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  • Minimum Support Prices for Agricultural Produce

    MSP: Must be Effective

    op-ed snap | Agriculture | Mains Paper 3: Issues Related To Farm Subsidies & Msp

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: MSP

    Mains level: Issues related to MSP

    msp

    Context

    • The CACP recommendations on Minimum Support Prices (MSP) for the mandated six Rabi crops wheat, barley, gram, lentil, rapeseed and mustard, and safflower are arrived by considering several factors.

    What is MSP?

    • MSP is a part of India’s Agriculture Price Policy. The MSP for various crops is announced by the central government at the beginning of every crop season on the recommendation of CACP.
    • MSP is price at which the government purchases crops from the farmers. It is the guaranteed ‘minimum floor price’ that farmer must get from the government in case the market price of the crops falls below the MSP.
    • The Rationale behind MSP is to support the farmer from excess fall in the crop prices, it is like an insurance policy for the farmers to save them from price falls.
    • The most important aim of the MSP policy is to save the Indian farmer from making distress sales. In the event of glut and bumper harvest, when market prices fall below the announced MSP, the government through its agencies buys the entire stock offered by the farmers at the MSP.

    What are the factors included in MSP calculation?

    • Factors taken into consideration are as follows:
    1. Cost of production,
    2. Supply and demand situation of various crops in domestic and global markets,
    3. Domestic and world prices along with trade opportunities,
    4. Terms of trade between agriculture and non-agriculture sector,
    5. Optimal utilization of land, water and other production resources,
    6. A minimum of 50 per cent mark-up over the cost of production.

    msp

    Why the relook at MSP calculation is necessary?

    • Though on the surface the list looks comprehensive, there are two missing concerns given the present-day challenges, necessitating a change in the MSP formula.
    1. Acreage
    2. Water usage
    • Rising MSP leads to water conflict: There is ample data-based evidence to show the causal relation between acreage and MSP movements. Rising MSPs of water-intensive crops has resulted in some of the water conflicts over river basins as shown by recent studies in the Cauvery and the Teesta River basins.
    • MSP for rice and wheat: This is also because MSP for rice and wheat, where government agencies like Food Corporation of India play a role in procurement, has created a reference for market prices. Ever since the MSP was introduced in the late 1970s, it became the “floor” price-setter for rice and wheat.
    • Higher MSP for water consuming cereals: Between 1980 and 2000, the MSPs of rice and wheat increased at a much faster rate than those of the “coarse” cereals (like jowar, bajra and ragi) which eventually led to movement of the terms-of-trade (defined as ratio of prices of competing crops, e.g., rice and millets) in Favour of the water-consuming cereals.
    • Shifting of High acreage to High MSP crop: This led to acreages moving largely in Favour of water consuming staples, whose crop-water requirements are many times of that of the drier millets. In the case of Cauvery and Teesta, the introduction of dry season paddy and its expansion created reliance on irrigation thereby Fuelling demand for water.
    • Non promotion of rabi millets: Though the MSP formula claims to take into account land and water use, it needs to be noted here that there is a need for Rabi millets (e.g., ragi) to be promoted through MSPs. This is because the millets are less water-consuming as compared to many other alternatives including wheat. However, there does not seem to be any MSP announced for Rabi millets.
    • Higher MSP for less water consuming crop is needed: In the process, it will be crucial to take into consideration the estimates of irrigation water need for specific crops, redefine the Rabi basket by including millets, and declare a higher MSP for less water-consuming crops vis-à-vis the high-water consuming crops.

    msp

    Nutritional security in MSP calculation

    • Nutritional security is not included in MSP calculation: The other consideration that is missing from the MSP formula is the consideration of the nutritional security. Ideally, the MSP regime should remunerate those crops that have a higher nutritional value per unit of resource use.
    • Rabi crops are more water efficient: Ragi is the most efficient water user in producing calories. Bajra followed by wheat and ragi are the better performers in terms of water efficiency in producing iron. For the case of fiber, ragi is the most water efficient crop followed by barley and maize demonstrating the same water efficiency.
    • Rabi crops are nutrition rich: Maize is the most efficient water user in producing carbohydrates with ragi being second and wheat third. With reference to fat production, bajra takes the first position followed by ragi and wheat. Ragi is the best performer in the case of calcium production. Wheat and ragi do equally well with phosphorus production per unit of water at the margin.
    • Missing MSP estimate: However, so far, the MSP formula has not taken into consideration the health and the nutritional aspect. Irrespective of the season, the nutritional aspect needs to be figured into the MSP recommendations, and more nutritional crops should command higher support prices.

    Conclusion

    • Present MSP regime is biased in Favor of rice and wheat. MSP can be utilized as great tool to achieve crop diversification by incentivizing cultivation of water efficient and nutrition rich millets. India can achieve the regional as well as financial balance in distribution of MSP by proper estimation of MSP and promotion accordingly.

    Mains Question

    How is MSP calculated? Analyse the linkages of MSP and water conflict and suggest the solution to overcome the water inefficiency by MSP.

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  • Issues related to Economic growth

    Why Private Investment is Lagging in India?

    op-ed snap | Economics | Mains Paper 3: Indian Economy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: private investment in manufacturing and economic growth

    Private

    Context

    • Last month, Finance Minister asked captains of industry what was holding them back from investing in manufacturing. She likened industry to Lord Hanuman from the Ramayana by stating that industry did not realize its own strength and that it should forge ahead with confidence. She said, “This is the time for India, we cannot miss the bus”.

    What is present situation of private investment?

    • Tax cut rate of domestic companies: In the hope of revitalizing private investment, the government had in September 2019 cut the tax rate for domestic companies from 30% to 22% if they stopped availing of any other tax SOP (standard operating procedure).
    • Weak private investment: Expert says that Indian private sector investment has been weak for almost a decade now. If we look at drivers of economic growth right now, there are amber lights flashing. The export story will be under threat because of the global slowdown, the government’s ability to support domestic demand would also be limited as the fiscal deficit comes down.
    • Impact of k-shaped recovery: Because of the K-shaped recovery, private consumption is only concentrated in some parts of the income pyramid.

    Private

    Analyzing the investment scenario

    • Investment to GDP ratio: As in the June edition of the Ministry of Finance’s Monthly Economic Review, the fixed investment to GDP ratio was 32% in 2021-22. However, there is need for caution in reading the most recent data, as they are subject to revision.
    • The National Accounts Statistics: It provides disaggregation of gross capital formation (GCF) by sectors, type of assets and modes of financing; over 90% of GCF consists of fixed investments.
    • No change in investment distribution: The investment distribution has hardly changed over the last decade, with the public sector’s share remaining 20%.
    • Fall in share of agriculture and industry: Between 2014-15 and 2019-20, the shares of agriculture and industry in fixed capital formation/GDP fell from 7.7% and 33.7% to 6.4% and 32.5%, respectively.
    • Rise in service sectors: Services’ share rose to 52.3% in 2019-20 compared to 49% in 2014-15.The rise in the services sector is almost entirely on transport and communications. The share of transport has doubled from 6.1% to 12.9% during the same period. Within transportation, it is mostly roads.
    • Decline in the share of investment: Its share in the investment ratio (column 2.1) fell from 19.2% in 2011-12 to 16.5% in 2019-20. This indicates that ‘Make in India’ failed to take off, import dependence went up, and India became deindustrialised. Import dependence on China is alarming for critical materials such as fertilizers, bulk drugs (active pharmaceutical ingredients or APIs) and capital goods. Instead of boosting investment and domestic technological capabilities, the ‘Make in India’ campaign frittered away time and resources to raise India’s rank in the World Bank’s Ease of Doing Business Index.
    • Decline in foreign capital in GFC: The contribution of foreign capital to financing GCF fell to 2.5% in 2019-20 from 3.8% in 2014-15 (or 11.1% in 2011-12). With declining investment share, industrial output growth rate fell from 13.1% in 2015-16 to a negative 2.4% in 2019-20, as per the National Accounts Statistics.

