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  • The challenge for Middle Powers like India, France and Germany

    Context

    Prime Minister Narendra Modi’s visit to European capitals should help both sides acquire a better understanding of each other’s security concerns. Whether it will fundamentally alter equations remains to be seen.

    New India-EU equation

    • As “Middle Powers”, countries like France, Germany and India should seek policy space for themselves and not be forced into taking positions by the Big Powers — the United States, China and Russia.
    • The EU is understandably concerned about Russian aggressiveness in Europe.
    •  ndia is equally concerned about Chinese aggressiveness in Asia. 
    • Even after Russia has sought to tear down the post-Cold War security structure in Europe, India has stayed the course in its equations both with Russia and the European Union.

    Division of national and group agenda and its implications for India

    • While Russia’s invasion of Ukraine is the context in which Modi visited Europe and the head of the European Union visited India, the fact is that the agenda at bilateral meetings with individual European countries has generally been very different from the agenda that the EU prefers to focus on.
    • While individual European nations, especially Germany and France, focus on their own strategic and business interests, including defence equipment sales, the EU retains the remit for negotiating trade and investment rules.
    • Problem for India: This division of national and group agendas has often posed a problem for India because individual countries cannot offer bilateral market access in exchange for bilateral defence deals.
    • So the French will sell Rafale jets in the name of strategic partnership but they cannot offer a trade and investment deal that Brussels will not allow Paris to strike with India.
    • While the EU and G7 may now wish to derisk, if not decouple, from aggressively rising China, how much they would be able to do in this regard and what they would be willing to do to help a slowly rising India remains to be seen.

    Way forward

    • For India’s part, it is not clear at the moment how much and what it can unilaterally offer Europe beyond the promise of standing up to China or reducing dependence on Russia.
    • Challenge for the three middle powers lies in combine their “strength and stability” to ensure “peace and tranquillity” in their respective neighbourhoods.
    • If middle powers like Brazil, France, Germany, India, Indonesia, Japan, South Africa and others can work together they may well be able to impose some discipline on the three big powers — China, Russia and the US.

    Conclusion

    At a time when big powers lurking behind in seeking to stabilise and shape the global order middle powers need to act to balance the influence exerted by the big powers.

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  • Panel notifies new J&K Assembly Constituencies

    The Jammu and Kashmir Delimitation Commission has notified the new boundaries, names and number of Assembly constituencies in Jammu and Kashmir, paving the way for the first-ever Assembly election in the Union Territory.

    What is Delimitation and why is it needed?

    • Delimitation is the act of redrawing boundaries of an Assembly or Lok Sabha seat to represent changes in population over time.
    • The Delimitation Commission is appointed by the President of India and works in collaboration with the Election Commission of India.
    • This exercise is carried out by a Delimitation Commission, whose orders have the force of law and cannot be questioned before any court.
    • The objective is to redraw boundaries (based on the data of the last Census) in a way so that the population of all seats, as far as practicable, be the same throughout the State.
    • Aside from changing the limits of a constituency, the process may result in a change in the number of seats in a state.

    How is it carried out?

    • Under Article 82, the Parliament enacts a Delimitation Act after every Census.
    • Article 170 provides that States also get divided into territorial constituencies as per Delimitation Act after every Census.
    • Once the Act is in force, the Union government sets up a Delimitation Commission.
    • The first delimitation exercise was carried out by the President (with the help of the Election Commission) in 1950-51.
    • The Delimitation Commission Act was enacted in 1952.
    • Delimitation Commissions have been set up four times — 1952, 1963, 1973 and 2002 under the Acts of 1952, 1962, 1972 and 2002.
    • There was no delimitation after the 1981 and 1991 Censuses.

    Delimitation in J&K

    • Assembly seats in J&K were delimited in 1963, 1973 and 1995.
    • Prior to August 5, 2019, carving out of J&K’s Assembly seats was carried out under the J&K Constitution and Jammu and Kashmir Representation of the People Act, 1957.
    • Until then, the delimitation of Lok Sabha seats in J&K was governed by the Constitution of India.
    • However, the delimitation of the state’s Assembly was governed by the J&K Constitution and J&K Representation of the People Act, 1957.
    • There was no census in the state in 1991 and hence no Delimitation Commission was set up by the state until 2001 census.

    Why is it in the news again?

    • After the abrogation of J&K’s special status in 2019, the delimitation of Lok Sabha and Assembly seats in the newly-created UT would be as per the provisions of the Indian Constitution.
    • On March 6, 2020, the government set up the Delimitation Commission, headed by retired Supreme Court judge Ranjana Prakash Desai, which was tasked with winding up delimitation in J&K in a year.
    • As per the J&K Reorganization Bill, the number of Assembly seats in J&K would increase from 107 to 114, which is expected to benefit the Jammu region.

