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Subject: Economics

  • Vande Bharat production to begin in October: Minister

    vande bharat

    Indian Railways had successfully completed trials of the second generation Vande Bharat train that will come with enhanced passenger comfort and safety features.

    What is Vande Bharat Express?

    • The Vande Bharat Express is a semi-high-speed train designed, developed, and built by the Integral Coach Factory (ICF).
    • Presently there are only two Vande Bharat trains that are running — Delhi to Varanasi and Delhi to Katra.

    Key Features

    • The current Vande Bharat trains have seating only in two classes — chair car and executive chair car. But Railways is planning to upgrade it.
    • The trains have fully sealed gangways for a dust-free environment, modular bio-vacuum toilets, rotating seats in Executive Class, personalized reading lights, automatic entry/exit doors with sliding footsteps, diffused LED lighting, mini pantry, and sensor-based interconnecting doors in each coach.
    • They are self-propelled trains that do not require an engine. This feature is called a distributed traction power system.

    Benefits of Vande Bharat Trains

    • Cuts Travel Time Drastically
    • Energy Efficient
    • Reduce Turnaround Time
    • Faster Acceleration and Deceleration among others.

     

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  • India ranks 132 in HDI as score drops

    hdi
    hdi

    India ranks 132 out of 191 countries in the Human Development Index (HDI) 2021, after registering a decline in its score over two consecutive years for the first time in three decades.

    What is Human Development Index (HDI)?

    • The HDI combines indicators of life expectancy, education or access to knowledge and income or standard of living, and captures the level and changes to the quality of life.
    • The index initially launched as an alternative measure to the gross domestic product, is the making of two acclaimed economists from Pakistan and India, namely Mahbub ul Haq and Amartya Sen.
    • It stresses the centrality of human deve­lop­ment in the growth process and was first rolled out by the United Nations Development Programme in 1990.

    Dimensions of the Human Development Index – HDI

    • The idea that progress should be conceived as a process of enlarging people’s choices and enhancing their capabilities is the central premise of the HDI.
    • Since its launch, the HDI has been an important marker of attempts to broaden measures of progress.
    • The HDI considers three main dimensions to evaluate the development of a country:
    1. Long and healthy life
    2. Education
    3. Standard of living

    Limitations of HDI

    HDR has been always disputable and has caught the public-eye, whenever it was published. It has many reasons.

    One of them is that the concept of human development is much deeper and richer than what can be caught in any index or set of indicators. Another argument is that its concept has not changed since 1990 when it was also defined in the first.

    (1) An incomplete indicator

    • Human development is incomplete without human freedom and that while the need for qualities judgement is clear; there is no simple quantitative measure available yet to capture the many aspects of human freedom.
    • HDI also does not specifically reflect quality of life factors, such as empowerment movements or overall feelings of security or happiness.

    (2) Limited idea of development

    • The HDI is not reflecting the human development idea accurately.
    • It is an index restricted to the socio-economic sphere of life; the political and civil spheres are in the most part kept separate.
    • Hence there is a sub-estimation of inequality among countries, which means that this dimension is not being taken into consideration appropriately.

    (3) A vague concept

    • Concerning data quality and the exact construction of the index HDI is conceptually weak and empirically unsound.
    • This strong critic comes from the idea that both components of HDI are problematic. The GNP in developing countries suffers from incomplete coverage, measurement errors and biases.
    • The definition and measurement of literacy are different among countries and also, this data has not been available since 1970 in a significant number of countries.

    (4) Data quality issues

    • The HDI, as a combination of only four relatively simple indicators, doesn’t only raise a questions what other indicators should be included, but also how to ensure quality and comparable input data.
    • It is logical that the UNDP try to collect their data from international organizations concentrating in collecting data in specific fields.
    • Quality and trustworthiness of those data is disputable, especially when we get the information from UN non-democratic members, as for example Cuba or China.

    (5) A tool for mere comparison

    • The concept of HDI was set up mainly for relative comparison of countries in one particular time.
    • HDI is much better when distinguishing between countries with low and middle human development, instead of countries at the top of the ranking.
    • Therefore, the original notion was not to set up an absolute ranking, but let’s quite free hands in comparison of the results.

