On September 30, the Securities and Exchange Board of India (SEBI) launched the liberalized Mutual Funds Lite (MF Lite) framework specifically for passively managed schemes.
What is a Passive Mutual Fund?
A Passive Mutual Fund is a type of investment fund that follows a market index, like Nifty50, trying to match its performance.
They can be easily tracked, whereas, Active Mutual Funds need expert fund managers to actively monitor them and make investments in securities of their choice accordingly.
Since there’s no need for constant research, analysis, or active trading the costs are lower.
Key highlights of the liberalized Mutual Funds Lite (MF Lite) framework:
Separate Framework for Passive Funds: It is tailored for passively managed schemes, which are less risky and require minimal active management.
Relaxed Entry Requirements: Lowered net worth requirement (₹35 crore), simplified criteria for sponsor eligibility (profitability, track record).
Encouraging New Players: It provides easier entry for new AMCs (Asset management companies) and market players in the passive fund segment.
Governance Flexibility: It has reduced oversight for trustees; operational responsibilities shifted to AMC boards, focusing on fees, expenses, and tracking error.
Cost Efficiency Focus: It emphasizes on lowering Total Expense Ratio (TER) and minimizing tracking error for better returns.
Simplified Disclosures: The Scheme Information Documents (SID) are simplified to focus on key metrics like benchmark index, TER, and tracking error.
Risk Management: Audit committees of AMCs can handle risk management duties due to the lower risk profile of passive funds.
Why a Separate Framework for MF Lite is Needed?
Lower Risk Profile: Passively managed funds are generally less risky because they track established benchmarks like BSE Sensex or Nifty50, reducing the need for active decision-making.
Minimal Asset Manager Discretion: Unlike actively managed funds, asset managers of passive funds have limited discretion in asset allocation and investment objectives. They simply mirror the performance of the benchmark index.
Inapplicability of Existing Regulations: The current framework is designed primarily for actively managed funds, which involve more risks and require more oversight. It is less suitable for passive funds, which operate with predefined, transparent rules.
Cost-Effective Market Entry: To encourage new players and make the passive fund industry more competitive, SEBI introduced relaxed regulations regarding eligibility, net worth, and profitability.
What about risks and disclosures?
Success depends on Total Expense Ratio (TER) and tracking error. Lower costs and minimal deviation from the benchmark are crucial for performance.
Scheme Information Documents (SID) focus on key metrics like the benchmark name, TER, and tracking error, leaving out complex strategies.
Risk management responsibilities are streamlined, allowing the audit committee of the AMC to handle oversight, reflecting the lower risks of passive funds.
Way forward:
Enhance Investor Education: Develop targeted educational initiatives to inform retail investors about the benefits, risks, and operational aspects of passive mutual funds, fostering informed investment decisions.
Ongoing Regulatory Evaluation: Establish a framework for periodic assessment and adaptation of the MF Lite regulations to ensure they remain effective and relevant, promoting competition while safeguarding investor interests.
After the completion of the loan waiver, the Telangana government will provide Rythu Bharosa assistance to support farmers further.
About theRythu Bharosa Scheme:
Details
Scheme Name
Rythu Bharosa Scheme (Farmer’s Investment Support Scheme – FISS)
Launch Year
2018-19 Kharif season (Telangana Govt’s Navratna Scheme)
Objective
To support the initial investment needs of farmers by providing financial aid for agriculture and horticulture crops.
Benefits
₹5,000 per acre per season as a grant for input purchases, with no cap on the number of acres owned by farmers.
Eligibility
Farmers must be residents of Telangana.
Must own agricultural land.
Small and marginal farmers are eligible.
Farmers cultivating land with Record of Forest Rights (ROFR) document (mainly from Scheduled Tribe communities).
Ineligible Farmers
Commercial farmers.
Farmers working on a rental contract or tenant farmers.
Significance of the move
Financial Relief for Farmers: By waiving loans of up to ₹2 lakh per farmer, the scheme provides significant financial relief, helping farmers manage their debt and invest in future agricultural activities.
Boost to Agricultural Sector: The waiver will enable farmers to focus on improving productivity and crop yields without the burden of debt, potentially boosting the state’s agricultural output.
Reduction in Farmer Distress: This move will alleviate distress among farmers, especially those affected by unpredictable weather and fluctuating crop prices, reducing the risk of farm-related suicides and financial instability.
PYQ:
[2020] Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?