    Private

    What is Consumer’s demand situation?

    • Average Consumer sentiment index: Private companies invest when they are able to estimate profits, and that comes from demand. The Centre for Monitoring Indian Economy’s (CMIE) consumer sentiment index is still below pre-pandemic levels but is far higher than what was seen 12-18 months ago.
    • Buoyant Aggregate demand: RBI’s Monetary policy report dated September 30 says, Data for Q2 (ended Sept) indicate that aggregate demand remained buoyant, supported by the ongoing recovery in private consumption and investment demand. It shows that seasonally adjusted capacity utilization rose to 74.3% in Q1 the highest in the last three years.
    • High household savings: Along with household savings intentions remaining high, might hold the key to the investment cycle kicking in.

    Private

    Conclusion

    • Both public and private investment is necessary for sustainable growth trajectory of any economy. Global uncertainty, Ukraine war, oil prices have added to the skepticism of private investors. However, India’s macroeconomic performance is much better than those of developed and developing economies. Private investors must take these into account before holding back their investment.

    Mains Question

    Q. What role private investment plays in Indian economy? Analyse the post-pandemic private investment situation in India?

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  • Terrorism and Challenges Related To It

    FATF, Fighting the Terrorism or Just Another Diplomatic Arena

    op-ed snap | Security Issues | Mains Paper 3: Money-Laundering & Its Prevention,Organized Crime & Terrorism

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: FATF

    Mains level: FATF, grey listing and blacklisting, Money laundering and terror financing

    FATF

    Context

    • On October 21, the Financial Action Task Force (FATF), the global money laundering and terrorist financing watchdog, announced the removal of Pakistan from its Grey List. The announcement was expected.

    What is FATF?

    • Inter-governmental organization: The FATF, a 39-member inter-governmental organization with its headquarters in Paris, was set up in 1989 by the Group of Seven (G7) countries with the aim of setting global standards for countering the menace of money laundering.
    • Terror financing included under FATF mandate: Following the terror attacks on September 11, 2001, the objective of countering the financing of terrorism was added to the FATF’s mandate. Later, its objectives were further expanded to counter the financing of proliferation of weapons of mass destruction.

    FATF

    How FATF functions?

    • Three level mandate: The FATF seeks to fulfil its three-pronged mandate by drawing up a list of guidelines. Known as the FATF Recommendations or FATF Standards, these are meant to ensure a coordinated global response to prevent.
    1. organized crime,
    2. corruption and
    3. Terrorism
    • Domestic plus international regulatory measures: They encompass a range of domestic legislative, regulatory and enforcement actions, as well as international cooperation measures, that states are expected to adopt and implement.
    • Consensus based decision: The FATF and its associate, or regional, members such as the Asia Pacific Group on Money Laundering (APG) take their decisions on the basis of consensus. More than 200 countries and jurisdictions are committed to implementing the FATF’s recommendations.

    FATF

    What is grey listing and black listing?

    • Monitoring the adherence to recommendations: The FATF monitors adherence to its recommendations by periodic evaluations of the anti-money laundering (AML), combating financing of terrorism (CFT) and proliferation financing (PF) regimes of member countries and jurisdictions which voluntarily submit to its monitoring.
    • Strategic deficiencies by countries: Countries which exhibit strategic deficiencies in their AML/CFT/PF regimes are placed under a scheme of “increased monitoring” informally known as Grey Listing.
    • Action plan to address the deficiencies: States placed under the Grey List are expected to swiftly put in place the requisite measures to address their deficiencies on the basis of Action Plans drawn up and evaluated through a process of consultation with the FATF.
    • Serious strategic deficiency: States that exhibit serious strategic deficiencies in their AML/CFT/ PF regimes are placed under a Black List formally known as High-Risk Jurisdictions subject to a Call for Action.
    • Serious economic consequences may follow: While Grey Listing amounts to a warning, Black Listing entails serious economic consequences by making it incumbent on governments, international lenders and commercial entities to conduct enhanced due diligence checks while transacting business with the designated countries and, in extreme cases, apply “counter-measures” against offenders.

    Present status of listing by FATF?

    • Grey listing: Following the removal of Pakistan, there are 23 countries on the FATF’s Grey List.
    • Black listing: There are only three countries on the Black List, North Korea, Iran and Myanmar. These listing processes of the FATF are driven predominantly by the pulls and pressures of international power politics and not merely by technical parameters.

    How Pakistan has been grilled by FATF for Terror financing?

    • In 2008 Pakistan removed from listing: Pakistan has been placed in and removed from the Grey List in the past too. The first time was from February, 2008 to June, 2010, when it was removed from the list after it supposedly demonstrated progress in improving its AML/AFT regime.
    • Mumbai terror attack and grey list: The terrorist attacks in Mumbai on November 26, 2008 took place while Pakistan was on the Grey List for the first time. The second time was from February, 2012 to February, 2015, by the end of which period it had supposedly made significant progress in improving its AML/CFT regime.
    • Osama bin laden killing: The elimination of Osama bin Laden in the American raid on Abbottabad on May 2, 2011 took place after Pakistan’s exit from the Grey List for the first time and before its placement on the list for the second time.
    • From 2018-2022: Pakistan was placed in the Grey List for the third time in June, 2018 and remained there till October, 2022. During this period, it was compelled to put in place several legislative, administrative and regulatory measures to improve its compliance with international AML/CFT standards.
    • Action against individual and organisations: In recent years, there has been increasing realisation among FATF members that it is the effectiveness of action taken against individuals and entities of concern rather than pro-forma technical compliance” that should form the basis of judging the extent of adherence to FATF standards.
    • Conviction of hafiz Saeed: It is this more realistic approach coupled with the implicit threat of being moved from the Grey List to the Black List that finally compelled Pakistan to prosecute, convict, fine and jail, on terrorism financing charges, Lashkar-e-Tayyaba (LeT) Amir, Hafiz Muhammad Saeed, LeT’s chief operational commander, Zakiur Rehman Lakhvi and Sajid Majeed aka Sajid Mir, “operational manager” of the 26/11 Mumbai attacks, after having pronounced him missing and dead.
    • Jaish-e-Mohammed: A disingenuous attempt by Pakistan to persuade a visiting FATF verification team in August-September 2022 that Jaish-e-Mohammed (JeM) Amir, Maulana Masood Azhar, had escaped to Afghanistan was strongly countered by a spokesman of the Afghan Taliban.

