SUSTAINABLE DEVELOPMENT GOALS (SDG)

1. Context

2. About Sustainable Development Goals (SDGs)

• The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.
• The 17 SDGs are integrated—they recognize that action in one area will affect outcomes in others and that development must balance social, economic and environmental sustainability.
• Countries have committed to prioritizing progress for those who are furthest behind. The SDGs are designed to end poverty, hunger, AIDS, and discrimination against women and girls.
• The creativity, know-how, technology and financial resources from all of society are necessary to achieve the SDGs in every context.

3. Background

• The global community is at a critical moment in its pursuit of the Sustainable Development Goals (SDGs). 
• More than a year into the global pandemic, millions of lives have been lost, the human and economic toll has been unprecedented, and recovery efforts so far have been uneven, inequitable and insufficiently geared towards achieving sustainable development. 
• The current crisis is threatening decades of development gains, further delaying the urgent transition to a greener, more inclusive economy, and throwing progress on the SDGs even further off track. Had the paradigm shift envisioned by the 2030 Agenda for Sustainable Development been fully embraced over the past six years, the world would have been better prepared to face this crisis – with stronger health systems, expanded social protection coverage, and the resilience that comes from more equal societies, and a healthier natural environment. 
• Regrettably, the SDGs were already off track even before COVID-19 emerged. Progress has been made in poverty reduction, maternal and child health, access to electricity, and gender equality, but not enough to achieve the Goals by 2030. 
• In other vital areas, including reducing inequality, lowering carbon emissions and tackling hunger, progress had either stalled or reversed

3. Impact of COVID-19 on SDG Goals

• As the pandemic continues to unfold, The Sustainable Development Goals Report 2021 outlines some significant impacts in many areas that are already apparent. 
• The global extreme poverty rate rose for the first time in over 20 years, and 119 to 124 million people were pushed back into extreme poverty in 2020. 
• There is a risk of a generational catastrophe regarding schooling, where an additional 101 million children have fallen below the minimum reading proficiency level, potentially wiping out two decades of education gains. 
• Women have faced increased domestic violence, child marriage is projected to rise after a decline in recent years, and unpaid and underpaid care work is increasingly and disproportionately falling on the shoulders of women and girls, impacting educational and income opportunities and health. 
• Notwithstanding the global economic slowdown, concentrations of major greenhouse gasses continue to increase. 
• With the global average temperature reaching about 1.2°C above pre-industrial levels, the climate crisis has well and truly arrived, and its impacts are being felt across the world. 
• The pandemic has also brought immense financial challenges, especially for developing countries – with a significant rise in debt distress and dramatic decreases in foreign direct investment and trade.

4. Challenges in the attainment of sustainable development goals

• The United Nations-mandated Sustainable Development Goals (SDG) are in danger of slipping away from reach and along with their years of progress in eradicating poverty, hunger and ignorance.
• Urgent action is needed if the SDGs, which come with a 2030 deadline, are to be rescued, according to the SDG Report 2022, released July 7.
• All 17 SDGs, set at the UN General Assembly in 2015, are in jeopardy due to the climate crisis, the COVID-19 pandemic and an increase in the number of conflicts across the world.
• The “cascading and intersecting” issues impact the environment, food and nutrition, health, peace and security as well as education, according to a UN statement on the report.
• Greenhouse gas emissions are set to rise 14 per cent over a decade, the statement noted, antithetical to the Paris Agreement plan — a 2025 peak followed by a 43 per cent decline by 2030 and Net 2050. Energy-related carbon dioxide emissions shot up 6 per cent, taking down gains due to COVID-19.
• The pandemic itself has emerged as one of the biggest threats to several SDGs, the statement said, pointing at 15 million “excess deaths” directly or indirectly due to the novel coronavirus by 2021.
• Economic shocks due to the worldwide health emergency pushed 93 million into poverty in 2020 alone, undoing “more than four years” work at alleviating poverty. It also affected the education and healthcare services for millions. 
• Immunization, for example, has dropped for the first time in a decade even as deaths from malaria and TB have risen.

