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  • Misunderstanding the MSP

    The article explains the purpose of Minimum Support Price (MSP) and reasons for insecurity in farmers regarding its continuance.

    Relation between MSP and time-bound procurement through PPS

    • MSP, public procurement system (PPS) and a strict time-bound purchase of output brought to the PPS(through APMCs) form a package deal.
    • Take out one aspect, the deal falls apart.
    • For example, if you have MSP but not compulsory PPS, the support price becomes redundant.
    • If you have MSP and PPS/APMC mandi but not strict time-bound purchase of the product brought to the PPS, the deal will fail.

    Purpose of MSP

    • At the launch of the Green Revolution, MSP and PPS were designed to assist the country in achieving its goal of food self-sufficiency, which was met by the early Seventies.
    • The purpose of MSP and PPS/APMC is now two-fold.
    • One, to maintain food self-sufficiency because crop diseases and weather conditions such as droughts.
    • The second purpose is to ensure a reasonable, assured income to the farmers.
    • The recommendation to dismantle FCI public procurement, made by the Shanta Kumar Committee in its 2015 report, displayed a lack of recognition of the importance of these two purposes.

    Issues with the Farm bills

    • The government’s assurance that MSP/APMC can co-exist with the big agro-business-controlled private markets is not tenable.
    • A farmer who has reached a contract will not be legally allowed to take the product to APMC if the APMC mandi offered him/her a better price.
    • The agro-business entity will take the non-compliant farmer to court, where the dispute resolution mechanism is stacked against the farmer due to the structural inequities of legal resources and social-cultural capital.
    • The proposed dispute resolution mechanism increases the choice of the trader to trade and not of the farmer to sell.
    • The central law will prevail in the private markets, while state laws will prevail in the APMC mandis.
    • Two markets with two regulatory frameworks will create conditions for perpetual Centre-state conflicts.
    • MSPs are announced for 23 crops but compulsory and timely public procurement, are provided mainly for two crops, wheat and rice, the support price does not work for the remaining 21 crops. 

    Challenge in defining MSP

    • Farmers’ organisations are insisting on the Swaminathan Committee formula of C2+50 per cent.
    • The MSP announced by the government is based on the A2+Fl+50 per cent formula.
    • Unlike the C2+50 per cent formula, A2+Fl+50  formula does not cover all the costs of farming.

    Conclusion

    Agrarian reforms that recognise the importance of ecologically and economically sustainable agriculture are an absolute necessity. Such reforms would require more than merely changing the trade emphasis of existing laws. They will involve the creation of inclusive, transparent and well-informed laws compatible with these reforms.


    Back2Basics: Understanding the cost formula

    • M S Swaminathan committee recommended minimum support prices (MSP) for crops at levels “at least 50 per cent more than the weighted average cost of production”.
    • The National Commission on Farmers did not elaborate on what really constituted “weighted average cost of production” in its report submitted in October 2006.
    • The Commission for Agricultural Costs and Prices (CACP), on the other hand, gives three definitions of production costs: A2, A2+FL and C2.
    • A2 costs basically cover all paid-out expenses, both in cash and in kind, incurred by farmers on seeds, fertilisers, chemicals, hired labour, fuel, irrigation, etc.
    • A2+FL cover actual paid-out costs plus an imputed value of unpaid family labour.
    • C2 costs are more comprehensive, accounting for the rentals and interest forgone on owned land and fixed capital assets respectively, on top of A2+FL.
  • What are Digital Services Taxes?

    Digital services taxes adopted by India, Italy and Turkey discriminate against U.S. companies and are inconsistent with international tax principles, the U.S. Trade Representative’s office has said.

    Do you remember?

    GAFA tax—named after Google, Apple, Facebook, Amazon—is a proposed digital tax to be levied on large technology and internet companies.

    Fact of the matter: Equalization Levy

    • India has earlier expanded the scope of the Equalization Levy, or digital tax, to the sale of goods and services in the country by overseas e-commerce firms.
    • The Equalization Levy was introduced for the first time in 2016 as 6 per cent tax on revenues earned by non-residents from online advertising and related services.
    • The burden of this tax eventually fell on local firms advertising on these platforms.

