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DAILY CURRENT AFFAIRS, 16 SEPTEMBER 2024

COMPETITION COMMISSION OF INDIA

 
 
1. Context
The Central Information Commission (CIC) has advised the Thiruvananthapuram division of the Southern Railway to disclose the list of employees who have secured jobs under the category of people with disabilities, amid concern about fake disability certificates
 
2. Competition Commission of India
  • The Competition Commission of India (CCI) is a regulatory authority established in India to promote and protect fair competition in the marketplace.
  • It was established under the Competition Act, 2002, and became fully functional in 2009.
  • The primary objective of the CCI is to prevent anti-competitive practices, ensure a level playing field for businesses, and promote consumer welfare
  • The Competition Commission of India (within the Ministry of Corporate Affairs) has been established to enforce the competition law under the Competition Act, 2002.
  • It should be noted that on the recommendations of Raghavan committee, the Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act) was repealed and replaced by the Competition Act, 2002
  • The Commission consists of a Chairperson and not more than 6 Members appointed by the Central Government
  • It is the statutory duty of the Commission to eliminate practices having an adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade carried on by other participants, in markets in India as provided in the Preamble as well as Section 18 of the Act.
  • The Commission is also mandated to give its opinion on competition issues to government or statutory authority and to undertake competition advocacy for creating awareness of competition law.
  • Advocacy is at the core of effective competition regulation. Competition Commission of India (CCI), which has been entrusted with implementation of law, has always believed in complementing robust enforcement with facilitative advocacy. It is a quasi-judicial body.
 
3. Key functions and responsibilities 

Here are some key functions and responsibilities of the Competition Commission of India:

  1. Competition Advocacy: The CCI engages in advocacy and education activities to promote competition awareness among businesses, government agencies, and the public.

  2. Antitrust Enforcement: The CCI investigates and takes action against anti-competitive agreements, abuse of dominance by companies, and anti-competitive mergers and acquisitions. It can impose penalties and remedies on entities found to be in violation of competition laws.

  3. Merger Control: The CCI reviews and approves or disapproves mergers, acquisitions, and combinations that may have an adverse impact on competition in the Indian market. It assesses whether these transactions are likely to cause a substantial lessening of competition.

  4. Market Studies and Research: The CCI conducts studies and research to understand market dynamics, competition issues, and emerging trends. This information helps in formulating policies and recommendations to improve competition.

  5. Competition Advocacy: The commission engages in advocacy efforts to promote competition principles and practices among businesses, government agencies, and the public.

  6. Consumer Protection: While primarily focused on promoting competition, the CCI also indirectly promotes consumer welfare by ensuring that markets remain competitive and that consumers have choices and access to fair prices.

  7. Regulation of Anti-Competitive Practices: The CCI addresses practices such as price-fixing, bid rigging, and abuse of market power that can harm competition and consumers.

  8. Legal Proceedings: The CCI has the authority to conduct investigations, hold hearings, and pass orders. Its decisions can be appealed to higher courts in India.

4. What is the Competition Act?
 
  • The Competition Act, 2002, as amended by the Competition (Amendment) Act, 2007, follows the philosophy of modern competition laws.
  • The Act prohibits anti-competitive agreements, and abuse of dominant position by enterprises and regulates combinations (acquisition, acquiring of control and M&A), which causes or likely to cause an appreciable adverse effect on competition within India
  • In accordance with the provisions of the Amendment Act, the Competition Commission of India and the Competition Appellate Tribunal have been established
  • The government of India replaced Competition Appellate Tribunal (COMPAT) with the National Company Law Appellate Tribunal (NCLAT) in 2017
  • The provisions of the Competition Act relating to anti-competitive agreements and abuse of dominant position were notified on May 20, 2009
Competition is the best means of ensuring that the ‘Common Man’ or ‘Aam Aadmi’ has access to the broadest range of goods and services at the most competitive prices. With increased competition, producers will have maximum incentive to innovate and specialize. This would result in reduced costs and wider choice to consumers. A fair competition in market is essential to achieve this objective. Our goal is to create and sustain fair competition in the economy that will provide a ‘level playing field’ to the producers and make the markets work for the welfare of the consumers
 
5. What is Cartelisation?
Cartels can be difficult to define. According to CCI, a “Cartel includes an association of producers, sellers, distributors, traders or service providers who, by agreement amongst themselves, limit, control or attempt to control the production, distribution, sale or price of, or, trade in goods or provision of services”

The International Competition Network, which is a global body dedicated to enforcing competition law, has a simpler definition. The three common components of a cartel are:

  • an agreement;
  • between competitors;
  • to restrict competition.
6. Way forward
CCI needs to revisit its definition of ‘relevant market’. In the age of digital world, defining relevant market has been a tough task for regulators world-wide. Technological developments like Web 3.0, AI, IoT, Blockchain and issues like data protection and privacy, search bias, platform neutrality, confidentiality, etc, have created a need for a robust competition law. Such a law should meet the demands of the technological era we live in.
 
 
For Prelims: Statutory board, Constitutional body
For Mains: 1.Discuss the role and functions of the Competition Commission of India (CCI) in promoting and ensuring fair competition in the Indian market
2.Examine the challenges and limitations faced by the Competition Commission of India (CCI) in effectively regulating and promoting competition in the digital economy
 
Previous year Questions
 1. Competition Commission of India is which kind of body? (RSMSSB Sanganak 2018)
A. Statutory body
B. Constitutional.
C. Single Member
D. Private
Answer (A)
 
Source: indianexpress
 

NIPAH VIRUS

 
 
1. Context
Health authorities in Kerala on Sunday confirmed that a 24-year-old man from Wandoor in Malappuram district in the State had died from Nipah infection.
 