    How Pakistan manages pressure form FATF?

    • with the support of USA: It is well known that much of the diplomatic heavy lifting to place Pakistan in the Grey List in June 2018 and keep it on the list for an extended period of time was done by the US. There had been a feeling among those following developments at the FATF that American pressure on Pakistan would continue till such time as the US needed Pakistan to bring the Afghan Taliban to the negotiating table and once the US withdrawal from Afghanistan was completed, the pressure on Pakistan would ease. Subsequent developments have validated this assessment.
    • Help of China and turkey: Although the threat of being moved from the Grey List to the Blacklist remained hanging over Pakistan’s head, this was never a realistic possibility, considering the likely opposition to any such move by Pakistan’s staunch friends in the FATF, such as China, Malaysia, Turkey and Saudi Arabia

    FATF

    Conclusion

    • India will have to continue mustering all available instruments and options to deny Pakistan operating space to wield the jihadi weapon, till such time as there is convincing evidence of a consensus among the generals in Rawalpindi that the weapon has outlived its utility and needs to be renounced once and for all.

    Mains Question

    How FATF is useful international forum for fight against terrorism? How was Pakistan forced by FATF to take actions against mastermind of 26/11 attack?

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  • Medical Education Governance in India

    Is Medical Education in Hindi Practicable?

    op-ed snap | Polity | Mains Paper 2: Indian Constitution – historical underpinnings, evolution, features, amendments, significant provisions and basic structure

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: Promoting Hindi language and associated issues

    Context

    • The unveiling of the Hindi editions of the first professional MBBS books by Union Home Minister Amit Shah in Bhopal has stirred anti-Hindi agitations, with the Opposition, especially in the South, contending that the move is nothing more than a poll gimmick.

    Why medical education should be in local language (Hindi)?

    • Example of Non-English countries: Supporters of the move are quoting examples from China, Japan, Ukraine, Russia, and Norway – countries where official languages are the sole medium of instruction in all the technical and non-technical courses.
    • Education in mother tongue is effective: If they can do so, why can’t we, they argue, especially as it is an established fact that imparting education in a student’s mother tongue is effective for learning.

    Why English is best medium of English education?

    • Teaching in local plus English language: Fifty-two medical colleges, out of the total 170 colleges on mainland China, whose graduates can attempt the USMLE (the entrance exam to practice in the US), teach in both Chinese and English. There has been a steep rise in the number of parents interested in enrolling their children – at just three years old – in ESL (English as a Second Language) courses.
    • Less resources in Hindi: It is unwise to compare the status of Hindi to Chinese or German, given India’s diversity. Moreover, Hindi, or any other vernacular language, for that matter, offers far fewer resources to support the job-seeking young populace. Learning English, therefore, comes with a promise of roti, kapda, makaan (food, clothes, shelter.)
    • Higher demand for English Medium: A few years ago, when newspapers reported on the closing down of government schools in Tamil Nadu, one of the major reasons cited was parents’ preoccupation with English-medium schools – leading them to deny free cash and food and admit their kids to low-end, mediocre English schools, instead.
    • English is a great leveller: When it comes to higher education, English is a great leveller, allowing dialogue to continue with the rest of the world. Medicine, as evidence-based as it is, is constantly evolving with the introduction of novel research. Treating cases sometimes requires consulting multiple books, research papers, and journal articles, for which a sound system of translation needs to be established before we can even begin thinking about phasing out English.
    • Issue of Translation: The people involved in the translation process spoke of two things, First, instead of “translation”, the books have been transliterated. The medical terminology remains the same; sentences have only been translated for easier reading. That too, in the most mainstream dialect of Hindi. Second, these books are to be used as “bridge books”, and not as replacements for the English ones, designed to address the initial hiccups students are bound to face.
    • No clarity on roadmap: The initial announcement also fails to account for the necessary infrastructure. There has been no clarity on whether or how these translations will be incorporated as reading materials, and how they will evolve or change with time. Whether standard books like Harrison and Robbins would also be translated is anyone’s guess. Translating these tomes only once would not suffice as newer editions every three to five years incorporate significant changes.
    • Training of teachers and conferences: Professors and other teaching staff would also need to be trained. Most of all, what about medical conferences, the staple of a medical student? Would they be organised in Hindi moving forward?
    • Our medical industry is yet to develop: While basing our argument only on language, we often forget that Chinese healthcare is self-sufficient when it comes to research and protocols, or that Germany has primary resources available in their own language. Our focus right now should be to develop primary resources. Our medical industry is at way too nascent a stage to be speaking of language.

    Conclusion

    • Offering extra evening classes as done by AIIMS, Delhi could have been a better substitute given that the strength of students who struggle with English makes up about one to two per cent of the entire batch. Besides, no strict distinction exists between Hindi and non-Hindi-speaking states as most institutions have a portion of seats that are filled up by a pan-India entrance exam. Our focus should be on quality of education instead of medium of instruction.

    Mains Question

    Q. Medical education in English is more viable than local language. Explain. Why Government of India Supports the Medical education in Hindi?

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  • Oil and Gas Sector – HELP, Open Acreage Policy, etc.

    Oil and Dollar, Rising Prices and Impact on India

    op-ed snap | Economics | Mains Paper 3: Indian Economy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: Rising oil prices and its effects on Economy

    dollar

    Context

    • The two major irritants for India this year have been oil and the dollar. The two are a heady cocktail that has distorted all economic forecasts creating volatility that has never been witnessed earlier. Their impact is being felt across bond and stock markets, affecting the entire system. As a result, the RBI and the government have had to work overtime to mitigate the adverse effects on the economy.

    dollar

    What is the current oil prices situation?

    • Unpredictable Prices: When the Ukraine war broke out, oil crossed the $120 mark (in April and again in June). It was expected that $150 was not far off. However, the range of $100-110 was restored and soon enough the price was back to the Nineties as all global commodity prices cooled off, even as the Ukraine war continued.
    • Rising requirement of Europe: With the winter months approaching and Europe dependent on natural gas for heating, which now appears to be in jeopardy due to Russia turning off the taps, oil has received a boost even though the continent is looking more at coal.
    • Reduction in production by OPEC: Add to this the fact that OPEC and its allies have decided to lower production by 2 million barrels a day and there is panic again. This shock is external over which neither the government nor RBI have any control.
    • Growing Import Bills: High oil prices mean many things. Crude has a share of 30-33 per cent in total imports and any hike in prices increases the import bill. With exports declining due to the slowdown in global growth and imports increasing due to oil, the trade deficit and current account deficit will widen further. The trade deficit for the first half is $150 billion and can touch $300 billion this year at this strike rate.
    • Possibility of Balance of Payment: This creates a problem for the current account deficit with components like software and remittances slowing down due to the recession in the west. Therefore, a balance of payments problem will surface. Ultimately it depends on how high oil will go. The RBI has assumed a $100/barrel. This looks reasonable at this point, but anything higher can create problems on the currency front.
    • Increasing Inflation: Inflation per se will be an issue when prices are left to the market like ATF or LPG. But in the case of petrol and diesel, it will be a conundrum for the government. If the status quo prevails on price transmission, then oil marketing companies will have to bear the losses. If the government allows the market to correct, inflation will increase as it will also feed into intermediary costs such as freight.
    • Higher input cost: User industries of oil like chemicals, plastics and fertilizers will face a problem again. Higher input costs will put pressure on profit margins and any pass through will be inflationary.
    • Windfall tax may increase: The government would probably once again revisit the windfall tax on crude (as has been recently done) to examine if there is any additional revenue to be garnered. Such an environment always tends to spook markets.
    • Rising bond yields: Bond yields move up every time oil prices rise while stock markets turn volatile normally in the downward direction.

    dollar

    How rising dollar prices affects India?