    Next step: Assembly polls

    • With the final order now notified, all eyes will be on the EC and the Union government regarding the timing of Assembly elections.
    • Though mainstream parties in the Valley have criticised the report, it is likely that this will make space for political engagement in the UT.

    What changes have been made?

    • ASSEMBLY: The Commission has increased seven Assembly seats — six in Jammu (now 43 seats) and one in Kashmir (now 47). It has also made massive changes in the structure of the existing Assembly seats.
    • LOK SABHA: The Commission has redrawn the boundaries of Anantnag and Jammu seats. Jammu’s Pir Panjal region, comprising Poonch and Rajouri districts and formerly part of Jammu parliamentary seat, has now been added to Anantnag seat in Kashmir. Also, a Shia-dominated region of Srinagar parliamentary constituency has been transferred to Baramulla constituency, also in the Valley.
    • KASHMIRI PANDITS: The Commission has recommended provision of at least two members from the community of Kashmiri Migrants (Kashmiri Hindus) in the Legislative Assembly.
    • Seats for POK migrants: It has also recommended that Centre should consider giving representation in the J&K Legislative Assembly to the displaced persons from Pakistan-occupied Kashmir, who migrated to Jammu after Partition.

    Why has the exercise been controversial?

    • Jammu vs. Kashmir: Concerns had been expressed over how the delimitation process may end up favoring the Jammu region over Kashmir in terms of the seats.
    • Under-representation of Ladakh: Arguments have been made on how Ladakh has been underrepresented, with demands for statehood/sixth schedule.
    • Non-proportionate reservations: It is argued that seats for STs should’ve been divided in both Jammu province & Kashmir province, as the ST population is almost equal.
    • Frozen till 2026: Constituency boundaries are being redrawn only in J&K when delimitation for the rest of the country has been frozen until 2026. The last delimitation exercise in J&K was carried out in 1995.
    • Issue over reorganization: Again, political parties in Jammu and Kashmir have been pointing out that the Delimitation Commission is mandated by the Reorganisation Act, which is sub judice.

     

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  • How India’s new VPN rules change the Status Quo?

    Recently, the Indian Computer Emergency Response Team (Cert-In) issued new directives that require Virtual Private Network (VPN) providers to store user data for five years.

    What is VPN?

    • VPN describes the opportunity to establish a protected network connection when using public networks.
    • It encrypts internet traffic and disguise a user’s online identity.
    • This makes it more difficult for third parties to track your activities online and steal data.
    • The encryption takes place in real time.

    How does a VPN work?

    • A VPN hides your IP address by letting the network redirect it through a specially configured remote server run by a VPN host.
    • This means that if you surf online with a VPN, the VPN server becomes the source of your data.
    • This means your Internet Service Provider (ISP) and other third parties cannot see which websites you visit or what data you send and receive online.
    • A VPN works like a filter that turns all your data into “gibberish”. Even if someone were to get their hands on your data, it would be useless.

    Why do people use VPN?

    • Secure encryption: A VPN connection disguises your data traffic online and protects it from external access. Unencrypted data can be viewed by anyone who has network access and wants to see it. With a VPN, hackers and cyber criminals can’t decipher this data.
    • Disguising whereabouts: VPN servers essentially act as your proxies on the internet. Because the demographic location data comes from a server in another country, your actual location cannot be determined.
    • Data privacy is held: Most VPN services do not store logs of your activities. Some providers, on the other hand, record your behaviour, but do not pass this information on to third parties. This means that any potential record of your user behaviour remains permanently hidden.
    • Access to regional content: Regional web content is not always accessible from everywhere. Services and websites often contain content that can only be accessed from certain parts of the world.
    • Secure data transfer: If you work remotely, you may need to access important files on your company’s network. For security reasons, this kind of information requires a secure connection. To gain access to the network, a VPN connection is often required.

    What does the new CERT-IN directive say?

    • VPN providers will need to store validated customer names, their physical addresses, email ids, phone numbers, and the reason they are using the service, along with the dates they use it and their “ownership pattern”.
    • In addition, Cert is also asking VPN providers to keep a record of the IP and email addresses that the customer uses to register the service, along with the timestamp of registration.
    • Most importantly, however, VPN providers will have to store all IP addresses issued to a customer and a list of IP addresses that its customers generally use.

    What does this mean for VPN providers?

