promote entrepreneurship and employment generation in the country.
    • Digitalization of financial transactions: The scheme has helped in promoting the digitalization of financial transactions.
    • Focus on underprivileged and marginalized sections: The scheme aims to provide financial assistance to underprivileged and marginalized sections of the society, especially those belonging to the non-corporate, non-farm sector enterprises in the country.
    • Simplified loan processing: The loan processing under the scheme is simplified and requires minimal documentation.
    • No collateral requirement: The loans provided under the scheme do not require any collateral or security.
    • Competitive Interest rate: The interest rate for the loans provided under the scheme is competitive and affordable.

     

  • Uthirameur Inscription: Ancient Tamil proof of Democratic Provisions

    uthirameur

    PM Modi referred to an over 1,100-year-old inscription found in Uthirameur, Tamil Nadu, which talks about rules for a local body, including provisions for disqualifying a member.

    What are Uthiramerur inscriptions?

    • Uthiramerur inscriptions are a set of ancient Tamil inscriptions found in Uthiramerur, a town in the Kanchipuram district of Tamil Nadu.
    • These inscriptions date back to the 10th century CE and were created during the reign of the Chola dynasty, which ruled over a large part of South India.
    • It was crafted under the rule of Parantaka Chola I (907 – 956 AD.)

    What does the inscription say?

    The temple inscriptions of Uthiramerur provide historical descriptions of rural self-governance.

    (1) Sabha and Ur

    • Uthiramerur had two village assemblies: Gram Sabha and Ur.
    • Sabha was exclusively a Brahmin assembly, while the Ur was made up of people belonging to all classes.
    • Sabha managed land sales, endowment fund for dredging a tank, and assigned duties to the Ur for managing deserted land.
    • Sabha assembled in the hall of the local temple and was summoned through beating of the drums.
    • The inscriptions contained references to variyars, the executive officers subordinate to the Sabha.

    (2) Administrative System

    • The executive powers were given to committees called Variyams during the Chola king Parantaka I’s reign (907–955).
    • Each variyam constituted 6 to 12 members, depending on the importance of its functions.
    • The first inscription (dated 919 CE) described the rules for electing committee members.
    • The second inscription (dated 921 CE) described some amendments to these rules to make them more practical.

    (3) Committees and Qualifications

    • The village had 30 kudumbus or wards, from which the members of various committees were selected annually.
    • The inscription lays down the qualifications for a nominee, including ownership of tax-paying land, residence on self-owned land, age between 35 and 70 years, knowledge of mantras and the Brahmanas, and not being associated with certain offenses or activities.
    • The candidates were selected via Kudavoloi (pot of palm leaf tickets) system.
    • The tenure of a committee member was 360 days.
    • Anyone found guilty of an offense was immediately removed from the office.

    (4) Punishments

    • The Uthiramerur inscriptions indicate that parading on a donkey was a punishment for offenses such as incest, adultery, theft, and forgery.

  • India signs MoU with World Food Programme for sending wheat to Afghanistan

    India signed an MoU with the World Food Programme (WFP) to send 10,000 metric tonnes of wheat to Afghanistan.

    Reason: Utilizing WFP supply chain

    • The MoU signed between India and the World Food Programme (WFP) paves the way for sending 10,000 metric tonnes of wheat for the people of Afghanistan.
    • The WFP has a massive supply chain and logistics infrastructure in Afghanistan that could help in ensuring that the food supply reaches those who need it the most and no one is excluded.
    • The MoU also ensures that the assistance is coordinated and delivered in an effective and efficient manner, and that it reaches the most vulnerable sections of the Afghan population.

    What is World Food Programme (WFP)?

    • The WFP is a humanitarian organization that is part of the United Nations system.
    • It was established in 1961 and has its headquarters in Rome, Italy.
    • The WFP is the world’s largest humanitarian agency focused on combating hunger and promoting food security.

    Scope of Operations

    • The WFP operates in more than 80 countries, delivering food assistance to people in need.
    • WFP programs reach over 97 million people each year, including children, pregnant and nursing women, and people affected by emergencies, such as conflict or natural disasters.
    • It provides a range of food assistance, including in-kind food assistance, cash and voucher-based transfers, and specialized nutritious foods.

    Funding and Support

    • The WFP is funded entirely by voluntary contributions from governments, companies, and individuals.
    • The organization works closely with donors to ensure that funding is used effectively and efficiently, and to ensure that it is directed to the areas and programs where it is needed most.

    Governance and Structure

    • The WFP is governed by an Executive Board, which is composed of 36 member states that are elected to three-year terms.
    • The Executive Board provides oversight and strategic direction to the organization, and approves the WFP’s programs and budgets.
    • The WFP is headed by an Executive Director, who is appointed by the Secretary-General of the United Nations.
    • The organization has more than 17,000 staff worldwide, including professionals in fields such as logistics, nutrition, and food security.