    • Rupee is weakening: There is the dollar conundrum which should be seen in conjunction with the oil. The dollar has been strengthening against all currencies. As the Fed tightens rates, which will carry on through 2023, the dollar will become stronger. Other countries are already in a weak economic zone and are tightening rates with a lag. The rupee is bearing the brunt of this development. There is no escape as the RBI intervention in any form can only temporarily support the decline in the rupee. In the last month or so, since the rupee crossed the 80 mark and gone past 83.
    • Negative sentiment of market: Another factor that will complicate matters is expectations. The recent news, for example, of global players deciding not to include Indian bonds in global indices might add to the negative sentiment in the market and exert pressure on the rupee.
    • Imported inflation: The rupee depreciation also leads to importing inflation. All goods imported will come in at a higher rupee cost which will in turn push the RBI to act further.
    • Less possibility of high export: The weak rupee may not quite help exports because the competitive advantage that normally comes along with such depreciation would be low given that other currencies are also declining.
    • Trade deficit will rise: Imports are unlikely to slow down as a growing economy requires inputs and raw materials. This will mean further pressure on the trade deficit. The government will gain at the margin as customs collections increase.
    • Volatile investors: The critical reaction will be that of investors. If foreign portfolio investors withdraw then there will be further pressure on the rupee while inflows would help to cushion the rupee.
    • Centre may lose on revenue: State governments will be better off as their VAT collections would increase automatically. However, the Centre may not gain as the excise duty is a fixed rate.

    Conclusion

    • One can never tell as almost all forecasters have been proved wrong this year. The theory that RBI can intervene and protect certain levels of currency has its limitations. These travails have to be responded to as they cannot be controlled.

    Mains Question

    Q. How rising dollar and oil prices affects the macroeconomic stability in India? What are the steps taken by RBI and GOI to manage the macroeconomic stability?

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  • Air Pollution

    CBG: Renewable energy revolution

    op-ed snap | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: CBG

    Mains level: Stubble burning, air pollution and solutions, CBG

    cbg

    Context

    • The beginnings of a renewable energy revolution rooted in agriculture are taking shape in India with the first bio-energy plant of a private company in Sangrur district of Punjab having commenced commercial operations on October 18. It will produce Compressed Biogas (CBG) from paddy straw, thus converting agricultural waste into wealth.

    Background

    • Stubble burning every year in north and northwest: It has become common practice among farmers in Punjab, Haryana and western Uttar Pradesh to dispose of paddy stubble and the biomass by setting it on fire to prepare fields for the next crop, which has to be sown in a window of three to four weeks. This is spread over millions of hectares.
    • Resultant smog polluting environment: The resultant clouds of smoke engulf the entire National Capital Territory of Delhi and neighbouring States for several weeks between October to December. This plays havoc with the environment and affects human and livestock health.
    • Stubble burning practice spreading rapidly across the country: Though paddy stubble burning in northwest India has received a lot of attention because of its severity of pollution, the reality is that crop residue burning is spreading even to rabi crops and the rest of the country. Unless these practices are stopped, the problem will assume catastrophic proportions.

     What is Stubble Burning?

    • Stubble (parali) burning is a method of removing paddy crop residues from the field to sow wheat from the last week of September to November.
    • It is usually required in areas that use the combined harvesting method which leaves crop residue behind.
    • This practice mostly carried out in Punjab, Haryana and UP contributes solely to the grave winter pollution in the national capital.

    cbg

    How stubble burning impacts environment and Human health?

    • Deteriorates air quality: The process of burning farm residue is one of the major causes of air pollution in parts of north India, deteriorating the air quality.
    • Source of various harmful gases: Stubble burning is a significant source of carbon dioxide (CO2), volatile organic compounds (VOCs), nitrogen oxides (NOx) and hydrocarbons (HC).
    • Air Pollution: Stubble burning emits toxic pollutants in the atmosphere containing harmful gases like Carbon Monoxide (CO), methane (CH4), carcinogenic polycyclic aromatic hydrocarbons, volatile organic compounds (VOC). These pollutants disperse in the surroundings and eventually affect air quality and people’s health by forming a thick blanket of smog. Along with vehicular emissions, it affects the Air Quality Index (AQI) in the national capital and NCR.
    • Soil degradation: Soil becomes less fertile and its nutrients are destroyed when the husk is burned on the ground. Organic content of soil is completely destroyed. Stubble burning generates heat that penetrates into the soil, causing an increase in erosion, loss of useful microbes and moisture.

    cbg

    Some of the measures taken by Government for the effective prevention and control of stubble burning

    • The Commission for Air Quality Management: The Commission for Air Quality Management in National Capital Region and Adjoining Areas (CAQM) had developed a framework and action plan for the effective prevention and control of stubble burning,
    • In-situ management: The framework/action plan includes in-situ management, i.e., incorporation of paddy straw and stubble in the soil using heavily subsidized machinery (supported by crop residue management (CRM) Scheme of the Ministry of Agriculture and Farmers Welfare).
    • Ex-situ management: Ex-situ CRM efforts include the use of paddy straw for biomass power projects and co-firing in thermal power plants, and as feedstock for 2G ethanol plants, feed stock in CBG plants, fuel in industrial boilers, waste-to-energy (WTE) plants, and in packaging materials, etc.
    • Awareness generation programme: Additionally, measures are in place to ban stubble burning, to monitor and enforce this, and initiating awareness generation.
    • Project by NITI Aayog along with FAO: NITI Aayog approached FAO India in 2019 to explore converting paddy straw and stubble into energy and identify possible ex-situ uses of rice straw to complement the in-situ programme.
    • Rice straw for producing CBG: A techno-economic assessment of energy technologies suggested that rice straw can be cost-effective for producing CBG and pellets. Pellets can be used in thermal power plants as a substitute of coal and CBG as a transport fuel.
    • SATAT initiative: With 30% of the rice straw produced in Punjab, a 5% CBG production target set by the Government of India scheme, “Sustainable Alternative Towards Affordable Transportation (SATAT)” can be met. It could also increase local entrepreneurship, increase farmers’ income and reduce open burning of rice straw.
    • Encouraging private players to produce CBG more and reduce CO2 emissions: Verbio India Private Limited, a 100% subsidiary of the German Verbio AG, got approval from the Punjab government in April 2018 to set up a bio-CNG project that will utilise about 2.1 lakh tonnes of a total of 18.32 million tonnes of paddy straw annually. The plant will use one lakh tonnes of paddy straw produced from approximately 16,000 hectares of paddy fields. Paddy residue will be collected from this year to produce 33 tons of CBG and 600-650 tonnes of fermented organic manure/slurry per day this will reduce up to 1.5 lakh tonnes of CO2 emissions per year.