Working capital for maintenance of farm assets
Purchase of combine harvesters, tractors and mini trucks
Consumption requirements of farm households
Post-harvest expenses
Construction of family house and setting up of village cold storage facility
Select the correct answer using the code given below:
(a) 1, 2 and 5 only
(b) 1, 3 and 4 only
(c) 2, 3, 4 and 5 only
(d) 1, 2, 3, 4 and 5
India’s power regulator, the Central Electricity Regulatory Commission (CERC), has appointed a Single Member Bench to assess the challenges of a sudden surge in power demand.
Projected Power Demand for October 2024
India’s projected peak power demand for October 2024 is 230 Gigawatts (GW).
After factoring in Inter-State Transmission System (ISTS) losses, the demand is expected to rise to 232.2 GW.
To meet this demand, an additional 12.60 GW of generation resources is required.
Concerns over Power System Operation:
The steep rise in electricity demand, without enough generation sources, could pose a risk to power system operations.
The Regional Load Despatch Centres (RLDCs) and State Load Despatch Centres (SLDCs) are responsible for conducting operational planning to manage this surge, especially due to seasonal variations.
It was constituted on July 24, 1998, under the Electricity Regulatory Commissions Act, 1998, and later brought under the Electricity Act, 2003.
Type
Statutory body with quasi-judicial status under Section 76 of the Electricity Act, 2003.
Ministry
Functions under the Ministry of Power, Government of India.
Primary Functions
– Regulates tariffs of power generation companies (owned/controlled by the Government of India).
– Regulates interstate transmission tariffs.
– Issues licenses for interstate transmission and trading.
Key Role in Tariff Evolution
– Introduced a Two-Part Tariff in 1992.
– Introduced Availability Based Tariff (ABT) in 2000 to improve grid stability.
Advisory Role
– Contributes to National Electricity Policy and Tariff Policy.
– Promotes competition, efficiency, and investment in the electricity sector.
Licensing
– Issues licenses for electricity transmission and interstate trading.
Grid Operation Standards
Enforces standards under the Indian Electricity Grid Code (IEGC) to improve grid stability and power quality.
Dispute Resolution
Adjudicates disputes involving power generation companies and transmission licensees.
Collaboration
Signed a MoU with the U.S. Federal Energy Regulatory Commission (FERC) in 2009 for enhancing power market regulation and grid reliability.
First Chairman
Mr. S.L. Rao (1998–2001).
PYQ:
[2016] Which one of the following is the purpose of ‘UDAY’, a scheme of the Government?
(a) Providing technical and financial assistance to start-up entrepreneurs in the field of renewable sources of energy
(b) Providing electricity to every household in the country by 2018
(c) Replacing the coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants over a period of time
(d) Providing for financial turnaround and revival of power distribution companies
The Bureau of Indian Standards (BIS) has initiated the development of a National Agriculture Code (NAC), similar to the existing National Building Code and National Electrical Code.
What is the National Agricultural Code (NAC)?
The NAC is a comprehensive set of standards for the agricultural sector, formulated by the Bureau of Indian Standards (BIS).
It aims to standardize all agricultural practices and post-harvest operations, including the use of machinery, field preparation, water use, crop management, and input management like fertilisers and pesticides.
It will cover both traditional and emerging agricultural practices like organic farming, natural farming, and the use of the Internet of Things (IoT) in agriculture.
What Role Will the NAC Play in Standardization?
Comprehensive Framework: The NAC will provide a standardized framework for agricultural processes, ensuring quality, consistency, and efficiency in farming practices across India.
Sector-wide Application: It will set guidelines for various aspects of the agriculture sector, including crop selection, land preparation, irrigation, soil and plant health management, post-harvest operations, sustainability, and documentation.
Incorporation in Policies: The NAC will serve as a reference for policymakers, agriculture departments, and regulators to incorporate into schemes, policies, and regulations, aiding in quality control across the agricultural value chain.
Who is Involved in the Formulation of the NAC?
The Bureau of Indian Standards (BIS) is leading the formulation of the NAC.
The BIS has formed working panels consisting of university professors, R&D organizations, and experts in 12-14 specific areas of agriculture to draft the NAC.
The BIS is collaborating with premier agricultural institutes and has already signed Memoranda of Understanding (MoUs) with institutes like Govind Ballabh Pant University of Agriculture and Technology (GBPUAT) for setting up Standardized Agriculture Demonstration Farms (SADFs).