• The pandemic and the Russia-Ukraine war have already led to a lowering of global economic growth projections by 0.9 percentage points, the statement highlighted, flagging the conflict for harming in more ways than one:

• Raising food and fuel prices
• Hampering global supplies and trade
• Roiling financial markets
• The report also flagged threats to food security and aids, rising unemployment (especially among women) and increases in child labour as well as child marriages. 
• The burden was greater on least developed countries and vulnerable population groups.                                                        

5. The impact of COVID-19 on SDGs

• The challenges are immense, but there are also reasons for hope. 
• The COVID-19 crisis demonstrated inspiring community resilience, highlighted the Herculean work by essential workers in myriad fields and facilitated the rapid expansion of social protection, the acceleration of digital transformation and unprecedented worldwide collaboration on the development of vaccines. 
• A brighter future is possible. 
• We must use the crisis to transform our world, deliver on the 2030 Agenda and keep our promise to current and future generations.

6. The infographics

Source: The Hindu

NON BANKING FINANCIAL COMPANIES (NBFC)

• Non-Banking Financial Companies (NBFCs) are financial institutions that provide banking services but do not hold a banking license.
• They are crucial to the financial system as they cater to the financial needs of sectors where traditional banks may not reach or provide services.
• NBFCs offer various financial services such as loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority, leasing, hire-purchase, insurance business, chit business, etc.
• They differ from traditional banks because they cannot accept demand deposits and do not form part of the payment and settlement system like banks do.
• However, they play a significant role in providing credit to individuals, small businesses, and the unorganised sector, thereby contributing to financial inclusion and economic growth. Examples of NBFCs include companies engaged in equipment leasing, hire-purchase finance, vehicle finance, and microfinance

3. Classification of NBFCs

NBFCs can be classified into various categories based on their activities, ownership structure, and regulatory requirements.

Here are some common classifications:

• Asset Financing NBFCs: These NBFCs primarily provide financing for the purchase of assets such as vehicles, machinery, equipment, etc.

• Investment and Credit NBFCs: These NBFCs primarily make investments in securities or extend credit facilities.

• Infrastructure Finance Companies (IFCs): These NBFCs focus on financing infrastructure projects such as roads, ports, power, telecommunications, etc.

• Housing Finance Companies (HFCs): These NBFCs specialize in providing finance for housing and related activities.

• Microfinance Institutions (MFIs): These NBFCs provide financial services, including small loans, savings, and insurance, to low-income individuals and microenterprises.

• Non-Deposit Taking NBFCs: These NBFCs do not accept deposits from the public. They rely on other sources of funding such as borrowings from banks, financial institutions, and capital markets.

• Deposit Taking NBFCs: These NBFCs accept deposits from the public and are regulated more closely, similar to banks, to ensure the safety of depositor funds.

• Systemically Important NBFCs (SI-NBFCs): These are NBFCs whose failure could potentially disrupt the financial system. They are subject to additional regulatory requirements to mitigate systemic risks.

• Core Investment Companies (CICs): These NBFCs are primarily engaged in the business of acquisition of shares and securities and hold not less than 90% of its Total Assets in the form of investment in equity shares, preference shares, bonds, debentures, debt, or loans in group companies.

• Infrastructure Debt Funds (IDFs): These NBFCs are set up to facilitate the flow of long-term debt into infrastructure projects.

4. What is the 50-50 Criteria of Principal Business?

 

• The 50-50 criteria of principal business refers to a regulatory guideline set by the Reserve Bank of India (RBI) for determining whether a company's principal business is that of a Non-Banking Financial Company (NBFC).
• According to this criterion, if more than 50% of a company's total assets or gross income comes from financial assets or income derived from financial assets, it is considered to be primarily engaged in the business of an NBFC. In other words, if at least 50% of the company's assets or income is from financial activities, it falls under the purview of NBFC regulations.
• This guideline helps to differentiate between companies engaged primarily in non-financial activities with some incidental financial activities and those whose main business revolves around financial services, thereby ensuring appropriate regulation and supervision of NBFCs by the RBI. It is an important criterion used by regulators to determine the regulatory classification of companies operating in the financial sector

5.RBI rules on Non Banking Financial Companies

The Reserve Bank of India (RBI) regulates Non-Banking Financial Companies (NBFCs) in India to ensure financial stability, consumer protection, and the smooth functioning of the financial system.