2. Nipah Virus
  • Nipah virus (NiV) is a zoonotic virus that can spread between animals and people.
  • The natural host of NiV is fruit bats, also known as flying foxes.
  • NiV can also infect pigs and people
  • NiV infection can cause a range of illnesses, from asymptomatic infection to acute respiratory illness and fatal encephalitis. The case fatality rate for NiV infection is estimated to be between 40% and 75%
  • The symptoms of NiV infection typically appear 4-14 days after exposure to the virus. The initial symptoms are similar to those of the flu, including fever, headache, and cough.
  • In severe cases, the virus can cause encephalitis, which is a swelling of the brain. Encephalitis can lead to coma and death.
  • NiV can be transmitted from animals to people through contact with infected saliva, urine, or other bodily fluids.
  • It can also be transmitted through contact with contaminated food or water. Person-to-person transmission of NiV is possible, but it is rare.
  • Nipah virus outbreaks have been reported in several countries in Southeast Asia, including Malaysia, Bangladesh, India, and Singapore.
  • The virus has caused sporadic outbreaks, with varying levels of severity
3.Transmission
 
Nipah Virus — The Jenner Institute
  • The first outbreaks of the Nipah virus among humans was reported from Malaysia (1998) and Singapore (1999).
  • The virus takes its name from the village in Malaysia where the person in whom the virus was first isolated died of the disease.
  • The transmission from animals happens mainly through consumption of contaminated food. According to the CDC, transmission can happen due to consumption of raw date palm sap or fruit that has been contaminated with saliva or urine from infected bats.
  • Some cases of NiV [Nipah] infection have also been reported among people who climb trees where bats often roost.
  • The animal host reservoir for this virus is known to be the fruit bat, commonly known as flying fox.
  • Fruit bats are known to transmit this virus to other animals like pigs, and also dogs, cats, goats, horses and sheep
  • Humans get infected mainly through direct contact with these animals, or through consumption of food contaminated by saliva or urine of these infected animals
  • Since it was first identified in 1998-99, there have been multiple outbreaks of the Nipah virus, all of them in South and Southeast Asian nations. In Bangladesh, there have been at least 10 outbreaks since 2001.
    In India, West Bengal had seen an outbreak in 2001 and 2007, while Kerala had reported several cases in 2018, and isolated cases in 2019 and 2021.
4. Zoonotic diseases

Zoonotic diseases, also known as zoonoses, are infectious diseases that can be transmitted between animals and humans. These diseases can be caused by bacteria, viruses, parasites, and fungi, and they pose a significant public health concern worldwide. Zoonotic diseases can be transmitted through direct or indirect contact with infected animals, their secretions, or contaminated environments. Some common examples of zoonotic diseases include:

  1. Influenza: Various strains of influenza viruses can infect both animals and humans. Influenza viruses can undergo genetic changes, leading to new strains that have the potential to cause pandemics.

  2. Rabies: Rabies is a viral disease that primarily affects mammals, including bats, dogs, and raccoons. It is transmitted to humans through the bite of an infected animal and can be fatal if not treated promptly.

  3. Salmonellosis: Caused by the bacterium Salmonella, this disease is often associated with contaminated food products, particularly those of animal origin such as poultry and eggs.

  4. Lyme Disease: Transmitted by ticks, Lyme disease is caused by the bacterium Borrelia burgdorferi and is commonly found in wildlife, particularly deer. Humans can become infected when bitten by an infected tick.

  5. West Nile Virus: This mosquito-borne virus primarily circulates among birds but can be transmitted to humans through mosquito bites, leading to fever and, in some cases, severe neurological complications.

  6. E. coli Infections: Certain strains of Escherichia coli (E. coli) can cause gastrointestinal illness in humans. Contaminated food and water, as well as contact with infected animals, can lead to E. coli infections.

  7. HIV/AIDS: While the human immunodeficiency virus (HIV) is primarily transmitted among humans, it is believed to have originated from the transfer of simian immunodeficiency virus (SIV) from non-human primates to humans, making it a zoonotic disease.

  8. COVID-19: The coronavirus disease 2019 (COVID-19) pandemic, caused by the novel coronavirus SARS-CoV-2, is believed to have originated in bats and was likely transmitted to humans through an intermediate animal host, highlighting the zoonotic nature of the virus.

5. Way forward
Nipah virus is considered a serious public health concern due to its high mortality rate, the potential for person-to-person transmission, and the lack of specific treatments or vaccines. Surveillance and research efforts are ongoing to better understand and combat this virus. It's essential to stay updated on the latest information and follow public health guidelines if you live in or travel to regions where Nipah virus is known to be present.
 
For Prelims: Viruses, Bacteria, Immunity, Vaccine types
For Mains: 1.Discuss the challenges in controlling viral diseases and the strategies employed by governments and international organizations in addressing viral epidemics. Highlight the lessons learned from recent viral outbreaks
2.Analyze the global problem of antibiotic resistance and its implications for healthcare. Suggest policy measures and interventions to combat the growing threat of antibiotic-resistant bacteria
 
 
 
Previous Year Questions
1.Viruses can affect (UPSC CSE 2016)
1.Bacteria
2. Fungi
3. Plants
Select the correct code with the following code
A.1 and 2 only
B. 3 Only
C. 1 and 3
D. 1, 2, 3
Answer (D)
2. Which of the following statements is/ are correct? (UPSC CSE 2013)
1. Viruses lack enzymes necessary for the generation of energy
2.Viruses can be cultured in any synthetic medium
3.Viruses are transmitted from one organism to another by biological vectors only 
Select the correct answer using the code given below
A. 1 Only
B. 2 and 3
C. 1 and 3
D. 1, 2, 3
Answer (A)
 
Source: indianexpress
 

NATIONAL GREEN TRIBUNAL

 

1. Context

A plea before the National Green Tribunal (NGT) by an advocate has raised questions of propriety and potential conflict of interest against Justice Sudhir Agarwal, one of the tribunal’s six judicial members

2. What is National Green Tribunal (NGT)?

  • The National Green Tribunal (NGT) is a specialized judicial body established in India to handle cases related to environmental protection and conservation.
  • It was established under the National Green Tribunal Act, of  2010, and its primary objective is to effectively and expeditiously address environmental disputes and promote sustainable development.
  • With the establishment of the NGT, India became the third country in the world to set up a specialized environmental tribunal, only after Australia and New Zealand, and the first developing country to do so.
     