How will the NAC Impact Farmers’ Livelihoods?
Improved Decision-Making: The NAC will provide farmers with a structured guide for better decision-making in agricultural practices, which will help improve crop yields and reduce resource wastage.
Capacity Building: The BIS plans to offer training to farmers on NAC standards, enhancing their technical knowledge and helping them adopt sustainable practices.
Quality Assurance and Market Access: Standardized agricultural practices can ensure that crops meet quality requirements, potentially opening up better market access, higher incomes, and improved livelihoods for farmers.
Adoption of New Technologies: With standards in place for emerging technologies like IoT in agriculture, farmers can integrate modern technology into their operations, increasing productivity and efficiency.
Way forward:
Training and Capacity Building: Implement widespread training programs for farmers and agricultural professionals on NAC standards, ensuring smooth adoption of standardized practices and emerging technologies like IoT for improved efficiency.
Policy Integration and Support: Ensure seamless incorporation of NAC recommendations into national agricultural policies, with financial incentives and technical support to promote sustainable and quality-driven farming practices across India.
The Union Cabinet has approved the National Mission on Edible Oils-Oilseeds (NMEO-Oilseeds) to enhance domestic oilseed production and attain self-sufficiency in edible oils.
About the Newly Launched NMEO-Oilseeds:
Aim: Boost domestic oilseed production, achieve self-reliance in edible, and boost farmers’ incomes. Currently, imports account for 57% of India’s domestic demand for edible oils.
Focus: It will focus on increasing edible oil production from Oil Palm by enhancing the production of key primary oilseed crops (Rapeseed-Mustard, Groundnut, Soybean, Sunflower, and Sesamum)
Increasing collection and extraction efficiency from secondary sources (Cottonseed, Rice Bran, and Tree Borne Oils).
Tenure: 7 years (from 2024-25 to 2030-31)
Roadmap for the Mission:
Increase Edible Oil Production: Achieve 25.45 million tonnes of domestic edible oil production by 2030-31, meeting 72% of domestic demand.
Seed Infrastructure: It will introduce an online 5-year rolling seed plan through the Seed Authentication, Traceability & Holistic Inventory (SATHI) portal to ensure timely availability of seeds.
Seed Hubs & Storage: Establish 65 new seed hubs and 50 seed storage units to strengthen seed production infrastructure.
Value Chain Clusters: Develop over 600 value chain clusters across 347 districts, covering 10 lakh hectares annually. These clusters will focus on providing high-quality seeds and promoting Good Agricultural Practices (GAP).
Other Initiatives by the Government:
National Mission on Edible Oils – Oil Palm (NMEO-OP): Launched in 2021 with a budget of Rs 11,040 crore to boost oil palm cultivation.
Import Duties: A 20% import duty on edible oils has been imposed to protect domestic producers from cheap imports and encourage local oilseed cultivation.
MSP & PM-AASHA: The Minimum Support Price (MSP) for mandated edible oilseeds has been increased, and the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) ensures oilseed farmers receive MSP through price support and deficiency payment schemes.
Way forward:
Strengthen Research and Development: Invest in research initiatives focused on developing climate-resilient, high-yield oilseed varieties through advanced technologies like genome editing.
Enhance Farmer Engagement and Training: Implement comprehensive training programs for farmers on Good Agricultural Practices (GAP) and effective resource management.
The Union Cabinet approved the rationalization of all Centrally Sponsored Schemes (CSS) under the Ministry of Agriculture and Farmers Welfare into two umbrella schemes:
Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY) – A cafeteria scheme aimed at promoting sustainable agriculture.
Krishonnati Yojana (KY) – Focuses on food security and agricultural self-sufficiency.
AboutPM Rashtriya Krishi Vikas Yojana (PM-RKVY):
Details
Objective
To promote sustainable agriculture and improve agricultural productivity.
Total Proposed Expenditure
Rs 1,01,321.61 crore (combined with Krishonnati Yojana).
Sustainable agricultural practices, soil health, water conservation, crop diversification, organic farming, and agricultural mechanization.
Flexibility for States
Increased flexibility for state governments to reallocate funds based on unique requirements of the states.
Implementation Method
Funds allocated to states, with state governments developing Comprehensive Strategic Documents addressing crop production, climate resilience, and value chains.
Benefits
Avoid duplication, ensure convergence, and streamline the approval process for quicker implementation of Annual Action Plans (AAP).
