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  • Highlights of the Seoul Forest Declaration

    The participants from 141 countries gathered in person and online at the 15th World Forestry Congress in Seoul, Republic of Korea adopted the Seoul Forest Declaration.

    Seoul Forest Declaration

    • Shared responsibility: The Declaration urges that responsibility for forests should be shared and integrated across institutions, sectors and stakeholders.
    • Increased investment: Investment in forest and landscape restoration globally needs to triple by 2030 to meet internationally agreed commitments and targets on restoring degraded land.
    • Moving towards circular economy: One of the key takeaways was the importance of moving towards a circular bioeconomy and climate neutrality.
    • Innovative green financing mechanisms: To upscale investment in forest conservation, restoration and sustainable use, and highlighted the potential of sustainably produced wood as a renewable, recyclable and versatile material.
    • Decision-making: It urged the continued development and use of emerging innovative technologies and mechanisms to enable evidence-based forest and landscape decision-making.

    Other takeaways

    • Close cooperation among nations is needed to address challenges that transcend political boundaries.
    • This was strengthened at the Congress by the launch of new partnerships such as the:
    1. Assuring the Future of Forests with Integrated Risk Management (AFFIRM) Mechanism and
    2. Sustaining an Abundance of Forest Ecosystems (SAFE) Initiative

    Back2Basics: World Forestry Congress

    • The first World Forestry Congress first held in Rome in 1926. After that, it is held about every six years by the UN-FAO.
    • In 1954, FAO was entrusted with supporting Congress preparations in close cooperation with the host country and proudly continues to do so today. .
    • It has been providing a forum for inclusive discussion on the key challenges and way forward for the forestry sector.

     

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  • What are Urban Heat Islands?

    Several parts of the country are reeling under heat wave conditions. Cities, especially, are a lot hotter than rural areas. This is due to a phenomenon called an “urban heat island”.

    Urban Heat Island

    • An urban heat island is a local and temporary phenomenon experienced when certain pockets within a city experience higher heat load than surrounding or neighbouring areas on the same day.
    • The variations are mainly due to heat remaining trapped within locations that often resemble concrete jungles.
    • The temperature variation can range between 3 to 5 degrees Celsius.

    Why are cities hotter than rural areas?

    • Green cover: Rural areas have relatively larger green cover in the form of plantations, farmlands, forests and trees as compared to urban spaces.
    • Transpiration: Transpiration is a natural way of heat regulation. This is the scientific process of roots absorbing water from the soil, storing it in the leaves and stems of plants, before processing it and releasing it in the form of water vapour.
    • Heat-regulation: Urban areas are often developed with high-rise buildings, roads, parking spaces, pavements and transit routes for public transport. As a result, heat regulation is either completely absent or man-made.
    • Construction: Cities usually have buildings constructed with glass, bricks, cement and concrete all of which are dark-coloured materials, meaning they attract and absorb higher heat content.

    This forms temporary islands within cities where the heat remains trapped.

    How can urban heat islands be reduced?

    • The main way to cut heat load within urban areas is increasing the green cover; filling open spaces with trees and plants.
    • Other ways of heat mitigation include appropriate choice of construction materials, promoting terrace and kitchen gardens, and painting white or light colours on terraces wherever possible to reflect heat.

    What has NASA said on urban heat islands in India?

    • NASA recently pointed out heat islands in urban parts of Delhi, where temperatures were far higher than nearby agricultural lands.
    • It used its Ecosystem Spaceborne Thermal Radiometer Experiment (Ecostress) on the International Space Station.

     

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  • Buddhist heritage in Gujarat

    Prime Minister in Lumbini, on the occasion of Buddha Purnima, said that his birthplace Vadnagar in Gujarat’s Mehsana district had been a great centre for Buddhist learning centuries ago.

    Vadnagar’s ties with Buddhism

    • In 2014, the excavation work has brought up Buddhist relics and around 20,000 artefacts, some dating back to the 2nd century.
    • Among these are an elliptical structure and a circular stupa along with a square memorial stupa of 2×2 metres and 130 centimetres in height with a wall enclosure.
    • It is like a platform which has a chamber in the centre that resembles a pradakshina path.
    • Further, bowls said to be used by monks have been found during the excavations, which have a terracotta sealing with inscriptions of namassarvagyaya and a face-shaped pendant with tritatva symbol.
    • Sacred relics of the Buddha were even found in Devni Mori in Aravalli district of Gujarat.

    In travellers record

    • Vadnagar is mentioned often in the Puranas and even in the travelogue of the great Chinese traveler, Hiuen Tsang (7th century), as a rich and flourishing town.
    • He is believed to have visited the state in 641 AD.
    • It adds how some of the names attributed to Vadnagar in history are Chamatkarpur, Anandpur, Snehpur and Vimalpur.
    • It also had snippets about other Buddhist heritage sites in Gujarat, such as Junagadh, Kutch and Bharuch.

    Back2Basics: Places associated with Buddha

    These are three of the few holiest sites in Buddhism:

    1. Bodh Gaya in Bihar, the site of the enlightenment of Gautama Buddha under a tree and top site in the list of world heritage sites in India.
    2. Kesaria stupa is a Buddhist stupa in Kesariya, located at a distance of 110 kilometres (68 mi) from Patna, in the Champaran (east) district of Bihar, India. The first construction of the Stupa is dated to the 3rd century BCE. Kesariya Stupa has a circumference of almost 400 feet (120 m) and raises to a height of about 104 feet (32 m).
    3. Nalanda was a renowned Buddhist University in the ancient kingdom of Magadha (modern-day Bihar) in India.Buddhist texts describe it as a Mahavihara, a revered Buddhist monastery.
    4. Sarnath near Varanasi in Uttar Pradesh, the site of the first sermon (Dhammacakkappavattana Sutta), where Buddha taught about the Middle Way, the Four Noble Truths and Noble Eightfold Path.
    5. Kushinagar in Uttar Pradesh, the site of the Buddha’s parinirvana and home of many famous meditation & prayer offering sites in India.

     

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  • 18th May 2022 | Prelims Daily with Previous Year Questions

    [WpProQuiz 1009]

    [WpProQuiz_toplist 1009]

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  • Imp: Prelims 2022 || Must Read Locations for Prelims 2022 Part-I

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    1. Assam-Meghalaya border dispute partially resolved:

    With the signing of a “historic agreement”, Assam and Meghalaya have partially resolved a 50-yearold border dispute in six of the 12 sectors along
    their 885-km boundary.


