The Cabinet Committee on Economic Affairs (CCEA) has approved a revision in the ethanol procurement price for Public Sector Oil Marketing Companies (OMCs) for the Ethanol Supply Year (ESY) 2024-25.
What is the significance of the Price Revision?
The recent revision of the ethanol procurement price for Public Sector Oil Marketing Companies (OMCs) is significant for several reasons:
Price Stability and Remuneration: The increase from ₹56.58 to ₹57.97 per litre ensures price stability and provides a more remunerative rate for ethanol suppliers, which is crucial for maintaining a steady supply of ethanol.
Support for Sugarcane Farmers: The separate payment of Goods and Services Tax (GST) and transportation charges will benefit sugarcane farmers, enhancing their income and encouraging production.
Meeting Blending Targets: The 3% increase in the price is aimed at ensuring adequate availability of ethanol to meet the ambitious blending target of 20% by 2025-26, advancing from the original target of 2030.
Reducing Crude Oil Dependency: This initiative is part of a broader strategy to reduce India’s dependency on crude oil imports, leading to substantial foreign exchange savings and environmental benefits.
What is Ethanol Blended Petrol (EBP)?
The Ethanol Blended Petrol (EBP) Programme is a government initiative aimed at promoting the blending of ethanol with petrol to create a more sustainable and environmentally friendly fuel option.
OMCs are currently blending up to 20% ethanol with petrol, which helps reduce reliance on imported crude oil and lowers carbon emissions.
Ethanol blending has dramatically increased from 38 crore litres in the Ethanol Supply Year (ESY) 2013-14 to 707 crore litres in ESY 2023-24, achieving an average blending rate of 14.60%.
The programme has resulted in estimated savings of over ₹1,13,007 crore in foreign exchange and has substituted approximately 193 lakh metric tonnes of crude oil over the past decade.
What are other initiatives taken to promote biofuels?
National Policy on Biofuels (2018): This policy aims to reduce dependency on fossil fuels and promote sustainable development by encouraging the production and use of biofuels from various feedstocks such as sugarcane, broken rice, and maise.
Pradhan Mantri JI-VAN Yojana: This initiative focuses on accelerating the development of second-generation (2G) ethanol capacity in India, providing viability gap funding to support the establishment of 2G ethanol projects.
Global Biofuels Alliance (GBA): Launched in September 2023, this alliance aims to accelerate the global adoption of cleaner fuels and support decarbonization goals. It involves collaboration with multiple countries to enhance biofuel deployment.
Repurpose Used Cooking Oil (RUCO) Initiative: Launched by the Food Safety and Standards Authority of India (FSSAI) in 2018, this initiative aims to convert used cooking oil into biofuel, thereby preventing its reuse in food preparation and promoting sustainability.
Biodiesel Production Targets: India has set a biodiesel blending target of 5% by 2030. The government is mobilizing production through policies that support feedstock availability, including used cooking oil and non-edible industrial oils.
Sustainable Aviation Fuel (SAF) Initiatives: The National Biofuel Coordination Committee has established targets for blending SAF in domestic flights, aiming for 1% by 2025 and 5% by 2030.
Ethanol Blending Advancements: The target for ethanol blending has been advanced from 2030 to 2025, with plans to achieve 20% blending. This includes signing long-term off-take agreements with dedicated ethanol plants to ensure a steady supply.
Way forward:
Strengthen Feedstock Supply Chain: Enhance agricultural productivity and diversify feedstock sources including maize and non-food biomass, to ensure a stable and sustainable ethanol supply.
Expand Infrastructure and Investments: Develop ethanol storage, blending, and distribution networks while encouraging private sector participation through financial incentives and policy support.
Prelims PYQ:
[2013] With reference to the usefulness of the by-products of the sugar industry, which of the following statements is/are correct?
Bagasse can be used as biomass fuel for the generation of energy.
Molasses can be used as one of the feedstocks for the production of synthetic chemical fertilizers.
Molasses can be used for the production of ethanol.
Select the correct answer using the codes given below.