    (6) Development has to be greener

    • The human development approach has not adequately incorporated environmental conditions which may threaten long-term achievements on human development. The most pervasive failure was on environmental sustainability.
    • However, for the first time in 2020, the UNDP introduced a new metric to reflect the impact caused by each country’s per-capita carbon emissions and its material footprint.
    • This is Planetary Pressures-adjusted HDI or PHDI. It measured the amount of fossil fuels, metals and other resources used to make the goods and services it consumes.

    (7) Wealth can never equate welfare

    • Higher national wealth does not indicate welfare. GNI may not necessarily increase economic welfare; it depends on how it is spent.
    • For example, if a country spends more on military spending – this is reflected in higher GNI, but welfare could actually be lower.

    Significance of HDI

    • It is one of the few multidimensional indices as it includes indicators such as literacy rate, enrollment ratio, life expectancy rate, infant mortality rate, etc.
    • It acts as a true yardstick to measure development in real sense.
    • Unlike per capital income, which only indicates that a rise in per capital income implies economic development; HDI considers many other vital social indicators and helps in measuring a nation’s well-being.
    • It helps as a differentiating factor to distinguish and classify different nations on the basis of their HDI ranks.

    Way forward

    • Both sustainable development and poverty eradication are both long-term and urgent endeavours, requiring not only the gradual and substantial redirection of country policies but a rapid response to pressing problems.
    • Ideally, sustainable development could provide an overarching framework within which all sub-goals (eg poverty eradication, social equality, ecosystem maintenance, climate compatibility) are framed.
    • It is not a subset of development; it is development (in a modern world of resource limits).
    • Environmental issues are not one factor among many but the meta-context within which poverty and other goals are sought.
    • Investing more in public research could lead to technological solutions to poverty and sustainability problems becoming more rapidly and openly available.

     

     

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  • Mandatory requirements for Packaged Commodities

    The Department of Consumer Affairs, Legal Metrology Division has notified a draft amendment to the Legal Metrology (Packaged Commodities) Rules 2011 making some compulsions.

    Discrepancies over Packaged Commodities

    • The Division has observed that many manufacturers/packagers/importers do not clearly label necessary declarations or prime constituents on the front of packaged commodities.
    • It is common for consumers to assume that brands’ claims are accurate, but such claims are usually misleading.
    • Such disclosure are deemed essential in order to protect consumer rights.

    What are the mandatory provisions under the Legal Metrology (Packaged Commodities) Rules, 2011?

    • It is mandatory under the Rules, to ensure a number of declarations, such as the:
    1. Name and address of the manufacturer/packer/importer,
    2. Country of origin,
    3. Common or generic name of the commodity,
    4. Net quantity,
    5. Month and year of manufacture
    6. Maximum Retail Price (MRP) and
    7. Consumer care information.
    • As a consumer-oriented policy, all pre-packaged commodities should also be inspected.
    • Rule 9(1)(a) provides that the declaration on the package must be legible and prominent.
    • The consumers’ ‘right to be informed’ is violated when important declarations are not prominently displayed on the package.

    What are the proposed amendments?

    • As many blended food and cosmetic products are sold on the market, the key constituents need to be mentioned on the product packaging.
    • Additionally, the front side of the package must contain the percentage of the composition of the unique selling proposition (USP).
    • Also, packages displaying key constituents must display a percentage of the content used to make the product.
    • The new amendments has suggested that at least two prime components should be declared on the package’s front side along with the brand name.
    • Currently, manufacturers list the ingredients and nutritional information only on the back of the packaging.
    • This declaration must also include the percentage/quantity of the USPs of the product in the same font size as the declaration of the USPs. However, mechanical or electrical commodities are excluded from this sub-rule.

    Back2Basics: Consumer Rights

    Consumer right is an insight into what rights consumer holds when it comes to the seller who provides the goods.

    In general, the consumer rights in India are listed below:

    (1) Right to Safety

    • Means right to be protected against the marketing of goods and services, which are hazardous to life and property.
    • The purchased goods and services should not only meet their immediate needs, but also fulfil long term interests.
    • Before purchasing, consumers should insist on the quality of the products as well as on the guarantee of the products and services. They should preferably purchase quality marked products such as ISI, AGMARK, etc.

    (2) Right to be Informed

    • Means right to be informed about the quality, quantity, potency, purity, standard and price of goods so as to protect the consumer against unfair trade practices.
    • Consumer should insist on getting all the information about the product or service before making a choice or a decision.
    • This will enable him to act wisely and responsibly and also enable him to desist from falling prey to high pressure selling techniques.