    About the Dispute
    • Meghalaya was carved out of Assam as a separate state in 1972 but the new state had challenged the Assam Reorganisation Act, 1971, leading to dispute in 12 locations in the border areas.
    • These include the areas of Upper Tarabari, Gazang reserve forest, Hahim, Langpih, Borduar, Boklapara, Nongwah, Matamur, Khanapara-Pilangkata, Deshdemoreah Block I and Block II, Khanduli and Retacherra.
    • A major point of contention between Assam and Meghalaya is the district of Langpih in West Garo Hills bordering the Kamrup district of Assam.
    • Langpih was part of the Kamrup district of Assam during the British colonial period but after India’s Independence in 1947; it became part of the Garo Hills and Meghalaya.
    • Another point of contention is the Mikir Hills, which Assam considers to be its part.
    • Meghalaya has questioned Blocks I and II of the Mikir Hills, now Karbi Anglong region, being part of Assam.

    2. India’s 1st E-waste Park to be in Delhi: The Delhi government will build India’s first electronic waste eco-park in the national capital.


    • The e-waste eco-park will consist of an authorized refurbishing market as a secondary product sale market for batteries, electronic goods, laptops, chargers, mobiles and PCs.
    • This facility will consist of dismantling, refurbishing, segregation, plastic recycling, material wise storage, and testing, and precious metal extraction facilities, from Printed Circuit Boards (PCBs) through high-end technologies.
    • There will be end-to-end processing of e-waste and zero landfill will be ensured.
    • It will provide integrated and environmentally-safe disposal of e-waste, using innovative technologies.

    3. Konark is going to be the first model town in Odisha: Konark is going to be the first model town in Odisha to shift from grid dependency to green energy. The Odisha government has planned to run the Sun Temple completely on solar energy.

    About Konark Sun Temple
    •The Sun Temple built in the thirteenth century was conceived as a gigantic chariot of Sun God, with twelve pairs of exquisitely ornamented wheels pulled by seven pairs of horses at Konark on the coastline of Odisha, India.
    •“Konarka” , the place bears a name composed of two World elements: Kona meaning corner and ARKA meaning the Sun.
    •The Sun god worshiped in Ark Kshetra is also called Konark.
    •The temple is attributed to king Narasimhadeva I of the Eastern Ganga Dynasty about 1250 CE.
    •It is dedicated to the Hindu Sun God Surya.
    •This temple was called the “Black Pagoda” in European sailor accounts.
    •It forms part of the golden triangle of Odisha, along with Puri and
    Bhubaneswar, and attracts tourists, pilgrims, and history and art lovers.
    • The Sun Temple, Konârak is protected under the National Framework of India by the Ancient Monuments and Archaeological Sites and Remains (AMASR) Act (1958) and its Rules (1959).

    4. Seagrass protection project underway along AP coast: The Centre has initiated a project across the states of Andhra Pradesh,
    Maharashtra, and Odisha on enhancing climate resilience of India’s
    coastal communities by protecting and restoring India’s natural
    ecosystems such as mangroves and seagrasses.

    About the Programme
    • The project had been undertaken at a total cost of US $130.269
    million (around Rs 1,000 crore) which includes a grant of US
    $43.419 million by Global Climate Fund (GCF) covering 24
    ecosystems in these selected states.
    • It aims to strengthen the climate resilience of coastal communities by
    protecting and restoring India’s natural ecosystems such as
    mangroves and seagrasses.
    • Under the programme, study of seagrasses along the coastlines is
    prominent.
    • Andhra Pradesh coast is an area of major study in the programme.

    5. Chamba district of Himachal Pradesh becomes 100th ‘Har
    Ghar Jal’ District    : Jal Jeevan Mission has achieved the significant milestone of
    providing tap water to every home of 100 districts across the country.

    About Jal Jeevan Mission
    •Jal Jeevan Mission is a central government initiative under the Ministry of Jal Shakti.
    •It aims to ensure access to piped water for every household in India.
    •The mission’s goal is to provide to all households in rural India safe and adequate water through individual household tap connections by 2024.

    6. Himachal Pradesh gets 1st Biodiversity Park at
    Mandi    : Recently, Himachal Pradesh got the first biodiversity park to make its contribution towards the conservation of endangered Himalayan herbs.

    What are Biodiversity parks?
    •Biodiversity is the variety of plant and animal life in the world or in a particular habitat.
    •Biodiversity is measured by two major components: species richness, and species evenness.
    •Biological diversity is a precious resource intended for the continued existence of mankind, and hence, conserving biodiversity is concerned with restoring the equilibrium between humans & the atmosphere.

    7. Atal Tunnel makes it to World Book of Records: Recently, Atal Tunnel has officially been certified by the World Book of Records as the ‘World’s Longest Highway Tunnel above 10,000 Feet’, during a landmark ceremony in New Delhi.

    8. Chauri Chaura Incident: Recently, 100 years have passed since the Chauri Chaura incident which took place on February 4, 1922 at Chauri Chaura in the Gorakhpur district of British India.

    About ‘Chauri Chaura’ Incident
    • The incident took place on 4 February 1922 at Chauri Chaura in the Gorakhpur district of the United Province.
    • A large group of protesters participating in the Non-Cooperation Movement clashed with police who opened fire.
    • In retaliation the demonstrators attacked and set fire to a police station, killing all of its occupants.
    • The incident led to the death of three civilians and 22 policemen.
    • Mahatma Gandhi, who was strictly against violence, halted the non-co-operation movement on the national level on 12 February 1922, as a direct result of this incident.

    09. Sathyamangalam Tiger Reserve bags TX2 award: Sathyamangalam Tiger Reserve (Erode district, Tamil Nadu) has been given the prestigious TX2 award after its tiger numbers doubled to 80 since 2010.

    About STR
    • Sathyamangalam Wildlife Sanctuary and Tiger Reserve is a protected area and tiger reserve along the Western Ghats in the Erode District of Tamil Nadu.
    • First declared as a wildlife sanctuary in 2008 and enlarged in 2011, it covers a forest area of 1,411.6 km2 (545.0 sq mi) and is the largest wildlife sanctuary in Tamil Nadu.
    • In 2013, it became the fourth tiger reserve as a part of Project Tiger in the state of Tamil Nadu.

    10. : Adi Shankaracharya’s birthplace to become A National Monument:

    About Adi Shankaracharya
    •Adi Shankaracharya was born in Kalady in Kerala in 788 C.E and disappeared in the year 820 C.E at the young age of 32.
    •He was an exceptional child as Adi Shankara had become fluent in Sanskrit by the age of two. By four, he was comfortably reciting scriptures including Vedas.
    •The burning quest for attaining superior knowledge from an early age pushed Adi Shankara to leave his home and set on the search for a guru.
    •His quest ended with Govid Bhagvatpad at Omkareshwar (Madhya Pradesh) on the bank of Narmada river.
    •Adi Shankaracharya championed the Advait branch of philosophy that declared that god and humans were not two. He then set out to spread the message of his guru.