Schemes merged into Krishonnati Yojana (KY):
National Food Security Mission (NFSM)
National Mission on Oilseeds and Oil Palm (NMOOP)
Mission for Integrated Development of Horticulture (MIDH)
National Mission on Sustainable Agriculture (NMSA)
Sub-Mission on Agricultural Mechanization (SMAM)
National Mission on Agricultural Extension and Technology (NMAET)
Mission Organic Value Chain Development for North Eastern Region (MOVCDNER)
PYQ:
[2014] Consider the following pairs:
Programme/Project
Ministry
1. Drought – Prone Areas Programme
Ministry of Agriculture and Farmers Welfare
2. Desert Development Programme
Ministry of Environment, Forest and Climate Change
3. National Watershed Development Project for Rainfed Areas
Ministry of rural development
Which of the pairs given above is/are correctly matched?
SEBI has introduced a six-step framework to protect investors and curb speculative trading, specifically targeting futures and options (F&O) trading by reducing volumes on expiry days and limiting retail participation.
What are the Future and Options (F&O)?
Futures are contracts to buy or sell an asset (like stocks, indexes, or commodities) at a predetermined price on a future date.
Options give the right, but not the obligation, to buy or sell an asset at a set price before a certain date.
SEBI’s Six-Step F&O Framework (Effective November 2024 – April 2025):
In response to concerns about rising speculative trading, SEBI has outlined six key measures aimed at reducing retail interest in F&O trading:
Upfront collection of options premiums
Intraday monitoring of position limits
Removing calendar spread benefits on expiry day
Increasing the contract size for index derivatives
Rationalizing weekly index derivatives to one benchmark per exchange
Enhancing margin requirements on options expiry days
Key Changes for Retail Investors:
Upfront Collection of Options Premiums: Retail investors must now pay the full premium upfront, limiting their ability to use high leverage in options trading.
Increased Contract Size: The minimum contract size for index derivatives is raised to ₹15 lakhs, reducing speculative retail participation by making it costlier to enter.
Rationalization of Weekly Expiries: Only one benchmark index per exchange can have weekly expiries, lowering speculative trading opportunities and intraday volatility.
Removal of Calendar Spread Benefits: Calendar spreads are no longer allowed on expiry days, discouraging aggressive trading strategies.
Impact on Brokers and Revenue:
Decline in Trading Volumes: Brokers reliant on F&O trading will see reduced volumes due to fewer retail participants and higher barriers to entry.
Revenue Drop in Options Trading: Firms like Zerodha may face a 30-50% revenue drop as retail participation in options decreases.
Shift to Equity Trading: Retail investors may move towards equity trading, causing brokers to adapt their offerings.
Adaptation for Brokers: Brokers with a balanced mix of cash and derivatives will be less impacted, while those focused on F&O need to shift strategies.
PYQ:
[2021] With reference to India, consider the following statements:
1. Retail investors through demat account can invest in ‘Treasury Bills’ and ‘Government of India Debt Bonds’ in primary market.
2. The ‘Negotiated Dealing System-Order Matching’ is a government securities trading platform of the Reserve Bank of India.
3. The ‘Central Depository Services Ltd.’ Is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange.
Which of the statements given above is/are correct?
Over the past 8-9 months, more than 50,000 workers in Surat have lost their jobs, and over 70 people have tragically taken their own lives in the past year, unable to bear the strain of unemployment and family responsibilities.
Economic Impact of Geopolitical Tensions
Global Supply Chain Disruptions: The Russia-Ukraine war and Israel-Gaza conflict have disrupted the supply chain of raw diamonds. Russia, a major supplier of rough diamonds to Surat, faces Western sanctions, which have restricted the flow of diamonds into India.
Sanctions on Russian Diamonds: U.S. and European Union sanctions on Russian-origin diamonds, including polished diamonds processed in India, have significantly affected exports, particularly to Western markets like the U.S., EU, and Hong Kong.
Falling Demand: Global demand for polished diamonds has decreased in key markets such as the U.S., China, and Europe. This reduction in demand has led to a sharp decline in India’s diamond exports, plummeting from $23 billion in 2022 to a projected $12 billion by the end of 2024.
Price Drops: Polished diamond prices have fallen by 5-27% due to oversupply and lower demand, further worsening the industry’s financial outlook.