This week in India, a tragic crowd crush at the Maha Kumbh claimed the lives of 30 people.
What scientific evidence supports the prevention of crowd disasters?
Crowd Density Studies: Research indicates that crowd crushes become dangerous at densities of five persons per square meter, with serious risks emerging at seven persons per square meter or more. This evidence underscores the need for effective crowd management to prevent dangerous overcrowding.
Predictability of Crowd Behavior: Scientific studies have shown that crowd dynamics can be predicted and managed. By understanding how crowds behave in different environments, planners can implement strategies to avoid conditions that lead to crushes.
Historical Data on Past Incidents: Analysis of previous crowd disasters reveals common factors leading to fatalities, such as inadequate space and poor crowd control measures. Lessons learned from these incidents can inform better practices for future events.
How can effective crowd management practices be implemented at large events?
Strategic Planning: Event organizers should create a comprehensive plan that includes crowd flow evaluation, risk assessment, and clearly marked exits and entrances. This planning should involve local officials to ensure safety measures are adequate.
Staggered Entry and Exit Times: To reduce peak crowd density, organizers can stagger arrival and departure times for attendees, allowing for a more manageable flow of people into and out of the venue.
Use of Barriers: Implementing physical barriers can help segment crowds into smaller groups, reducing the likelihood of dangerous surges. Barriers should be designed to allow for emergency exits if needed.
Crowd Monitoring Systems: Utilizing technology for real-time monitoring of crowd density and behaviour can help event staff respond quickly to potential dangers. Mass notification systems can alert staff about growing concerns, enabling timely interventions.
Staff Training and Communication: Ensuring that all staff and security personnel are trained in crowd management techniques is essential. Clear communication protocols should be established to relay information quickly during an event.
What role do policies and regulations play in enhancing crowd safety?
Mandatory Safety Regulations: Governments should introduce regulations requiring event organizers to adhere to safety standards that limit crowd density and ensure adequate emergency planning. Such policies can hold organizers accountable for crowd safety.
Economic Incentives for Compliance: While event organizers often prioritize profit over safety, regulations can create incentives for them to implement safer practices, such as limiting ticket sales based on venue capacity.
Post-Incident Reviews and Accountability: Establishing a framework for reviewing crowd disasters can lead to improved regulations and practices in the future. Accountability measures can encourage compliance with safety standards among event planners and local authorities.
Public Awareness Campaigns: Governments can promote awareness about crowd safety among the public, educating attendees on how to behave in crowded situations and the importance of following safety protocols during events.
What are the steps taken by the government?
National Disaster Management Authority (NDMA) Guidelines: The NDMA has formulated guidelines to ensure safe crowd management during mass gatherings. These guidelines include regulating traffic, using barricades, and ensuring adequate police presence to manage crowds effectively.
Capacity Evaluation: Before hosting large events, there is a requirement for proper evaluation of the venue’s capacity. This ensures that the infrastructure can handle the expected crowd size without leading to dangerous overcrowding.
Use of Technology: The government encourages the deployment of advanced technologies such as CCTV surveillance, drones for aerial monitoring, and public address systems to enhance crowd management and safety.
Traffic Management: Effective traffic management strategies are implemented, including displaying route maps, managing unauthorized parking, and controlling pedestrian flow around event venues to prevent bottlenecks.
Way forward:
Strengthen Regulatory Framework – Governments should enforce stricter crowd safety regulations, mandating capacity limits, emergency preparedness, and real-time crowd monitoring for all large events.
Enhance Technological Integration – Deploy AI-based crowd analytics, drone surveillance, and real-time alert systems to monitor crowd density and movement. Training event staff in using these technologies will improve response times and prevent disasters.
Mains PYQ:
Q Discuss the recent measures initiated in disaster management by the Government of India departing from the earlier reactive approach. (UPSC IAS/2020)
Q How important are vulnerability and risk assessment for pre-disaster management? As an administrator, what are key areas that you would focus on in a Disaster Management System? (UPSC IAS/ 2013)
The government approved a Mutual Credit Guarantee Scheme (MCGS) for micro, small, and medium enterprises (MSMEs).