  • [Sansad TV] Perspective: Judicial Reforms

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    Context

    • Chief Ministers of States and Chief Justices of High Courts (CMCJs) participated in a joint conference in the national capital to discuss various aspects of the justice delivery system.
    • Participating in the inaugural session PM Modi said that judicial reform is not merely a policy matter and Human sensitivities should be kept in the centre of all the deliberations on this issue.

    Key takeaways from the CMCJ summit

    • PM stressed on the importance of Mediation as an important tool for the settlement of pending cases in the courts, especially at the local level.
    • CJI N V Ramanna in his remarks said a National Judicial Infrastructure Authority should be created for the standardization and improvement of judicial infrastructure which currently needs urgent attention.
    • Both CJI and Prime Minister also highlighted the need to promote local languages in the courts so that people of the country feel connected with the judicial process.

    The main subjects that were discussed, are as under:

    • Infrastructure of Subordinate Courts
    • Performance of Morning/Evening and Holiday Courts
    • Conditions of Jails with particular reference to under trial prisoners
    • Implementation of Information and Communication Technology
    • Strengthening the Legal-Aid Programmes
    • Strengthening of Juvenile Justice System
    • Utilization of grants
    • Review of Quality Legal Education Programmes in the States
    • Post-Retirement benefits to Judges
    • Model Courts and the Establishment of Commercial Courts, Commercial Division and Commercial Appellate Division High Courts
    • Filling up vacancies in the High Courts

    Indian Judiciary: A Backgrounder

    • Our Judicial system has been the nation’s moral conscience keeper.
    • It speaks truth to political power, upholds the rights of citizens, mediates between Centre-state conflicts, provides justice to the rich and poor alike, and on several momentous occasions, saved democracy itself.
    • Despite its achievements, a gap between the ideal and reality has been becoming clear over the years.
    • The justice delivery is slow, the appointment of judges is mired in controversy, disciplinary mechanisms scarcely work, hierarchy rather than merit is preferred, women are severely under-represented, and constitutional matters often languish in the Supreme Court for years.
    • As Justice Chelameswar said in his dissent in the NJAC judgment, the courts must reform, so that they can preserve.

    Challenges to the judicial system

    • Lack of infrastructure of courts
    • High vacancy of judges in the district judiciary
    • Pendency of Cases
    • Ineffective planning in the functioning of the courts
    • Delay in the delivery of judgements
    • Lack of transparency in appointment and transfers.
    • Corruption
    • Undertrials serving Jail
    • Outdated laws ex. Section 124A IPC

    What led to under-performance of Indian Judiciary?

    The primary factors contributing to docket explosion and arrears as highlighted by Justice Malimath Committee report are as follows:

    • Population explosion
    • Litigation explosion
    • Hasty and imperfect drafting of legislation
    • Plurality and accumulation of appeals (Multiple appeals for the same issue)
    • Inadequacy of judge strength
    • Failure to provide adequate forums of appeal against quasi-judicial orders
    • Lack of priority for disposal of old cases (due to the improper constitution of benches)

    Recent developments:

    Proposal for the creation of National Judicial Infrastructure Corporation (NJIC)

    • The CJI has pitched to set up a National Judicial Infrastructure Corporation (NJIC) to develop judicial infrastructure in trial courts.
    • He indicated a substantial gap in infrastructure and availability of basic amenities in the lower judiciary.
    • There is a dearth of court halls, residential accommodation, and waiting room for litigants in trial courts, especially in smaller towns and rural areas.
    • Experience shows that budgetary allocation for state judiciary often lapses since there is no independent body to supervise and execute such works.
    • NJIC is expected to fill this vacuum and overcome problems related to infrastructure.

    Way forward

    • Creating NJIC: It will bring a revolutionary change in the judicial functioning provided the proposed body is given financial and executive powers to operate independently of the Union and the State governments.
    • Appointment reforms: There are many experts who advocate the need to appoint more judges with unquestionable transparency in such appointments.
    • Creating All Indian Judiciary Services: It would be a landmark move to create a pan-India Service that would result in a wide pool of qualified and committed judges entering the system.
    • Technology infusion: The ethical and responsible use of AI and ML for the advancement of efficiency-enhancing can be increasingly embedded in legal and judicial processes. Ex. SUPACE.
    • Legal education: This should be in alignment with the evolving dynamics of the law must be propagated in trial and constitutional courts. This will improve the competence of the judicial system.
    • Alternate Dispute Resolution (ADR): ADR mechanisms should be promoted for out-of-court settlements. Primary courts of appeal should be set up.

  • Public health engineering

    Context

    As we confront the public health challenges emerging out of environmental concerns, expanding the scope of public health/environmental engineering science becomes pivotal.

    Why does India need a specialised cadre of public health engineers

    • Achieving SDGs and growing demand for water consumption: For India to achieve its sustainable development goals of clean water and sanitation and to address the growing demands for water consumption and preservation of both surface water bodies and groundwater resources, it is essential to find and implement innovative ways of treating wastewater.
    •  It is in this context why the specialised cadre of public health engineers, also known as sanitation engineers or environmental engineers, is best suited to provide the growing urban and rural water supply and to manage solid waste and wastewater.
    • Limited capacity: The availability of systemic information and programmes focusing on teaching, training, and capacity building for this specialty cadre is currently limited.
    • Currently in India, civil engineering incorporates a course or two on environmental engineering for students to learn about wastewater management as a part of their pre-service and in-service training.
    • However, the nexus between wastewater and solid waste management and public health issues is not brought out clearly.
    • India aims to supply 55 litres of water per person per day by 2024 under its Jal Jeevan Mission to install functional household tap connections.
    • The goal of reaching every rural household with functional tap water can be achieved in a sustainable and resilient manner only if the cadre of public health engineers is expanded and strengthened.
    • Different from the international trend: In India, public health engineering is executed by the Public Works Department or by health officials. This differs from international trends.

    Way forward

    • Introducing public health engineering as a two-year structured master’s degree programme or through diploma programmes for professionals working in this field must be considered to meet the need of increased human resource in this field.
    • Interdisciplinary field: Furthermore, public health engineering should be developed as an interdisciplinary field.
    • Engineers can significantly contribute to public health in defining what is possible, identifying limitations, and shaping workable solutions with a problem-solving approach.
    • Public health engineering’s combination of engineering and public health skills can also enable contextualised decision-making regarding water management in India.