    Contention for E-Commerce

    • In March 2020, the government expanded the scope of this levy to include the sale of goods and services in the country by overseas e-commerce operators.
    • The transactions were to be taxed at 2 per cent if businesses earned more than Rs 2 crore.
    • Globally, the rate of digital tax varies from 1.5 per cent (in Poland and Kenya) to 15 per cent (Paraguay). In Europe, the tax rate varies from 3 per cent (France, UK, Spain) to 7.5 per cent (Hungary).

    Digital Services Taxes

    • The “digital services tax” (DST) is a levy on the overall revenues earned by the supplier of specific digital services.
    • The DST should not be confused with the so-called “Netflix tax,” which one may find in some western countries.
    • The Netflix tax is essentially a “value-added tax” on digital services where the consumer bears the entire tax burden on the value of the final product.

    The US Question

    • The need to tax digital companies – the likes of Amazon, Google and Netflix – arises because these companies collect digital revenues from countries where they do not have a significant business presence.
    • These are new-age companies, which can use virtual infrastructure to operate in another country.
    • Countries across the globe have felt the need to tax revenues generated by such companies in a particular jurisdiction.
    • Talks began in 2018 under the aegis of the OECD to formalize a framework on what and how to tax revenues earned by such companies in a country in which they have no physical or significant presence.
    • But an abrupt US decision to pull out of the negotiations, involving 137 countries and threats of retaliatory action against those levying digital taxes have hit the 2020 deadline.

    India’s response

    • USTR has concluded the digital taxes imposed by France, India, Italy and Turkey discriminate against big U.S. tech firms, such as Google, Facebook, Apple and Amazon.com
    • For India, it created enormous uncertainty, since the country has always been at the forefront of adopting the concept of taxing foreign digital companies.
    • It is now subject to a probe initiated by the US called the ‘Section 301’ investigations into the digital taxes.

    A populist fuss by the US

    • The US is a bit confused and so is the exiting President. They are not able to decide what they want to do.
    • It is being argued that it could lead to tariffs before Donald leaves office or early in the administration of President-elect Biden.
    • This arguably another populist measure that Trump administration wants to leave behind.

    Conclusion

    • Given that a global consensus at the OECD or even the UN level may take several more months, countries including India are likely to continue with their unilateral DSTs.
    • At this juncture, when economies are reeling under the ill-effects of the pandemic, no country would want to give up its share of revenue and wait for a global consensus to emerge.
  • Antarctic Ozone Hole — one of the largest, deepest — closes

    The Antarctic ozone hole — one of the deepest, largest gap in the ozone layer in the last 40 years — has closed, according to the World Meteorological Organization (WMO).

    Try this PYQ:

    Q.Consider the following statements:

    Chlorofluorocarbons, known as ozone-depleting substances are used:

    1. In the production of plastic foams
    2. In the production of tubeless tyres
    3. In cleaning certain electronic components
    4. As pressurizing agents in aerosol cans

    Which of the statements given above is/are correct?

    (a) 1, 2 and 3 only

    (b) 4 only

    (c) 1, 3 and 4 only

    (d) 1, 2, 3 and 4

    Antarctic Ozone Hole

    • The Antarctic “ozone hole” was discovered by British Antarctic Survey scientists Farman, Gardiner and Shanklin in 1985.
    • It came as a shock to the scientific community because the observed decline in polar ozone was far larger than anyone had anticipated.
    • It was caused by the chemical reactions on polar stratospheric clouds (PSCs) in the cold Antarctic stratosphere caused a massive.
    • Though localized and seasonal, an increase in the amount of chlorine present in active, ozone-destroying forms.

    Role of PSCs

    • The polar stratospheric clouds in Antarctica are only formed when there are very low temperatures, as low as −80 °C, and early spring conditions.
    • In such conditions, the ice crystals of the cloud provide a suitable surface for the conversion of unreactive chlorine compounds into reactive chlorine compounds, which can deplete ozone easily.