  • NGT is mandated to make disposal of applications or appeals finally within 6 months of the filing of the same.
  • The NGT has five places of sittings, New Delhi is the Principal place of sitting, and Bhopal, Pune, Kolkata and Chennai are the other four.

3. Structure of the National Green Tribunal (NGT)

  • Chairperson: The NGT is headed by a full-time Chairperson who is a retired judge of the Supreme Court of India. The Chairperson is responsible for the overall administration and functioning of the tribunal.
  • Judicial Members: The NGT consists of judicial members who are retired judges of either the Supreme Court or a High Court. These members have extensive legal knowledge and experience in handling environmental matters.
  • Expert Members: The tribunal also includes expert members who possess expertise in areas such as environmental science, ecology, hydrology, and forestry. These members provide valuable technical insights and guidance in the resolution of environmental disputes.
  • The NGT is organized into multiple benches located across different regions of India. These benches are responsible for hearing cases specific to their respective jurisdictions. Each bench is headed by a judicial member and consists of one or more expert members, as required.

4. What are the Important Landmark Judgements of NGT?

The National Green Tribunal (NGT) has delivered several landmark judgments that have had a significant impact on environmental protection and conservation in India. Here are some of the important landmark judgments delivered by the NGT:

  • Vardhaman Kaushik v. Union of India (2013): This case dealt with the issue of groundwater depletion due to illegal extraction by industries in Uttar Pradesh. The NGT directed the closure of industries that were extracting groundwater without proper permissions and ordered the payment of compensation for environmental damage caused.
  • Alembic Pharmaceuticals Ltd. v. Rohit Prajapati & Ors. (2014): In this case, the NGT ordered the closure of an industrial unit in Gujarat for releasing untreated effluents into a water body, causing pollution and harm to the environment and public health.
  • M.C. Mehta v. Union of India (2014): The NGT issued a landmark judgment in this case regarding the pollution of the Yamuna River. It directed several measures to clean and rejuvenate the river, including the establishment of sewage treatment plants and the regulation of industries contributing to pollution.
  • Subhash Chandra Sharma v. Union of India (2015): This case focused on the issue of air pollution caused by solid waste burning in open areas. The NGT imposed a ban on burning waste in open spaces and directed municipal authorities to take measures to manage waste effectively.
  • Raghu Nath Sharma v. State of Himachal Pradesh (2016): The NGT ordered the closure of illegal hotels and structures in the eco-sensitive Rohtang Pass area of Himachal Pradesh to protect the fragile Himalayan ecosystem.
  • Yamuna Muktikaran Abhiyan v. Union of India (2017): This case dealt with the rejuvenation of the Yamuna River and led to the NGT issuing directions to clean and restore the river, including measures to prevent encroachments and pollution.
  • M.C. Mehta v. Union of India (2017): The NGT banned the use of disposable plastic in Delhi and the National Capital Region (NCR) and directed authorities to take steps to prevent the use and sale of such plastic.
  • Shailesh Singh v. Hotel Holiday Regency (2019): In this case, the NGT imposed heavy fines on a hotel in Shimla, Himachal Pradesh, for causing air pollution by running diesel generators without proper emission control measures.
  • Subhash Chandran vs. Tamil Nadu Pollution Control Board (2020): This judgment highlighted the importance of safeguarding coastal areas and wetlands from unauthorized construction and development activities, emphasizing the need for stringent environmental norms.
  • In Re: Report by Comptroller and Auditor General of India (2021): The NGT directed the formulation of guidelines for the regulation of groundwater extraction and management to prevent overexploitation and depletion.

5. What is a dissolved oxygen level?

  • Dissolved oxygen (DO) level refers to the concentration of oxygen gas (O2) that is dissolved in a liquid, typically water.
  • It is a crucial parameter in aquatic ecosystems as it directly affects the survival and well-being of aquatic organisms.
  • In natural water bodies like lakes, rivers, and oceans, oxygen dissolves from the atmosphere through processes such as diffusion and aeration.
  • Aquatic plants, algae, and phytoplankton also contribute to the production of oxygen through photosynthesis. However, the level of dissolved oxygen can fluctuate based on various factors, including temperature, altitude, water flow, pollution, and organic matter decomposition.
  • Dissolved oxygen is essential for aquatic organisms because they rely on it for their respiration process, similar to how animals breathe oxygen from the air.
  • Insufficient levels of dissolved oxygen can lead to hypoxia, a condition where organisms are deprived of the oxygen they need to survive. This can result in stress, reduced growth, reproductive issues, and even mortality in aquatic species.

Different species of aquatic organisms have varying tolerance levels for dissolved oxygen. For example:

  • Fish and other aquatic animals often require dissolved oxygen levels between 4 to 6 milligrams per liter (mg/L) to thrive.
  • Some species of fish, insects, and other aquatic organisms can tolerate lower levels of dissolved oxygen, even below 2 mg/L, while others require higher concentrations.

