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  • What makes MSMEs, most vulnerable to Covid-19 disruptions?

    • The Covid-19 pandemic has left its impact on all sectors of the economy but nowhere is the hurt as much as the Medium, Small and Micro Enterprises (MSMEs) of India.
    • All anecdotal evidence available, such as the hundreds of thousands of stranded migrant workers across the country, suggests that MSMEs have been the worst casualty of lockdown.
    • A closer look at the anatomy of the MSME sector explains why MSMEs are so vulnerable to economic stress.

    Possible mains question:

    Q. Discuss how the nationwide lockdown to control the coronavirus outbreak has led to the resurfacing of inherent bottlenecks in India’s MSME Sector.

    What are MSMEs? How are they defined?

    • Formally, MSMEs are defined in terms of investment in plant and machinery.
    • But this criterion for the definition was long criticised because credible and precise details of investments were not easily available by authorities.
    • That is why in February 2018, the Union Cabinet decided to change the criterion to “annual turnover”, which was more in line with the imposition of GST.
    • According to the proposed definition, which is yet to be formally accepted, a micro-enterprise will be one with an annual turnover less than Rs 5 crore; a small enterprise with turnover between Rs 5 crore and Rs 75 crore; and a medium enterprise with turnover less than Rs 250 crore.

    How many MSMEs does India have, who owns them, and where are they situated?

    • According to the latest available (2018-19) Annual Report of Department of MSMEs, there are 6.34 crore MSMEs in the country.
    • Around 51 per cent of these are situated in rural India.
    • Together, they employ a little over 11 crore people (Chart 3) but 55 per cent of the employment happens in the urban MSMEs.
    • These numbers suggest that, on average, less than two people are employed per MSME.
    • At one level that gives a picture of how small these really are. But a breakup of all MSMEs into micro, small and medium categories is even more revealing.

    Distributions of MSMEs

    • In terms of geographical distribution, seven Indian states alone account for 50 per cent of all MSMEs.
    • These are Uttar Pradesh (14%), West Bengal (14%), Tamil Nadu (8%), Maharashtra (8%), Karnataka (6%), Bihar (5%) and Andhra Pradesh (5%).
    • This breakup provides a sense of where the pain of the MSME crisis would be felt the most.
    • Chart 4 shows, 99.5 per cent of all MSMEs fall in the micro category.
    • The medium and small enterprises — that is, the remaining 0.5% of all MSMEs — employ the remaining 5 crore-odd employees.
    • While micro-enterprises are equally distributed over rural and urban India, small and medium ones are predominantly in urban India.

    What kind of problems do MSMEs in India face?

    • No/Low Formal registration: To begin with, most of them are not registered anywhere. A big reason for this is that they are just too small. But, as it is clear in a time of crisis, it also constrains a government’s ability to help them.
    • Away from Tax norms: GST has its threshold and most micro enterprises do not qualify. Being out of the formal network, they do not have to maintain accounts, pay taxes or adhere to regulatory norms etc. This brings down their costs.
    • Lack of Financial buffer: According to a 2018 report by the International Finance Corporation (part of the World Bank), the formal banking system supplies less than one-third (or about Rs 11 lakh crore) of the credit MSME credit need that it can potentially fund (Chart 5). They don’t have the buffers of the bigger firms or access to cheap capital to help them tide over this period.

    • Bad credit history: The other big issue plaguing the sector is the delays in payments to MSMEs — be it from their buyers or things likes GST refunds etc. A key reason why banks dither from extending loans to MSMEs is the high ratio of bad loans (Chart 6).

    How has Covid-19 made things worse?

    • The MSMEs were already struggling — in terms of declining revenues and capacity utilization — in the lead-up to the Covid-19 crisis.
    • The total lockdown has raised a question mark on workers payment primarily because these firms mostly transact on cash. That explains the job losses.
    • According to a recent survey he did for “small and medium” firms in manufacturing, only 7% said they will be able to survive for more than three months with their cash in hand if their business remains closed.
    • A big hurdle to restarting now is the lack of labour availability.

    What can be done?

    • The RBI has been trying to pump money into the MSME sector but given the structural constraints, it has had limited impact.
    • There are no easy answers for the MSMEs’ sufferings.
    • However, the government can provide tax relief (GST and corporate tax), give swifter refunds, and provide liquidity to rural India (say, through PM-Kisan) to boost demand for MSME products.

    What about credit guarantees?