What is MCGS-MSME?
The Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME) is a government initiative aimed at enhancing financial accessibility for micro, small, and medium enterprises in India.
What are the Provisions and Salient Features of MCGS-MSME?
Eligibility and Loan Coverage: The MCGS-MSME is available to MSMEs with a valid Udyam Registration Number, providing loan guarantees of up to Rs 100 crore for purchasing equipment and machinery.
Guarantee Coverage: The scheme offers 60% guarantee coverage by the National Credit Guarantee Trustee Company Limited (NCGTC) for loans sanctioned to Member Lending Institutions (MLIs).
Project Cost Requirements: While the guaranteed loan amount is capped at Rs 100 crore, the total project cost can exceed this amount, provided that at least 75% of the project cost is allocated for equipment or machinery.
Repayment Terms: Loans up to Rs 50 crore have a repayment period of up to 8 years, including a moratorium of up to 2 years on principal repayments. For loans above Rs 50 crore, longer repayment schedules may be considered.
Scheme Duration and Fees: The MCGS-MSME will be in effect for four years from the issuance of operational guidelines or until cumulative guarantees of Rs 7 lakh crore are issued. The initial guarantee fee is waived for the first year, followed by a fee of 1.5% per annum for the next three years, and then reduced to 1% per annum thereafter.
What are the other steps taken to ease access to Credit for MSMEs?
In addition to the MCGS-MSME, several other measures have been implemented to facilitate easier access to credit for MSMEs:
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): This scheme provides collateral-free loans up to Rs 2 crore, offering up to 85% guarantee coverage, thereby reducing lender risk.
Raising and Accelerating MSME Performance (RAMP) Program: This initiative involves an investment of Rs 6,000 crore over five years, aimed at enhancing MSME growth and performance.
Trade Receivables Discounting System (TReDS): An online platform that enables MSMEs to receive faster payments from larger companies, improving cash flow and liquidity.
Emergency Credit Line Guarantee Scheme (ECLGS): Introduced during COVID-19, this scheme provided a Rs 3 lakh crore relief package, offering a 100% government-backed guarantee for loans.
Priority Sector Lending (PSL) Norms: These regulations require banks to allocate a portion of their loans specifically for MSMEs, ensuring that they receive necessary financial support.
What are the challenges faced by MSMEs in accessing finance?
Access to Finance: One of the most significant challenges faced by MSMEs is obtaining timely and affordable financing. For example, The Bank of Baroda reported that over 50% of MSMEs in India could not access formal credit.
Lack of Financial Knowledge: Many MSMEs lack awareness of available financial schemes and products, which restricts their ability to access funding. For example, Many business owners remain unaware of the Shishu, Kishor, and Tarun loan schemes.
Way forward:
Enhanced Financial Literacy and Awareness Campaigns: There is a need for targeted outreach programs to educate MSMEs about available financial schemes, including loan products and government initiatives like Shishu, Kishor, and Tarun schemes, to ensure they are aware and can leverage them effectively.
Streamlined Loan Processes and Collateral-Free Options: Simplifying the loan application process and expanding collateral-free loan schemes like CGTMSE, along with improving credit rating systems, will ensure quicker and easier access to funds, especially for smaller MSMEs.
Mains PYQ:
Q Can the strategy of regional-resource-based manufacturing help in promoting employment in India? (UPSC IAS/2019)
If you’re gearing up for the UPSC exam, you’ve probably read a lot about cash transfer schemes and their role in welfare. But did you skip over the challenges like financial sustainability or the need for community-driven models? Here’s the deal: UPSC isn’t just about cramming facts, it wants you to dig deeper. It’s not enough to know about PM-Kisan or DBT; understanding the limitations and trade-offs is key. The special part here? The comparison between cash transfer schemes and community-based projects. This insight is crucial for answering those complex GS-2 governance based questions. Don’t miss out!