6. What are chemical oxygen demand and biological oxygen demand?

Chemical Oxygen Demand (COD):

  • COD is a measure of the amount of oxygen required to chemically oxidize and break down organic and inorganic substances present in water.
  • It provides an indication of the total amount of pollutants that can be chemically oxidized by a strong oxidizing agent. COD is expressed in milligrams per liter (mg/L) of oxygen consumed.
  • COD is useful in assessing the overall pollution load in a water sample, including both biodegradable and non-biodegradable substances.
  • It is commonly used for industrial wastewater monitoring, as it provides a rapid estimation of the organic content and potential pollution levels. However, COD does not differentiate between different types of pollutants or indicate the potential impact on aquatic life.

Biological Oxygen Demand (BOD):

  • BOD measures the amount of dissolved oxygen consumed by microorganisms (bacteria) during the biological degradation of organic matter in water.
  • It is a key indicator of the level of biodegradable organic pollutants present in water. BOD is expressed in milligrams per liter (mg/L) of oxygen consumed over a specific time period, usually 5 days (BODâ‚…).
  • BOD is particularly important in assessing the impact of organic pollution on aquatic ecosystems.
  • High BOD levels indicate that a water body may have a significant amount of organic pollutants, which can lead to oxygen depletion as microorganisms break down the organic matter. This oxygen depletion, known as hypoxia, can harm aquatic organisms and disrupt the ecological balance of the water body.

Comparing BOD and COD:

  • BOD primarily measures the biologically degradable organic matter and provides information about the potential impact on aquatic life.
  • COD measures both biologically and chemically degradable pollutants, giving an indication of the overall pollution load and oxygen demand.
  • BOD is a more specific and ecologically relevant parameter, but it takes longer to determine (5 days), while COD can be measured more quickly.
For Prelims: National Green Tribunal (NGT), National Green Tribunal Act, of  2010, Dissolved oxygen (DO), Chemical Oxygen demand (COD), and Biological Oxygen Demand (BOD).
For Mains: 1. Discuss the significance of Chemical Oxygen Demand (COD) and Biological Oxygen Demand (BOD) as critical indicators for assessing water pollution and quality. (250 Words)
 

Previous year Question

1. How is the National Green Tribunal (NGT) different from the Central Pollution Control Board (CPCB)? (UPSC 2018)
1. The NGT has been established by an Act whereas the CPCB has been created by the executive order of the Government.
2. The NGT provides environmental justice and helps reduce the burden of litigation in the higher courts whereas the CPCB promotes cleanliness of streams and wells, and aims to improve the quality of air in the country.
Which of the statements given above is/are correct?
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Answer: B
 
2. The National Green Tribunal Act, 2010 was enacted in consonance with which of the following provisions of the Constitution of India? (UPSC 2012)
1. Right of a healthy environment, construed as a part of the Right to life under Article 21
2. Provision of grants for raising the level of administration in the Scheduled Areas for the welfare of Scheduled Tribes under Article 275(1)
3. Powers and functions of Gram Sabha as mentioned under Article 243(A)
Select the correct answer using the codes given below:
A. 1 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
Answer: A
Source: The Indian Express
 
 

MINIMUM SUPPORT PRICE

1. Context

Days after allowing soybean procurement at Minimum Support Price (MSP), the Centre has increased import duties on edible oils

2. What is the Minimum Support Price (MSP)?

  • MSP is the minimum price a farmer must pay for their food grains as guaranteed by the government. They are recommended by the Commission for Agricultural Costs and Prices (CACP) and approved by the Cabinet Committee on Economic Affairs.
  • The CACP submits its recommendations to the government in the form of Price Policy Reports every year.
  • After considering the report and views of the state governments and also keeping in view the overall demand and supply situation in the country, the central government takes the final decision.
  • The Food Corporation of India (FCI) is the nodal agency for procurement along with State agencies, at the beginning of the sowing season.
The minimum support price (MSP) is set for 23 crops every year. They include:
  • 7 cereals (paddy, wheat, maize, bajra, jowar, ragi, and barley)
  • 5 pulses (chana, tur/arhar, moong, urad, and Masur)
  • 7 oilseeds (rapeseed-mustard, groundnut, soya bean, sunflower, sesamum, safflower, and Enigerseed) and
  • 4 commercial crops (sugarcane, cotton, copra, and raw jute).

3. How MSP is Calculated?

  • MSP, presently, is based on a formula of 1.5 times the production costs.
  • The CACP projects three kinds of production costs for every crop, both at state and all-India average levels.
  • A2 covers all paid-out costs directly incurred by the farmer — in cash and kind — on seeds, fertilizers, pesticides, hired labour, leased-in land, fuel, irrigation, etc.
  • A2+FL includes A2 plus an imputed value of unpaid family labour.
  • C2: Estimated land rent and the cost of interest on the money taken for farming are added to A2 and FL.
  • Farm unions are demanding that a comprehensive cost calculation (C2) must also include capital assets and the rentals and interest forgone on owned land, as recommended by the National Commission for Farmers.

4. The issue with the calculation of MSP

  • To calculate MSP, the government uses A2+FL cost. The criticism of A2+FL is that it doesn’t cover all costs and that a more representative measure, C2, needs to be used.
  • For example, in the 2017-18 rabi season, CACP data shows that C2 for wheat was 54% higher than A2+FL.
  • The Swaminathan Commission also stated that the MSP should be based on the comprehensive cost of production, which is the C2 method.

5. Key Points about the Farmer's Demand

  • After the recent decision to repeal three contentious farm laws, protesting farmer unions are now pressing for their demand of the legalization of the Minimum Support Price (MSP).
  • They want a legal guarantee for the MSP, which at present is just an indicative or a desired price.
  • Legalising MSPs would put the government under a legal obligation to buy every grain of the crops for which MSPs have been announced.
  • At present, the PM has announced the formation of a committee to make MSP more transparent, as well as to change crop patterns and to promote zero-budget agriculture which would reduce the cost of production.
  • The entire issue of enforcing MSP legally is a tricky, complicated, and multidimensional one, involving lots of factors.
  • Core demand: MSP based on a C2+50% formula should be made a legal entitlement for all agricultural produce. This would mean a 34% increase in the latest MSP for paddy and a 13% increase for wheat. MSP should also be extended to fruit and vegetable farmers who have been excluded from benefits so far.