    • Loans to MSMEs are mostly given against property (as collateral) — because often there isn’t a robust cash flow analysis available — but in times of crisis, property values fall and that inhibits the extension of new loans.
    • A credit guarantee by the government helps as it assures the bank that its loan will be repaid by the government in case the MSME falters.
    • To the extent such defaults happen, credit guarantees are shown as a departmental expense in the Budget.

    Urgent attention required

    • Governments across the world have announced various measures ranging from wage support to direct subsidies to help these businesses tide over these difficult times.
    • But, in India, more than a month after the national lockdown was announced; there is still no blueprint of how the government intends to support these businesses during this period.

    Way forward

    • There is a strong case for urgent government intervention — the costs of intervening early on will be much less than the price of delayed action.
    • To begin with, all dues owned by governments and public sector undertakings to MSMEs can be immediately cleared. This will help ease their immediate cash flow woes.
    • Second, with banks turning risk-averse, credit flow to MSMEs is likely to be depressed as solvency concerns will dominate.
    • In such a situation, the government could step in. It could set up a credit guarantee fund that backstops loans to MSMEs.

  • What is Darbar Move?

    The Jammu and Kashmir High Court asked the Centre and the Union Territory (UT) administration to take a final call on the continuation of the 148-year-old practice Darbar Move i.e. shifting of capitals between Jammu and Srinagar.

    Possible mains question:

    Discuss the feasibility, benefits and constraints caused by multiple administrative capitals in Indian states with special context to Jammu and Kashmir and the state of Andhra Pradesh. (250W)

    Darbar Move

    • Darbar Move is the name given to the bi-annual shift of the secretariat and all other government offices of Jammu and Kashmir from one capital city to another.
    • From May to October, governmental offices are housed in the state’s summer capital, Srinagar, and the other six months in its winter capital, Jammu.
    • The tradition was started during Dogra rule in 1872 by Maharaja Ranbir Singh.
    • It involved shifting of the Maharaja’s government to Jammu to escape the harsh winters of the Kashmir Valley, which, in the 19th century, used to result in the Valley being cut off from outside the world.
    • It is advocated that the continuation of the practice helped in the emotional integration between two diverse linguistic and cultural regions of Jammu and Kashmir.

    A costly practice

    • Ahead of the Darbar Move, Srinagar usually receives a facelift every year. Over 10,000 employees shift capital annually.
    • Roads around and leading to the Civil Secretariat, the seat of the government, are being renovated now.
    • Besides, the government offices and quarters have been renovated and the streetlights restored.
    • Hundreds of trucks are usually plied to carry furniture, office files, computers, and other records to the capital.
    • Over the years, there have been voices raised against the century-old practice which involves heavy funding towards ensuring the smooth conduct of the move.

    Why scrap Darbar Move?

    • If this practice is rationalized, the amount of money, resources and time which could be saved, could be utilized towards the welfare and development of the Union Territory.
    • It could be utilized for the protection and propagation of culture and heritage of the communities.
    • No reason or justification at all is available for requiring the judiciary to shift with the ‘Darbar Move’. The same negatively impact justice dispensation and impedes judicial administration.

  • Vande Bharat and Samudra Setu Missions to repatriate Indian nationals

    India is all geared to operate flights and naval vessels to repatriate Indian nationals stranded abroad.

    The name Samudra Setu typically sound like a combatant naval exercise whereas Vande Bharat reminds us of Train-18. Both ideas have opposite context and meaning. One must keep this in mind.

    What is the ‘Vande Bharat Mission’ mission about?

    • ‘Vande Bharat Mission’ will see the operation of 64 flights from May 7 to May 13 to bring back around 15,000 Indian nationals stranded abroad.
    • Once completed, it may turn out to be the largest evacuation operation ever since the 1990 airlift of 1.7 lakh people from Kuwait.
    • Approximately, 2,000 people from abroad will fly back to India daily.

    What is Indian Navy’s ‘Operation Samudra Setu’?

    • The Indian Navy launched ‘Operation Samudra Setu’ (Sea Bridge) as a part of national effort to repatriate Indian citizens from overseas.
    • Indian Naval Ships Jalashwa and Magar are presently enroute to the port of Malè, Republic of Maldives to commence evacuation operations from 08 May 2020 as part of Phase-1.
    • INS Jalashwa is the largest amphibious platform in the Navy and is based at the Eastern Naval Command headquarters in Visakhapatnam.
    • It can normally accommodate 1,000 people but will take about 800.