    An annual process

    • An ozone hole is the thinning of the ozone layer boosted in size by colder temperatures.
    • The formation of the ozone hole in the Antarctic has been an annual occurrence and has been recorded for the last 40 years.
    • Human-made chemicals migrate into the stratosphere and accumulate inside the polar vortex. It begins to shrink in size as warmer temperatures dominate.
    • As the temperatures high up in the stratosphere start to rise, ozone depletion slows, the polar vortex weakens and breaks down.
    • By the end of December, ozone levels return to normal.

    The hole closes after achieving peak

    • The annually occurring ozone hole over the Antarctic had rapidly grown from mid-August and peaked at around 24 million square kilometres — one of the largest so far — in early October 2020.
    • The expansion of the hole was driven by a strong, stable and cold polar vortex and very cold temperatures in the stratosphere.
    • The same meteorological factors also contributed to the record 2020 Arctic ozone hole, which has also closed.

    Note: A polar vortex is a wide expanse of swirling cold air, a low-pressure area, in Polar Regions. During winters, the polar vortex at the North Pole expands, sending cold air southward.

  • World Food Price Index

    World food prices rose for a seventh consecutive month in December 2020, with all the major categories, barring sugar, said the United Nations Food and Agriculture Organization (UN-FAO).

    Try this PYQ:

    Q.Which one of the following is not a sub-index of the World Bank’s ‘Ease of Doing Business Index’? (CSP 2019)

    (a) Maintenance of law and order

    (b) Paying taxes

    (c) Registering property

    (d) Dealing with construction permits

    World Food Price Index

    • The FAO Food Price Index is a measure of the monthly change in international prices of a basket of food commodities.
    • It consists of the average of five commodity group price indices [cereal, vegetable, dairy, meat and sugar], weighted with the average export shares.
    • The index has become a critical and timely monthly indicator of the state of international food markets, gauging the change in food commodity prices over time in nominal and real terms.

    Why it matters?

    • High food prices have contributed to a surge in inflation
    • There are social and economic advantages from high food prices for example higher prices are an opportunity to improve farmers’ incomes and to stimulate investments in farming.
    • For developing countries that are major exporters of food, the rise in world prices helped to bring about an improvement in the terms of trade and a strong balance of payments.

    Concerns raised

    • That said higher food prices for domestic consumers created fresh problems of poverty and hunger.
    • Lower-income families spend a higher proportion of their budgets on food.
    • Higher prices hit them hardest causing a fall in real living standards.
    • This means that food price inflation can act as a tax on the poor and have a regressive effect on the distribution of income.
  • Magneto-Telluric Survey in the Delhi-NCR Region

    In the backdrop of multiple quakes of low intensity in the Delhi-NCR region, the National Centre for Seismology (NCS) is conducting a unique geophysical Magnetotelluric-MT survey to accurately assess potential seismic hazards.

    Try this PYQ:

    Q.Consider the following statements:

    1. The Earth’s magnetic field has reversed every few hundred thousand years.
    2. When the Earth was created more than 4000 million years ago, there was 54% oxygen and no carbon dioxide.
    3. When living organisms originated, they modified the early atmosphere of the Earth.

    Which of the statements given above is/ are correct?

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

    What is Magneto-Telluric Survey?

    • MT is a geophysical method which uses natural time variation of the earth’s magnetic and electric fields to understand the geological (underground) structure and processes.
    • It is an increasingly popular technique widely used to image the electrical resistivity distribution inside the Earth in various application fields ranging in scale from the shallow crust to the lithosphere.
    • In the MT method, the earth’s natural electromagnetic field is used as a source field.
    • The receivers record the electric and magnetic fields on the surface of the Earth.
    • The variations in amplitude and phase of the received signals can be interpreted in terms of the resistivity structure of the subsurface using the magnetotelluric impedance.

    Where would the MT survey be undertaken?

    • The survey is conducted across three major seismic sources, namely Mahendragarh-Dehradun Fault (MDF), Sohna Fault (SF) and Mathura Fault (MF).
    • It will ascertain the presence of fluids, which generally enhance the possibility of triggering earthquakes.