    Impact and Achievements

    • Over the years, the WFP has made significant contributions to addressing hunger and promoting food security worldwide.
    • The organization has responded to numerous emergencies, providing food assistance to millions of people affected by conflict, natural disasters, and other crises.
    • The WFP has also supported programs that help people access the food they need to lead healthy, active lives, and that promote sustainable agriculture and development.
    • The WFP has been recognized for its efforts, receiving the Nobel Peace Prize in 2020 in recognition of its contributions to combatting hunger and promoting peace.

     

     

  • Inflation in India is Driven by Food Prices

    Inflation in India

    Central Idea

    • The recent trajectory of inflation in India is attributed to the pricing power of five big corporates or ‘Big 5’ according to former Deputy Governor of Reserve Bank of India, Viral Acharya. However, the argument is flawed as the Indian inflation is different from the rest of the world, and it is driven by food price inflation. While corporate pricing power does exist, it is limited, and the extent to which it drives overall inflation is still debatable.

    The factor of food price inflation

    1. Divergence between Indian and Western inflation rates is not new:
    • Sudden surge of Inflation in India: After the global financial crisis of 2008, Indian inflation surged higher than the economies of the US and UK due to food price inflation caused by negative agricultural shocks and high procurement price hikes.
    • Core inflation: Food-price inflation tends to feed into core inflation, so it would be hasty to conclude that Indian inflation is higher than the West today due to corporate pricing power.
    • Food price inflation: Evidence suggests that in India, food price inflation affects core inflation, and food price inflation enters costs of the non-agricultural sector.
    1. Corporate pricing power in India:
    • Corporate pricing power and overall inflation: Corporate pricing power exists in Indian industry, but the extent to which it drives overall inflation in India is debatable. The question is how much corporate power is driving inflation beyond its obvious role in elevating the price level.
    • Prices of food: To measure inflation without considering the price of food is to exclude what matters most to the public, as opposed to central bankers.
    • Inflation control strategy: India’s inflation control strategy needs to address the challenge of ensuring the production of food at affordable prices.
    1. Comparing WP inflation with CP inflation
    • Comparing WP inflation with CP inflation is to acquiesce in a mismatch.
    • The commodity basket corresponding to CP includes items that do not enter the wholesale price index, so we would be comparing apples with oranges.

    Inflation in India

    The argument is based on a short time period

    • WP inflation has eased considerably in the six months preceding March 2023, but CP inflation has not. However, a mismatch between WP and CP inflations is not new.
    • So, the maintenance of high price increases by firms in the retail sector even after wholesale price inflation has declined in 2022-23 may just be a compensating mechanism, i.e., the rising input cost of the retail sector is being passed on with a lag.

    Facts for prelims: WP inflation VS CP inflation

    Aspect Wholesale Price (WP) Inflation Consumer Price (CP) Inflation
    Definition Measures the change in average price level of goods sold by producers at the wholesale level Measures the change in average price level of goods and services purchased by households
    Captures Changes in prices of goods before they reach the retail market Changes in prices of goods and services at the retail level
    Indicator of Early indicator of changes in overall price level of economy Inflation that households experience in their day-to-day lives
    Impact Affects production cost and supply chain Affects purchasing power of consumers
    Calculation Based on price changes of goods sold in bulk to retailers or other businesses Based on price changes of goods and services purchased by households
    Usage Used by policymakers to monitor changes in cost of production and production-level inflation Used by policymakers to monitor inflation and make decisions related to monetary policy
    Examples Wholesale prices of raw materials, oil, and other commodities Retail prices of food, clothing, transportation, and other consumer goods and services

    Rising food prices driving current inflation

    • Over 75% of the direct contribution to inflation in the first three quarters of the financial year came from sectors in which the Big 5 are unlikely to be represented in a big way.
    • The contribution of food products alone was close to 50% in most time periods.
    • Rising food prices are driving current inflation in India.

    The current inflation control strategy

    • Considerable rise in food prices: In India, food prices have only risen, and in recent years their rate of inflation has been very high. For all the reforms since 1991, the real price of food, i.e., its price relative to the general price level, has risen considerably.
    • What matters most to public must be considered: In the context, to measure inflation without considering the price of food is to exclude what matters most to the public, as opposed to central bankers.
    • Current strategy restricted to using the interest rate to dampen aggregate demand: India’s inflation control strategy is currently restricted to using the interest rate to dampen aggregate demand. This strategy avoids addressing the challenge of ensuring the production of affordable food.
    • Question mark on RBI’s ability to control inflation: The RBI has been unable to control even the core inflation which central banks are assumed to be able to control. A recent intervention explaining core inflation in India has highlighted the RBI’s inability to control inflation.

    Conclusion

    • Inflation is being discussed only in terms of core inflation, which excludes the inflation in food and fuel prices because these prices tend to fluctuate and even out the changes, so it is assumed that they do not require a policy response. However, this assumption is flawed in the context of India’s economy, as food and fuel prices have a significant impact on the economy and people’s livelihoods. Therefore, limiting the discussion to core inflation ignores the role of corporate pricing power and the impact of food and fuel prices on the economy.

    Mains Question

    Q. What is the factor that primarily drives inflation in India? Highlight the relationship between food price inflation and overall inflation in India?

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