    • VPN services are in violation of Cert’s rules by simply operating in India.
    • That said, it is worth noting that ‘no logs’ does not mean zero logs.
    • VPN services still need to maintain some logs to run their service efficiently.

    Does this mean VPNs will become useless?

    • The Indian government has not banned VPNs yet, so they can still be used to access content that is blocked in an area, which is the most common usage of these services.
    • However, journalists, activists, and others who use such services to hide their internet footprint will have to think twice about them.

    Why such move?

    • Crime control: For law enforcement agencies, a move like this will make it easier to track criminals who use VPNs to hide their internet footprint.
    • Curbing dark-net activities: Users these days are shifting towards the dark and deep web, which are much tougher to police than VPN services.

    Back2Basics: Indian Computer Emergency Response Team (CERT-IN)

    • CERT-IN is an office within the Ministry of Electronics and Information Technology.
    • It is the nodal agency to deal with cyber security threats like hacking and phishing. It strengthens the security-related defense of the Indian Internet domain.
    • It was formed in 2004 by the Government of India under the Information Technology Act, 2000 Section (70B) under the Ministry of Communications and Information Technology.

     

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  • Imp: UPSC Prelims 2022 || Schemes Regarding Agriculture & Allied Sectors

    6th May 2022

    Dear Aspirants,

    This Spotlight is a part of our Mission Nikaalo Prelims-2022

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    1.1 Pradhan Mantri Krishi Sinchayee Yojana

    Objective

    • To achieve convergence of investments in irrigation at the field level.
    • To enhance the recharge of aquifers and introduce sustainable water conservation practices.
    • To explore the feasibility of reusing treated municipal wastewater for peri-urban agriculture.
    • To attract greater private investments in irrigation.
    • To promote extension activities relating to water harvesting, water management and crop alignment for farmers and grass root level field functionaries.

    Salient features

    • Decentralized State level planning and projectized execution’ structure, in order to allow States to draw up a District Irrigation Plan (DIP) and a State Irrigation Plan (SIP). These plans need to be prepared in order to access the PMKSY fund.
    • It will be supervised and monitored by the Inter-Ministerial National Steering Committee (NSC) under PM with Union Ministers of all concerned Ministries. A National Executive Committee (NEC) is to be constituted under the Chairmanship of the Vice Chairman, NITI Aayog to oversee programme implementation.
    • PMKSY has been formulated amalgamation ongoing schemes viz. Accelerated Irrigation Benefit Programme (AIBP); Integrated Watershed Management Programme (IWMP); and On-Farm Water Management (OFWM) component of National Mission on Sustainable Agriculture (NMSA).
    • Water budgeting is done for all sectors namely, household, agriculture and industries.
    • Investments will happen at farm level. So, farmers know what is happening and can provide valuable feedback.
    • Recently, the Long Term Irrigation Fund has been instituted under PMKSY in NABARD for funding and fast-tracking the implementation of incomplete major and medium irrigation projects.

    1.2 Large Area Certification Scheme

    Background

       Despite deep inroads of modern agricultural practices, still, there are large contiguous areas in hills, tribal districts, desert and rained areas in India that continue to remain free from chemical input usage. With little efforts, such traditional/ default organic areas can be brought under organic certification almost immediately.
      Department of Agriculture and Farmers Welfare under its flagship scheme of Paramparagat Krishi Vikas Yojna (PKVY) has launched a unique quick certification programme “Large Area Certification” (LAC) to harness these potential areas under Paramparagat Krishi Vikas Yajana.

     Salient features

    • LAC is a Quick certification process that is cost-effective and farmers do not have to wait for 2-3 years for marketing PGS(Participatory Guarantee System) organic certified products. Whereas As per the established norm of organic production systems, the areas having chemical input usage history are required to undergo a transition period of minimum 2-3 years to qualify as organic. 

    • Under LAC, each village in the area is considered as one cluster/group.  
    • Documentations are simple and maintained village-wise.
    • Plan based on agro-climatic conditions, availability of appropriate technology and natural priorities.
    • All farmers with their farmland and livestock need to adhere to the standard requirements and on being verified get certified en-mass without the need to go under conversion period. Certification is renewed on annual basis through annual verification by a process of peer appraisals as per the process of PGS-India.

    1.3 NATIONAL FOOD SECURITY MISSION

    Objective

    • Increasing production of rice, wheat, pulses, coarse cereals and commercial crops through area expansion and productivity enhancement in a sustainable manner.
    • Restore soil fertility and productivity at the individual farm level.
    • Enhancing farm level economy.