    Benefits of the survey

    • Its findings will help different user agencies for designing quake-resistant buildings, industrial units and structures such as hospitals and schools.
    • In addition to MT, analysis and interpretation of satellite imageries and geological field investigations for locating the faults are also being carried out.
    • Both these geophysical and geological surveys will help in taking multiple preventive measures in the quake-prone region.
  • Asian Waterbird Census (AWC) 2021

    The two-day Asian Waterbird Census-2020 was recently held in Andhra Pradesh.

    Anyone can participate!

    By using eBird and filling an additional site form, one can take part in this multi-country effort to document the state of our wetlands and waterbirds.  To take part one simply visits a wetland and count the birds he/she see there.

    Asian Waterbird Census

    • The Asian Waterbird Census (AWC) takes place every January.
    • The AWC was started in 1987, and many birders were initiated into bird counting and monitoring through this project.
    • This citizen-science event is a part of the global International Waterbird Census (IWC) that supports the conservation and management of wetlands and waterbirds worldwide.
    • The data collected each year is shared by Wetlands International with global conservation organisations such as IUCN and Ramsar Convention.

    Why need such census?

    • Waterbirds are one of the key indicators of wetlands health.
    • Wetlands provide feeding, resting, roosting and foraging habitats for these charismatic species.

    AWC in India

    • In India, the AWC is annually coordinated by the Bombay Natural history Society (BNHS) and Wetlands International.
    • BNHS is a non-government Organisation (NGO) founded in the year 1883.
    • It engages itself in the conservation of nature and natural resources and also in the research and conservation of endangered species.
    • Its mission is to conserve nature, primarily biological diversity through action based on research, education and public awareness.

    Back2Basics: Waterbirds

    • The term water bird, alternatively waterbird or aquatic bird is used to refer to birds that live on or around water.
    • In some definitions, the term is especially applied to birds in freshwater habitats, though others make no distinction from birds that inhabit marine environments.
    • Also, some water birds are more terrestrial or aquatic than others, and their adaptations will vary depending on their environment.
    • These adaptations include webbed feet, bills, and legs adapted to feed in the water, and the ability to dive from the surface or the air to catch prey in water.
  • 8th January 2021| Daily Answer Writing Enhancement

    Important Announcement:  Topics to be covered on 11th January

    GS-1 Indian National Movement.

    GS-4 Codes of Ethics, Codes of Conduct and Citizen’s Charters.

    Question 1)

    Analyse in what way redefining urban areas can have far-reaching impact on ease of living and economic development of the people in the country. 10 marks

    Question 2)

    Various states have been responding to sexual violence by harsher punitive measures. Tackling the problem of sexual violence need more than harsher punishments. In light of this, examine the issues with depending on the punitive measures and suggest the ways to deal with the problem. 10 marks

    Question 3)

    Of late, the Indian Navy has been on the drive to increase maritime domain awareness in the Indian Ocean. This could help India in generating cooperative synergies in the neighbourhood and beyond while detecting the movement of hostile elements. 10 marks

    Question 4)  

    “Good governance and anti-corruption measures as central to its poverty alleviation mission.” Discuss. 10 marks

    Reviews will be provided in a week. (In the order of submission- First come first serve basis). In case the answer is submitted late the review period may get extended to two weeks.

    *In case your answer is not reviewed in a week, reply to your answer saying *NOT CHECKED*. If Parth Sir’s tag is available then tag him.

    For the philosophy of AWE and payment, check  here: Click2Join

  • Issues with Harsher Punitive measures for the sexual violence

    Harsher punishment for sexual violence

    • Recently, the Maharashtra cabinet approved the Shakti Bill, enlarging the scope of harsher and mandatory sentences — including the death penalty — for non-homicidal rape.
    • The Shakti Bill comes amid the recent legislative trend to invoke the death penalty for sexual offences.
    • In 2020, the Andhra Pradesh government passed the Disha Bill, pending presidential assent, that provides the death penalty for the rape of adult women.

    Issues with the Bills

    1) Focus on reporting of police complaint

    • The most severe gaps in the justice delivery system are related to reporting a police complaint.
    • The focus of the criminal justice system needs to shift from sentencing and punishment to the stages of reporting, investigation and victim-support mechanisms.
    • The bill does not address these concerns.