  • [pib] Saras Collection on Government e-Marketplace

    The Union Ministry for Rural Development and Panchayati Raj and Agriculture and Farmers’ Welfare has launched “The Saras Collection” on the Government e-Marketplace (GeM) portal.

    Possible prelim question:

    ‘The Saras Collection’ recently seen in news is a:

    a) Subsidy on beekeeping and apiculture projects

    b) Indigenous light transport aircraft

    c) Database on wetland birds

    d) Collection of products made by SHGs

     The Saras Collection

    • It is a unique initiative by the GeM, Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM) and Ministry of Rural Development.
    • The collection showcases daily utility products made by rural Self-Help Groups (SHGs) and aims to provide SHGs in rural areas with market access to Central and State Government buyers.
    • The on-boarding of the SHGs has been initially piloted in the states of Bihar, Chhattisgarh, Jharkhand, Karnataka, Kerala, Himachal Pradesh, Maharashtra, Odisha, Rajasthan, Uttar Pradesh and West Bengal.
    • SHGs from all the states and Union Territories (UTs) will be covered rapidly in the upcoming phases.

    It’s functioning

    • For Functionaries: They will be provided dashboards at the national, state, district and block level for real-time information about the number of products uploaded, their value and volume of orders received and fulfilled.
    • Government buyers: They will be sensitized through system-generated messages/ alerts in the Marketplace about the availability of SHG products on the portal.

    Benefits offered

    • The Saras Collection will provide SHGs with direct access to Government buyers which will do away with intermediaries in the supply chain.
    • Thus it would ensure better prices for SHGs and spurring employment opportunities at the local level.

    Back2Basics: Government e-Marketplace

    • The GeM is a one-stop National Public Procurement Portal to facilitate online procurement of common use Goods & Services required by various Government Departments / Organizations / PSUs.
    • It was launched in 2016 to bring transparency and efficiency in the government buying process.
    • GEM aims to enhance transparency, efficiency and speed in public procurement.
    • It is a completely paperless, cashless and system driven e-marketplace that enables procurement of common use goods and services with minimal human interface.
    • It provides the tools of e-bidding, reverse e-auction and demand aggregation to facilitate the government users to achieve the best value for their money.
    • The purchases through GeM by Government users have been authorized and made mandatory by the Ministry of Finance by adding a new Rule No. 149 in the General Financial Rules, 2017.
    • It has been developed by Directorate General of Supplies and Disposals (Ministry of Commerce and Industry) with technical support of National e-governance Division (MEITy).

  • ‘The Long March 5B’ rocket

    China has successfully launched a new rocket and prototype spacecraft in a major test of the country’s ambitions to operate a permanent space station and send astronauts to the Moon.

    Can you recall the historical link between the name “The Long March” and China’s History.

    The Long March 5B

    • Long March 5 or Chang Zheng 5 is a Chinese heavy-lift launch system developed by the China Academy of Launch Vehicle Technology (CALT).
    • It is the first Chinese launch vehicle designed from the ground up to focus on non-hypergolic liquid rocket propellants.
    • The maximum payload capacities of the base variant are ~25,000 kilograms to Low Earth Orbit and ~14,000 kilograms to Geosynchronous Transfer Orbit.
    • The spaceship is expected to transport astronauts to a space station that China plans to complete by 2022 — and eventually to the Moon. It will have a capacity for a crew of six.

    Back2Basics: Geosynchronous Transfer Orbit

     

    • About 35,786 kilometers above the Earth’s surface, satellites are in geostationary orbit. From the center of the Earth, this is approximately 42,164 kilometers. This distance puts it in the high Earth orbit category.
    • At any inclination, a geosynchronous orbit synchronizes with the rotation of the Earth.
    • While geosynchronous satellites can have any inclination, the key difference to geostationary orbit is the fact that they lie on the same plane as the equator.
    • GTO is a an elliptical orbit used to transfer between two circular orbits of different radiuses in the same plane—used to reach geosynchronous or  geostationary orbit using high-thrust chemical engines.

  • What is Cinco de Mayo and why is it celebrated?

    Cinco de Mayo, or fifth of May in Spanish, also called Battle of Puebla Day, is an annual celebration observed in Mexico and the US that marks the former’s military victory on its soil over French forces in 1862.