6. The rationale behind the demand for legislation of MSP

  • Farmers receive less than MSP: In most crops grown across much of India, the prices received by farmers, especially during harvest time, are well below the officially declared MSPs. And since MSPs have no statutory backing, they cannot demand these as a matter of right.
  • Limited procurement by the Govt: Also, the actual procurement at MSP by the Govt. is confined to only about a third of wheat and rice crops (of which half is bought in Punjab and Haryana alone), and 10%-20% of select pulses and oilseeds. According to the Shanta Kumar Committee’s 2015 report, only 6% of the farm households sell wheat and rice to the government at the MSP rates.

7. Challenges associated with MSP

  • Protest by Farmers: Farm unions have been protesting for more than six months on Delhi's outskirts, demanding legislation to guarantee MSP for all farmers for all crops and a repeal of three contentious farm reform laws.
  • MSP and Inflation: When announcing the MSP, inflation should be taken into account. But often the price is not increased up to the mark. For example, this time MSP for Maize has not even considered inflation then how it will benefit farmers! Also, frequent increases in the MSPs can lead to inflation too.
  • High Input Costs: The input costs have been rising faster than sale prices, squeezing the meagre income of the small farmers and driving them into debt.
  • Lack of Mechanism: No mechanism guarantees that every farmer can get at least the MSP as the floor price in the market. So proper mechanisms need to be fixed for all times to come.
  • Restriction in Europe: Even after producing surplus grains, every year a huge portion of these grains gets rotten. This is due to the restrictions under WTO norms, that grain stocks with the FCI (being heavily subsidized due to MSP) cannot be exported.
 
For Prelims: Minimum Support Price, Rabi Crops, WTO, Commission for Agricultural Costs and Prices (CACP), Cabinet Committee on Economic Affairs, Food Corporation of India
For Mains:
1. Explain the concept of Minimum Support Price (MSP) in India. How is MSP determined, and what is its role in ensuring fair prices for agricultural produce? (250 Words)
 
 
Previous Year Questions
 
1. Consider the following statements: (UPSC CSE 2020)
1. In the case of all cereals, pulses, and oil seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India.
2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.
Which of the statements given above is/are correct?
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
 
Answer: D
 
2. Which of the following factors/policies were affecting the price of rice in India in the recent past? (UPSC CSE, 2020)
(1) Minimum Support Price
(2) Government’s trading
(3) Government’s stockpiling
(4) Consumer subsidies
Select the correct answer using the code given below:
(a) 1, 2 and 4 only
(b) 1, 3 and 4 only
(c) 2 and 3 only
(d) 1, 2, 3 and 4
 
Answer: D
 
3. In India, which of the following can be considered as public investment in agriculture? (UPSC GS1, 2020)
(1) Fixing Minimum Support Price for agricultural produce of all crops
(2) Computerization of Primary Agricultural Credit Societies
(3) Social Capital development
(4) Free electricity supply to farmers
(5) Waiver of agricultural loans by the banking system
(6) Setting up of cold storage facilities by the governments.
In India, which of the following can be considered as public investment in agriculture?
Select the correct answer using the code given below:
(a) 1, 2 and 5 only
(b) 1, 3, 4 and 5 only
(c) 2, 3 and 6 only
(d) 1, 2, 3, 4, 5 and 6
 
Answer: C
 
4. The Fair and Remunerative Price (FRP) of sugarcane is approved by the (UPSC CSE, 2015)
(a) Cabinet Committee on Economic Affairs
(b) Commission for Agricultural Costs and Prices
(c) Directorate of Marketing and Inspection, Ministry of Agriculture
(d) Agricultural Produce Market Committee
 
Answer: A
 

CASTE CENSUS

 
 
1. Context
The nearly century-old exercise to last count castes in a Census in India gives a good idea of the challenges the enumerators can face in any fresh effort, plus the complexities of the exercise
 
2. What is the Caste Census?

A caste census is a comprehensive survey or data collection effort that aims to gather detailed information about the caste composition of a population. This typically involves:

  1. Counting individuals belonging to different caste groups
  2. Collecting socio-economic data related to caste categories
  3. Assessing the representation of various castes in different sectors

The caste system is particularly relevant in India, where it has historically played a significant role in social stratification. A caste census can provide insights into:

  • Population distribution across caste groups
  • Economic status of different castes
  • Educational levels and employment patterns
  • Representation in government jobs and political positions

In India, the last comprehensive caste census was conducted in 1931 during British rule. Since then, calls for a new caste census have been made periodically, with proponents arguing it would help in formulating more targeted welfare policies and ensuring equitable representation.

3. Why the Caste Census?

Historically, British India’s censuses from 1881 to 1931 recorded all castes. Post-Independence, the 1951 census excluded caste enumeration, except for SCs and STs, which continued to be recorded in every census. In 1961, the government allowed states to conduct their own OBC surveys and create state-specific OBC lists, as there were no central reservations for OBCs at that time

A caste census is essential for several reasons:

  • Social Necessity: Caste remains a fundamental social framework in India. Inter-caste marriages were just 5% in 2011-12. Caste surnames and markers are common, residential areas are segregated by caste, and caste influences the selection of election candidates and cabinet ministers.

  • Legal Necessity: Effective implementation of constitutionally mandated social justice policies, including reservations in elections, education, and public employment, requires detailed caste data. Despite the Constitution using the term 'class,' Supreme Court rulings have established caste as a significant criterion for defining a backward class, necessitating comprehensive caste-wise data to uphold reservation policies.