 

Some of the key rules and regulations imposed by the RBI on NBFCs include:

• NBFCs need to obtain a Certificate of Registration (CoR) from the RBI to commence or carry on the business of non-banking financial institution.
• RBI imposes prudential regulations on NBFCs to ensure the safety and soundness of their operations. These norms cover aspects such as capital adequacy, income recognition, asset classification, provisioning, liquidity management, and exposure limits.
• NBFCs are required to adhere to a Fair Practices Code (FPC) prescribed by the RBI, which outlines the principles of transparency, fairness, and responsible lending practices.
• NBFCs are mandated to follow KYC norms while onboarding customers, including verification of identity, address, and other relevant information, to prevent money laundering and terrorist financing activities
• NBFCs are required to implement effective AML/CFT measures, including customer due diligence, transaction monitoring, and reporting of suspicious transactions, to mitigate the risks of money laundering and terrorist financing.
• RBI mandates NBFCs to adhere to good corporate governance practices, including the composition of the board of directors, risk management framework, internal controls, and disclosure requirements
•  NBFCs are required to have robust risk management systems in place to identify, assess, monitor, and mitigate various risks such as credit risk, market risk, liquidity risk, and operational risk.
• NBFCs need to submit various regulatory returns and reports to the RBI periodically, providing details of their financial performance, capital adequacy, asset quality, and compliance with regulatory requirements.
• RBI conducts regular inspections and supervisory reviews of NBFCs to assess their financial health, compliance with regulations, and adherence to best practices.
• RBI has the authority to issue directions, impose restrictions, and take corrective actions against NBFCs that fail to comply with regulatory requirements or pose risks to the financial system.

 

6. Way Forward

Non-Banking Financial Companies (NBFCs) play a vital role in India's financial landscape, serving as critical intermediaries between traditional banking institutions and underserved segments of the economy. With their diverse range of financial services and flexible approach to lending, NBFCs contribute significantly to promoting financial inclusion, fostering entrepreneurship, and driving economic growth. However, the regulatory framework governing NBFCs remains paramount in ensuring the stability and integrity of the financial system. As the sector continues to evolve and face new challenges, effective regulation, prudent risk management, and adherence to best practices will be essential for NBFCs to sustain their growth trajectory and fulfill their socio-economic mandate in a responsible and sustainable manner

 

 

For Prelims: Economy For Mains: GS-III: Indian Economy and issues relating to planning, mobilisation, of resources, growth, development, and employment.

 

 