    Possible mains question:

    Q. The French colonization attempts went beyond India and had a global reach. Comment.

    French advent in Mexico

    • In the 1860s, Mexico had been severely weakened by lengthy wars over the previous two decades – the Mexican-American War (1846-48) and the internal Reform War (1858-61).
    • As a result, in 1861, the then President Benito Juárez announced a temporary moratorium of two years on repaying Mexico’s foreign debts.
    • In response, troops from Britain, Spain, and France invaded Mexico, demanding reimbursement.
    • By April 1862, Britain and Spain negotiated with Mexico and withdrew.
    • France, which at the time was led by Emperor Napoleon III, decided to establish an empire in Mexican territories with the support of the local landowning classes.
    • France also intended to curb US power in North America.

    The Battle of Puebla

    • In late 1861, a French fleet attacked the Mexican port of Veracruz on the country’s eastern coast and landed a large army that drove the Juárez government into retreat.
    • As they moved from Veracruz to capital Mexico City, the French encountered stiff resistance from Mexican forces.
    • At Puebla, over 100 km ahead of Mexico City, a poorly equipped and outnumbered Mexican force decisively defeated the advancing French troops on May 5, 1862, killing over a thousand.
    • The event marked a significant political victory of Mexican republicans and President Juárez and helped establish a sense of national unity in the country.

    Cinco de Mayo: Present-day significance

    • In Puebla, Cinco de Mayo is celebrated annually with speeches, parades, and by reenacting episodes of the 1862 battle.
    • The city today houses a museum dedicated to the battle, and the actual battlefield is maintained as a park.
    • In the US, in the mid-20th century, the celebration became a way for immigrants from Mexico to express pride in their heritage.
    • Later, Cinco de Mayo also became popular with other demographics in the country when the festivities were linked with Mexican alcoholic beverages.
    • As the celebration assumed greater importance in the country, many have criticised the negative stereotypes of Mexicans that were perpetuated as a result, as well as the promotion of excessive drinking.

  • [Prelims Spotlight] Important Schemes regarding Agriculture & Allied Sectors

    Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.

    Important Schemes regarding Agriculture & Allied Sectors

    06 May 2020

    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 RASHTRIYA KRISHI VIKAS YOJANA – RAFTAAR (RKVY-RAFTAAR)

    Objective

    ● To make farming a remunerative economic activity through strengthening the farmer’s efforts, risk mitigation and promoting
    agribusiness entrepreneurship.
    ● To attend national priorities through several sub-schemes.
    ● To empower youth through skill development, innovation and agri entrepreneurship based business models.

    Salient features 

    ● RKVY, initiated in 2007 as an umbrella scheme for holistic development of agriculture and allied sectors, has been recently revamped as
    RKVY-RAFTAAR – Remunerative Approaches for Agriculture and Allied sector Rejuvenation for 2017-19 and 2019-20.
    ● It provided states with considerable flexibility and autonomy for planning and executing Programs.
    ● The decentralised planning for agriculture and allied sectors is initiated by the states through District Agriculture Plan and State Agriculture
    Plan based on agro-climatic conditions, availability of appropriate technology and natural priorities.
    ● It will incentivize states to increase allocations for agriculture and allied sectors and help in creation of post-harvest infrastructure and
    promotion of private investment in the farm sector across the country.
    ● Fund Allocation – 60:40 grants between Centre
    and States in states and 90:10 for North Eastern States and Himalayan States through following streams – o Infrastructure & Assets and Production Growth o RKVY-RAFTAAR special sub-schemes of National Priorities o Innovation
    and agri-entrepreneur development.

    Sub-schemes include

    ● Bringing Green Revolution to Eastern India
    ● Crop Diversification Program – It is being implemented in the Original Green Revolution States of Punjab, Haryana and Western Uttar Pradesh to diversify area from water-guzzling crop
    ● Reclamation of Problem Soil ● Foot & Mouth Disease – Control Program
    (FMD-CP)
    ● Saffron Mission
    ● Accelerated Fodder Development Programme (AFDP)

    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 National Horticulture Mission

    1. To provide holistic growth of the horticulture sector through an area based regionally differentiated strategies, to enhance horticulture production, improve nutritional security and income support to farm households
    2. To establish convergence and synergy among multiple ongoing and planned programmes for horticulture development
    3. To promote, develop and disseminate technologies, through a seamless blend of traditional wisdom and modern scientific knowledge
    4. To create opportunities for employment generation for skilled and unskilled persons, especially unemployed youth.