  • Administrative Necessity: Detailed caste data helps correct wrongful inclusions and exclusions within reserved categories, prevents dominant castes from monopolizing reserved benefits, and is essential for sub-categorizing castes and determining the creamy layer's income/wealth criteria.

  • Moral Necessity: The lack of detailed caste data has allowed a small elite among upper castes and dominant OBCs to disproportionately control the nation's resources, income, and power

4. Arguments against the Caste Census

There are several arguments against conducting a caste census:

  • Social Division: Some argue that a caste census would exacerbate social divisions, although India's social hierarchies have existed for nearly 3,000 years, predating census efforts. Since 1951, counting SCs and STs has not led to conflicts among these groups. Moreover, India’s census already includes data on religion, language, and region, which are equally, if not more, divisive than caste. Ignoring caste in the census will not eliminate casteism any more than excluding religion, language, and region data will eradicate communalism and regionalism.

  • Administrative Challenge: Some claim that a caste census would be administratively complex. However, unlike the concept of race, which can be ambiguous but is still counted in many countries like the U.S., caste identification in India is relatively clear. The government has successfully enumerated 1,234 SC castes and 698 ST tribes. Therefore, counting the approximately 4,000 other castes, most of which are specific to certain states, should not pose an insurmountable challenge.

  • Increased Reservation Demands: Critics suggest that a caste census could lead to more demands for reservations. However, detailed caste data could actually help manage these demands more effectively by providing a factual basis for discussions. This would enable policymakers to address reservation claims more objectively, such as those from Marathas, Patidars, and Jats. In contrast, governments often prefer vague data because it allows them to make arbitrary reservation decisions for electoral gain

5. The Case for Other Backward Caste (OBC) in Census
 
  • The Constitution allows reservations for OBCs in education (Article 15(4)) and public employment (Article 16(4)), similar to SCs and STs. Following the Mandal Commission's recommendations, OBCs also benefit from reservations in the Central government and its undertakings. The Supreme Court's ruling in the Indra Sawhney case (1992) emphasized that the OBC list, originally based on the 1931 Census, should be updated regularly.
  • Unlike SCs and STs, OBCs do not have reserved electoral constituencies for MPs and MLAs. However, the 73rd and 74th Constitutional amendments (1993) introduced reservations for OBCs in panchayats and municipalities (Articles 243D(6) and 243T(6)). To implement this effectively, detailed caste and area-wise Census data of OBCs is necessary, which the government should have collected in the 2001 Census but did not.
  • When states like Uttar Pradesh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Odisha, and Jharkhand attempted to implement OBC reservations in local elections, courts halted these efforts due to the lack of caste-wise OBC data. The judiciary demands this data to uphold reservations, while the executive has avoided collecting it.
  • In contrast, the Supreme Court upheld the 10% reservation for economically weaker sections (EWS) among non-OBCs, SCs, and STs (mainly upper castes) in 2022 without empirical support. Given the EWS reservation, the Census should now include all castes, as it did until 1931.
  • Though the Census is a Union subject, the Collection of Statistics Act, 2008, allows States and local bodies to collect relevant data. States like Karnataka (2015) and Bihar (2023) have conducted caste surveys, but Census data holds more authority and is less disputed. The government's reluctance to include caste in the Census is both legally indefensible and administratively imprudent
6. Failures attempts of Caste Census
  • After extensive lobbying by OBC leaders, Parliament unanimously resolved in 2010, with support from both Congress and BJP, to include caste enumeration in the 2011 Census. The last such enumeration was in the 1931 Census, which recorded 4,147 castes in India, excluding the depressed classes/untouchables.
  • However, the Socio-Economic and Caste Census (SECC) of 2011 was poorly designed and executed, resulting in an absurd figure of 4.6 million castes, and its results were never released.
  • The failure of SECC-2011 can be attributed to its conduct outside the framework of the Census Act, 1948, which was not amended to include caste as a parameter. Instead, it was managed by the Union Ministries of Rural Development and Urban Development, which lacked experience in conducting sociological surveys.
  • Additionally, the questionnaire was poorly designed with open-ended questions about caste, causing confusion among enumerators who struggled to differentiate between genuine castes, alternative names, larger caste groups, sub-castes, surnames, clan names, and gotras. In contrast, Bihar's 2023 Caste Survey provided a list of 214 specific caste names, with a 215th category labeled "Other Castes," resulting in more accurate data.
  • Despite the 2010 unanimous Parliamentary resolution, the Central government announced in 2021 that it would not include caste enumeration in the next Census.
  • It maintained this stance before the Supreme Court in response to a case filed by the Maharashtra government seeking the inclusion of OBCs in the 2021 Census. The Supreme Court's dismissal of Maharashtra's plea in December 2021 is contentious, given its own previous rulings
7. Way Forward
To address the failures of the SECC-2011, the Census Act of 1948 should be amended to mandate caste enumeration, removing the discretion from the Union executive. Caste should be included in the regular Census conducted by the Census Commissioner, with a few relevant questions added to the questionnaire. The government should also involve sociological and anthropological experts to create a draft list of castes specific to each state, publish this draft online for public feedback, and finalize it before distributing it to enumerators. The questionnaire should include questions about the respondent's sub-caste, caste, larger caste group, and caste surname. Using internet-enabled handheld devices preloaded with this information and limiting the enumerators' role to selecting the correct option will streamline the process and ensure accuracy.
States interested in caste enumeration should petition the Supreme Court to review its 2021 judgment. It is illogical to base OBC reservations on 1931 Census data and EWS reservations on no empirical data. The next Census must include caste enumeration
 
 
 
For Prelims: Socio-economic and caste census (SECC), Mandal Commission, Justice G Rohini's Commission, NITI Aayog, Article 341 and Article 342.
For Mains: 1. General Studies II: Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections
 
 
Source: The Hindu
 

GOODS AND SERVICE TAX (GST)

 
 
1. Context
 
Tax evasion of Rs 2.01 lakh crore was detected in the financial year 2023-24, nearly double from Rs 1.01 lakh crore detection in the previous financial year under the Goods and Services Tax (GST) regime, data released by the Directorate General of GST Intelligence (DGGI) on Saturday showed. 
 