    Salient features

    • It is a Centrally Sponsored Scheme which was launched in 2007.
    • The approach of the scheme is to bridge the yield gap in respect of these crops through dissemination of improved technologies and farm management practices while focusing on districts which have high potential but relatively low level of productivity at present.
    • Major Components – National Food Security Mission – Rice, National Food Security Mission – Wheat, National Food Security Mission – Pulses,
    • National Food Security Mission – Coarse Cereals and National Food Security Mission –Commercial Crops.

    1.4 GRAMIN BHANDARAN YOJANA

    Objective of this Scheme:

    • Create scientific storage capacity with allied facilities in rural areas.
    • To meet the requirements of farmers for storing farm produce, processed farm produce and agricultural inputs.
    • Promotion of grading, standardization and quality control of agricultural produce to improve their marketability.
    • Prevent distress sale immediately after harvest by providing the facility of pledge financing and marketing credit by strengthening agricultural marketing infrastructure in the country.

     

    1.5 SOIL HEALTH CARD SCHEME

    Objective

    • To issue soil health cards every 3 years, to all farmers of the country, so as to provide a basis to address nutrient deficiencies in fertilization practices.
    • To strengthen the functioning of Soil Testing Laboratories (STLs) through capacity building, the involvement of agriculture students and effective linkage with Indian Council of Agricultural Research (ICAR) / State Agricultural Universities (SAUs).
    • To diagnose soil fertility related constraints with standardized procedures for sampling uniformly across states.
    • To build capacities of district and state level staff and of progressive farmers for promotion of nutrient management practices.

    Salient features

    • It is a centrally sponsored scheme launched by the Government of India in 2015.
    • It is being implemented through the Department of Agriculture of all the State and Union Territory Governments.
    • Assistance is provided to the State Government to issue Soil Health Card and also develop a database to improve service delivery.
    • Soil Health Card issued to farmers carry crop-wise recommendations of nutrients and fertilizers required for the individual farms.
    • The experts will analyze the strength and weaknesses (micronutrients deficiency) of the soil collected from farms and suggest measures to deal with it.
    • It will contain the status of his soil with respect to 12 parameters, namely N,P,K (Macronutrients); S (Secondary nutrient); Zn, Fe, Cu, Mn, Bo (Micro – nutrients); and pH, EC, OC (Physical parameters).

    1.6 PM FASAL BIMA YOJANA

    Objective

    • To provide insurance coverage and financial support to the farmers in the event of natural calamities, pests & diseases.
    • To stabilise the income of farmers to ensure their continuance in farming.
    • To encourage farmers to adopt innovative and modern agricultural practices.
    • To ensure flow of credit to the agriculture sector.
    • Intended beneficiary – All farmers including sharecroppers and tenant farmers growing notified crops in a notified area during the season who have insurable interest in the crop are eligible.

    Salient features

    • It replaced all other existing insurance schemes except the Restructured Weather-Based Crop Insurance Scheme (uses weather parameters as proxy for crop yield in compensating the cultivators for deemed crop loses).
    • A uniform premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops.
    • In case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%.
    • There is no upper limit on Government subsidy so farmers will get claim against full sum insured without any reduction.
    • The difference between the premium paid by farmers and the actuarial premium charged was paid by the Centre and state government in the ratio of 50:50.
    • It is compulsory for loanee farmers availing crop loans for notified crops in notified areas and voluntary for non-loanee farmers.
    • Yield Losses: due to non-preventable risks, such as Natural Fire and Lightning, Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado.
    • Risks due to Flood, Inundation and Landslide, Drought, Dry spells, Pests/ Diseases also will be covered.
    • Post-harvest losses are also covered.
    • Mandatory use of technology: Smart phones, drones etc., will be used to capture and upload data of crop cutting to reduce the delays in claim payment to farmers. Remote sensing will be used to reduce the number of crop cutting experiments.
    • The Scheme shall be implemented on an ‘Area Approach basis’. Defined Area (i.e., unit area of insurance) is Village or above. It can be a Geo-Fenced/Geo-mapped region having homogenous Risk Profile for the notified crop.
    • Presently, 5 public sector insurers (Agriculture Insurance Company of India, United India Insurance Company etc.) and 13 private insurance companies are empanelled for implementation of the scheme.
    • Recently, states have been allowed to set up their own insurance companies for implementing the scheme.

    1.7 National Mission for Sustainable Agriculture

    National Mission for Sustainable Agriculture (NMSA) has been formulated for enhancing agricultural productivity especially in rainfed areas focusing on integrated farming, water use efficiency, soil health management and synergizing resource conservation.