    Scheme:

    A National Horticulture Mission was launched in 2005-06 as a Centrally Sponsored Scheme to promote holistic growth of the horticulture sector
    through an area based regionally differentiated strategies. The scheme has been subsumed as a part of Mission for Integration Development of
    Horticulture (MIDH) during 2014-15.

    What is the National Horticulture Mission?

    The National Horticulture Mission is a government mission to support horticultural production in the country. NHM is a Centrally Sponsored Scheme in which the Government of India contributes 85%, and 15% is met by the State Governments.

    Factual Information:

    ● India ranks second in the global production of fruits and vegetables next to China.
    ● Started in 2005-06.

    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 KRISHI VIGYAN KENDRAS

    Objective
    ● To be a frontline extension in agriculture, and to serve as a single window mechanism for addressing the technology needs of farmers
    ● To demonstrate location specific technologies and build capacity of farmers
    ● To serve as links between research and extension and also with farmers
    Intended beneficiary
    ● Rural youth, farm women and Farmers (skill development training)
    Salient features
    ● Indian Council of Agricultural Research (ICAR)has created a network of 645 Krishi Vigyan Kendras (KVKs) in the country and 106 more
    KVKs will be established.
    ● Directorate of Extension in State Agriculture Universities also helps KVKs in its activities.
    ● KVKs lay strong emphasis on skill development training of rural youth, farm women and farmers
    ● Provide latest technological inputs like seeds,planting materials and bio-products.
    ● Advise farmers on timely crop/enterprise related recommendations, including climate resilient technologies.
    ● Diagnose and solve problems emerging from district agro-ecosystems and lead in adoption of innovations.

    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 :-

    i. Mission for Integrated Development of Horticulture (MIDH)
    ii. National Food Security Mission (NFSM)
    iii. National Mission for Sustainable Agriculture (NMSA)
    iv. Submission on Agriculture Extension (SMAE)
    v. Sub-Mission on Seeds and Planting Material (SMSP)
    vi. Sub-Mission on Agricultural Mechanisation (SMAM)
    vii. Sub Mission on Plant Protection and Plan Quarantine (SMPPQ)
    viii. Integrated Scheme on Agriculture Census, Economics and Statistics (ISACES)
    ix. Integrated Scheme on Agricultural Cooperation (ISAC)
    x. Integrated Scheme on Agricultural Marketing (ISAM)
    xi. 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

  • Should we do away with the MPLADS?

    Since its inception in 1993, MPLADS has continued uninterrupted for 27 years. But COVID-19 came as a roadblock for MPLADS. Recently, it was suspended by the government for two years. As expected it led to huge political drama. However, as an aspirant, it is our duty to cut the drama out and focus on issues that matter. This article discusses MPLADS and argues for its abolition owing to various issues associated with it.

    Reason for suspension of MPLADS

    • The government suspended the scheme to strengthen the government’s efforts in managing the challenges and adverse impact of COVID-19 in the country.
    • It has been suspended for two years.
    • BTW scheme in short: Each MP has the choice to suggest to the District Collector for works to the tune of ₹5 crores per annum to be taken up in his/her constituency.

    Why should MPLADS be abolished?

    1. It goes against the spirit of the Constitution

    • The scheme violates one of the cardinal principles: separation of powers.
    • Simply put, this scheme, in effect, gives an executive function to legislators or the legislature.
    • The argument that MPs only recommend projects, but the final choice and implementation rest with the district authorities is unfounded.
    • There are hardly any authorities in the district who have the courage to defy the wishes of an MP.

    2. Lacunae in implementation

    • Consider some of the observations made by the Comptroller and Auditor General (CAG) of India:
    • Expenditure incurred by the executing agencies being less than the amount booked.
    • Utilisation of funds between 49 to 90% of the booked amount.
    • The scheme envisages that works under the scheme should be limited to asset creation, but 78% of the works recommended were for improvement of existing assets.
    • Wide variations in quantities executed against the quantities specified in the BOQ (Bills of Quantity) in 137 of the 707 works test-checked. Variations ranged from 16 to 2312%.
    • Use of lesser quantities of material than specified by contractors resulting in excess payments and sub-standard works.
    • Delays in issuing work orders ranging from 5 to 387 days in 57% of the works against the requirement of issuing the work order within 45 days.
    • Extensions of time granted to contractors without following the correct procedure.
    • Register of assets created, as required under the scheme, not maintained, therefore location and existence of assets could not be verified.