PYQs Anchoring
GS 2: Electronic cash transfer system for the welfare schemes is an ambitious project to minimize corruption, eliminate wastage and facilitate reforms. Comment. 2013
GS 2: Reforming the government delivery system through the Direct Benefit Transfer Scheme is a progressive step, but it has its limitations too. Comment. 2022
Microthemes: Welfare and Development Schemes
In the Maharashtra and Jharkhand Assembly elections, cash transfer schemes for women became a key focus of political campaigns. In August, the Maharashtra government launched the ‘Mukhyamantri Majhi Ladki Bahin Yojana,’ giving ₹1,500 a month to eligible women in their Aadhaar-linked bank accounts. Similarly, the Jharkhand government introduced the ‘Jharkhand Mukhyamantri Maiya Samman Yojana,’ offering ₹1,000 a month to eligible women.
Reasons for popularity of cash transfer schemes
Direct cash transfer schemes are not a new idea in politics. According to Axis Bank, 14 states in India already have such programs, reaching nearly one-fifth of the country’s adult women. Below are the reasons for rising popularity in cash transfer schemes:
Reason
Description
Example
Increased Voter Turnout
Women’s participation in elections has significantly risen, reflecting their growing political influence.
Women’s voter turnout increased from 47% in 1962 to 66% in 2024, especially in states like Bihar and Uttar Pradesh.
DBT Efficiency
Direct Benefit Transfers (DBT) eliminate middlemen and reduce corruption, ensuring direct delivery of funds to beneficiaries.
The PM-Kisan Scheme directly transfers funds to farmers, cutting delays and middlemen.
Immediate Political Gains
Short-term welfare schemes deliver visible assistance, creating quick political capital compared to long-term projects.
Telangana’s KCR Kit Scheme provides financial aid to mothers immediately after childbirth.
Standardization of Welfare
Successful welfare models inspire replication in other states, showcasing policy learning and adaptation.
Tamil Nadu adopted a maternal welfare scheme modeled after Odisha’s Mamta Scheme.
Fear of Missing Out (FOMO)
States implement similar schemes to remain competitive in garnering electoral support.
Rajasthan’s Guaranteed Income Schemes followed Chhattisgarh’s Nyuntam Aay Yojana.
Addressing Structural Issues
Focused on gender-related challenges like education gaps and child marriage, enhancing targeted social welfare.
Direct Cash Transfer (DCT) schemes have revolutionized welfare delivery by ensuring funds reach beneficiaries directly, reducing delays and leakage. They empower individuals to make choices about spending, boosting financial inclusion and local economies. For instance, schemes like PM-KISAN or DBT in LPG subsidies have shown how effective they can be. However, bypassing middlemen is crucial to realizing their full potential.
Middlemen often dilute the benefits through corruption or mismanagement. Leveraging technology like Aadhaar-linked accounts and real-time monitoring can eliminate such inefficiencies, ensuring every rupee serves its purpose—uplifting lives without unnecessary hurdles.
Advantage
Description
Example
Reduction of Corruption
Minimizes corruption by eliminating intermediaries in welfare distribution processes.
MGNREGA payments transitioned to DBT, reducing delays and systemic corruption.
Personalized Political Relationships
Direct assistance fosters goodwill and loyalty among beneficiaries, enhancing political relationships.
West Bengal’s Lakshmi Bhandar Scheme provides monthly stipends to women, building goodwill.
Delhi’s Widow Pension Scheme provides immediate support to widowed women in financial distress.
Enhanced Accountability
Ensures better tracking and transparency of fund utilization through digital monitoring systems.
PM-KISAN transfers are monitored digitally, ensuring timely and accurate disbursements.
Promotion of Financial Inclusion
Brings unbanked individuals into the formal financial system, empowering them economically.
Jan Dhan-Aadhaar-Mobile (JAM) trinity has enabled access to banking services for millions.
Key Challenges of Cash Transfer Schemes
Lack of Welfare Innovation
Over-reliance on cash transfers hinders the development of diverse, community-based welfare models.
Many states replicate cash assistance programs without exploring alternatives such as local empowerment or infrastructure development.
Political Conformity
Opposition-controlled states often implement cash transfer schemes to align with central government policies, lacking unique or locally adapted welfare strategies.