    FAO Study on developing crop residue supply chain

    • Use of Rice straw: In technical consultations with the public and private sectors, the FAO published its study on developing a crop residue supply chain in Punjab that can allow the collection, storage and final use of rice straw for other productive services, specifically for the production of renewable energy.
    • Required Investment and benefits farmers: The results suggest that to mobilise 30% of the rice straw produced in Punjab, an investment of around ₹2,201 crore ($309 million) would be needed to collect, transport and store it within a 20-day period. This would reduce greenhouse gas (GHG) emissions by about 9.7 million tonnes of CO2 equivalent and around 66,000 tonnes of PM2.5. Further, depending on market conditions, farmers can expect to earn between ₹550 and ₹1,500 per ton of rice straw sold, depending on market conditions.

    cbg

    Interesting to read: Compressed Bio Gas (CBG)

    • Biogas is produced naturally through a process of anaerobic decomposition from waste / bio-mass sources like agriculture residue, cattle dung, sugarcane press mud, municipal solid waste, sewage treatment plant waste, etc.
    • After purification, it is compressed and called CBG, which has a pure methane content of over 95%.
    • CBG is exactly similar to the commercially available natural gas in its composition and energy potential.
    • With calorific value (~52,000 KJ/kg) and other properties similar to CNG, CBG can be used as an alternative, renewable automotive fuel.
    • Given the abundance of biomass in the country, CBG has the potential to replace CNG in automotive, industrial and commercial uses in the coming years.

    Conclusion

    • Encouraging private players for producing CBG appears to be a first win-win initiative in the form of environmental benefits, renewable energy, value addition to the economy, farmers’ income and sustainability. This initiative is replicable and scalable across the country and can be a game changer for the rural economy.

    Mains Question

    Q. What is Stubble burning? Discuss the measures taken by Government for the effective prevention and control of stubble burning and producing CBG could be a win-win situation.

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  • Cyber Security – CERTs, Policy, etc

    Cyber ​​threats as a challenge to Internal Security

    op-ed snap | Security Issues | Mains Paper 3: Cyber Security

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: Cyber Threats and Cyber security measures

    Cyber

    Context

    • As the 21st century advances, a new danger the cyber threat is becoming a daily monster. It is hardly confined to any one domain though the military is the one most often touted. Rather, it is the civilian sphere where the cyber threat is becoming more all-pervading today and, in turn, a serious menace.

    What is mean by Cyber threat?

    • A cyber threat or cyber security threat is defined as a malicious act intended to steal or damage data or disrupt the digital wellbeing and stability of an enterprise.
    • Cyber threats include a wide range of attacks ranging from data breaches, computer viruses, denial of service, and numerous other attack vectors.

    Cyber

    How Cyber threat is ever increasing?

    • Increasing Grey Zone Operations: Grey zone Operations which fall outside traditional concepts of conflicts have become the new battleground, especially in regard to cyber warfare. ‘Grey Zone Operations’ are already beginning to be employed to undermine the vital of a state’s functioning, a trend likely to grow. The convergence of emerging technologies alongside new hybrid usages, pose several challenges to nations and institutions.
    • Attack on examination: The recent arrest in India, of a Russian for hacking into computers involved in the conduct of examinations for entry into the Indian Institutes of Technology (IITs), is a reflection of how cybercriminals are significantly amplifying their Grey Zone Warfare’ tactics
    • Pervasive nature of cyber threat: What is most unfortunate is that not enough attention is being bestowed on the all-encompassing nature of the cyber threat. In the wake of the Russia-Ukraine conflict, the world seems awash with papers on artificial intelligence (AI)-driven military innovations and potential crisis hot zones, along with stray references to new forms of hybrid warfare.
    • Weaponization of everything: There is very little about the threat posed by cyber-attacks. Ignored also is the new reality of the weaponization of everything’ which has entered the vocabulary of threats. The latter clearly demands a ‘proto-revolutionary’ outlook on the part of policymakers, which is evidently lacking.
    • Becoming a Multi-dimensional threat: Lost in translation is also the nature of today’s weapon of choice, viz., cyber. This lack of awareness is unfortunate at a time when states clearly lack the necessary resilience to face a variety of multi-vector threats.
    • Cyber weapon as symbol of national Power: Cyber space has been described by Lt. Gen. Rajesh Pant (retired), India’s current national cyber security coordinator, as a “superset of interconnected information and communication technology, hardware, software processes, services, data and systems”. Viewed from this perspective, it constitutes a critical aspect of our national power.
    • Simultaneous attacks in multiple dimensions: Cyber threats are not confined to merely one set of conflicts such as Ukraine, where no doubt cyber tools are being extensively employed extending well beyond this and other conflicts of a varied nature. The cyber threat is in this sense all-pervading, embracing many regions and operating on different planes.

    Cyber

    Challenges to India’s cyber security infrastructure

    • Structural:

    1. Absence of any geographical constraints.

    2.Lack of uniformity in devices used for internet access.

    • Administrative:
    1. Lack of national-level architecture for cybersecurity
    2. Security audit does not occur periodically, nor does it adhere to the international standards.
    3. The appointment of the National Cyber Security Coordinator in 2014 has not been supplemented by creating liaison officers in states.
    • Procedural
    1. Lack of awareness in local police of various provisions of IT Act, 2000, and also of IPSC related to cybercrime.
    2. Lack of data protection regime.
    • Human Resource Related
    1. Inadequate awareness among people about the security of devices and online transactions.

    Cyber

    What are the Steps taken by India to strengthen cyber security?

    • Section 66F of ITA: Specific provision dealing with the issue of cyber terrorism that covers denial of access, unauthorized access, introduction of computer contaminant leading to harm to persons, property, critical infrastructure, disruption of supplies, ‘sensitive data’ thefts. Provides for punishment which may extend to life imprisonment.
    • National Cyber Security Policy 2013: Policy document drafted by the Department of Electronics and Information Technology. Established National Critical Information Infrastructure Protection Centre (NCIIPC) to improve the protection and resilience of the country’s critical infrastructure information; Create a workforce of 5 lakh professionals skilled in cybersecurity in the next 5 years.
    • National Critical Information Infrastructure Protection Centre (NCIIPC): It has been setup to enhance the protection and resilience of Nation’s Critical information infrastructure. It functions under the National Technical Research Organization (NTRO).
    • Computer Security through CERT-IN: Organization under the Ministry of Electronics and Information Technology with an objective of securing Indian cyberspace. The purpose of CERT-In is to respond to computer security incidents, report on vulnerabilities and promote effective IT security practices throughout the country. According to the provisions of the Information Technology Amendment Act 2008, CERT-In is responsible for overseeing the administration of the Act.
    • Cyber Surakshit Bharat Initiative: It was launched in 2018 with an aim to spread awareness about cybercrime and build capacity for safety measures for Chief Information Security Officers (CISOs) and frontline IT staff across all government departments.
    • Cyber Crisis Management Plan (CCMP): It aims at countering cyber threats and cyber-terrorism.
    • National Cyber Coordination Centre (NCCC): It seeks to generate necessary situational awareness of existing and potential cyber security threats and enable timely information sharing for proactive, preventive and protective actions by individual entities. National Cyber Security Coordinator (NCSC) under National Security Council Secretariat (NSCS) coordinates with different agencies at the national level for cyber security matters.
    • Cyber Swachhta Kendra: This platform was introduced for internet users to clean their computers and devices by wiping out viruses and malware.
    • Information Security Education and Awareness Project (ISEA): Training of personnel to raise awareness and to provide research, education, and training in the field of Information Security.