Employment Challenges
Job Losses: Over 50,000 diamond workers have lost their jobs in Surat over the past eight to nine months due to factory closures and layoffs.
Wage Reduction: Workers who remain employed have experienced significant wage cuts. For instance, wages have dropped from ₹45,000-₹55,000 per month in 2021 to ₹25,000-₹30,000 now.
Suicides and Financial Distress: Financial strain has led to over 70 suicides among diamond workers in Surat, as they struggle with job losses, school fees, rent, and medical expenses for their families.
Lack of Government Support: Despite repeated appeals, there has been little substantial government assistance for unemployed diamond workers, leaving them with minimal social security or institutional support.
Future Prospects and Support Measures
Shift to Alternative Employment: Many workers have shifted to other forms of employment, such as driving cabs, street vending, or returning to agriculture in their native regions, to make ends meet.
Welfare Demands: The Diamond Workers’ Union (DWU) has called for a special welfare package for workers, including financial support for their children’s education and healthcare expenses.
Appeals for Government Intervention: The industry, represented by groups like the DWU, is urging both the state and central governments to intervene. However, so far, industry associations have not formally sought government intervention for relief measures.
Way forward:
Government Support Package: The state and central governments should introduce targeted financial relief measures for affected diamond workers, including unemployment benefits, healthcare assistance, and educational support for children.
Diversification and Skill Development: Encourage skill development programs to help workers transition to alternative employment sectors, such as textiles, agriculture, or services, ensuring long-term economic resilience and reduced dependency on the diamond industry.
Q). Discuss the natural resource potentials of ‘Deccan Trap’. (UPSC CSE 2022) Q). With growing energy needs should India keep on expanding its nuclear energy programme? Discuss the facts and fears associated with nuclear energy. (UPSC CSE 2018)
Q). In what ways would the ongoing US-Iran Nuclear Pact Controversy affect the national interest of India? How should India respond to its situation? (UPSC CSE 2018)
Prelims:
In the Indian context, what is the implication of ratifying the ‘Additional Protocol’ with the `International Atomic Energy Agency (IAEA)’? (UPSC CSE 2018)
a) The civilian nuclear reactors come under IAEA safeguards. b) The military nuclear installations come under the inspection of IAEA. c) The country will have the privilege to buy uranium from the Nuclear Suppliers Group (NSG). d) The country automatically becomes a member of the NSG.
Mentor’s Comment: Nuclear power is the fifth-largest source of electricity in India, following coal, gas, hydroelectricity, and wind power. As of November 2020, India has 22 nuclear reactors in operation across 8 nuclear power plants, with a total installed capacity of 7,380 MW. From 2020 to 21, nuclear power produced 43 TWh, contributing 3.11% of India’s total power generation. In today’s editorial, we will be introduced to the private investment in India’s nuclear power sector, which is expected to have significant implications for the safety and security of nuclear power plants.
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Let’s learn!
Why in the News?
The government is negotiating with major firms, including Reliance Industries, Tata Power, Adani Power, and Vedanta, for investments of around $5.3 billion each.
This initiative aims to enhance electricity generation from non-carbon-emitting sources, aligning with India’s ambitious goal of achieving 50% non-fossil fuel-based electric generation capacity by 2030, up from 42% currently.
What are the potential benefits of private investment in nuclear energy for India’s energy security?
Increased Capacity: The government aims to add 11,000 megawatts (MW) of nuclear power generation capacity by 2040. By ramping up nuclear power, India can reduce its heavy reliance on coal, which constitutes over 50% of its installed capacity.
Financial Investment and Infrastructure Development: The initiative seeks approximately $26 billion in private investments, which will facilitate the construction and operation of new nuclear plants. This financial boost is essential for meeting ambitious clean energy targets.
Technological Advancements and Innovation: Private firms may bring innovative technologies and practices that can enhance efficiency and safety in nuclear operations. Collaborations could also foster research and development in areas such as Small Modular Reactors (SMRs), which offer potential cost savings and reduced construction times.
Alignment with National Energy Goals: The investment aligns with India’s goal to achieve 50% non-fossil fuel-based electricity generation by 2030, aiding in the transition towards cleaner energy sources.
Reduction in Carbon Emissions: Nuclear energy is a non-carbon-emitting source, which can significantly reduce greenhouse gas emissions. By ramping up, India can move closer to its goal of achieving 50% non-fossil fuel-based electricity generation by 2030.