    3. Wide variation in utilisation of MPLADS funds

    • A report published in IndiaSpend has some very interesting insights based on data made available to it by the Ministry of Statistics and Programme Implementation.
    • A year after they took office, 298 of 543 members of the 16th Lok Sabha— have not spent a rupee from the ₹5 crore.
    • Though ₹1,757 crore had been released for MPLADs, only ₹281 crore had been utilised by all the 543 MPs till May 15, 2015.
    • This means only 16% of the money had been spent in one year by all the MPs put together, because the Lok Sabha was constituted in May 2014.
    • Since the MPLADS began in 1993, ₹5,000 crore was lying unspent with various district authorities by May 15, 2015.
    • It is clear from the details above, as well as later experience, that most MPs use money under MPLADS quite haphazardly, and a significant portion of it is left unspent.

    4. Misuse of the money under MPLADS

    • There is widespread talk of money under MPLADS being used to appease or oblige two sets of people: opinion-makers or opinion-influencers, and favourite contractors.
    • There have been cases of the contractor and the MP being financially linked with each other.

    5. Legality issue

    • The constitutional validity of MPLADS was challenged in the Supreme Court of India in 1999, followed by petitions in 2000, 2003, 2004, and 2005.
    • The combined judgment for all these petitions was delivered on May 6, 2010, with the scheme being held to be constitutional.
    • The SC seems to have placed an unquestioned trust in the efficacy of the scheme of implementation of MPLADS drawn up by the government without an assessment of the situation prevalent in the field.
    • The court should pay more attention to its skewed implementation, evidence of which is available in audit reports.

    Contrast and compare the provision of MPLADS with the Saansad Adarsh Gram Yojana. A direct question on the MPLADS could be asked by the UPSC, for instance, consider this question-“There has been the debate around the MPLADS. Discuss the issues involved in the MPLADS.”

    Conclusion

    Reports of underutilisation and misutilisation of MPLADS funds continue to surface at regular intervals but there seems to have been no serious attempt to do anything about it till now. Some concrete decisions on the future of the scheme is now inevitable.

     Back2Basics: What is MPLADS?

    • MPLAD is a central government scheme, under which MPs can recommend development programmes involving the spending of Rs 5 crore every year in their respective constituencies.
    • MPs from both Lok Sabha and Rajya Sabha, including nominated ones, can do so.
    • MPs do not receive any money under these schemes.
    • The government transfers it directly to the respective local authorities.
    • The legislators can only recommend works in their constituencies based on a set of guidelines.
    • For the MPLAD Scheme, the guidelines focus on the creation of durable community assets like roads, school buildings etc.
    • Recommendations for non-durable assets can be made only under limited circumstances.

    For example, last month, the government allowed the use of MPLAD funds for the purchase of personal protection equipment, coronavirus testing kits etc.

     

     

  • Environmental regulations: go or no go?

    As the world struggles to restart the economic activities amid the pandemic, various strategies are being advised to salvage the damaged economies. One amongst them is to cut down on the environmental standards to spur the economic activities. This article explains why India should not be short-sighted to lower the environmental standards.

    What is this fuss about environment and lockdown?

    • The lockdown exit strategies are focused on saving livelihoods.

    • But the lockdown is causing fiscal pressures on governments which further motivates it to lower the environmental standards, suspend environmental monitoring requirements and reduce environmental enforcement. (Well to save some bucks.)

    • And also in the belief that this is necessary to secure economic growth.

    • But it would be a mistake to assume that there is a trade-off between saving livelihoods and protecting the environment.

    • The crisis of COVID-19 has highlighted that improving the quality of air in our country is not a matter of choice but an emergency.

    How countries around the world are reacting?

    • The US announced a significant reduction in fuel efficiency standards for new cars.

    • This move could result in increased gasoline consumption by 80 billion tonnes, pumping increased carbon emissions into the atmosphere.

    • The US Environmental Protection Agency has announced that it will not be enforcing compliance with routine monitoring and reporting obligations of environmental protection, for an indefinite period.

    • 13 European ministers have been outspoken about resisting the temptations of short-term solutions in response to the present crisis- need to maintain and strengthen EU’s effective regulatory tools to stick to its 2030 climate goals.

    5 Arguments that Indian authorities that look into viz a viz environmental standards

    1. Pollution increases risk to COVID-19

    • People living in areas with higher levels of air pollution face increased risk of premature death from COVID-19.

    • New Delhi was the world’s most polluted capital city for the second straight year in 2019.