    Conclusion

    • With several non-state actors engaging in hybrid warfare and distorting day-to-day practices, including examinations, these pose legal, ethical and real dilemmas. Left unchecked, the world may have to confront a new kind of Wild West, before states find a common denominator for regulating cyber space and lay down proper rules and practices to prevent anarchy and chaos.

    Mains Question

    Q. Cyber threat is intruding the daily life of citizens and making the internal security more challenging task. Comment what are the policy loopholes in India’s fight against the cyber threat?

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  • Child Rights – POSCO, Child Labour Laws, NAPC, etc.

    Online Child Sexual Abuse Material

    op-ed snap | Governance | Mains Paper 2: Laws, Institutions & Bodies Constituted For The Vulnerable Sections

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: online child abuse and protection

    child

    Context

    • Last month, the Central Bureau of Investigation (CBI) conducted searches across States and Union Territories as part of a pan-India operation, “Megh Chakra”. The operation, against the online circulation and sharing of Child Sexual Abusive Material (CSAM) using cloud-based storage, was supposedly based on inputs received from Interpol’s Singapore special unit, in turn based on the information received from New Zealand.

    Current system of detecting CSAM

    • Help of foreign agencies: As the public reporting of circulation of online CSAM is very low and there is no system of automatic electronic monitoring, India’s enforcement agencies are largely dependent on foreign agencies for the requisite information.
    • Operation carbon: In November 2021, a similar exercise code-named “Operation Carbon” was launched by the CBI, with many being booked under the IT Act, 2000.

    American Model of fighting CSAM

    • Cyber tipline programme under NCMEC: The National Centre for Missing & Exploited Children (NCMEC), a non-profit organization in the United States, operates a programme called Cyber Tipline, for public and electronic service providers (ESPs) to report instances of suspected child sexual exploitation. In 2021, the Cyber Tipline received more than 29.3 million reports (99% from ESPs) of U.S. hosted and suspected CSAM.
    • Mandatory reporting for Internet service providers (ISPs): ISPs are mandated to report the identity and the location of individuals suspected of violating the law. Also, NCMEC may notify ISPs to block transmission of online CSAM.

    UK Model of fighting CSAM

    • Internet Watch Foundation (IWF) to ensure safe online environment: In the United Kingdom, the mission of the Internet Watch Foundation (IWF), a non-profit organisation established by the United Kingdom’s Internet industry to ensure a safe online environment for users with a particular focus on CSAM, includes disrupting the availability of CSAM and deleting such content hosted in the U.K.
    • ISPs may be held responsible: The IWF engages the analysts to actively search for criminal content and not just rely on reports from external sources. Though the U.K. does not explicitly mandate the reporting of suspected CSAM, ISPs may be held responsible for third party content if they host or caches such content on their servers. In 2021, the IWF assessed 3,61,062 reports, (about 70% reports had CSAM) and seven in 10 reports contained “self-generated” CSAM.

    child

    Efforts of Global community

    • Global network for secure IT infrastructure: A global network of 50 hotlines (46 member countries), provides the public with a way to anonymously report CSAM. It provides secure IT infrastructure, ICCAM (I- “See” (c)-Child-Abuse-Material) hosted by Interpol and facilitates the exchange of CSAM reports between hotlines and law enforcement agencies. ICCAM is a tool to facilitate image/video hashing/finger printing and reduce the number of duplicate investigations.
    • Removal of illegal URLs: In 2021, the number of exchanged content URLs stood at 9,28,278, of which 4,43,705 contained illegal content. About 72% of all illegal content URLs were removed from the Internet within three days of a notice and takedown order.

    child

    India’s Efforts so far

    • Internet service providers are exempted from the liability: In India, the Supreme Court of India, in Shreya Singhal (2015), read down Section 79(3)(b) of the IT Act to mean that the ISP, only upon receiving actual knowledge of the court order or on being notified by the appropriate government, shall remove or disable access to illegal contents. Thus, ISPs are exempted from the liability of any third-party information.
    • In the Kamlesh Vaswani (WP(C) 177/2013) case: The petitioner sought a complete ban on pornography. After the Court’s intervention, the advisory committee (constituted under Section 88 of the IT Act) issued orders in March 2015 to ISPs to disable nine (domain) URLs which hosted contents in violation of the morality and decency clause of Article 19(2) of the Constitution. The petition is still pending in the Supreme Court.
    • Aarambh India portal: a Mumbai-based non-governmental organization, partnered with the IWF, and launched India’s first online reporting portal in September 2016 to report images and videos of child abuse. These reports are assessed by the expert team of IWF analysts and offending URLs are added to its blocking list. Till 2018, out of 1,182 reports received at the portal, only 122 were found to contain CSAM.
    • National cybercrime reporting portal: The Ministry of Home Affairs (MHA) launched a national cybercrime reporting portal in September 2018 for filing online complaints pertaining to child pornography and rape-gang rape. This facility was developed in compliance with Supreme Court directions with regard to a public interest litigation filed by Prajwala, a Hyderabad-based NGO that rescues and rehabilitates sex trafficking survivors. As not many cases of child porn and rape were reported, the portal was later extended to all types of cybercrime.
    • National Crime Records Bureau (MHA): The National Crime Records Bureau (MHA) signed a memorandum of understanding with the NCMEC in April 2019 to receive Cyber Tipline reports to facilitate action against those who upload or share CSAM in India. The NCRB has received more than two million Cyber Tipline reports which have been forwarded to the States for legal action.
    • The ad hoc Committee of the Rajya Sabha: In its report of January 2020, made wide-ranging recommendations on ‘the alarming issue of pornography on social media and its effect on children and society as whole’.
    • Widening of the definition of ‘child pornography’: On the legislative front, the committee not only recommended the widening of the definition of ‘child pornography’ but also proactive monitoring, mandatory reporting and taking down or blocking CSAM by ISPs.
    • Breaking of end-to-end encryption: On the technical front, the committee recommended permitting the breaking of end-to-end encryption, building partnership with industry to develop tools using artificial intelligence for dark-web investigations, tracing identity of users engaged in crypto currency transactions to purchase child pornography online and liasoning with financial service companies to prevent online payments for purchasing child pornography.

    child

    What needs to be done?