2. What is the Goods and Services Tax (GST)?
  • The Goods and Services Tax (GST) is a value-added tax levied on the supply of goods and services at each stage of the production and distribution chain. It is a comprehensive indirect tax that aims to replace multiple indirect taxes imposed by the central and state governments in India.
  • GST is designed to simplify the tax structure, eliminate the cascading effect of taxes, and create a unified national market. Under the GST system, both goods and services are taxed at multiple rates based on the nature of the product or service. The tax is collected at each stage of the supply chain, and businesses are allowed to claim a credit for the taxes paid on their inputs.
  • The GST system in India came into effect on July 1, 2017, replacing a complex tax structure that included central excise duty, service tax, and state-level taxes like VAT (Value Added Tax), among others. The GST Council, consisting of representatives from the central and state governments, is responsible for making decisions on various aspects of GST, including tax rates and rules.
  • GST is intended to create a more transparent and efficient tax system, reduce tax evasion, and promote economic growth by fostering a seamless flow of goods and services across the country. It has a significant impact on businesses, as they need to comply with the new tax regulations and maintain detailed records of their transactions for GST filing

3.Goods and Services Tax (GST) and 101st Amendment Act, 2016

The Goods and Services Tax (GST) in India was introduced through the 101st Amendment Act of 2016. This constitutional amendment was a crucial step in the implementation of GST, which aimed to create a unified and comprehensive indirect tax system across the country.

Here are some key points related to the 101st Amendment Act and GST:

 

  • The 101st Amendment Act was enacted to amend the Constitution of India to pave the way for the introduction of the Goods and Services Tax.
  • It added a new article, Article 246A, which confers concurrent powers to both the central and state governments to levy and collect GST
  • The amendment led to the creation of the GST Council, a constitutional body consisting of representatives from the central and state governments. The council is responsible for making recommendations on GST rates, exemptions, and other related issues
  • The amendment introduced a dual GST structure, where both the central government and the state governments have the power to levy and collect GST on the supply of goods and services
  • For inter-state transactions, the 101st Amendment Act provides that the central government would levy and collect the Integrated Goods and Services Tax (IGST), which would be a sum total of the central and state GST
  • The amendment also included a provision for compensating states for any revenue loss they might incur due to the implementation of GST for a period of five years
The 101st Amendment Act was a critical legislative step that provided the constitutional framework for the implementation of GST in India. It addressed the need for a unified tax system, simplifying the tax structure and promoting a common market across the country. The subsequent establishment of the GST Council has played a pivotal role in the ongoing management and evolution of the GST system in India
 
4. What are the different types of Goods and Services Tax (GST)?

In India, the Goods and Services Tax (GST) is structured into different tax rates based on the nature of the goods and services. As of my last knowledge update in January 2022, the GST rates are divided into multiple slabs. It's important to note that tax rates may be subject to changes, and new amendments could have been introduced since then. As of my last update, the GST rates are as follows:

  • Nil Rate:

    • Some goods and services are categorized under the nil rate, meaning they attract a 0% GST. This implies that no tax is levied on the supply of these goods or services.

  • 5% Rate:

    • This is a lower rate, applicable to essential goods such as certain food items, medical supplies, and other basic necessities.

  • 12% Rate:

    • Goods and services falling in this category attract a 12% GST rate. Items such as mobile phones, processed foods, and certain services fall under this slab.

  • 18% Rate:

    • A higher rate of 18% is applicable to goods and services such as electronic items, capital goods, and various services.

  • 28% Rate:

    • The highest GST rate of 28% is applied to luxury items, automobiles, and certain goods and services that are considered non-essential or fall into the luxury category.

  • Compensation Cess:

    • In addition to the above rates, some specific goods attract a compensation cess, which is levied to compensate the states for any revenue loss during the transition to GST. This is often applied to items like tobacco and luxury cars.

  • Zero Rate:

    • Certain categories of goods and services may be specified as "zero-rated," which means they are effectively taxed at 0%. This is different from the nil rate, as it allows businesses to claim input tax credit on inputs, capital goods, and input services.

  • Exempt Supplies:

    • Some goods and services may be exempt from GST altogether. This means that they are not subject to any GST, and businesses cannot claim input tax credit on related inputs
 
5.Central GST (CGST), State GST (SGST), Union territory GST (UTGST) and Integrated GST (IGST)
 
 
Subject Central GST (CGST) State GST (SGST) Union Territory GST (UTGST) Integrated GST (IGST)
Levied by Central Government Respective State Governments Union Territory Administrations Central Government (on inter-state transactions)
Applicability On intra-state supplies (within the same state) On intra-state supplies (within the same state) On intra-union territory supplies (within the same union territory) On inter-state supplies (across states or union territories)
Rate Determination Determined by the Central Government Determined by the Respective State Government Determined by the Union Territory Administration IGST rate is a sum of CGST and SGST rates
Revenue Collection Collected by the Central Government Collected by the Respective State Government Collected by the Union Territory Administration Collected by the Central Government (on inter-state transactions)
Utilization of Revenue Shared between Central and State Governments Retained by the Respective State Government Retained by the Union Territory Administration Shared between Central and State Governments
Purpose Part of the dual GST structure, meant to cover central taxes Part of the dual GST structure, meant to cover state taxes Applicable in union territories for intra-territory supplies Applied to regulate and tax inter-state supplies
Input Tax Credit (ITC) ITC available for CGST paid on inputs and services ITC available for SGST paid on inputs and services ITC available for UTGST paid on inputs and services ITC available for both CGST and SGST paid on inputs
Tax Jurisdiction Applies within a particular state Applies within a particular state Applies within a particular union territory Applies to transactions across states and union territories
GSTN Portal for Filing Returns Central GSTN portal State-specific GSTN portals UTGSTN portal Integrated GSTN portal
 
 
6.What are the benefits of Goods and Services Tax (GST) in India?
 
