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  • Sugarcane Pricing in India

    Earlier this month, the Supreme Court issued notices to States and major sugar producers to develop a mechanism to ensure that farmers are paid on time.

    Who determines Sugarcane prices?

    Sugarcane prices are determined by the Centre as well as States.

    1. The Centre announces Fair and Remunerative Prices which are determined on the recommendation of the Commission for Agricultural Costs and Prices (CACP) and are announced by the Cabinet Committee on Economic Affairs, which is chaired by Prime Minister.
    2. The State Advised Prices (SAP) are announced by key sugarcane producing states which are generally higher than FRP.

    Minimum Selling Price (MSP) for Sugar

    • The price of sugar is market-driven & depends on the demand & supply of sugar.
    • However, with a view to protecting the interests of farmers, the concept of MSP of sugar has been introduced since 2018.
    • MSP of sugar has been fixed taking into account the components of Fair & Remunerative Price (FRP) of sugarcane and minimum conversion cost of the most efficient mills.

    Basis of price determination

    • With the amendment of the Sugarcane (Control) Order, 1966, the concept of Statutory Minimum Price (SMP) of sugarcane was replaced with the Fair and Remunerative Price (FRP)’ of sugarcane in 2009-10.
    • The cane price announced by the Central Government is decided on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP).
    • This is done in consultation with the State Governments and after taking feedback from associations of the sugar industry.

    Try this PYQ:

    Q.The Fair and Remunerative Price (FRP) of sugarcane is approved by the:

    (a) Cabinet Committee on Economic Affairs

    (b) Commission for Agricultural Costs and Prices

    (c) Directorate of Marketing and Inspection, Ministry of Agriculture

    (d) Agricultural Produce Market Committee

     

    [wpdiscuz-feedback id=”vewzy6vmxu” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

    What is FRP?

    • FRP is fixed under a sugarcane control order, 1966.
    • It is the minimum price that sugar mills are supposed to pay to the farmers.
    • However, states determine their own State Agreed Price (SAP) which is generally higher than the FRP.

    Factors considered for FRP:

    • The amended provisions of the Sugarcane (Control) Order, 1966 provides for fixation of FRP of sugarcane having regard to the following factors:

    a) cost of production of sugarcane;

    b) return to the growers from alternative crops and the general trend of prices of agricultural commodities;

    c) availability of sugar to consumers at a fair price;

    d) price at which sugar produced from sugarcane is sold by sugar producers;

    e) recovery of sugar from sugarcane;

    f) the realization made from the sale of by-products viz. molasses, bagasse, and press mud or their imputed value;

    g) reasonable margins for the growers of sugarcane on account of risk and profits.

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  • Places in news: Cattle Island on Hirakud Reservoir

    The Odisha Forest and Environment Department is all set to begin ‘Island Odyssey’ and ‘Hirakud Cruise’ ecotourism packages for tourists to islands inside the reservoir.

    Cattle Island

    • ‘Cattle island’, one of three islands in the Hirakud reservoir, has been selected as a sight-seeing destination.
    • When large numbers of people were displaced from their villages when the Hirakud dam was constructed on the Mahanadi river in 1950s, villagers could not take their cattle with them.
    • They left their cattle behind in deserted villages.
    • As the area started to submerge following the dam’s construction, the cattle moved up to Bhujapahad, an elevated place in the Telia Panchayat under Lakhanpur block of Jharsuguda district.
    • Subsequently named ‘Cattle island’, it’s surrounded by a vast sheet of water.

    Other islands

    • Then there is an “island of bats”, also within the reservoir, just 1 km away from the Debrigarh ecotourism project.
    • It is the habitat of hundreds of bats.
    • Tourists also get a magnificent view of the sunset from the reservoir. ‘Sunset island’ is one of the three stops on the unique boat ride.

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  • 20th August 2021 | Prelims Daily with Previous Year Questions

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    [WpProQuiz 746]

    [WpProQuiz_toplist 746]

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    B) In India, under cyber insurances for individuals, which of the following benefits are generally covered, in addition to payment for the loss of funds and other benefits? (UPSC 2020)

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  • Emergency award

    Context

    The judgment delivered by the Supreme Court in the legal tussle between Amazon and the Future Group has laid the foundation for recognition and enforcement of emergency awards under the Indian arbitration law.

    What is an emergency award?