Conservation of Natural Resources: Nuclear power plants require less land per unit of electricity generated compared to solar or wind farms. This efficiency can help conserve land resources and minimize habitat disruption, particularly in densely populated regions.
How will the operational framework be structured between private companies and NPCIL?
Roles and Responsibilities: Private Companies will be responsible for making investments in nuclear plants, acquiring necessary land and water resources, and undertaking construction activities outside the reactor complex.
The rights to build, operate, and manage the nuclear stations, including fuel management, will remain with NPCIL as per existing legal provisions.
Revenue Generation: Private companies are expected to generate revenue from electricity sales once the plants are operational. This model allows private entities to benefit financially.
Hybrid Model: This model aims to accelerate nuclear capacity expansion without requiring amendments to the Atomic Energy Act of 1962, although it does require final approval from the Department of Atomic Energy.
Regulatory Compliance: The Atomic Energy Regulatory Board (AERB) will oversee safety and regulatory processes, maintaining stringent standards throughout construction and operation.
Public-Private Partnerships: There is potential for forming public-private partnerships where NPCIL or a similar government body retains majority ownership (51%) of nuclear plants.
What challenges and regulatory considerations must be addressed for successful implementation?
Safety and Environmental Concerns: There is significant public concern regarding the safety of nuclear power plants, as evidenced by protests against facilities like Kudankulam.
Increasing the frequency of inspections and enhancing emergency response protocols are recommended to ensure that safety standards are met consistently across all facilities.
Investment Conditions and Restrictions: Current policies restrict direct foreign investment in nuclear energy, allowing only limited participation in equipment manufacturing.
Infrastructure and Technological Development: The capital-intensive nature of nuclear projects requires a highly skilled workforce. Investments in training and capacity-building will be critical to ensure operational efficiency and safety.
Lack of Institutional Independence: The AERB currently lacks sufficient independence, as it operates under the Department of Atomic Energy (DAE).
Secondly, the Atomic Energy Act of 1962 restricts private sector involvement in nuclear energy, granting the government exclusive rights to produce and manage nuclear power.
Legal Uncertainties: The existence of the Civil Liability for Nuclear Damage Act (CLNDA) framework poses risks for investors, as the government retains the right to novate contracts related to nuclear operations.
How can India address these challenges?
Legislative Reforms: The government should amend existing legislation to formally establish the AERB as an independent statutory authority, ensuring that regulatory decisions are made based on safety and technical considerations rather than political or administrative pressures.
Establishment of a New Regulatory Authority: Reviving the Nuclear Safety Regulatory Authority Bill, to issue safety policies and regulations without interference from the DAE, thereby enhancing its credibility and operational effectiveness.
Establishing a governance structure where the regulatory body operates independently would reduce conflicts of interest and improve regulatory oversight.
Enhanced Oversight Mechanisms: Increasing parliamentary oversight over the AERB’s operations can enhance accountability. Unlike executive orders, which have limited scrutiny, statutory authorities are subject to more rigorous checks, including judicial inquiries for member removals, which can bolster independence.
Adoption of Global Standards: Aligning with international best practices and standards set by organizations like the International Atomic Energy Agency (IAEA) can help strengthen regulatory frameworks.
The “Nanjangud Rasabale banana” has been revived after a drastic decline in cultivation, despite receiving Geographical Indication (GI) certification in 2006 for its unique taste and aroma.
About Nanjangud Rasabale Banana
Details
Origin
Devarasanahalli village near Nanjangud, Mysore district, Karnataka
Unique Features
Unique taste, aroma, small size, buttery soft texture
5-8 cm in length, 2-3 cm in diameter
Cultivation
In 2006-07, 180 farmers cultivated on 100 hectares; dropped to 15 farmers on 10 hectares by 2019-20.
By the end of 2023-24, 200 farmers cultivating on 75 hectares.
Soil
Black saline alluvial soil along the banks of the Kapila River
Significance
Popular in traditional festivals, religious ceremonies, and Kannada literature
Cultural Reference
Mentioned in Kayyar Kinhanna Rai’s poem, a notable Kannada literary work
Challenges
Decline in quality due to heavy use of chemical fertilizers
Economic Impact
Significant for local farmers, high demand due to limited availability
PYQ:
[2016] Recently, our scientists have discovered a new and distinct species of banana plant which attains a height of about 11 metres and has orange coloured fruit pulp. In which part of India has it been discovered?