    2) Impact on rate of conviction

    • Harsh penalties often have the consequence of reducing the rate of conviction for the offence.
    • A study published in the Indian Law Review based on rape judgments in Delhi shows a lower rate of conviction after the removal of judicial discretion in 2013.
    • Introducing harsher penalties does not remove systemic prejudices from the minds of judges and the police.

    3) Harsher punishment would deter complainants

    • Studies on child sexual abuse have shown that in the few cases of convictions, the minimum sentence was the norm and the award of the maximum punishment was an exception.
    • Crime data from the National Crime Records Bureau shows that in 93.6 per cent of these cases, the perpetrators were known to the victims.
    • Introducing capital punishment would deter complainants from registering complaints.
    • The Shakti Bill ignores crucial empirical evidence on these cases.

    4) Moving away from standard of affirmative consent

    • An affirmative standard of consent is rooted in unequivocal voluntary agreement by women through words, gestures or any form of verbal or non-verbal communication.
    • In a sharp departure, the bill stipulates that valid consent can be presumed from the “conduct of the parties” and the “circumstances surrounding it”.
    • The vaguely worded explanation in the bill holds dangerous possibilities of expecting survivors to respond only in a certain manner, thus creating the stereotype of an “ideal” victim.
    • It also overlooks the fact that perpetrators are known to the survivors in nearly 94 per cent of rapes, which often do not involve any brutal violence.

    Conclusion

    Punitive responses to sexual violence need serious rethinking, given the multitude of perverse consequences and their negligible role in addressing the actual needs of rape survivors.

  • India’s efforts in increasing Maritime domain awareness

    The article analyses India’s efforts in increasing the maritime domain awareness while increasing the cooperation with the neighbourhood and other countries.

    Indian Navy improving domain awareness

    • The enemy at sea is often unrecognisable — a terrorist, a pirate, a criminal or a sea robber.
    • Of late, the Indian Navy has been on a drive to improve domain awareness in the Indian Ocean.
    • The Indian Navy’s efforts seem focused primarily on monitoring Chinese activity in the Eastern Indian Ocean, particularly in the seas around the Andaman and Nicobar islands.
    • The Navy is seeking to expand India’s surveillance footprint by setting up radar stations in the Maldives, Myanmar and Bangladesh.
    • Mauritius, the Seychelles and Sri Lanka have already integrated into the wider coastal radar chain network.

    Increasing international cooperation

    • Seven Indian Ocean countries — Bangladesh, Myanmar, Indonesia, Sri Lanka, the Maldives, Mauritius and the Seychelles — will soon post Liaison Officers at the Indian Navy’s Information Fusion Centre-Indian Ocean Region in Gurugram.
    • France already has an officer at the IFC.
    • Four other Indo-Pacific navies — Australia, Japan, the U.K and the U.S. — have also agreed to position officers at the centre.
    • As a result of such cooperation, IFC is fast emerging as the most prominent information hub in the Eastern Indian Ocean.
    • India is increasing engagement in the Western Indian Ocean by positioning a Liaison Officer at the Regional Maritime Information Fusion Centre (RMIFC) in Madagascar.
    • India has also posted an officer at the European Maritime Awareness in the Strait of Hormuz (EMASOH) in Abu Dhabi to assist in the monitoring of maritime activity.

    Stronger partnership with France

    • Delhi’s moves in the Western and South-Western littorals have been facilitated by France.
    • Two countries have signed a logistics agreement in 2019.
    • France is keen for a stronger partnership in the maritime commons.
    • France has been instrumental in securing ‘observer’ status for India at the Indian Ocean Commission and is pushing for greater Indian participation in security initiatives in the Western Indian Ocean.
    • However, the Indian Navy’s priority remains South Asia, where the naval leadership remains focused on underwater domain awareness in the Eastern Indian Ocean.

    Concerns over increasing Chines presence

    • There is concern that the Chines navy may be poised to develop a generation of quieter submarines that would be hard to detect.
    • As a result, India has moved to expand its underwater detection capabilities in the Eastern chokepoints. 
    • India might also partner Japan in installing an array of undersea sensors near the Andaman Islands to help detect Chinese submarines.