    • And India was also home to 21 of the world’s 30 most polluted cities, Swiss-based group IQ AirVisual said in a recent study.

    • The State of Global Air 2019 Report finds air pollution responsible for over 1.2 million deaths in China and India each, based on 2017 data.

    2. The poor are the most affected by air pollution

    • There is enormous inequality in the impact of the COVID-19 fallout.

    • Those who suffer the most from air pollution are the millions who live and toil in the open, who cannot afford air-purifiers or other mitigating measures, as also the elderly and children.

    3. Risk of future pandemics

    • There is good evidence that three-quarters of the emerging infectious diseases migrate from wild or domesticated animals into humans.

    • This includes Ebola, SARS, MERS and now COVID-19.

    • Deforestation, industrial agriculture, illegal wildlife trade, climate change and other types of environmental degradation increase the risk of future pandemics.

    4. Public support for environment protection

    • From Delhi to Sao Paulo, Bangkok to Bogota, the dramatic improvement in the quality of air and water in the most polluted cities around the world has been transmitted by social media.

    • This may well result in a groundswell of public support for measures to protect the environment.

    5. The environment will get the value it deserves

    • The corona pandemic will jolt the markets into giving a clean, healthy and sustainable environment the economic value it deserves.

    • There’s a possibility that the gulf between what markets value, and what people value, will close.

    Environment conservation as a silver lining in this Pandemic

    • We have never treated air pollution as a national emergency, failing to coordinate between the Centre and state governments.

    • The COVID pandemic has been declared a national disaster in India, under the National Disaster Management Act, 2005.

    • This legislation mandates the disaster authorities coordinate among themselves and take measures for the prevention and mitigation of the pandemic.

    • Preventing and mitigating the risks of COVID-19, therefore, means the mandate for the disaster authorities is also to tackle air and other forms of pollution head-on.

    Questions based on disasters have been a recurring theme in the UPSC. In 2014, a question was asked with respect to drought, the same could be asked about air pollution. In 2017 again a question based on role of NDMA and tsunami was aksed. In 2018, a question based on Sendai Framework was asked.

     

    Conclusion

    The NDMA is a platform which should be used to combat air pollution as an emergency, similar coordination will be required at an international level to continue to work towards reduced emissions under the Paris Agreement. It is a great pity that it takes a pandemic to bring the realisation that economic growth versus clean air is a false dichotomy.

    Back2Basics: NDMA

    • On 23 December 2005, the Government of India enacted the Disaster Management Act, which envisaged the creation of the National Disaster Management Authority (NDMA).
    • It is headed by the Prime Minister, and State Disaster Management Authorities (SDMAs) headed by respective Chief Ministers.
    • It aims to spearhead and implement a holistic and integrated approach to Disaster Management in India.

  • FCI to the rescue

    FCI, indeed, has remained a crucial topic from the examination viewpoint. Mostly it is highlighted for its issues, corruption and wastages in the godowns. Be it MS Swaminathan or the latest Shanta Kumar committee all focus on how to revamp this giant institution. This article, however, points to the relevance of the FCI in the times of pandemic and suggests areas where there is scope for improvement in fulfilling its role. Stay tuned to find out what are the major concerns with FCI which needs consideration by the government.

    A background check on FCI

    • The FCI was set up under the Food Corporations Act 1964.

    •  In its first decade, FCI was at the forefront of India’s quest of self-sufficiency in rice and wheat following the Green Revolution.

    • Its functions involved managing procurement and stocking grain that supported a vast Public Distribution System (PDS).

    • Over time it became a behemoth that had long outlived its purpose and Its operations were regarded as expensive and inefficient.

    • Even in the 1970s and 1980s, poor storage conditions meant a lot of grain was lost to pests, mainly rats; diversion of grain was widespread.

    What role can FCI play amid Covid-19?

    • The FCI has consistently maintained the PDS, a lifeline for vulnerable millions across the country.

    • In the middle of the COVID-19 pandemic, it can play a major role in avoiding hunger and starvation.

    • Before the lockdown, with 77 million tonnes of grains in its godowns, the FCI was facing a serious storage problem.

    • This was worrying not just because of a shortage of modern storage facilities but also because the FCI lacked a “pro-active liquidation policy” for excess stocks.

    • Post-COVID: FCI has opened up the godowns to release food stocks to those affected by the lockdown.

    • The FCI has also enabled purchases by States and non-governmental organisations directly from FCI depots, doing away with e-auctions typically conducted for the Open Market Sale Scheme (OMSS).