    Objectives

    • To make agriculture more productive, sustainable, remunerative and climate resilient by promoting location specific Integrated/Composite Farming Systems
    • To conserve natural resources through appropriate soil and moisture conservation measures
    • To adopt comprehensive soil health management practices based on soil fertility maps, soil test based application of macro & micro nutrients, judicious use of fertilizers etc.
    • To optimize utilization of water resources through efficient water management to expand coverage for achieving ‘more crop per drop’.
    • To develop capacity of farmers & stakeholders, in conjunction with other on going missions e.g. National Mission on Agriculture Extension & Technology, National Food Security Mission, National Initiative for Climate Resilient Agriculture (NICRA) etc., in the domain of climate change adaptation and mitigation measures.
    • To pilot models in select blocks for improving productivity of rainfed farming by mainstreaming rainfed technologies refined through NICRA and by leveraging resources  from other schemes/Missions like Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Integrated Watershed Management Programme (IWMP), RKVY etc.; and
    • To establish an effective inter and intra Departmental/Ministerial coordination for accomplishing key deliverables of National Mission for Sustainable Agriculture under the aegis of National Action Plan on Climate Change (NAPCC).

    1.8 PARAMPARAGAT KRISHI VIKAS YOJANA

    Objective

    • Promotion of commercial organic production through certified organic farming.
    • pesticide residue free produce and improved health of consumer
    • Raise farmer’s income and create potential markets for traders.
    • Motivate the farmers for natural resource mobilization for input production.
    • Increase domestic production and certification of organic produce by involving farmers.

    Intended beneficiary

    • Farmers doing organic farming
    • Farmers from NE India such as Sikkim
    • Food processing industries
    • Organic foods – export industry

    Salient features

    • “Paramparagat Krishi Vikas Yojana” is an elaborated component of Soil Health Management (SHM) under National Mission of Sustainable Agriculture (NMSA).
    • Cluster Approach: Fifty or more farmers form a cluster having 50 acre land to take organic farming. Each farmer will be provided Rs. 20000 per acre in three years for seed to harvesting crops and to transport them to market.
    • Government plans to form around 10 thousand clusters in three years and cover an area of 5 Lakh hectares under organic farming.

    Components –

    • Participatory Guarantee System (PGS) certification through cluster approach – mobilization of farmers, form clusters, identification of land resources and training on organic farming and PGS Certification and quality control.
    • Adoption of organic village for manure management and biological nitrogen harvesting through cluster approach –action plan for Organic Farming, Integrated Manure Management, Packing, Labelling and Branding of organic products of cluster.

    1.9 NATIONAL AGRICULTURAL MARKET (NAM)

    Objective

    • To promote genuine price discovery
    • Increases farmers’ options for sale and access to markets
    • Liberal licensing of traders / buyers and commission agents. One license for a trader valid across all markets in the State
    • Harmonisation of quality standards of agricultural produce
    • Single point levy of market fees, i.e on the first wholesale purchase from the farmer.
    • Provision of Soil Testing Laboratories in/ or near the selected mandi to facilitate visiting farmers to access this facility in the mandi itself

    Intended beneficiary

    • 585 regulated wholesale markets in states/union territories (UTs).
    • Farmers
    • Local traders
    • Bulk buyers, processors
    • Farm produce exporters
    • Overall economy of the nation

    Salient features

    • NAM is a pan-India electronic trading portal which seeks to network the existing APMCs and other market yards to create a unified national market for agricultural commodities.
    • Small Farmers Agribusiness Consortium (SFAC) has been selected as the lead agency to implement it.
    • Central government will provide the software free of cost to the states and in addition, a grant of up to Rs. 30 lakhs per mandi or market or private mandis will be given for related equipment and infrastructure requirements.
    • New Features added to the scheme such as E-NAM Mobile App, BHIM Payment facility, MIS dashboard for better analysis and insights, grievance redressal mechanism for Mandi Secretaries and integration with Farmer Database to ease the registration and identification process will further strengthen e-NAM.
    • Fund Allocation – The Scheme is being funded through AgriTech Infrastructure Fund (AITF).

    1.10 Zero Budget Natural Farming (ZBNF)

    Objective

    • ZBNF is a set of farming methods, and also a grassroots peasant movement, which has spread to various states in India.
    • Subhash Palekar perfected it during the 1990s at his farm in Amravati district in Maharashtra’s drought-prone Vidarbha region.
    • According to the “zero budget” concept, farmers won’t have to spend any money on fertilisers and other agricultural inputs.
    • Over 98% of the nutrients that crops require — carbon dioxide, nitrogen, water, solar energy — are already present in nature.
    • The remaining 1.5-2% are taken from the soil,

    Four wheels of ZBNF

    The “four wheels” of ZBNF are ‘Jiwamrita’, ‘Bijamrita’, ‘Mulching’ and ‘Waaphasa’.