Previous Year Questions 1.The RBI acts as a bankers’ bank. This would imply which of the following? (UPSC CSE 2012) 1. Other banks retain their deposits with the RBI. 2. The RBI lends funds to the commercial banks in times of need. 3. The RBI advises the commercial banks on monetary matters. Select the correct answer using the codes given below : (a) 2 and 3 only (b) 1 and 2 only (c) 1 and 3 only (d) 1, 2 and 3 Answer (d) The central bank, also known as the apex bank, has overarching control over a nation's banking system. It holds the exclusive authority for issuing currency and regulates the money supply within the economy. As outlined in the Reserve Bank of India Act, 1934, the central bank fulfills several key functions: Banking functions: Acting as the banker, agent, and advisor to both the central and state governments, the Reserve Bank handles all banking operations for these entities. It extends advisory services to the government on economic and monetary policy matters and manages the public debt. Furthermore, it functions similarly to a commercial bank for other banks, including providing loans to all commercial banks nationwide. Supervisory functions: The central bank supervises and monitors other banks and governmental entities, guiding them through various economic conditions, especially during periods of inflation or deflation. Promotional functions: In addition to its regulatory role, the central bank undertakes promotional activities such as fostering connections with global economies and managing foreign reserves. These efforts contribute to representing the country's economy on the international stage. Advisory functions: Offering guidance on monetary issues to commercial banks is another essential role of the central bank, ensuring effective monetary policy implementation. 2.With reference to the Non-banking Financial Companies (NBFCs) in India, consider the following statements: (UPSC CSE 2010) They cannot engage in the acquisition of securities issued by the government. They cannot accept demand deposits like Savings Account. 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) Statement 1: They cannot engage in the acquisition of securities issued by the government. This statement is False. NBFCs can invest in government securities like bonds. Statement 2: They cannot accept demand deposits like Savings Account. This statement is True. NBFCs are unlike banks and cannot accept demand deposits that are withdrawable on demand. They can only accept fixed deposits with a predetermined maturity period

Source: Indianexpress

 

INDIA'S TEXTILE INDUSTRY 

 

 

 

1. Context

 

Union Minister for Textiles Giriraj Singh recently said that the Indian textile and apparel sector is aiming for a total business of $350 billion annually by 2030, which is to generate 3.5 crore jobs. However, the industry went through a tumultuous phase during the last two financial years, casting a shadow on the possibility for 10% CAGR.

 

2. India's Textile Industry

 

• In 2021, the Indian textile and apparel industry was valued at approximately $153 billion, with nearly $110 billion coming from domestic operations. By the end of FY22, India ranked as the third-largest textile exporter worldwide, holding a 5.4% share of the global market.
• The country is also recognized for having the second-largest manufacturing capacity in this sector, showcasing a strong presence across the entire value chain.
• The textile industry's contribution to the GDP was around 2.3% in FY21, while it accounted for 10.6% of the total manufacturing Gross Value Added (GVA) in FY23. The sector employs about 105 million people, both directly and indirectly.
• Given that 80% of the industry’s capacity is distributed among micro, small, and medium enterprises (MSMEs), it is highly sensitive to global market changes. The fiscal year 2021-2022 witnessed significant growth, with exports reaching $43.4 billion.
• However, the demand slowdown that began in 2022-2023 continued to worsen into FY24, resulting in declines in both exports and domestic demand. This downturn severely affected manufacturing hubs, such as Tamil Nadu, which houses the country’s largest spinning capacity.
• Over the past two years, approximately 500 textile mills have closed in the state. In Tiruppur, a key center for knitwear production, many businesses experienced a 40% reduction in sales during FY23

 

3. India's Textile Exports

 

• Geopolitical changes and a decline in demand from purchasing countries have significantly impacted exporting units. This situation has been worsened by rising prices of raw materials, including cotton and Man-Made Fibres (MMF), along with an increase in imported fabrics and garments.
• The introduction of a 10% import duty on cotton has made Indian cotton less competitive compared to global prices. In the case of MMF, the implementation of quality control orders has disrupted the availability of raw materials and caused fluctuations in pricing.
• Industry stakeholders are consistently advocating for the removal of the import duty on cotton, especially during the off-peak months from April to October. A representative from a prominent industry association emphasized, “This is an industry where stakeholders compete globally against countries that significantly support their domestic production.
• Therefore, India requires long-term schemes, lasting at least five years, to encourage investments. Raw materials must be accessible to the domestic industry at prices that are competitive with international markets.”