    (3) Right to Choose

    • Means right to be assured, wherever possible of access to variety of goods and services at competitive price. In case of monopolies, it means right to be assured of satisfactory quality and service at a fair price.
    • It also includes right to basic goods and services. This is because unrestricted right of the minority to choose can mean a denial for the majority of its fair share.

    (4) Right to be Heard

    • Means that consumer’s interests will receive due consideration at appropriate forums. It also includes right to be represented in various forums formed to consider the consumer’s welfare.

    (5) Right to Seek redressal

    • Means right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers. It also includes right to fair settlement of the genuine grievances of the consumer.
    • Consumers must make complaint for their genuine grievances. Many a times their complaint may be of small value but its impact on the society as a whole may be very large.

    (6) Right to Consumer Education

    • Means the right to acquire the knowledge and skill to be an informed consumer throughout life.
    • Ignorance of consumers, particularly of rural consumers, is mainly responsible for their exploitation.

     

     

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  • Agriculture Supply Chain

    supply chainContext

    • Disruption of supply chains due to Ukraine war has implications for India’s food security

    What is supply chain in simple words?

    • A supply chain is the network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product.

    Is supply chain management related to agriculture?

    • Agribusiness, supply chain management (SCM) implies managing the relationships between the businesses responsible for the efficient production and supply of products from the farm level to the consumers to meet consumers’ requirements reliably in terms of quantity, quality and price.

    supply chainWhat are two types of food chain?

    • Agriculture food supply chains for fresh agricultural products: (such as fresh vegetables, flowers, fruit). In general, these chains may comprise growers, auctions, wholesalers, importers and exporters, retailers and speciality shops and their input and service suppliers. Basically, all of these stages leave the intrinsic characteristics of the product grown or produced untouched. The main processes are the handling, conditioned storing, packing, transportation and especially trading of these goods.
    • Agriculture food supply chains for processed food products: (such as portioned meats, snacks, juices, desserts, canned food products). In these chains, agricultural products are used as raw materials for producing consumer products with higher added value. In most cases, conservation and conditioning processes extend the shelf-life of the products.

    supply chainSupply chain issues

    • Shelf-life constraints for raw materials, intermediates and finished products and changes in product quality level while progressing the supply chain (decay).
    • High volume, low variety (although the variety is increasing) production systems.
    • Importance of production planning and scheduling focusing on high capacity utilization.
    • Highly sophisticated capital-intensive machinery leading to the need to maintain capacity utilization.
    • Variable process yield in quantity and quality due to biological variations, seasonality, random factors connected with weather, pests and other biological hazards.

    What should we do to ensure nutritional security?

    • Strengthening and shortening food supply chains: reinforcing regional food systems, food processing, agricultural resilience and sustainability in a climate-changing world will require prioritising research and investments along these lines.
    • Infrastructure: Lastly, infrastructure and institutions supporting producers, agripreneurs and agricultural micro, small and medium enterprises (MSMEs) in their production value chain are central to the transition.
    • Potential for crop diversification: Data compiled in the agro-climatic zones reports of the Indian Council of Agricultural Research and the erstwhile Planning Commission of India reveal enormous potential for crop diversification and precision for enhanced crop productivity based on soil type, climate (temperature and rainfall), and captive water resources.
    • Holistic policy approach: In the context of the intensifying economic, environmental and climate challenges and crisis, the need of the hour is a good theory of transition encompassing the spatial, social and scientific dimensions, supported by policy incentives and mechanisms for achieving a sustainable, resilient and food secure agriculture.
    • Agro-climatic approach: An agro-climatic approach to agricultural development is important for sustainability and better nutrition.

    Way forward

    • Transparency: The Indian government could ensure more transparency on food stocks and regulate the private sector.
    • Set restriction on hoarding: For that, there is a need to set restrictions on the reserves that the private sector can hold, as they often tend to hoard food stocks to later sell at a profit.
    • Speculation should be regulated: This will help prevent the opaqueness of private sector reserves, which often fuels speculation by large international financial actors.
    • Positional limits: Internationally, positional limits could be set on speculators but that would require a multilateral accord, a topic which should be on the agenda at the next G-20 meeting.

    Mains question

    Q. What role supply chain play in nutritional security? Discuss the constraints in supply chain along with way forward.

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  • Indian Railways powerful experiment on AC III tier economy class coaches

    AC III tier economy class coachesContext

    • The Indian Railways’ experiment to introduce AC III tier economy class coaches has started to pay off. Since its introduction, in the last one year, these coaches have earned the Railways more than Rs.230 crore in revenue.