    • Mandatory reporting of CSAM by ISP, s: According to the ninth edition (2018) report of the International Centre for Missing and Exploited Children on “Child Sexual Abusive Material: Model Legislation & Global Review”, more than 30 countries now require mandatory reporting of CSAM by ISPs. Surprisingly, India also figures in this list, though, the law does not provide for such mandatory reporting.
    • Establish liability of legal persons: The Optional Protocol to the United Nations Convention on the Rights of the Child that addresses child sexual exploitation encourages state parties to establish liability of legal persons.
    • Convention on The Protection of Children against Sexual Exploitation and Sexual Abuse: The Council of Europe’s Convention on Cybercrime and Convention on The Protection of Children against Sexual Exploitation and Sexual Abuse also requires member states to address the issue of corporate liability.
    • India should join INHOPE: It is time India joins INHOPE and establishes its hotline to utilize Interpol’s secure IT infrastructure or collaborate with ISPs and financial companies by establishing an independent facility such as the IWF or NCMEC.

    Conclusion

    • India needs to explore all options and adopt an appropriate strategy to fight the production and the spread of online CSAM. Children need to be saved.

    Mains Question

    Q. How children are Vulnerable against child sexual abuse material (CSAM)? What legal remedies available in India against CSAM?

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  • Languages and Eighth Schedule

    Promoting Hindi language rationally

    op-ed snap | Polity | Mains Paper 2: Indian Constitution – historical underpinnings, evolution, features, amendments, significant provisions and basic structure

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Official language, Eighth schedule

    Mains level: Hindi imposition row

    Hindi

    Context

    • Prime Minister Narendra Modi’s remarks on English in a recent campaign rally, the controversy over medical education in Hindi and the parliamentary report on promoting Hindi, will give new life to Hindi vs non-Hindi debate.

    The status of Hindi language in India

    • The 2011 linguistic census: Accounts for 121 mother tongues, including 22 languages listed in the 8th Schedule of the Constitution.
    • Widely spoken language: Hindi is the most widely spoken, with 52.8 crore individuals, or 43.6% of the population, declaring it as their mother tongue. The next highest is Bengali, mother tongue for 97 lakh (8%) less than one-fifth of Hindi’s count. In terms of the number of people who know Hindi, the count crosses more than half the country.
    • Hindi as second language: Nearly 13.9 crore (over 11%) reported Hindi as their second language, which makes it either the mother tongue or second language for nearly 55% of the population.

    Hindi

    What does constitution say about Hindi?

    • What is the Eighth Schedule?
    1. The Eighth Schedule contains a list of languages in the country. Initially, there were 14 languages in the schedule, but now there are 22 languages.
    2. There is no description of the sort of languages that are included or will be included in the Eighth Schedule.
    • Constitutional position of Eighth Schedule

    There are only two references to these languages in the text of the Constitution.

    (i) Article 344(1):

    1. It provides for the formation of a Commission by the President, which should have a chairman and members representing these scheduled languages.
    2. The purpose of the Commission is to make recommendations for the progressive use of Hindi for official purposes of the Union and for restricting the use of English.

    (ii) Article 351:

    1. It says it is the Union government’s duty to promote the spread of Hindi so that it becomes “a medium of expression for all elements of the composite culture of India”.
    2. It also aims to assimilate elements of forms and expressions from Hindustani and languages listed in the Eighth Schedule.

    Hindi

    What are challenges for promotion of Hindi Language?

    • Higher knowledge is not available in Hindi: The challenge of Hindi is that inhabiting the world of Hindi is seen as closing off access to the frontiers of knowledge, not just in science but in civic knowledge, like higher echelons of law.
    • Perceived as inferior language: It is also treated as a marker of parochialism and inferior status.
    • Hindi as language of Identity not as knowledge: The problem may be less acute with other languages like Tamil, Kannada or Bengali, but it exists. The anomaly of the India experiment is not diversity: It is the claim that the language of self, identity and culture be different from the language of knowledge, privilege and access. This is the experiment India is conducting on a large scale. Is it a sustainable one?
    • Cultural assertion through language: It is the untapped resentment of a Hindi culture that often is made conscious of its own second-class status in global hierarchies. Millions of vernacular speakers feel disenfranchised in the worlds of knowledge and prestige.
    • Poor translation mechanism: Our translation missions are so meagre that except for literature, they do not grow the language by translating knowledge into it. So, the division of the function of languages has also become a division of persons, between those whose fluency in English is greater than their fluency in a vernacular, and those who might know English but struggle with it.
    • English transition is not easy in mid high school: There was also a generation that was taught in a vernacular language very well. They found it easy to switch to English later. Now the education system does not prepare you for either trajectory, not at least on a mass scale, leaving the Hindi speaker relatively stranded.

    Hindi

    What should be the way forward?

    • Hindi should be used for knowledge sharing and communication: The discussion of the language issue ought to be pedagogical rather than political. It will be, for instance, important for doctors to have English to easily access a continually evolving world of research; just translating a few textbooks into vernaculars will not solve the challenge. But it is equally true that the ability to communicate fluently in vernacular languages will be a great asset.
    • Higher Education in Hindi should be made available: It is also possibly true that for those who did not get an English education, continuing vernacular education should be a medium of expanding their opportunities.
    • Government has to do its homework: Our education system will have to do the homework to make any language strategy work fully. The skepticism of teaching medicine or engineering in the vernaculars (and not just Hindi) is that our knowledge eco system is not prepared for it; the skepticism of English is that it has left so many people behind.

    Conclusion

    • The genius of India is that it has, historically, not locked itself into binaries over language choice. With creative pedagogies, we can reclaim that heritage. But raising the political pitch on language serves neither the cause of knowledge or national unity.

    Mains Question

    Q. Why government indulges in promotion of Hindi? Does it right in Indian context to promote only one language nationally?

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  • Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

    Rejuvenating the Indian coffee industry

    op-ed snap | Agriculture | Mains Paper 3: Food Processing & Related Industries In India,Major Crops & Cropping Patterns

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Coffee crop

    Mains level: coffee Industry potential, issues and reforms

    coffee

    Context

    • Coffee cultivation is becoming an increasingly loss-making proposition in India. Already weighed down by the high cost of inputs and production as well as labor shortage, the industry is now also affected by changes in climate patterns, reports from Karnataka’s coffee heartland.

    All you need to know about Coffee plantation

    • Coffee is a tropical plantation crop.
    • 16° – 28°C temperature, 150-250cm rainfall and well-drained slopes are essential for its growth.
    • It grows on hilly slopes at the height of 900-1800m.
    • Low temperature, frost, dry weather for a long time and harsh sunshine are harmful for its plant.