    Conclusion

    Diseases cannot be contained unless we provide good quality and adequate quantity of water. Most of the world’s diseases can be prevented by considering this. Training our young minds towards creating sustainable water management systems would be the first step.

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  • For a better South Asian neighbourhood

    Context

    Recent developments — in Sri Lanka, Nepal, and Pakistan — underline the geographic imperative that binds India to its neighbours in the Subcontinent.

    Need for intensive regional cooperation for managing the new dangers

    • Working with the logic of geography has become an unavoidable necessity amidst the deepening regional and global crises accentuated by Russia’s war in Ukraine.
    • As higher oil and food prices trigger inflation and popular unrest across the region, more intensive regional cooperation is one of the tools for managing the new dangers.

    Hope for transcending internal divide between India and Sri Lanka

    • India’s relations with Sri Lanka underline the importance of continuous tending of political geography.
    • Tradition of hosting political exile: India has had a long tradition of hosting political exiles from the region.
    • Whether it was the Dalai Lama from Tibet or Prachanda from Nepal, Delhi has welcomed leaders from the neighbourhood taking shelter in India.
    • Negative consequences: There is a dangerous flip side to this positive tradition in the Subcontinent.
    • India has paid a high price for the decision in the early 1980s to train and arm Sri Lankan Tamil rebels.
    • Hope for transcending internal divide: The current crisis in Sri Lanka raised hopes for transcending the internal ethnic divide in the island nation and rebuilding political confidence between Colombo and Delhi.
    • Material and financial support to Sri Lanka: Delhi’s unstinting support — both material and financial — for Colombo during this unprecedented economic and political crisis has generated much goodwill in Sri Lanka.

    Relations with Nepal and role of cultural ties

    • Possibilities in cultural geography: Prime Minister Narendra Modi’s recent visit to Lumbini, the birthplace of Lord Buddha in Nepal, highlights the immense possibilities of cultural geography in reshaping the Subcontinent’s regional relations.
    • The idea of a “Buddhist circuit” connecting the various pilgrimage sites across the India-Nepal border has been around for a long time.
    • India and Nepal have come together in developing the Buddhist circuit.
    • Religion and culture are deeply interconnected in South Asia.
    • Developing all religious pilgrimage sites across the region, and improving the transborder access to them could not only improve tourist revenues of all the South Asian nations, but could also have a calming effect on the troubled political relations
    • That China has built a new airport near Lumbini and Modi is avoiding it points to the turbulent triangular dynamic between Delhi, Kathmandu, and Beijing.
    • Revitalising the shared cultural geography inevitably involves better management of economic geography.
    • Infrastructure development on Indian side: The last few years have seen the Indian government step up on infrastructure development on the Indian side and accelerate transborder transport and energy connectivity in the eastern subcontinent.

    Recent trends in India-Pakistan relations

    • Cultural ties: Despite their frozen bilateral political relationship, Delhi and Islamabad had agreed to open the Kartarpur corridor at the end of 2019 across their militarised Punjab border.
    • There is much more to be done on reconnecting the Subcontinent’s sacred geographies — including the Ramayana trail and Sufi shrines.
    • While parts of the region are aligning their policies with the geographic imperative, Pakistan would seem to be an exception.
    • Ignoring the geographic imperative: Given the depth of its macro economic crisis and massive inflation, one might have thought Pakistan would want to expand trade ties with India in its own economic interest.
    • But Pakistan’s politics are hard-wired against the logic of geography.
    • Delhi had little reason to believe that Pakistan’s new government can alter its self-defeating policy towards India.
    • But it must continue to bet that the geographic imperative will eventually prevail over Islamabad’s policies.

    Conclusion

    Realists might want to argue that current trends in the Subcontinent point to India’s growing agency in shaping its neighbourhood and that Pakistan will not forever remain an exception. For Delhi, the policy question is whether India can do something to hasten the inevitable change in Pakistan.

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  • [Burning Issue] Wheat Exports Ban

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    Context

    • India has banned exports of wheat effective immediately, citing a risk to food security.
    • This is partly due to the war in Ukraine and as a scorching heatwave curtailed output and domestic prices hit a record high.
    • The price which was already high in the wake of Russia’s invasion of major wheat exporter Ukraine — jumped to 435 euros ($453) per tonne as the European market opened.

    Do you know?

    India is the second-largest producer of wheat in the world, with China being the top producer and Russia the third-largest — Ukraine is the world’s eighth-largest producer of wheat.

    India’s Wheat Exports

    • Modi’s goal of India becoming a major wheat exporter hinged on the opportunity presented by the war.
    • While India has been the world’s second-largest producer of the commodity, most of it was used domestically.
    • Its share in the global wheat exports has been only around 1%.
    • It hoped to considerably plug the deficit created by Russia, which accounts for 30% of the global wheat exports.
    • To some extent, Indian wheat exports did rise. Countries like Egypt and Turkey, besides others in Asia, tapped India following the onset of the war.

    Top wheat exporters globally (in million metric tons):

    Top wheat exporters globally (in million metric tons):

    Why did India ban the export of wheat?

    • Harvest reduction due to heatwaves: Heatwaves in the latter part of March, especially in northwest India, impacted production of foodgrains.
    • High inflation: Record retail inflation has punctured India’s export hopes.
    • Food security: While wheat prices are up nearly 20%, prices of essential food items such as flour have risen nearly 15% last year.  

    China’s factor in the export ban

    There is also China factor behind the sudden decision to ban the export of wheat.

    • China is using this opportunity to hoard wheat. It is importing wheat on a large scale to store it to disrupt the global market soon.
    • China can store the wheat for a short time and divert it to its allies in the coming days or sell it at a higher price.
    • By hoarding it, China can effectively control the market prices of wheat globally.
    • With its huge foreign exchange reserves, China can purchase the wheat stocks at a higher price, only to control the wheat market in the coming days.
    • This will hinder smaller and vulnerable developing countries from buying the necessary wheat.

    Inherent challenges to India’s wheat exports

    • Logistics challenges: Logistical challenges such as congestion at ports and unavailability of train rakes are major infrastructural bottlenecks for wheat exports from India.
    • Cost efficiency: Unless seamless infrastructural facilities and timely and cheaper modes of transport are available in the coming days, India may find it difficult to make significant inroads into the wheat export market.
    • MSP factor: India’s export competitiveness is influenced by the Centre’s MSP.  Due to high MSP, India has remained a rather small player in the export market, even when thousands of tonnes of grains rot in the FCI warehouses.
    • High procurement costs: The inefficiency associated with open-ended procurement of wheat in quantities far in excess of our normal requirement is well known. The policymakers justify it on the ground that it ensures farmers get remunerative prices.
    • Government interventions: Wheat, being an essential commodity, is prone to frequent government interventions in terms of export bans and imposition of higher import duty. This creates market distortions.
    • Climate change: Many challenges confront Indian wheat export, not the least of which is global warming and climate change. Whether deliberate or out of ignorance, many experts overlook the well-recognised fact that Indian wheat is at the limit of heat tolerance.
    • Low acreage under wheat crop: At about 33 million hectares, the area under wheat cultivation is perhaps reaching a saturation point. There is a case for shifting a part of the wheat area in Punjab and Haryana to other crops such as oilseeds and pulses.