Even progressive states like Kerala have adopted cash transfers despite previously having strong, distinct welfare systems.
Efficiency vs. State Capacity
A focus on cash transfers diverts attention from addressing systemic issues in welfare delivery.
Critics argue that schemes like PM-Garib Kalyan Yojana address the symptoms of poverty rather than tackling the root causes, such as employment generation and education reform.
Temporary Solutions
Cash transfers offer short-term relief but fail to address long-term solutions to systemic poverty.
Programs like Jagananna Ammavodi in Andhra Pradesh provide financial support for education but lack skill-building components necessary for sustainable growth.
Financial Sustainability
Relying heavily on cash transfers may strain government finances, especially in the long run.
Without regular budgeting adjustments or innovative financing methods, such schemes may face challenges in maintaining financial sustainability.
Exclusion Errors
Cash transfer schemes may exclude deserving individuals due to inaccuracies in beneficiary databases or targeting methods.
Inaccurate beneficiary lists can lead to marginalized groups being left out of crucial assistance programs.
Way Forward
Diversification of Welfare Approaches: Move beyond cash transfers by exploring community-based projects and sustainable welfare models.
Improved Targeting and Inclusivity: Enhance the accuracy of beneficiary identification through better data management systems and regular audits.
Focus on Long-term Solutions: Shift the focus from short-term relief to long-term poverty alleviation strategies. Implement programs that include skill-building, job creation, and education reforms alongside cash transfers to address root causes of poverty.
Financial Sustainability and Innovation: Develop innovative financing mechanisms, such as public-private partnerships, to ensure the long-term sustainability of cash transfer programs.Regularly reassess funding strategies to avoid over-reliance on government budgets and ensure that funds are allocated efficiently and sustainably.
#Back to basics: Cash transfer schemes
Definition: Direct monetary benefits are transferred to beneficiaries’ bank accounts.
What is the difference between cash transfer schemes and community based projects?
Parameter
Cash Transfer Schemes
Example (Cash Transfer)
Community-Based Projects
Example (Community-Based Projects)
Definition
Direct monetary benefits transferred to beneficiaries’ bank accounts.
PM-Kisan: Income support for farmers.
Welfare delivery through community-driven initiatives addressing collective needs.
MGNREGA: Employment for public asset creation.
Focus
Individual financial assistance for immediate relief.
Union Minister for Labour & Employment has launched State and Union Territory Microsites under the e-Shram initiative and the Occupational Shortage Index (OSI).
About E-Shram Microsites
E-Shram Microsites are state-specific digital platforms integrated with the national e-Shram database.
It is aimed at providing unorganised workers seamless access to both Central and State government welfare programs.
These platforms ensure real-time integration between State portals and the e-Shram database, allowing simplified registration of unorganised workers.
Key benefits includes:
(1) For Workers:
One-stop access to employment opportunities, skilling programs, and social security benefits.
Multilingual accessibility, ensuring workers from different regions can navigate the platform in their preferred language.
Two-way integration with the e-Shram database, allowing workers to receive real-time updates on welfare schemes and job opportunities.
(2) For States/UTs:
Cost-effective digital infrastructure, reducing the need for separate State-level portals.
Real-time analytics dashboards for better policy decision-making and customized tools for specific labour market requirements.
What is Occupational Shortage Index (OSI)?
The OSI is a data-driven tool designed to identify job roles and industries facing labour shortages, improving workforce planning and employment outcomes.
It is based on ILO methodology and quarterly Periodic Labour Force Survey (PLFS) data, ensuring an accurate and updated analysis of the job market.
It comprise of following 4 sub-indicators:
Hourly Wage Growth
Employment Growth
Growth in Hours Worked
Share of Under-qualified Workers
High OSI indicates Shortage/higher demand of workers within a particular occupation, which may result in higher wages, more job opportunities.
Low OSI indicates Surplus/less demand of workers, which may lead to lower wages, fewer job opportunities, and increased competition for available positions.
PYQ:
[2015] Discuss the changes in the trends of labour migration within and outside India in the last four decades.