    • It is an award rendered by an emergency arbitrator, appointed prior to the formal constitution of an arbitral tribunal by an arbitral institution.
    • It is a recent mechanism introduced by arbitral institutions to encourage parties to seek urgent interim relief from an arbitral institution rather than from a court.
    • Many leading arbitral institutions such as SIAC, ICC, and LCIA have provisions for the appointment of an emergency arbitrator.
    • As far as India is concerned, the 246th Law Commission Report had recommended an amendment in the Arbitration and Conciliation Act, 1996 (‘Indian Arbitration Act’) to grant statutory recognition to an emergency award.
    • Some of the indigenous arbitral institutions though, such as the Delhi International Arbitration Centre, have made provisions for emergency arbitration.

    What is the tussle between Amazon and Future Group about?

    • In August 2020, Biyani Group and the Reliance Industries Group decided to amalgamate Future Retail Ltd. (FRL) with Reliance Industries and complete disposal of its retail assets in favor of the Group.
    • However, prior to the said transaction, Amazon had invested an amount of Rs 1,431 crores in Future Coupons Pvt. Ltd. (FCPL) based on rights granted to FCPL with regard to FRL.
    • So, Amazon initiated arbitration against the Biyani Group, including FRL, under Singapore International Arbitration Centre (SIAC) Rules.
    • Amazon made an application seeking urgent interim reliefs under SIAC rules and the appointment of an emergency arbitrator.
    • The emergency arbitrator appointed, made an award in favor of Amazon in October 2020, restricting the Biyani Group from proceeding ahead with the disputed transaction.
    • However, the Biyani Group proceeded with the disputed transaction, construing the emergency award as a nullity.

    Issue of enforcement of the emergency award in India

    • Amazon filed an application before the Delhi High Court for enforcement of the award.
    • The court had the task of answering two novel legal questions —
    • 1) Whether the emergency award is an interim order under section 17(1) of the Indian Arbitration Act,
    • 2) Whether it can be enforced under section 17(2).
    • The Delhi High Court gave judgment in March 2021 against the Biyani Group.
    • The case eventually reached the Supreme Court.
    • Party autonomy: The Supreme Court judgment emphasized party autonomy in arbitration, which includes the right of the parties to choose institutional rules as the governing rules of arbitration.
    • Once chosen, the parties are bound by such rules.
    • The Supreme Court also held that the Indian Arbitration Act does not prohibit the parties from agreeing to a provision providing for an emergency arbitrator.
    • The Supreme Court also held that the term “during the arbitral proceedings” is wide enough to encompass emergency arbitration proceedings.
    • The Court ultimately held the emergency award to be an interim order under section 17(1) of the Indian Arbitration Act and enforceable under section 17(2).

    Significance of the judgment for arbitration in India

    • This judgment has contributed to the development of Indian arbitration law.
    • In the broader scheme of things, it is a victory for Indian arbitration and a sigh of relief for arbitral institutions.

    Conclusion

    The judgment is a reaffirmation of the fact that India is gradually stepping towards being an “arbitration-friendly” jurisdiction.

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  • 19th Aug 2021 | Economics Test – 01

    [WpProQuiz 745]

    [WpProQuiz_toplist 744]

  • Important Acts: Pre-Independence of India

    19th Aug, 2021

    Regulating Act of 1773

    • The first step was taken by the British Parliament to control and regulate the affairs of the East India Company in India.
    • It designated the Governor of Bengal (Fort William) as the Governor-General (of Bengal).
    • Warren Hastings became the first Governor-General of Bengal.
    • Executive Council of the Governor-General was established (Four members). There was no separate legislative council.
    • It subordinated the Governors of Bombay and Madras to the Governor-General of Bengal.
    • The Supreme Court was established at Fort William (Calcutta) as the Apex Court in 1774.
    • It prohibited servants of the company from engaging in any private trade or accepting bribes from the natives.
    • Court of Directors (the governing body of the company) should report its revenue.

    Pitt’s India Act of 1784

    • Distinguished between commercial and political functions of the company.
    • Court of Directors for Commercial functions and Board of Control for political affairs.
    • Reduced the strength of the Governor General’s council to three members.
    • Placed the Indian affairs under the direct control of the British Government.
    • The companies’ territories in India were called “the British possession in India”.
    • Governor’s councils were established in Madras and Bombay.

    Charter Act of 1813

    • The Company’s monopoly over Indian trade terminated; Trade with India open to all British subjects.