    AC III tier economy classWhat is AC III tier economy class coach?

    • The AC 3 tier economy class in Indian Railways is a milestone concerning pocket-friendly traveling experience for common man.
    • With fare slightly more than sleeper class and lower than conventional AC class.
    • The objective of the railway is to move sleeper class passengers to a comfortable AC class with luxurious facilities. AC-3 tier comprises air-conditioned coaches with 64 sleeping berths.

    When it is introduced?

    • The Indian Railway has introduced the first AC III tier Economy Class for North Central Railway Zone in 2021 to provide a convenient traveling experience to the passengers.
    • As of now 7 trains are equipped with AC III tier economy class coaches are running on the tracks

    AC III tier economy class coachesFeatures of the AC III tier economy coach:

    • Pocket friendly: According to the Indian Railways, the fair in these coaches are cheaper than the normal AC three-tier coach. Fares in AC III tier economy are 6%-7% cheaper than the AC III tier class. The economy class has a capacity of 83 berths compared to 72 in the regular coach.
    • Divyang friendly and modern designs: The coaches were specially designed for the convenience of the divyangs. Providing Improved and modular design of berths and ergonomically designed ladder for accessing the middle and upper berths etc.
    • Modern features: In these, modern arrangements have been made for mobile phones and magazine holders, fire safety, personalised reading lights, AC vents, USB points, mobile charging points.
    • Optimum Speed: These air-conditioned three-tier economy class coaches are capable of running at an optimum speed of 160 kilometers per hour.
    • More Capacity: The economy class has a capacity of 83 berths compared to 72 in the regular coach.

    What is the current status of AC III tier class?

    • AC- III tier, the favorite mode of train travel of people falling in the bottom rung of the middle class, is the only class that earns the Railways profit among all its passenger services.
    • The AC III tier is the only class of service which has generated consistent profits for the Railways. Between FY16 and FY20,
    • AC III tier coaches carried only 1% of the total passengers, but were responsible for 21% of the earnings from travelers. Such a low-passenger, high-revenue dichotomy was not seen in any other class.
    • It is not as expensive as the other AC classes and at the same time, its share in revenue has not been impacted by the relatively low pricing

    AC III tier economy class coachesRevenue of Indian railways

    • The overall revenue of Indian Railways at the end of August 2022 was Rs 95,486.58 crore, showing an increase 38 per cent over the corresponding period of last year.
    • Goods revenue climbed by Rs 10,780.03 crore (or 20 per cent) to Rs 65,505.02 crore till August-end this year
    • The revenue from passenger traffic was Rs 25,276.54 crore, an increase of Rs 13,574.44 crore (116 per cent) year-on-year.
    • Passenger traffic also increased compared to last year in both the segments — reserved and unreserved
    • Railways’ total revenue during the entire last fiscal (2021-22) stood at Rs.1,91,278.29 crore.

    What are the issues faced by Indian railways to increase its revenue?

    • Cross Subsidized: The cross-subsidiszation in respect of second class, ordinary class and suburban services has increased continuously in the past five years with subsidy on ordinary class being the maximum,
    • Concessional fare: The revenue forgone in passenger earnings due to concessions to various categories of passengers (physically challenged persons, patients, senior citizens, Izzat monthly season tickets, press correspondents, sport persons and war widows among others) increased from Rs 1,994.83 crore in 2018-19 to Rs 2,058.61 crore in 2019-20.
    • Low -Revenue dichotomy in Expensive class: A high-passenger, low-revenue dichotomy was seen in the inexpensive classes. For instance, over 90% passengers travelled by second class which accounted for only 37% of the earnings.
    • Operational Loss: Operational losses (in crore) incurred while operating various classes of service. For instance, in operating AC first class service, the Railways incurred a loss of 403 crore in FY20

    Conclusion

    • Adding more AC III tier economy class coaches is a step in the right direction as it has shown positive result in revenue generation for railways and it provides a travel with dignity to a common man. But If Indian railway has to benefit it have to work extensively on operational loss incurred out of low Revenue dichotomy in Expensive classes.

    Mains Question

    Q. Indian Railways is often referred to as the lifeline of the country but runs at a loss when it comes to running class-divided coaches. In this context discuss the utility of class divided coaches.