The Union Ministry of Environment, Forest and Climate Change (MoEF&CC) has approved the reconstruction of the Teesta-III Dam, which was destroyed by a Glacial Lake Outburst Flood (GLOF) in October 2023.
About Teesta River
The Teesta River is a transboundary river flowing through India and Bangladesh.
Originates from Tso Lhamo Lake, Sikkim, at 5,330 meters in the Himalayas.
Major tributary of the Brahmaputra River (Jamuna in Bangladesh).
Vital for irrigation, hydroelectric power, and water supply in Sikkim, West Bengal, and Bangladesh.
The Teesta Water Dispute remains unresolved, with Bangladesh seeking an equitable share of water.
Geographical Features:
Length:414 km (309 km in India, 105 km in Bangladesh).
Basin Area:12,159 sq. km in Sikkim and North Bengal.
Originates in North Sikkim → flows through West Bengal → enters Bangladesh before merging with the Brahmaputra River.
Passes through major towns like Mangan, Kalimpong, Jalpaiguri, and Rangpo.
Tributaries:
Left-bank: Rangit, Relli, Great Rangit.
Right-bank: Lachung, Lachen, Talung.
It supports Himalayan biodiversity, crucial for tea plantations and terrace farming.
Conservation Initiatives:
National River Conservation Plan (NRCP): Includes efforts to reduce pollution and improve water quality of the Teesta.
Teesta Barrage Project (West Bengal): Aimed at irrigation development and hydroelectric power generation in North Bengal.
Hydroelectric Projects in Sikkim: Several Teesta Hydropower Projects (Teesta Stage III, IV, V, VI, etc.) have been established to generate renewable energy while ensuring minimum ecological impact.
India-Bangladesh Water Sharing Talks: Ongoing diplomatic negotiations to resolve the Teesta water-sharing dispute, ensuring equitable distribution.
Catchment Area Treatment (CAT) Plan: Implemented to prevent soil erosion and siltation, protecting river health.
PYQ:
[2017] With reference to river Teesta, consider the following statements:
1. The source of river Teesta is the same as that of Brahmaputra but it flows through Sikkim.
2. River Rangeet originates in Sikkim and it is a tributary of river Teesta.
3. River Teesta falls into Bay of Bengal at the border of India and Bangladesh.
Which of the statements given above is/are correct?
14 out of 20 amino acids essential for proteins on Earth were found.
All five nucleo-bases used in DNA and RNA were detected, indicating prebiotic chemistry beyond Earth.
Ammonia & Formaldehyde compounds can react under suitable conditions to form complex organic molecules.
It thus supports the idea that asteroids delivered key building blocks for life to early Earth.
Calcite, halite, sylvite, and trona were found, indicating prolonged exposure to liquid water.
Similar briny conditions have been observed on Ceres and Enceladus, suggesting the solar system had widespread environments suitable for organic chemistry.
Life on Earth exclusively uses left-handed amino acids, but Bennu samples show an equal mix, raising questions about why life evolved with this preference.
About Asteroid Bennu
Asteroid Bennu is a carbon-rich asteroid that orbits between Earth and Mars.
It is believed to be a primitive remnant of the early solar system, holding clues to the origins of life.
The asteroid is porous, with up to 60% empty space, affecting its collision potential with Earth in the distant future.
It periodically ejects material, classifying it as an active asteroid.
OSIRIS-REx was NASA’s first asteroid sample-return mission, launched in 2016 to study and collect material from Bennu’s surface.
The spacecraft arrived at Bennu in 2018, mapped its surface for two years, and collected samples in 2020.
It successfully returned the material to Earth in 2023.
The mission aimed to analyze Bennu’s composition, understand its water history, and study the organic molecules that may have played a role in the origin of life.
Significance of the Study:
It strengthens the theory that asteroids contributed to life’s origins by delivering organic molecules and water to early Earth.
It confirms that essential ingredients for life were widespread in the early solar system, increasing the possibility of life beyond Earth.
It helps refine planetary defense strategies, as Bennu has a small chance of impacting Earth in the future.