    • Jiwamrita is a fermented mixture of cow dung and urine (of desi breeds), jaggery, pulses flour, water and soil from the farm bund.
    • This isn’t a fertilizer, but just a source of some 500 crore micro-organisms that can convert all the necessary “non-available” nutrients into “available” form.
    • Bijamrita is a mix of desi cow dung and urine, water, bund soil and lime that is used as a seed treatment solution prior to sowing.
    • Mulching, or covering the plants with a layer of dried straw or fallen leaves, is meant to conserve soil moisture and keep the temperature around the roots at 25-32 degrees Celsius, which allows the microorganisms to do their job.
    • Waaphasa, or providing water to maintain the required moisture-air balance, also achieves the same objective.

    1.11 MERA GAON-MERA GAURAV

    Objective

    • To promote direct interface of scientists withthe farmers and hasten the land to lab process.
    • To imbibe a sense of ownership among the agricultural scientists
    • To provide farmers with required information, knowledge and advisories on regular basis by adopting villages.

    Intended beneficiary

    • Scientists with ground level experience
    • Farmers

     Salient features

    • This scheme involves scientists of the Indian Council of Agriculture Research (ICAR) and state agricultural universities.
    • Groups of four multidisciplinary scientists each will be constituted at these institutes and universities. Each group will “adopt” five villages within a radius of maximum 100 km.

    1.12 Price Stabilization Fund

    Objective: to safeguard the interest of the growers and provide them financial relief when prices fall below a specified level.

    Scheme:

    • Central Sector Scheme.
    • To support market interventions for price control of perishable agri-horticultural commodities.
    • PSF will be used to advance interest free loan to State Governments and Central agencies to support their working capital and other expenses on procurement and distribution interventions for such commodities.
    • Procurement of the commodities will be undertaken directly from farmers or farmers’ organizations at farm gate/mandi and made available at a more reasonable price to the consumers.
    • Initially the fund is proposed to be used for onion and potato only. Losses incurred, if any, in the operations will be shared between the Centre and the States.

    Framework and Funding:

    • States will set up a revolving fund to which theCentre and State will contribute equally, i.e. 50:50.
    • The ratio of Centre-State contribution to the State-level corpus in respect of Northeast States will, however, be 75:25.

    1.13 Mission Fingerling

    • It is a programme to enable holistic development and management of the fisheries sector in India.
    • The mission aims to achieve the target to enhance fisheries production from 10.79 mmt (2014-15) to 15 mmt by 2020-21 under the Blue Revolution.

    Programme:

    • Government has identified 20 States based ontheir potential and other relevant factors to strengthen the Fish Fingerling production and Fish Seed infrastructure in the country.
    • This program will facilitate the establishment of Fingerling rearing pond and hatcheries.
    • This will converge in the production of 20 lakh tonnes of fish annually, which will in turn benefit about 4 million families.
    • The implementation of this program will supplement the requirement of stocking materials in the country up to a large extent, which is a much needed input to achieve the enhanced fish production.

    1.14 Umbrella Scheme Green Revolution — Krishonnati Yojana

    Aim

    These schemes look to develop the agriculture and allied sector in a holistic and scientific manner to increase the income of farmers by enhancing production, productivity and better returns on produce.

    The Schemes that are part of the Umbrella Schemes are :-

    1. Mission for Integrated Development of Horticulture (MIDH)
    2. National Food Security Mission (NFSM)
    3. National Mission for Sustainable Agriculture (NMSA)
    4. Submission on Agriculture Extension (SMAE)
    5. Sub-Mission on Seeds and Planting Material (SMSP)
    6. Sub-Mission on Agricultural Mechanisation (SMAM)
    7. Sub Mission on Plant Protection and Plan Quarantine (SMPPQ)
    8. Integrated Scheme on Agriculture Census, Economics and Statistics (ISACES)
    9. Integrated Scheme on Agricultural Cooperation (ISAC)
    10. Integrated Scheme on Agricultural Marketing (ISAM)
    11. National e-Governance Plan (NeGP-A) The Schemes/Missions focus on creating/strengthening of infrastructure of production, reducing production cost and marketing of agriculture and allied produce.