    What about government procurement?

    • Dip in procurement: This year the government’s wheat purchase has seen a dip owing to several reasons from lower yield to higher market prices being offered by private traders.
    • Costlier than MSP: A large quantity of wheat was being bought by traders at a higher rate than the minimum support price (MSP).
    • Stock hoarding: Farmers and traders are holding on to some quantity of wheat, expecting higher prices for their produce in the near future.

    Is India staring at a food shortage?

    • No. India’s grain stocks are well above the buffer levels and the decision to regulate wheat exports was taken largely to check prices and curb hoarding.
    • The public distribution system PDS would be run smoothly in the country.
    • However, the government has replaced wheat with rice in the Pradhan Mantri Garib Kalyan Yojana scheme for 2022-23.
    • The effort clearly is a response to the reduced availability of wheat.

    What has been the global reaction to the ban?

    • Global wheat prices rose nearly 50% since the start of this year as supplies from Russia, the number one wheat exporter, and Ukraine, number six, were hit.
    • Agriculture ministers from G7 condemned India’s decision to withhold wheat exports amid a global grain shortage.
    • India was expected to fill the gap created because of the Ukraine war.

    How will the ban affect India’s neighbors?

    • This ban has widely deemed a failure for India’s soft-power, geopolitical standpoint.
    • Even with the ban, there is a window open for neighbouring countries.
    • The export will be allowed to other countries “based on the request of their governments”.
    • This window is crucial for Sri Lanka because the country is facing an economic crisis.
    • Wheat exports will be allowed in cases where an irrevocable letter of credit has already been issued.
    • Also, Bangladesh and Nepal have traditionally relied on Indian wheat.

    What is the impact on farmers and traders?

    • Missed opportunity: The ban has deprived Indian wheat traders the opportunity to gain from the global grain shortage.
    • No profitmaking: It may have an unfavourable impact on wheat farmers too.

    Issues with the ban

    • This ban has impacted the credibility of India as a reliable supplier of anything in global markets.
    • It conveys that we don’t have any credible export policy as it can turn its back at the drop of a hat.
    • More interestingly, it also reflects a deep-rooted consumer bias in India’s trade policies.
    • It is this consumer bias that indirectly becomes anti-farmer. This ban deprives farmers from profit-making.
    • It only shows the hollowness of agri-trade policies and dreams of doubling agri-exports.
    • The export ban also reflects poorly on India’s image in playing its shared global responsibility amid the Russia-Ukraine war.

    Way forward

    • Balancing between food security and ensuring better returns to farmers through exports is a delicate act.
    • India’s wheat export ban will not help tame inflation at home.
    • The Government could have announced a bonus of Rs 200-250/quintal on top of MSP to augment its wheat procurement.
    • The govt could have calibrated exports by putting some minimum export price (MEP).

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  • 17th May 2022 | Nikaalo Prelims- Science and Technology Test 3: Non-Conventional Energy; Health Information Technology

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  • 17th May 2022 | Prelims Daily with Previous Year Questions

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  • 16th May 2022 | Prelims Daily with Previous Year Questions

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  • What is the Places of Worship Act?

    The Supreme Court will hear a challenge to the order of a civil court in Varanasi directing a videographic survey of a temple- mosque complex upholding the Places of Worship (Special Provisions) Act, 1991.

    What is the Places of Worship Act?

    • The long title describes it as an Act to prohibit conversion of any place of worship and to provide for the maintenance of the religious character of any place of worship.
    • It holds places of worships as it existed on the 15th day of August, 1947, and for matters connected therewith or incidental thereto.

    When was this law passed?

    • The Act was brought in 1991 by the then pseudo-secular government at a time when the Ram temple movement was at its peak.
    • Then, communal tensions in India were at peak.
    • Parliament determined that independence from colonial rule furnishes a constitutional basis for healing the injustices of the past.
    • It sought to provide the confidence to every religious community that their places of worship will be preserved and that their character will not be altered.

    What are its provisions?

    • Anti-conversion: Section 3 of the Act bars the conversion, in full or part, of a place of worship of any religious denomination into a place of worship of a different religious denomination — or even a different segment of the same religious denomination.
    • Holiness of a place: Section 4(1) declares that the religious character of a place of worship “shall continue to be the same as it existed” on August 15, 1947.
    • Litigation: Section 4(2) says any suit or legal proceeding with respect to the conversion of the religious character of any place existing on August 15, 1947, pending before any court, shall abate — and no fresh suit or legal proceedings shall be instituted.
    • Exception for Ayodhya: Section 5 stipulates that the Act shall not apply to the Ramjanmabhoomi-Babri Masjid case, and to any suit, appeal or proceeding relating to it.

    Issues with the law

    • The law has been challenged on the ground that it bars judicial review, which is a basic feature of the Constitution.
    • It imposes an “arbitrary irrational retrospective cutoff date”, and abridges the right to religion of Hindus, Jains, Buddhists and Sikhs.

    What is the recent controversy?

    • The temple-mosque complex in Varanasi clearly shows that the mosque stands over a rundown temple.
    • Videography shows the presence of Hindu deities inside the mosque.
    • Right-wing propagandists highlight the intention of Aurangzeb behind leaving remnants of the temple to keep reminding communities of their historical fate and to remind coming generations of rulers of their past glory and power.

    What did the Supreme Court say in its Ayodhya judgment?

    • The constitutional validity of the 1991 Act was not under challenge, nor had it been examined before the Supreme Court Bench that heard the Ramjanmabhoomi-Babri Masjid title suit.
    • The Places of Worship Act imposes a non-derogable obligation towards enforcing our commitment to secularism under the Indian Constitution.
    • The law is hence a legislative instrument designed to protect the secular features of the Indian polity, which is one of the basic features of the Constitution.
    • The Places of Worship Act is a legislative intervention which preserves non-retrogression as an essential feature of our secular values.

     

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  • Report flags Risk of Fortified Rice

    A report has flagged issues due to threats posed to anaemic persons over iron over-nutrition created by rice fortification.