PYQ:
[2011] What is the difference between asteroids and comets?
Asteroids are small rocky planetoids, while comets are formed of frozen gases held together by rocky and metallic material.
Asteroids are found mostly between the orbits of Jupiter and Mars, while comets are found mostly between Venus and Mercury.
Comets show a perceptible glowing tail, while asteroids do not.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 1 and 3 only
(c) 3 only
(d) 1, 2 and 3
Q.) How far do you agree with the view that the focus on the lack of availability of food as the main cause of hunger takes the attention away from ineffective human development policies in India? (CS Mains 2018)
Mentor’s Comment: UPSC Mains has always focused on the main cause of hunger (2018) and poverty and hunger in India(2019).
India’s White Revolution made it the world’s top milk producer, but now the focus should shift to ensuring milk reaches the most vulnerable. Milk is an important source of protein and calcium, especially for children. However, there are significant differences in milk consumption across income groups and regions. Addressing these gaps is crucial for better health outcomes.
Today’s editorial discusses how milk should be accessible to everyone in India and highlights the differences in milk availability. It looks at how these issues are connected to topics in GS Paper 1, 2, and 3, such as social inequalities, health, and policy solutions.
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Let’s learn!
Why in the News?
The challenge is making sure that the most vulnerable people have fair access to milk, while also controlling how much milk is consumed by wealthier people.
What is the disparity in milk consumption?
Income-Based Disparities: Households in the top-income decile consume 3-4 times more milk per capita compared to those in the lowest-income decile. Despite increases in milk consumption among lower-income groups, the poorest 30% account for just 18% of India’s milk.
Urban vs. Rural and Regional Disparities: Urban households consume ~30% more milk per capita than rural households, despite rural areas being the main milk producers.
Additionally, northern states like Rajasthan, Punjab, and Haryana have higher consumption (333g-421g), while eastern states like Chhattisgarh, Odisha, and West Bengal have much lower consumption (75g-171g).
Social Group Disparities: Scheduled Tribe households consume 4 litres less milk per capita annually compared to general category households, highlighting social and economic inequalities in milk access.
What are the nutritional implications of milk consumption in India?
Protein Source: Milk is a rich source of high-quality protein. In India, it contributes significantly to daily protein intake, especially for children and adults in rural areas. According to the National Family Health Survey (NFHS), over 70% of children in India consume milk, making it a key protein source.
Calcium and Bone Health: Milk provides essential calcium, which is vital for bone health. Around 67% of Indian households consume milk, helping to prevent calcium deficiency, particularly in growing children and elderly populations, which can lead to conditions like osteoporosis.
Micronutrients and Vitamin D: Milk is also a good source of vitamins such as B12 and D, essential for immune function and energy production. The National Institute of Nutrition (NIN) states that milk helps in reducing vitamin D deficiency, which is prevalent in India due to limited sunlight exposure.
How can policy interventions address disparities in milk production and access?
Enhancing Milk Provision: Increase milk availability for vulnerable populations through government schemes like the Pradhan Mantri Poshan Shakti Nirman (POSHAN) and Integrated Child Development Services. States can collaborate with nutrition institutes to align milk products with local dietary preferences.
Financial Support: Boost financial allocations for existing schemes to ensure adequate milk provision, especially in states where such programs have been discontinued due to budget constraints.
Nutritional Awareness Campaigns: Conduct awareness campaigns focusing on the benefits of milk consumption, targeting women through various community channels. This can help improve dietary diversity within households.
What strategies can be implemented to promote sustainable dairy practices?
Healthy Consumption Awareness: Develop partnerships with healthcare professionals and media to promote balanced diets and moderation in dairy consumption among affluent groups.
For example, Campaigns similar to the UK’s Change4Life initiative could serve as effective models for India.
Investing in Dairy Infrastructure: The government should continue investing in dairy infrastructure, including animal health care and fodder availability, to ensure sustainable production practices while improving yields.
Community Engagement: Engage local communities in sustainable practices through education and training programs aimed at improving animal husbandry practices and enhancing productivity without compromising environmental sustainability.