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  • Services PMI flags rebound in August

    The services sector rebounded in August from a four-month low in July and created the most jobs in 14 years as input cost pressures eased to the slowest pace in 11 months, as per S&P Global India Services Purchasing Managers’ Index (PMI), which expanded to 57.2 last month, from July’s 55.5.

    Purchasing Managers’ Index (PMI)

    • PMI is an indicator of business activity — both in the manufacturing and services sectors.
    • It is a survey-based measure that asks the respondents about changes in their perception of some key business variables from the month before.
    • It is calculated separately for the manufacturing and services sectors and then a composite index is constructed.
    • The PMI is compiled by IHS Markit based on responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers.

    How is the PMI derived?

    • The PMI is derived from a series of qualitative questions.
    • Executives from a reasonably big sample, running into hundreds of firms, are asked whether key indicators such as output, new orders, business expectations and employment were stronger than the month before and are asked to rate them.

    How does one read the PMI?

    • A figure above 50 denotes expansion in business activity. Anything below 50 denotes contraction.
    • Higher the difference from this mid-point greater the expansion or contraction. The rate of expansion can also be judged by comparing the PMI with that of the previous month data.
    • If the figure is higher than the previous month’s then the economy is expanding at a faster rate.
    • If it is lower than the previous month then it is growing at a lower rate.

    What are its implications for the economy?

    • The PMI is usually released at the start of the month, much before most of the official data on industrial output, manufacturing and GDP growth becomes available.
    • It is, therefore, considered a good leading indicator of economic activity.
    • Economists consider the manufacturing growth measured by the PMI as a good indicator of industrial output, for which official statistics are released later.
    • Central banks of many countries also use the index to help make decisions on interest rates.

     

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  • What is Kurki, and why is it a big issue in Punjab?

    A farmer in Punjab has committed suicide outside the office of the Muktsar DC against kurki orders for his land based on a court case filed against him by the local moneylender for defaulting on loan payment.

    What is Kurki?

    • Kurki means attachment of a farmer’s land, already pledged to the money lending institution or individual, in case of a loan default.
    • Apart from banks, private moneylenders, commission agents also get these decrees against farmers from time to time.

    How is kurki executed?

    • Kurki orders are executed under Section 60 of Civil Procedure Code, 1908.
    • The land which is pledged by the farmer to the bank or money lender gets registered in their name. In some cases, the land is auctioned as well.
    • The process begins after the money lender moves court to get kurki orders in case the farmer is unable to pay back his loan.
    • In kurki, attachment of farmer’s land as well as his tractor can be done as per the Section 60.

    Was kurki not banned in Punjab?

    • Both Akali Dal and Congress governments of the past have claimed to have banned kurki.
    • Congress fought the 2017 Assembly polls on the slogan ‘karza kurki khatam, fasal di poori rakam’.
    • Soon after winning polls in 2017, the then government abolished Section 67-A of Punjab Cooperative Societies Act that enabled cooperatives to recover unpaid loans through auctioning of land mortgaged by farmers.
    • However, Section 63-B, 63-C of the Act were not dropped to prevent attachment of land.
    • Former Punjab CM has also claimed that kurki was abolished by his government. Activists accuses governments of issuing vague orders on the matter.

    Why has a total ban on the century-old kurki law not been achieved?

    • A plea filed in the Punjab and Haryana High Court in 2018 sought complete ban on kurki.
    • However, the Punjab government in its affidavit stated that there was no need to ban kurki as relief was being given to farmers in terms of loan waiver, compensation etc.
    • Moreover, it stated that Section 60 of Civil Procedure Code, 1908 – under which kurki takes place — was over 110 years old and needed complete revision.

    What is the ground reality?

    • Farmers point out that they are made to give post-dated cheques for loan, which are then used to get arrest orders issued in cheque bounce cases.
    • They have also accused money lenders of using pronotes signed by them to get kurki orders.
    • “Pro-notes” (promissory notes) are written documents taken from farmers, and signed by them at the time of giving the loan.
    • In April 2022, over 2,000 arrest warrants were issued against farmers for non-payment of loans to cooperative societies and Punjab agriculture development banks.

     

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  • Energy Atmanirbharta

    EnergyContext

    • The Prime Minister has called for “Energy Atmanirbharta” by 2040.

    What is Atmanirbharta?

    • Atmanirbharta translates literally to self-reliance.

    What is the main purpose of Atmanirbhar Bharat?