    Highlights of the report

    • No prior education: The activists discovered that neither field functionaries nor beneficiaries had been educated about the potential harms.
    • No warnings issued: There were no warning labels despite the food regulator’s rules on fortified foods.
    • No informed choice: The right to informed choices about one’s food is a basic right. In the case of rice fortification, it is seen that no prior informed consent was ever sought from the recipients.

    What are the risks highlighted?

    • Thalassemia, sickle cell anaemia and malaria are conditions where there is already excess iron in the body, whereas TB patients are unable to absorb iron.
    • Consumption of iron-fortified foods among patients of these diseases can reduce immunity and functionality of organs.

    Endemic zones identified

    • Jharkhand is an endemic zone of sickle cell disorder and thalassemia, with a prevalence of 8%-10%, which is twice the national average.
    • Jharkhand is also an endemic zone for malaria — in 2020, the State ranked third in the country in malaria deaths.

    What is Fortification?

    • The Food Safety and Standards Authority of India (FSSAI) has explicitly defined fortification.
    • It involves deliberate increasing of the content of essential micronutrients in a food so as to improve the nutritional quality of food and to provide public health benefit with minimal risk to health.

    Types of food fortification

    Food fortification can also be categorized according to the stage of addition:

    1. Commercial and industrial fortification (wheat flour, cornmeal, cooking oils)
    2. Biofortification (breeding crops to increase their nutritional value, which can include both conventional selective breeding, and genetic engineering)
    3. Home fortification (example: vitamin D drops)

    How is fortification done for rice?

    • Various technologies are available to add micronutrients to regular rice, such as coating, dusting, and ‘extrusion’.
    • The last mentioned involves the production of fortified rice kernels (FRKs) from a mixture using an ‘extruder’ machine.
    • It is considered to be the best technology for India.
    • The fortified rice kernels are blended with regular rice to produce fortified rice.

    How does the extrusion technology to produce FRK work?

    • Dry rice flour is mixed with a premix of micronutrients, and water is added to this mixture.
    • The mixture is passed through a twin-screw extruder with heating zones, which produces kernels similar in shape and size to rice.
    • These kernels are dried, cooled, and packaged for use. FRK has a shelf life of at least 12 months.
    • As per guidelines issued by the Ministry of Consumer Affairs, Food and Public Distribution, the shape and size of the fortified rice kernel should “resemble the normal milled rice as closely as possible”.
    • According to the guidelines, the length and breadth of the grain should be 5 mm and 2.2 mm respectively.

    But why does rice have to be fortified in the first place?

    • India has very high levels of malnutrition among women and children.
    • According to the Food Ministry, every second woman in the country is anaemic and every third child is stunted.
    • Fortification of food is considered to be one of the most suitable methods to combat malnutrition.
    • Rice is one of India’s staple foods, consumed by about two-thirds of the population. Per capita rice consumption in India is 6.8 kg per month.
    • Therefore, fortifying rice with micronutrients is an option to supplement the diet of the poor.

    What are the standards for fortification?

    • Under the Ministry’s guidelines, 10 g of FRK must be blended with 1 kg of regular rice.
    • According to FSSAI norms, 1 kg of fortified rice will contain the following: iron (28 mg-42.5 mg), folic acid (75-125 microgram), and vitamin B-12 (0.75-1.25 microgram).
    • Rice may also be fortified with zinc (10 mg-15 mg), vitamin A (500-750 microgram RE), vitamin B-1 (1 mg-1.5 mg), vitamin B-2 (1.25 mg-1.75 mg), vitamin B-3 (12.5 mg-20 mg) and vitamin B-6 (1.5 mg-2.5 mg) per kg.

    How can a beneficiary distinguish between fortified rice and regular rice?

    • Fortified rice will be packed in jute bags with the logo (‘+F’) and the line “Fortified with Iron, Folic Acid, and Vitamin B12”.

    Advantages offered

    • Health: Fortified staple foods will contain natural or near-natural levels of micro-nutrients, which may not necessarily be the case with supplements.
    • Taste: It provides nutrition without any change in the characteristics of food or the course of our meals.
    • Nutrition: If consumed on a regular and frequent basis, fortified foods will maintain body stores of nutrients more efficiently and more effectively than will intermittently supplement.
    • Economy: The overall costs of fortification are extremely low; the price increase is approximately 1 to 2 percent of the total food value.
    • Society: It upholds everyone’s right to have access to safe and nutritious food, consistent with the right to adequate food and the fundamental right of everyone to be free from hunger

    Issues with fortified food

    • Against nature: Fortification and enrichment upset nature’s packaging. Our body does not absorb individual nutrients added to processed foods as efficiently compared to nutrients naturally occurring.
    • Bioavailability: Supplements added to foods are less bioavailable. Bioavailability refers to the proportion of a nutrient your body is able to absorb and use.
    • Immunity issues: They lack immune-boosting substances.
    • Over-nutrition: Fortified foods and supplements can pose specific risks for people who are taking prescription medications, including decreased absorption of other micro-nutrients, treatment failure, and increased mortality risk.

     

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  • How Sikkim became a part of India?

    It was on May 16, 1975 that Sikkim became 22nd state of the Union of India.

    Why in news?

    • While in many modern narratives, the tale of the former kingdom under the Namgyal dynasty acquiring Indian statehood begins in decades close to the 1970s.
    • The real story, according to experts, can only be understood by tracing the events back to 1640s when Namgyal rule was first established.

    Sikkim’s accession into India: A complete timeline

    (1) Attacks during Namgyal Rule

    • Beginning with Phuntsog Namgyal, the first chogyal (monarch), the Namgyal dynasty ruled Sikkim until 1975.
    • At one point, the kingdom of Sikkim included the Chumbi valley (part of China now) and Darjeeling.
    • In the early 1700s, the region saw a series of conflicts between Sikkim, Nepal, Bhutan, and Tibet, which resulted in a shrinking of Sikkim’s territorial boundaries.

    (2) Under East India Company

    • When the British arrived, their expansion plans in the Indian subcontinent included controlling the Himalayan states.
    • The kingdom of Nepal, meanwhile, continued with its attempts to expand its territory.
    • This resulted in the Anglo-Nepalese war (November, 1814 to March, 1816), also known as the Gorkha war, which was fought between the Gorkhali army and the East India Company.
    • Both sides had ambitious expansion plans for the strategically important mountainous north of the Indian subcontinent.
    • In 1814, Sikkim allied with the East India Company in the latter’s campaign against Nepal.
    • The Company won and restored to Sikkim some of the territories that Nepal had wrested from it in 1780.