What are the steps taken by the government?
Rashtriya Gokul Mission: This initiative focuses on enhancing the genetic quality of bovine animals through the identification and use of high-quality bulls for breeding, in-vitro fertilization (IVF) technology, and genomic selection. It aims to improve milk production by covering millions of livestock and providing better healthcare services for animals.
National Dairy Plan (NDP): The NDP supports the establishment of dairy cooperatives and processing facilities to enhance milk marketing and value addition. It includes financial assistance for creating dairy processing infrastructure, thereby improving the overall efficiency and competitiveness of the dairy sector.
Kisan Credit Card (KCC) Facility: This scheme offers credit support to farmers for various agricultural activities, including dairy farming. By providing financial assistance, the KCC aims to empower smallholder farmers to invest in their livestock and improve milk production capabilities.
Way forward:
Increase Access for Vulnerable Groups: Expand milk distribution through government schemes (e.g., POSHAN and ICDS) and ensure adequate funding to cover vulnerable populations.
Regional and Social Equity: Implement targeted interventions to reduce regional, income, and social disparities in milk access, such as milk coupons or subsidies for underserved areas.
The growth rate is lower than what the government had expected. Looking at past trends, the 2004-2011 period had high growth and poverty reduction, supported by welfare programs and government interventions.
Context:
The World Bank forecasts India’s GDP growth to soften to 6.5% for the fiscal year 2024-25, down from previous expectations of 7%. This reflects a slowdown in investment and weak manufacturing growth.
The International Monetary Fund (IMF) has also revised its growth forecast for India to 7% for FY24 and 6.5% for FY25, citing robust domestic demand but acknowledging challenges ahead
How did the period from 2004 to 2011 have a consistently high growth rate?
State Intervention and Welfare Programs: This period saw a revival of state interventions through rights-based legislation and welfare schemes, which contributed to economic growth and reduced absolute poverty.
Notably, programs like the National Rural Employment Guarantee Act (NREGA) provided jobs and set higher wage floors, benefiting the rural poor.
Rising Consumption Among Lower Income Groups: Despite increasing income inequality, the consumption share of the bottom 80% of the population grew faster than that of the richest 20%. This was facilitated by targeted fiscal policies that favoured lower-income groups, enhancing their consumption capacity.
Increased Fiscal Expenditure on Social Services: There was a significant rise in social services and developmental expenditures during this time, which directly impacted consumption patterns positively across various commodity categories for lower-income groups.
Does the nature of fiscal expenditure also matter when it comes to private consumption?
Capital Expenditure vs. Revenue Expenditure:
Capital Expenditure (Capex) (e.g., infrastructure projects) primarily benefits high-income groups and corporations, with a lower short-term impact on consumption.
Revenue Expenditure (e.g., social welfare, wages, and pensions) immediately boosts demand by increasing disposable income among lower-income groups.
Leakages in Capex: Large-scale projects often involve imports (e.g., heavy machinery), leading to capital outflows instead of stimulating the domestic economy.
Higher Consumption Propensity of Lower-Income Groups: Money spent on welfare programs reaches people with a higher tendency to spend, leading to a larger multiplier effect on domestic demand.
How would an increase in revenue expenditure, particularly in the social sector, help? (Way forward)
Higher Incomes for Workers: By providing better wages and job opportunities through social programs, disposable income among lower-income populations would rise, thereby boosting overall consumption levels.
Stimulating Private Investment: Enhanced consumer demand can create a conducive environment for businesses to invest. As workers have more income to spend, businesses may respond by increasing production capacity, leading to a cycle of investment and growth.
Reversing Economic Slowdown: A strategic shift towards increasing revenue expenditure can help combat the current economic slowdown by fostering a more inclusive growth model that benefits a broader segment of society.
Mains PYQ:
Q “Industrial growth rate has lagged behind in the overall growth of Gross-Domestic-Product (GDP) in the post-reform period” Give reasons. How far the recent changes in Industrial Policy are capable of increasing the industrial growth rate? (UPSC IAS/2015)