    The status Coffee in India

    • India contributes about 4% of the world’s total coffee production. It ranks 6thin the world in coffee production.
    • At present, more than half of the total coffee production in India is produced by Karnataka alone, followed by Kerala and Tamil Nadu.
    • Coffee plants grow better in the laterite soils of Karnataka in India.
    • The Arabica variety initially brought from Yemen is produced in the country.
    • Indian coffee is highly rated and commands premium prices in the global coffee markets.
    • Indian coffee offering innumerable flavors, aromas and blends. The commodity, for several decades, enjoyed a special position in India’s export lists.
    • Coffee has high value and high imagery potential at home and overseas market. From being handled and sold as a berry, a green bean, a processed bean, a roasted bean and now a roasted and ground offering, coffee has climbed the hierarchy of value-addition.
    • Coffee was an important export item for the Union government, when the commodity’s exports were in the range of ₹4,000-₹5,000 crore annually.

    coffee

    Do you know the history of Coffee in India?

    • The history of Indian coffee dates back to around 1600 AD with the planting of Seven Seeds of Mocha by legendary saint Baba Budan in the courtyard of his hermitage in Chikmangalur, Karnataka. The coffee plants remained a garden curiosity before they gradually spread as backyard plantings, and later on to the hills of what is now known as Baba Budan Hills.
    • However, it wasn’t until the 18th century the British entrepreneurs started taking coffee cultivation properly and turned forests in Southern India into commercial coffee plantations

    What are Challenges faced by Coffee cultivation in India?

    • Impact of Climate Change: Drastic changes in climate patterns over the last few years have adversely impacted India’s coffee production and the quality of the crop. There were dry spells between 2015 and 2017 and unseasonal heavy rains, floods and landslides between 2018 and 2022. According to the Coffee Board of India’s post-blossom estimate, production for the 2022 crop is anticipated to be some 30% lower than the estimated production due to the extreme climatic conditions.
    • Impact of heavy rains: Destruction caused by heavy rains between July and September. The impact of the rains continues, with diseases affecting plants, and estate infrastructure suffering long-term damage. Plantations in Wayanad in Kerala and Palani in Tamil Nadu have also suffered similar losses. fruit rot, stalk rot and root rot and other irreparable damage due to heavy rainfall and landslides, berries turned black and dropped.
    • Emergence of New diseases: Erratic weather conditions are helping pests to breed and new diseases to emerge, further stressing coffee plantation.

    coffee

    Crisis in Coffee Industry of India

    • No adequate fund support by government: Sturdy and weather-resistant varieties of coffee may help and stand against climate change, but sadly the government is not providing adequate funds to coffee research stations to develop these.
    • The volatility in market prices marginalizing producers: The volatility in market prices and the reduced influence of producers in the value chain render coffee cultivation an increasingly loss-making proposition. Producers are getting marginalized. This is rapidly turning out to be a buyer-driven commodity market.
    • Impact of Exports on cost competitiveness: More than 75% of Indian coffee production is exported. This has an impact on the cost competitiveness of Indian coffee vis-à-vis the coffee that is exported from other producer regions, especially since those growers get their finances at very low interest rates.
    • High Cost of financing: Most private banks insist that growers provide collateral for financing. Since small and medium-size growers are invariably not in a position to provide collateral, the interest rates are high, at around 12%. International interest rates, on the other hand, are negligible, mostly in single digits. This is an advantage for competing coffee-producing region.
    • Increasing cost of Inputs: Due to the rise in the cost of inputs year on year and the increase in the cost of labor and benefits, which constitute 60% to 70% of total plantation expenditure, coffee growers are left with very little money in hand which is not adequate to repay loans. The cost of inputs around coffee such as fertilizers and agrochemicals has increased by almost 20% in a year.
    • No pricing mechanism: There is no official price setting mechanism even in the domestic market. So, traders and curers are calling the shots and fixing prices, and growers are at their mercy.
    • Identity crisis for Indian coffee: On the brand front, Indian coffee is still facing an identity crisis in global markets, although the country started exporting coffee actively before the 19th century. The fact that India sells Robusta and Arabic at a price higher than the hugely advertised Colombia is an indication of the brand building done by the Indian exporter and the quality of Indian coffee. Yet, Indian coffee does not have an individual brand identity in the international markets, Indian coffee was never considered a separate origin coffee. It was always used as filler.

    What are the reasons behind the High cost of production?

    • Rising labor charges: In India, production of coffee is low while the cost of production is on the rise compared to other coffee countries such as Vietnam and Brazil. In Brazil, labour charges account for 25% of the entire production cost, but in India, planters say they account for about 65%
    • Hard terrain and topography: It is possible to bring down the cost of production to some extent through mechanization, but India’s coffee terrains and topography limit this possibility. At the same time, Indian coffee has a unique positioning as it is shade-grown and grown at elevations, while other major producing countries grow coffee in flat lands.
    • High cost of Irrigation: Power cuts makes irrigation expensive as the cost of diesel is high. The high cost of inputs leads to the high cost of production which is the main problem for coffee growers. It makes coffee cultivation unviable. Earlier, the cost of production would go up by 4% to 5% annually, but now it goes up at least 20% annually.
    • Unskilled migrant labour and wage costs: There is increasingly a shortage of labor while the cost of labour is on the rise in the coffee sector. The children of workers in all the three coffee-growing States Karnataka, Tamil Nadu and Kerala prefer to move to urban areas. This means plantations are forced to depend heavily on migrant labours who are unskilled. A lot of effort, time and energy has to be invested in training migrant labours. As wage costs are not linked to productivity, growers are mandated to pay the usual wage along with other social costs such as housing and medicines, which adds up some 30% more to the wages. Most plantations simply don’t find skilled labour, especially for tasks such as shade-lopping, pruning, and borer tracing.

    coffee

    Way forward

    • Alternative source of revenue: Finding alternative sources of revenue and increasing domestic consumption on the one hand and branding and promoting Indian coffee better in the global market on the other.
    • Creating in addition revenue streams: Growers should create additional revenue streams through inter-cropping or through innovative measures. In addition to traditional inter-cropping of pepper and cardamom, coffee growers could try planting exotic fruit-bearing trees, food crops, or getting into fish farming, dairy farming, apiary or green tourism to increase incomes from their coffee gardens. For instance, progressive farmers from Thandikudi in Dindigul district in Tamil Nadu, and from Sakleshpur in Chikkamagaluru district, are growing avocados, mangosteens, oranges, guavas and other fruit bearing trees, amid their coffee plants. In some seasons they say they have even earned more money from these than from coffee and pepper.
    • Government should permit to plant alternate crops: Considering the change in land use, the government could permit growers to plant alternate crops in a land not suitable for coffee cultivation. Timely conversion will prevent growers from going financially sick.
    • Coffee Act and the new Coffee (Promotion and Development Bill), 2022: India’s share in the global coffee market may be less than 5%, but the coffee sector is hopeful that the Coffee Act and the new Coffee (Promotion and Development Bill), 2022, will do away the 80-year-old coffee regulation and usher in change.

    Conclusion

    • The coffee community in India, comprising close to 4 lakh coffee growers, hundreds of large planters, associations that represent growers, planters, curers and exporters, and over a dozen Fair Trade Organizations, hopes to boost coffee in the domestic and international markets and counter the problems the industry faces.

    Mains Question

    Q. Even after getting out of the shackles of the pooling system in 1996, the bean maintained a special status as a valuable export commodity for a long time. Discuss the problems of coffee industry taking a back seat in India and suggest solutions.

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