    1.15 Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA)

    1. The Scheme is aimed at ensuring remunerative prices to the farmers for their produce as announced in the Union Budget for 2018.
    2. It is expected that the increase in MSP will be translated to farmers’ income by way of robust procurement mechanism in coordination with the State Governments.

    The three schemes that are part of AASHA are:

    1. the Price Support Scheme (PSS)
    2. the Price Deficiency Payment Scheme (PDPS)
    3. the Pilot of Private Procurement and Stockist Scheme (PPPS)
    • These three components will complement the existing schemes of the Department of Food and Public Distribution.
    • They relate to paddy, wheat and other cereals and coarse grains where procurement is at MSP now.
    • PSS – Under the PSS, physical procurement of pulses, oilseeds and copra will be done by Central Nodal Agencies.
    • Besides, NAFED and Food Corporation of India will also take up procurement of crops under PSS.
    • The expenditure and losses due to procurement will be borne by the Centre.
    • PDPS – Under the PDPS, the Centre proposes to cover all oilseeds.
    • The difference between the MSP and actual selling/modal price will be directly paid into the farmer’s bank account.
    • Farmers who sell their crops in recognised mandis within the notified period can benefit from it.
    • PPSS – In the case of oilseeds, States will have the option to roll out PPSS in select districts.
    • Under this, a private player can procure crops at MSP when market prices drop below MSP.
    • The private player will then be compensated through a service charge up to a maximum of 15% of the MSP.

    1.16 Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

    What is the news:

    • The Central Government notified a decision to extend the benefit of ₹6,000 per year under the Pradhan Mantri Kisan Samman Nidhi scheme to all 14.5 crore farmers in the country, irrespective of the size of their landholding.
    • Central sector scheme

    Objective

    ○ To provide income support to all farmer families having cultivable land.

    ○ To supplement the financial needs of the farmers in procuring various inputs to ensure proper crop health and appropriate yields, commensurate with the anticipated farm income.

    Salient Features:

    • The revised Scheme is expected to coveraround 2 crore more farmers, increasing the coverage of PM-KISAN to around 14.5 crore beneficiaries.
    • Responsibility of identifying the landholder farmer family eligible for benefit under the scheme shall be of the State/UT Government.
    • The lists of eligible beneficiaries would be published at the village level to ensure transparency.
    • Exclusions: Certain categories of beneficiaries of higher economic status such as institutional landholders, former and present holder of constitutional posts, persons who paid income tax in the last assessment year etc. shall not be eligible for benefit under the scheme.
      • Professionals like doctors, engineers and lawyers as well as retired pensioners with a monthly pension of over ₹10,000 and those who paid income tax in the last assessment year are also not eligible for the benefits.
      • For the purpose of exclusion State/UT Government can certify the eligibility of the beneficiary based on self-declaration by the beneficiaries.
    • A dedicated PM Kisan Portal will be launched for the implementation of the scheme.
    • This is a Central Sector Scheme and will be funded fully by the Government of India

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  • Inflation control needs another model

    Context

    At the conclusion of the April meeting, the Monetary Policy Committee had already warned that the focus will henceforth be on inflation. Yesterday it raised the repo rate somewhat sooner than was expected by the market.

     Discourse on inflation engaged in by the western central banks

    • Inflation reflects an excess of output over its ‘natural’ level.
    • Inflation targeting refers to the policy of controlling inflation by raising the interest rate over which the central bank has control, i.e. the rate at which it lends to commercial banks, the ‘repo rate’.
    • This, it is argued, will induce firms to stay their investment plans and reduce inventories, lowering production.
    • As economy-wide output declines, becoming equal to the natural level of output, inflation will cease.
    • This story does not just legitimise a policy of output contraction for inflation but sees it as optimal.
    • The natural level of output itself is the productive counterpart of the natural level of employment, the level that obtains in a freely functioning labour market.
    • So, at the natural level of output, the economy is deemed to be at full employment.
    • Salient in the context is the fact that the natural level of output is unobservable.
    • Hence inflation as a reflection of an “overheating” economy is something that must be taken on trust.

    Inflation control in India

    • Not surprisingly for a theory based on an unobservable variable, the proposition that inflation is due to an overheating economy fares poorly when put to a statistical test for India. 
    • There is not a single demonstration of the empirical validity of the model of inflation presented in the RBI report of 2014, which recommended a move to inflation targeting.
    • On the other hand inflation in India can be explained in terms of the movement of the prices of agricultural goods and, to a lesser extent, imported oil.
    • How effective is monetary policy in controlling inflation: The implication of this finding is damaging for the claim that monetary policy can control inflation, for neither the price of agricultural goods nor that of imported oil is under the central bank’s control.
    • The only route by which monetary policy can, in principle, control inflation is by curbing the growth of non-agricultural output, which would in turn lower the growth of demand for agricultural goods.
    • As the demand for agricultural goods slows, so will inflation, but this comes at the cost of output and employment.
    • At least, this is the theory.
    • Whether this takes place in practice depends upon the extent to which changes in the repo rate are transmitted to commercial bank lending rates.