    • The aim is to make the country and its citizens independent and self-reliant in all senses. Five pillars of Aatma Nirbhar Bharat are – Economy, Infrastructure, System, Vibrant Demography and Demand.

    How to achieve energy self-reliance?

    • Definitional clarity: Atmanirbharta translates literally to self-reliance. Many interpret it to mean self-sufficiency. That should not be our goal. Energy self-sufficiency is infeasible and uneconomic. A better statement of intent would be “strategic autonomy”.
    • Affordable access to fuel: Our policy must continue to emphasise affordable and secure access to oil and gas. Part of this objective could be met by intensifying domestic exploration.
    • Prioritise access to the building blocks of green energy: The sine qua non for realising this forecast will be cost-competitive access to minerals/components (copper, cobalt, lithium, semiconductor chips etc) required to build EVs, solar panels, wind turbines and batteries.
    • Infrastructure development: We must expand our strategic petroleum reserves to cover at least 30 days of consumption and upgrade the transmission grid and battery storage systems to scale up renewables and smoothen its supplies. We will need to develop innovative financing mechanisms to fund green infrastructure. It should be emphasised that all such investments will get impaired if state discoms are financially insolvent.
    • Green incentives: The government’s production-linked incentive scheme (PLI) offers benefits for investment in green energy.
    • Demand conservation and efficiency: Energy usage norms must be standardised and tightened. Legislation should be contemplated to ensure compliance.
    • Energy diplomacy: Our diplomats should add the arrows of energy diplomacy to their quiver. This is because of our dependence on the international energy supply chains. Success in navigating the cross-currents of economic and geopolitical uncertainties will rest greatly on skilful diplomacy.
    • Holistic governance: The current siloed structures of energy governance are suboptimal. A root and branch administrative overall is required. Institutions should be created to facilitate integrated energy planning and implementation.

    Case study for value addition

    • Costa Rica lasted 300 consecutive days on renewable energy alone. Costa Rica set the record in 2017 for most consecutive days with renewable energy. The previous record for this feat was in 2015 when Costa Rica lasted 299 consecutive days on pure, clean energy.

    Challenges ahead

    • Anti-nuclear public sentiment: The Fukushima-Daiichi accident resulted in growing concern over the safety of nuclear plants in India .The construction of a nuclear plant in Kudankulam, Tamil Nadu, brought the issue directly into the public domain in 2012.
    • Management autonomy: Power sector is dominated by public sector companies or PSUs (owned by the central and state government). Some parts of the energy sector have made very little progress in attracting private investment since 2007.
    • Pricing: is the key to ensure the commercial viability of business entities and to attract investment into each fuel sector.
    • Rigid tariff setting mechanism: Theoretically,  prices should be supervised and adjusted in a timely manner and adequately by independent regulators to reflect changing costs. However, in India, regulators including CERC and SERCs operate in a very rigid way due to political considerations. This jeopardises the operational profitability of companies.

    EnergyConclusion

    • We need leadership that can reconcile temporal differences and balance the short-term pressures of elections with the longer-term imperatives of sustainability in energy security which calls for bold and pragmatic decision making by the leadership.

    Mains question

    Q. How India can achieve “Energy Atmanirbharta” by 2040 an ambitious target stated by prime minister? What are the challenges in achieving this goal?.

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  • Millet crop is the best solution for climate smart agriculture

    milletContext

    • Government push to coarse cereals as climate change affects wheat, paddy cultivation

    What are millets crops?

    • Millets are a group of highly variable small-seeded grasses, widely grown around the world as cereal crops or grains for human food and as fodder.

    Features Millet crops in India

    • Big three: The three major millet crops currently growing in India are jowar (sorghum), bajra (pearl millet) and ragi (finger millet).
    • Examples: India also grows a rich array of bio-genetically diverse and indigenous varieties of “small millets” like kodo, kutki, chenna and sanwa.
    • Area of production: Major producers include Rajasthan, Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Maharashtra, Gujarat and Haryana.

    milletWhat are Advantages of millet cultivation?