    (3) Administrative control of British

    • A turning point in the history of Sikkim involves with the appointment of John Claude White as Political Officer of Sikkim.
    • Sikkim by then was a British Protectorate under the Treaty of Tumlong signed in March, 1861.
    • As with most of the Indian subcontinent that the British had under their administrative control, the kingdom of Sikkim, although a protectorate, had little choice in the administration of its own kingdom.
    • The Namgyal monarch could not criticise decisions made by the British, but the ruler did complain about this influx of Nepali migrants into the kingdom.

    (4) Scenario after 1947

    • Three years after India’s Independence in 1947, Sikkim became a protectorate of India.
    • In 1950, a treaty was signed between the then Sikkim monarch Tashi Namgyal and India’s then Political Officer in Sikkim, Harishwar Dayal.
    • A clause in the treaty read: “Sikkim shall continue to be a Protectorate of India and, subject to the provisions of this Treaty, shall enjoy autonomy in regard to its internal affairs.”

    (5) Chinese invasion of Tibet

    • China’s invasion of Tibet in 1949 and Nepal’s attacks on Sikkim throughout the kingdom’s history were cited as reasons why the kingdom needed the support and protection of a powerful ally.
    • Further, the talk of persecution of Tibetans after China’s arrival at the scene generated fear of the possibility of Sikkim suffering a similar fate.

    (6) Dalai Lama’s Arrival

    • In March 1959, the 14th Dalai Lama escaped from Tibet.
    • After the Dalai Lama reached Indian borders, he and his entourage settled at the Tawang monastery in Arunachal Pradesh.
    • A month later, he travelled to Mussoorie, where he met then Prime Minister Jawaharlal Nehru to discuss the future of the Tibetan refugees who had travelled with him.
    • The repercussions of India’s decision to welcome and give refuge to the Dalai Lama sent a message to some in Sikkim that unlike China, aligning with India would guarantee their protection and security.
    • This was the perspective of the ruling elite in Sikkim.

    (7) Public discontent against monarchy

    • The period between the 1950s and the 1970s marked growing discontent in Sikkim.
    • Primarily, there was anger against the monarchy because of growing inequality and feudal control.
    • Anti-monarchy protests grew in 1973, following which the royal palace was surrounded by thousands of protesters.
    • Indian troops arrived after the monarch was left with no choice but to ask New Delhi to send assistance.
    • Finally, a tripartite agreement was signed in the same year between the chogyal, the Indian government, and three major political parties, so that major political reforms could be introduced.

    (8) Attempts for constitutional development

    • A year later, in 1974, elections were held, where the Sikkim State Congress led by Kazi Lhendup Dorji won, defeating pro-independence parties.
    • That year, a new constitution was adopted, which restricted the role of the monarch to a titular post, which Palden Thondup Namgyal bitterly resented.
    • In the same year, India upgraded Sikkim’s status from protectorate to “associated state”, allotting to it one seat each in the Lok Sabha and Rajya Sabha.
    • Opposed to the move, the monarch attempted to bring international attention to it soon after.

    (9) Finally accession into India

    • A referendum was held in 1975 where an overwhelming majority voted in favour of abolishing the monarchy and joining India.
    • A total 59,637 voted in favour of abolishing the monarchy and joining India, with only 1,496 voting against.
    • Sikkim’s new parliament, led by Kazi Lhendup Dorjee, proposed a bill for Sikkim to become an Indian state, which was accepted by the Indian government.

     

    Also try this PYQ:

    Q.The latitudes that pass through Sikkim also pass through:

    (a) Rajasthan

    (b) Punjab

    (c) Himachal Pradesh

    (d) Jammu & Kashmir

     

    Post your answers here.

     

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  • Explained: Repo Rate in India

    Earlier this month, the RBI, in a surprise move decided unanimously to raise the “policy repo rate by 40 basis points to 4.40%, with immediate effect”.

    What is the Repo Rate?

    • The repo rate is one of several direct and indirect instruments that are used by the RBI for implementing monetary policy.
    • Specifically, the RBI defines the repo rate as the fixed interest rate at which it provides overnight liquidity to banks against the collateral of government and other approved securities under the liquidity adjustment facility (LAF).
    • In other words, when banks have short-term requirements for funds, they can place government securities that they hold with the central bank and borrow money against these securities at the repo rate.
    • Since this is the rate of interest that the RBI charges commercial banks such as SBI and ICICI Bank when it lends them money, it serves as a key benchmark for the lenders to in turn price the loans they offer to their borrowers.

    Why is the repo rate such a crucial monetary tool?

    • According to Investopedia, when government central banks repurchase securities from commercial lenders, they do so at a discounted rate that is known as the repo rate.
    • The repo rate system allows central banks to control the money supply within economies by increasing or decreasing the availability of funds.

    How does the repo rate work?

    • Besides the direct loan pricing relationship, the repo rate also functions as a monetary tool by helping to regulate the availability of liquidity or funds in the banking system.
    • For instance, when the repo rate is decreased, banks may find an incentive to sell securities back to the government in return for cash.
    • This increases the money supply available to the general economy.
    • Conversely, when the repo rate is increased, lenders would end up thinking twice before borrowing from the central bank at the repo window thus, reducing the availability of money supply in the economy.
    • Since inflation is caused by more money chasing the same quantity of goods and services available in an economy, central banks tend to target regulation of money supply as a means to slow inflation.

    What impact can a repo rate change have on inflation?

    • Inflation can broadly be: mainly demand driven price gains, or a result of supply side factors.
    • This in turn push up the costs of inputs used by producers of goods and providers of services.
    • It is thus spurring inflation, or most often caused by a combination of both demand and supply side pressures.
    • Changes to the repo rate to influence interest rates and the availability of money supply primarily work only on the demand side.
    • It makes credit more expensive and savings more attractive and therefore dissuading consumption.
    • However, they do little to address the supply side factors, be it the high price of commodities such as crude oil or metals or imported food items such as edible oils.

     

    Try this PYQ:

    Q.If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do?

    1. Cut and optimize the Statutory Liquidity Ratio
    2. Increase the Marginal Standing Facility Rate
    3. Cut the Bank Rate and Repo Rate

    Select the correct answer using the code given below:

    (a) 1 and 2 only

    (b) 2 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

     

    Post your answers here.

     

     

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  • Ramgarh Vishdhari notified as India’s 52nd Tiger Reserve

    Ramgarh Vishdhari Wildlife Sanctuary is now notified as a tiger reserve after a nod by the Union Ministry of Environment, Forest and Climate Change (MoEF&CC).