    Charter Act of 1833

    • Governor-General (of Bengal) became the Governor-General of India.
    • First Governor-General of India was Lord William Bentick.
    • This was the final step towards centralization in  British India.
    • Beginning of a Central legislature for India as the act also took away legislative powers of Bombay and Madras provinces.
    • The Act ended the activities of the East India Company as a commercial body and it became a purely administrative body.

    Charter Act of 1853

    • The legislative and executive functions of the Governor-General’s Council were separated.
    • 6 members in Central legislative council. Four out of six members were appointed by the provisional governments of Madras, Bombay, Bengal and Agra.
    • It introduced a system of open competition as the basis for the recruitment of civil servants of the Company (Indian Civil Service opened for all).

    Government of India Act of 1858

    • The rule of Company was replaced by the rule of the Crown in India.
    • The powers of the British Crown were to be exercised by the Secretary of State for India
    • He was assisted by the Council of India, having 15 members
    • He was vested with complete authority and control over the Indian administration through the Viceroy as his agent
    • The Governor-General was made the Viceroy of India.
    • Lord Canning was the first Viceroy of India.
    • Abolished Board of Control and Court of Directors.

    Indian Councils Act of 1861

    • It introduced for the first time Indian representation in the institutions like Viceroy’s executive+legislative council (non-official). 3 Indians entered the Legislative council.
    • Legislative councils were established in Center and provinces.
    • It provided that the Viceroy’s Executive Council should have some Indians as the non-official members while transacting the legislative businesses.
    • It accorded statutory recognition to the portfolio system.
    • Initiated the process of decentralisation by restoring the legislative powers to the Bombay and the Madras Provinces.

    India Council Act of 1892

    • Introduced indirect elections (nomination).
    • Enlarged the size of the legislative councils.
    • Enlarged the functions of the Legislative Councils and gave them the power of discussing the Budget and addressing questions to the Executive.

    Indian Councils Act of 1909

    • This Act is also known as the Morley- Minto Reforms.
    • Direct elections to legislative councils; first attempt at introducing a representative and popular element.
    • It changed the name of the Central Legislative Council to the Imperial Legislative Council.
    • The member of the Central Legislative Council was increased to 60 from 16.
    • Introduced a system of communal representation for Muslims by accepting the concept of ‘separate electorate’.
    • Indians for the first time in Viceroys executive council. (Satyendra Prasanna Sinha, as the law member)

    Government of India Act of 1919

    • This Act is also known as the Montague-Chelmsford Reforms.
    • The Central subjects were demarcated and separated from those of the Provincial subjects.
    • The scheme of dual governance, ‘Dyarchy’, was introduced in the Provincial subjects.
    • Under the dyarchy system, the provincial subjects were divided into two parts – transferred and reserved. On reserved subjects, Governor was not responsible to the Legislative council.
    • The Act introduced, for the first time, bicameralism at the center.
    • Legislative Assembly with 140 members and Legislative council with 60 members.
    • Direct elections.
    • The Act also required that the three of the six members of the Viceroy’s Executive Council (other than Commander-in-Chief) were to be Indians.
    • Provided for the establishment of the Public Service Commission.

    Government of India Act of 1935

    • The Act provided for the establishment of an All-India Federation consisting of the Provinces and the Princely States as units, though the envisaged federation never came into being.
    • Three Lists: The Act divided the powers between the Centre and the units into items of three lists, namely the Federal List, the Provincial List and the Concurrent List.
    • The Federal List for the Centre consisted of 59 items, the Provincial List for the provinces consisted of 54 items and the Concurrent List for both consisted of 36 items
    • The residuary powers were vested with the Governor-General.
    • The Act abolished the Dyarchy in the Provinces and introduced ‘Provincial Autonomy’.
    • It provided for the adoption of Dyarchy at the Centre.
    • Introduced bicameralism in 6 out of 11 Provinces.
    • These six Provinces were Assam, Bengal, Bombay, Bihar, Madras and the United Province.
    • Provided for the establishment of Federal Court.
    • Abolished the Council of India.

    Indian Independence Act of 1947

    • It declared India as an Independent and Sovereign State.
    • Established responsible Governments at both the Centre and the Provinces.
    • Designated the Viceroy India and the provincial Governors as the Constitutional (normal heads).
    • It assigned dual functions (Constituent and Legislative) to the Constituent Assembly and declared this dominion legislature as a sovereign body.

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