    • Low input cost: cereals are good for the soil, have shorter cultivation cycles and require less cost-intensive cultivation.
    • Climate resilience: These unique features make millets suited for and resilient to India’s varied agro-climatic conditions.
    • Drought tolerance: cereals are not water or input-intensive, making them a sustainable strategy for addressing climate change and building resilient agri-food systems.

    milletReduction in millet production

    • Effects of Green Revolution: The Green Revolution succeeded in making India food sufficient, however, it also led to water-logging, soil erosion, groundwater depletion and the unsustainability of agriculture.
    • Deficit mind-set: Current policies are still based on the “deficit” mind-set of the 1960s.
    • Biased policies: The procurement, subsidies and water policies are biased towards rice and wheat.
    • Skewed cropping pattern: Three crops (rice, wheat and sugarcane) corner 75 to 80 per cent of irrigated water.
    • Lack of diversification: Diversification of cropping patterns towards cereals, pulses, oilseeds, horticulture is needed for more equal distribution of water, sustainable and climate-resilient agriculture.

    What can be done to promote millets as nutri-cereals?

    1) Rebranding the cereals as nutri-cereals

    • The first strategy from a consumption and trade point of view was to re-brand coarse cereals/millets as nutri-cereals.
    • As of 2018-19, millet production had been extended to over 112 districts across 14 states.

    2) Incentive through hiking MSP

    • Second, the government hiked the MSP of nutri-cereals, which came as a big price incentive for farmers.
    • From 2014-15 to 2020 MSPs for ragi has jumped by 113 per cent, by 72 per cent for bajra and by 71 per cent for jowar.
    • MSPs have been calculated so that the farmer is ensured at least a 50 per cent return on their cost of production.

    3) Providing steady markets through inclusion in PDS

    • To provide a steady market for the produce, the Modi government included millets in the public distribution system.

    4) Increasing area, production and yield

    • The Ministry of Agriculture & Farmers’ Welfare is running a Rs 600-crore scheme to increase the area, production and yield of nutri-cereals.
    • With a goal to match the cultivation of nutri-cereals with local topography and natural resources, the government is encouraging farmers to align their local cropping patterns to India’s diverse 127 agro-climatic zones.
    • Provision of seed kits and inputs to farmers, building value chains through Farmer Producer Organisations and supporting the marketability of nutri-cereals are some of the key interventions that have been put in place.

    5) Intersection of agriculture and nutrition

    • The Ministry of Women and Child Development has been working at the intersection of agriculture and nutrition by -1) setting up nutri-gardens, 2) promoting research on the interlinkages between crop diversity and dietary diversity 3) running a behaviour change campaign to generate consumer demand for nutri-cereals.

    Conclusion

    • India should aim for a food systems transformation, which can be inclusive and sustainable, ensure growing farm incomes and nutrition security. As the government sets to achieve its agenda of a malnutrition-free India and doubling of farmers’ incomes, the promotion of the production and consumption of nutri-cereals seems to be a policy shift in the right direction.

    Mains question

    Q. Promotion of millet crops serves the dual purpose of securing health and supporting farmers. Elucidate.

     

     

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  • Why are the fisherfolk protesting over Vizhinjam Port Project?

    Vizhinjam near Thiruvananthapuram, is on the boil due to the under-construction Vizhinjam Port Project, from both sea and land.

    Vizhinjam Port Project

    • The Vizhinjam International Transhipment Deep-water Multipurpose Seaport is an ambitious project taken up by Government of Kerala.
    • It is designed primarily to cater container transhipment besides multi-purpose and break bulk cargo.
    • The port is being currently developed in landlord model with a Public Private Partnership component on a design, build, finance, operate and transfer (“DBFOT”) basis.

    Why protests are erupted?

    • The protestors have been opposing the construction work by the Adani Vizhinjam Port Private Limited.
    • Adani group is developing the port on DBFOT basis.

    What lies at the heart of the protest?

    • According to fisherfolk, the port work has aggravated the coastal erosion along the coast of Thiruvananthapuram.
    • A scientific study to assess the impact of the port work on the shoreline has to be conducted urgently by stopping the construction.
    • Further, around 300 families along the coastline were shifted to relief camps after their houses were destroyed due to high-intensity coastal erosion.
    • The protesters demand a comprehensive rehabilitation package, an assured minimum wage when the sea turns rough due to inclement weather and subsidised kerosene for boats.

    Why the Vizhinjam project is considered important?

    • The port is located on the southern tip of the Indian Peninsula, just 10 nautical miles from the major international sea route and east-west shipping axis.
    • It has a natural water depth of more than 20 m within a nautical mile from the coast.
    • The Vizhinjam port is likely to play a pivotal role in the maritime development of the country and Kerala.
    • The commissioning of the port is expected to leverage the growth of 17 minor ports in the State along with creating thousands of employment opportunities.

     

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