    Way forward

    • Focus on supply of agricultural goods: The implication for the policymaker that inflation is driven by agricultural goods prices, as is the case in India presently, is that the focus should be on increasing the supply of these goods.
    • Growing per capita income in India has shifted the average consumption basket towards foods rich in minerals, such as fruits and vegetables, and protein, such as milk and meat.
    • But the expansion of the supply of these foods has been lower than the growth in demand for them.
    • So a concerted drive to increase the supply of food other than rice and wheat holds the key.
    • Costly food threatens the health of the population, as people economise on their food intake, and holds back the economy, as only a small part of a household’s budget can be spent on non-agricultural goods.

    Conclusion

    Monetary policy manoeuvres, typified by the RBI’s raising of the repo rate is not an efficient solution for agricultural price-driven inflation. Any lasting inflation control would require placing agricultural production on a steady footing, with continuously rising productivity.

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  • With repo rate hike, RBI has done what’s necessary

    Context

    The RBI has decided to take the bull by the horns. It has raised the repo rate by 40 basis points and the cash reserve ratio (CRR) by 50 basis points to fight inflation.

    Why major central banks across the world are hiking rates?

    • Across the world, major central banks have of late gone on a rate hike spree, waking up to the realisation of inflationary pressures not being transitory in nature.
    • Record high inflation in the US: The US Fed has been on the offensive battling a 40-year high surge in prices.
    • It has tapered its bond purchase programme drastically while suggesting in no uncertain terms the pace of rate hikes needed to combat inflation.
    • The European Union has been slow to respond but voices are growing to correct the path at the earliest.
    • Banks like the Central Bank of Brazil or the Russian Central Bank have increased the interest rate to double digits.
    • Emerging economies have been doubly hit — the days of easy liquidity are well behind them even as their economic resources remain constrained to support an uneven proportion of population hit by pandemic.
    • Including the RBI’s decision today to push the benchmark rate to align with the current market realities, 21 countries have increased interest rates so far.

    Analysing the RBI’s decision to hike interest rates

    • To this extent, the decision by the RBI to frontload the rate hikes ahead of the Fed decision is again an attempt to stem capital outflows.
    • Accommodative policy stance; The most interesting aspect of the rate hike today is the continuation of the accommodative policy stance.
    • The CRR hike may be just an attempt to build up a war chest on the liquidity front.
    • Liquidity inflows to the financial system could be either policy induced by the central bank for example changes in reserves, open market operations etc or non-policy induced such as foreign exchange reserves, government cash balances, and currency in circulation.
    • Given that non-policy induced liquidity inflows have been recently impacted (outflows of portfolio capital) and given the huge size of the government borrowing programme, the RBI also needs to support the market through some means.
    • Impounding bank reserves through the CRR (Rs 87,000 crore) could give some space to the central bank to conduct open market purchases of bonds from banks and thus inject concomitant liquidity some time in the future if the need so arises.
    •  The CRR rate hike is thus an important tool to possibly manage G-sec yields.

    Inflation dynamics in India

    • The inflationary pressures can be attributed mainly to adverse cost-push factors, coming from supply-side shocks in food and fuel prices.
    • The RBI statement thus cites food inflation as a major source of discomfort.
    • Additionally, nominal rural wages for both agricultural and non-agricultural labourers picked up during the second half 2021-22.
    • However, such wage growth has remained soft.
    • Measures to ameliorate supply-side cost pressures would be thus critical at this juncture, especially in terms of a calibrated reduction of taxes on petrol and diesel.
    • On the policy side, however, it would mean that even after rate hikes, inflation may continue to remain high for some time.
    • The MCLR (Marginal Cost of Funds based Lending Rate) linked loans have a share of around 53 per cent in the overall loan kitty.
    • With the rise in CRR and expected future hikes in the benchmark rates, there would be an increase in MCLR due to a negative carry.

    Conclusion

    The RBI has acted prudently in responding to market forces that could impact India’s growth prospects if inflationary concerns were not addressed now. At the same time, by pledging to remain accommodative to spur, and reinvigorate growth, it has reaffirmed its commitment to being a trusted partner in the growth of the country.

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