    India as a security provider: Manifestation of SAGAR

    • India’s initiatives in the maritime domain are motivated by more than just strategic considerations.
    • Shipping agreements with 21 countries in the Indian Ocean have enabled a comprehensive picture of maritime traffic.
    • Efforts are under way to help smaller island states build capacity to combat regional threats.
    • India’s military satellite (GSAT-7A) may soon facilitate a real-time sharing of maritime information with partners.
    • These endeavours are a manifestation of Security and Growth for All in the Region (SAGAR) that advances the idea of India as a ‘security provider’ and ‘preferred partner’ in the Indo-Pacific region.

    Challenges

    • Indian initiatives, however, are yet to bring about an alignment of objectives and strategies of regional littoral states.
    • While cooperative information sharing allows for a joint evaluation of threats, countries do not always share vital information timeously.

    Conclusion

    To bring real change, India must ensure seamless information flow, generating operational synergy with partners, and aim to expand collaborative endeavours in shared spaces.

  • How horizontal, vertical quotas work; what Supreme Court said?

    The Supreme Court last month clarified the position of law on the interplay of vertical and horizontal reservations.

    This newscard is useful for GS paper 1 as well as aspirants with sociology optional. Let us know in the comment box if you want to get a deeper insight.

    It perfectly highlights the heart of the debate on “merit versus reservation”, where reservation is sometimes projected as being anti-merit.

    What are vertical and horizontal reservations?

    • Reservation for Scheduled Castes, Scheduled Tribes, and Other Backward Classes is referred to as vertical reservation.
    • It applies separately for each of the groups specified under the law.
    • Horizontal reservation refers to the equal opportunity provided to other categories of beneficiaries such as women, veterans, the transgender community, and individuals with disabilities, cutting through the vertical categories.

    How are the two categories of quotas applied together?

    • The horizontal quota is applied separately to each vertical category, and not across the board.
    • For example, if women have 50% horizontal quota, then half of the selected candidates will have to necessarily be women in each vertical quota category.
    • This means half of all selected SC candidates will have to be women, half of the unreserved or general category will have to be women, and so on.
    • The interlocking of the two types of reservation throws up a host of questions on how certain groups are to be identified.
    • For example, would an SC woman be put in the category of women or SC? Since quotas are fixed in percentages, what percentage of quota would be attributed to each?

    What was the Saurav Yadav case about?

    • The case was on the technicalities that form a substantial question of law.
    • It was this: Two aspirants had secured 276.5949 and 233.1908 marks respectively.
    • They had applied under the categories of OBC-Female and SC-Female respectively. OBC and SC are vertical reservation categories, while Female is a horizontal reservation category.
    • The two candidates did not qualify in their categories.
    • However, in the General-Female (unreserved-female) category, the last qualifying candidate had secured 274.8298 marks, a score that was lower than the two backwards.
    • The question before the court was that if the underlying criterion for making selections is “merit”.

    What did the court decide?

    • The court ruled against the UP government.
    • It observed if a person belonging to an intersection of the vertical-horizontal reserved category had secured scores high enough to qualify without the vertical reservation.
    • It held that the person would be counted as qualifying without the vertical reservation, and cannot be excluded from the horizontal quota in the general category.
    • If a person in the SC category secures a higher score than the cut-off for the general category, the person would be counted as having qualified under the general category instead of the SC quota.

    What was the government’s argument?

    • The government’s policy was to restrict and contain reserved category candidates to their categories, even when they had secured higher grades.
    • The court said this was tantamount to ensuring that the general category was ‘reserved’ for upper castes.

    What was the court’s reasoning?

    • The court did the math by examining a number of hypothetical scenarios.
    • It concluded that if both vertical and horizontal quotas were to be applied together — and consequently, a high-scoring candidate who would otherwise qualify without any reservation.
    • On the other hand, if a high-scoring candidate is allowed to drop one category, the court found that the overall selection would reflect more high-scoring candidates.
    • In other words, the “meritorious” candidates would be selected.

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