    Ramgarh Vishdhari TR

    • Ramgarh Vishadhri, located mostly in Bundi district and in part in Bhilwara and Kota districts.
    • It is also home to the Indian wolf, leopard, striped hyena, chinkara, antelope and foxes among other animals.
    • It is now India’s 52nd tiger reserve and Rajasthan’s fourth, after Ranthambore, Sariska and Mukundra.
    • The reserve will be spread in an area of 1,501.89 sq km.
    • The area has been called ‘critical’ for the movement of tigers by wildlife experts and conservationists.
    • Though the tiger population in Ramgarh itself was not high, it plays an important role in connecting the Ranthambore and Mukundra Tiger Reserves of Rajasthan.

    Back2Basics: Tiger Reserves

    • The Tiger Reserves of India were set up in 1973 and are governed by Project Tiger, which is administrated by the National Tiger Conservation Authority.
    • A National Park or Wildlife Sanctuary that is considered significant for protecting tigers can be additionally designated as a Tiger Reserve.
    • A Tiger Reserve consists of a ‘Core’ or ‘Critical Tiger Habitat’, which is to be managed as an inviolate area, and a ‘Buffer’ or Peripheral area immediately abutting a Core area, which may be accorded a lesser degree of habitat protection.
    • This is the typical zonation of a Tiger Reserve.

     

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  • Live Webinar On How to clear UPSC-CSE 2023 in the very 1st Attempt by studying Only 5 hrs per day! | Free Live Webinar for Working Professionals with UPSC 2017 Ranker Megha Gupta | Direct Joining Link

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  • In abeyance of Section 124A, a provisional relief

    Context

    In a brief order delivered in S.G. Vombatkere vs Union of India, a three-judge Bench of the Supreme Court of India effectively suspended the operation of Section 124A of the Indian Penal Code.

    What was the basis for the reconsideration?

    • This direction was issued after the Union government filed an affidavit informing the Court that it had decided to re-examine the law.
    • The Bench believed that the offer to reconsider the provision, if nothing else, showed that the Government was in broad agreement with the Court’s prima facie opinion on the matter, that the clause as it stands “is not in tune with the current social milieu, and was intended for a time when this country was under the colonial regime”.

     Section 125A and issues with it

    • Section 124A defines sedition as any action — “whether by words, signs, or visible representation” — which “brings or attempts to bring into hatred or contempt or excites or attempts to excite disaffection towards the Government established by law in India”.
    • The word “disaffection”, the provision explains, “includes disloyalty and all feelings of enmity”.
    • The adopted Constitution did not permit a restriction on free speech on the grounds of sedition. 
    • In the 1950s, two different High Courts struck down Section 124A as offensive to freedom.
    • But, in 1962, in Kedar Nath Singh vs State of Bihar, a five-judge Bench of the Supreme Court reversed these verdicts.
    • The Court paid no heed to the debates that informed the Constituent Assembly.
    • Instead, it found that Section 124A was defensible as a valid restriction on free speech on grounds of public order.
    • However, while upholding the clause, the Court limited its application to “acts involving intention or tendency to create disorder, or disturbance of law and order, or incitement to violence”.
    • Vague terms: The decision failed to recognise that terms such as “disaffection towards the government”, which are fundamentally vague.
    • Marginalised sections affected: Since then, in its application by law enforcement, the limitations imposed in Kedar Nath Singh have rarely been observed.
    •  As is often the case with abuses of this kind, it is the most marginalised sections of society that have faced the brunt of the harm.
    • Reading of fundamental rights changed: Since 1962, when the judgment was handed out, the Supreme Court’s reading of fundamental rights has undergone a transformative change.
    • Time to reconsider Kedar Nath: This altered landscape meant that when fresh challenges were mounted against Section 124A, the time to reconsider Kedar Nath Singh had clearly arrived. 
    • In the long run, the decision in Kedar Nath Singh will require a clear disavowal.
    • But in nullifying Section 124A, albeit for the present, the Court has provided provisional relief — allowing those accused of the offence to both seek bail in terms of the order, and to have their trials frozen.

    Conclusion

    To protect our democracy, we must ensure that the constitutional guarantees to personal liberty and freedom do not go in vain. For that, each of our penal laws must be animated by a concern for equality, justice, and fairness.

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  • Brace for higher interest rates

    Context

    Inflation has now remained above the RBI’s upper tolerance limit of 6 per cent for four months in a row.

    Broad based inflation

    • The second-order impact of higher fuel prices is also visible as inflation in transport and communication surged to nearly 11 per cent, from 8 per cent in the previous month.
    • The latest data also indicates that inflation is becoming broad-based. 
    • With demand rebounding, the pass-through of higher input costs is also gaining momentum.
    • Considering that demand for goods recovered faster than services, goods producers passed on input costs to consumers.
    • But as services recover, there will be greater pass-through of prices to consumers in the coming months.
    • While there may be a slight moderation, inflation is expected to remain above the RBI’s threshold of 6 per cent in the coming months.
    • The Ukraine conflict continues to impact markets for foodgrains and vegetable oils.
    • Rising fertiliser prices are likely to push up farmers’ production costs, leading to high food prices.
    • While the government has extended price support through higher subsidies, if this will be enough to cool prices needs to be seen.

    Inflation targeting by the RBI

    • With sticky crude oil prices and continuing supply-side disruptions amplified by the Covid-induced lockdowns in China, the RBI has rightly reverted its focus on inflation targeting.
    • This is needed as central banks around the world are pursuing tight monetary policies to counter inflation.
    • The US Fed followed its 25 basis points hike by another 50 basis points rise in May.
    • These will be followed by hikes of similar magnitude in the coming months.
    • In its April policy, the RBI announced the withdrawal of excess liquidity but did not raise the policy rate.
    • Rate hikes by RBI: The RBI is now likely to respond with aggressive rate hikes to prevent the price spiral from getting entrenched.
    • The continued strength of the dollar index and sharp rupee depreciation in the last few days could impose further pressure on prices through higher imported inflation.
    • Withdrawal of liquidity support: In addition to calibrated rate hikes, the RBI needs to fast-track the withdrawal of the ultra-accommodative liquidity support provided during the pandemic.

    Implications

    • Discretionary spending: Rising inflation will cut back discretionary spending and adversely impact consumption that had only just started picking up.
    • Recession concerns: There are concerns about a recession in advanced economies as rising prices have started manifesting in a decline in purchasing power and a fall in consumer sentiments.
    • The demand destruction could trigger a moderation in prices.
    • Base metals prices have eased from the peak seen in the last few months.

    Conclusion

    Monetary policy support needs to be accompanied by fiscal support measures. The policy response will have to be tailored to the evolving geopolitical situation and the paths of commodity and food prices while balancing the imperatives of fiscal consolidation.

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