    • With rabi procurement underway in many States, it seems that the country will secure ample food supplies to cope with the current crisis.

    • Given the extended lockdown, the FCI is uniquely positioned to move grain across State borders where private sector players continue to face formidable challenges of transport.

    5 suggestions for the FCI to perform better

    1. Using roads along with rails:

    • The FCI is overwhelmingly reliant on rail, which has several advantages over road transport.

    • In 2019-2020 (until February) only 24% of the grain moved was by road.

    • The FCI has long recognised that road movement is often better suited for emergencies and for remote areas.

    • Containerised movement too, which is not the dominant way of transporting grain, is more cost-effective and efficient.

    • Now, more than ever, it is imperative to move grain quickly and with the least cost and effort, to areas where the need is greatest.

    2. Store grain near demand hotspot

    • The FCI already has a decentralised network of godowns.

    • In the current context, it would be useful for the State government and the FCI to maintain stocks at block headquarters or panchayats in food insecure or remote areas.

    • This would allow State governments to respond rapidly.

    •  It will also provide a sense of assurance and psychological comfort to vulnerable communities.

    • This is especially relevant for regions that are chronically underserved by markets or where markets have been severely disrupted.

    3. Release stocks over and above existing allocation

    • The central government need to look beyond the PDS and the Pradhan Mantri Garib Kalyan Yojana and release stocks over and above existing allocations.

    • This would provide flexibility to local governments to access grains for appropriate interventions at short notice and to sell grain locally at pre-specified prices until supply is restored.

    • This would allow the state government to engage in feeding programmes, free distribution to vulnerable and marginalised sections, those who are excluded from the PDS, etc.

    • In many States, there is a vibrant network of self-help groups formed under the National Rural Livelihoods Mission (NRLM) which can be tasked with last mile distribution of food aid other than the PDS.

    • Consultative committees presumably exist already in each State to coordinate with the FCI on such arrangements.

    4. Suspend FIFO principle

    • Typically, the FCI’s guidelines follow a first in, first out principle (FIFO).

    • FIFO mandates that grain that has been procured earlier needs to be distributed first to ensure that older stocks are liquidated, both across years and even within a particular year.

    • It is time for the FCI to suspend this strategy, that enables movement that costs least time, money and effort.

    5. Support the farmers trying to reach out to consumers directly

    • In many places, farmer producer organisations (FPOs) have been at the forefront of rebuilding these broken supply chains.

    • The FCI along with the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED), is well placed to rope in expertise to manage the logistics to support these efforts.

    • NAFED has already taken the initiative to procure and transport horticultural crops.

    • The FCI should similarly consider expanding its role to support FPOs and farmer groups, to move a wider range of commodities including agricultural inputs such as seeds and fertilizers, packing materials and so on.

    Major concerns regarding FCI’s role

    • Cost of food subsidy: The first is a long-term concern regarding the costs of food subsidy.

    • An analysis of FCI costs spanning 2001-16 suggests that on average about 60% of the costs of acquisition, procurement, distribution and carrying stocks are in fact transfers to farmers.

    • Not all of what is counted as subsidy therefore represents a waste of resources.

    • The government needs to address the FCI’s mounting debts — an estimated ₹2.55 lakh crore in March 2020 in the form of National Small Saving Funds Loan alone.

    • Depressing food prices: A second concern is that extended food distribution of subsidised grain is akin to dumping and depresses food prices locally.

    • The depressed prices, in turn, affect farmers.

    The Covid-19 pandemic has brought into sharp focus the relevance of the FCI. This makes PDS and Food security in prelims as well as in mains examination focus area. So, questions based on the topic are likely to be asked by the UPSC, for ex- “The FCI’s role in providing succour has been proved many times in the past and it lived up to its reputation amid Covid-19 pandemic as well. In the light of the above statement, discuss the relevance of the FCI and suggest the ways to improve its performance in the times of disasters”

    Also consider a question asked by the UPSC in 2019, “What are the reformative steps taken by the Government to make the food grain distribution system more effective?”

    Conclusion

    In 2015, the Shanta Kumar report recommended repurposing the organisation as an “agency for innovations in Food Management System” and advocated shedding its dominant role in the procurement and distribution of grain. There is no doubt that the FCI needs to overhaul its operations and modernise its storage. At the same time, the relevance of an organisation such as the FCI or of public stockholding, common to most Asian countries, has never been more strongly established than now.

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