The Goods and Services Tax (GST) in India was implemented with the aim of bringing about significant reforms in the indirect tax structure. Several benefits have been associated with the introduction of GST.
 
Here are some key advantages:
 
  • GST replaced multiple indirect taxes levied by the central and state governments, simplifying the tax structure. This streamlined system reduces the complexity of compliance for businesses
  • GST eliminates the cascading effect of taxes, where taxes are levied on top of other taxes. With a seamless credit mechanism, businesses can claim input tax credit on the taxes paid on their purchases, leading to a more transparent and efficient system
  • GST has facilitated the creation of a common national market by harmonizing tax rates and regulations across states. This has reduced trade barriers and promoted the free flow of goods and services throughout the country
  • The GST system has incorporated technology-driven processes, including electronic filing and real-time reporting, making it harder for businesses to evade taxes. This has contributed to increased tax compliance
  • The input tax credit mechanism under GST benefits manufacturers, as they can claim credits for taxes paid on raw materials and input services. This has a positive impact on the cost of production and enhances the competitiveness of Indian goods in the international market
  • GST brings transparency to the taxation system. The online filing of returns and the availability of transaction-level data make it easier for tax authorities to monitor and track transactions, reducing the scope for corruption
  • GST has replaced a complex system of filing multiple tax returns with a more straightforward mechanism. Businesses now need to file fewer returns, reducing the compliance burden
  • The implementation of GST has contributed to an improvement in the ease of doing business in India. The unified tax system has made it simpler for businesses to operate across states and has reduced the paperwork and bureaucratic hurdles associated with tax compliance
  • GST has led to the harmonization of tax rates across states and union territories, minimizing the tax rate disparities that existed earlier. This creates a more predictable tax environment for businesses
7.Goods and Services Tax (GST)-Issues and Challenge
 
  • Despite the intention to simplify the tax structure, the multi-tiered rate system (0%, 5%, 12%, 18%, and 28%) and the inclusion of cess on certain goods have introduced complexity. The classification of goods and services under different tax slabs can be challenging, leading to disputes and confusion
  • The successful implementation of GST relies heavily on technology. Issues such as technical glitches on the GSTN (Goods and Services Tax Network) portal, especially during the initial phases, have caused difficulties for businesses in filing returns and complying with regulations
  • The compliance requirements for businesses under GST, including multiple returns filing, have been perceived as burdensome. Smaller businesses, in particular, may find it challenging to adapt to the new system and comply with the various provisions
  • The transition from the previous tax regime to GST posed challenges, especially for businesses in terms of understanding the new tax structure, reconfiguring accounting systems, and ensuring a smooth transition of credits from the old tax system to the GST system
  • The classification of certain goods and services into specific tax slabs has been a source of contention. Ambiguities in classification have led to disputes and litigations, with businesses seeking clarity on the applicable tax rates
  • The implementation of GST has increased compliance costs for businesses due to the need for sophisticated IT infrastructure, the hiring of tax professionals, and efforts to ensure accurate reporting and filing
  • Challenges related to availing and matching input tax credits have been reported. Timely matching of credits and resolving discrepancies can be cumbersome, leading to concerns about the seamless flow of credit across the supply chain
  • The anti-profiteering provisions were introduced to ensure that businesses pass on the benefits of reduced tax rates to consumers. However, the implementation of anti-profiteering measures has been criticized for its complexity and potential for disputes
  • The periodic changes in the GST return filing system have created challenges for businesses in adapting their processes. Delays and complexities in return filing can affect working capital management
8.Goods and Services Tax Council (GST Council)
 
The Goods and Services Tax Council (GST Council) is a constitutional body in India that makes recommendations on the Goods and Services Tax (GST). It was established under the Constitution (122nd Amendment) Act, 2016, which introduced the GST in India

The GST Council consists of the following members:

  • The Union Finance Minister, who is the Chairperson of the Council.
  • The Union Minister of State in charge of revenue or any other Minister of State nominated by the Union Government.
  • One Minister from each state, nominated by the Governor of that state.
  • The Chief Secretary of each state, ex-officio.
  • If the President, on the recommendation of the Council, so directs, one representative of each Union territory which has a legislature, to be nominated by the Lieutenant Governor of that Union territory.
  • Three to seven members (other than Ministers) to be nominated by the Union Government, of whom at least one member shall be from the field of economics and another from the field of chartered accountancy, legal affairs or public finance
9. Way forward
 
It's important to note that the composition and structure of the GST Council may evolve over time, and there might have been changes since my last update in January 2022. To obtain the latest and most accurate information about the GST Council and its members, it is recommended to refer to official government sources or recent announcements by the relevant authorities

 

For Prelims: Economic and Social Development and Indian Polity and Governance
For Mains: General Studies II: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein

General Studies III: Inclusive growth and issues arising from it
 
 
Previous Year Questions
 
1.Which of the following are true of the Goods and Services Tax (GST) introduced in India in recent times? (UGC Paper II 2020)
A. It is a destination tax
B. It benefits producing states more
C. It benefits consuming states more
D. It is a progressive taxation
E. It is an umbrella tax to improve ease of doing business
Choose the most appropriate answer from the options given below:
A.B, D and E only
B.A, C and D only
C.A, D and E only
D.A, C and E only
Answer (D)
 
Source: Indianexpress
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