4. Challenges

 

The textile industry aims to attract $100 billion in investments across various segments of its value chain by 2030 to enhance production capacities and achieve the ambitious $350 billion target. Labor costs make up about 10% of the overall production expenses in this sector. Reports indicate that the average daily wage for a trained textile worker is approximately ₹550, while unskilled workers earn around ₹450 per day. Industry experts emphasize the necessity of adopting technology and enhancing the skills of the workforce to boost productivity and minimize waste

 

5. What is the Compound Annual Growth rate (CAGR)?

 

Compound Annual Growth Rate (CAGR) is a useful measure that indicates the mean annual growth rate of an investment over a specified time period, assuming that the investment grows at a steady rate. It is often expressed as a percentage and can be particularly useful for comparing the growth rates of different investments or industries over time

 

 

The formula for CAGR is: CAGR = (Ending Value / Beginning Value)^(1/n) - 1 where: Ending Value is the final value of the investment. Beginning Value is the initial value of the investment. n is the number of years.

Source: The Hindu

 

LINE OF ACTUAL CONTROL (LAC)

 

1.Context

The standing committee of the National Board for Wildlife (NBWL) has cleared five key road stretches — four passing through the Karakoram Wildlife Sanctuary along the Line of Actual Control (LAC) — including on a route to Daulat Beg Oldie (DBO), the country’s northernmost military outpost in Ladakh and location of its highest airstrip

Pic credits: TRT WORLD

 

2.About Line of Actual Control (LAC)

The LAC is the demarcation that separates Indian-controlled territory from Chinese-controlled territory.

India considers the LAC to be 3,488 km long, while the Chinese consider it to be only around 2,000 km

It is divided into three sectors:

 

The eastern sector which spans Arunachal Pradesh and Sikkim, The middle sector in Uttarakhand and Himachal Pradesh, and the western sector in Ladakh

 

3.The disagreement

• The alignment of the LAC in the eastern sector is along the 1914 McMahon Line, and there are minor disputes about the positions on the ground as per the principle of the high Himalayan watershed
• This pertains to India’s international boundary as well, but for certain areas such as Longju and Asaphila
• The line in the middle sector is the least controversial but for the precise alignment to be followed in the Barahoti plains.
• The major disagreements are in the western sector where the LAC emerged from two letters written by Chinese Prime Minister Zhou Enlai to PM Jawaharlal Nehru in 1959, after he had first mentioned such a ‘line’ in 1956.
• In his letter, Zhou said the LAC consisted of “the so-called McMahon Line in the east and the line up to which each side exercises actual control in the west”
• After the 1962 War, the Chinese claimed they had withdrawn to 20 km behind the LAC of November 1959
• During the Doklam crisis in 2017, the Chinese Foreign Ministry spokesperson urged India to abide by the “1959 LAC”
• India rejected the concept of LAC in both 1959 and 1962. Even during the war, Nehru was unequivocal: “There is no sense or meaning in the Chinese offer to withdraw twenty kilometres from what they call ‘line of actual control’

4.India's agreement to LAC

• LAC was discussed during Chinese Premier Li Peng’s 1991 visit to India, where PM P V Narasimha Rao and Li reached an understanding to maintain peace and tranquillity at the LAC. 
• India formally accepted the concept of the LAC when Rao paid a return visit to Beijing in 1993 and the two sides signed the Agreement to Maintain Peace and Tranquillity at the LAC
• The reference to the LAC was unqualified to make it clear that it was not referring to the LAC of 1959 or 1962 but to the LAC at the time when the agreement was signed
• To reconcile the differences about some areas, the two countries agreed that the Joint Working Group on the border issue would take up the task of clarifying the alignment of the LAC

5.How is the LAC different from the Line of Control with Pakistan?

The LoC emerged from the 1948 ceasefire line negotiated by the UN after the Kashmir War. It was designated as the LoC in 1972, following the Shimla Agreement between the two countries. It is delineated on a map signed by DGMOs of both armies and has the international sanctity of a legal agreement.

The LAC, in contrast, is only a concept – it is not agreed upon by the two countries, neither delineated on a map or demarcated on the ground.

 

For Prelims: LAC, LOC For Mains: 1.What is this ‘line of control’? Is this the line China have created by aggression. Comment 2.What we know about the clash between Indian and Chinese soldiers in Arunachal Pradesh

 

Previous Year Questions 1.The Line of Actual Control (LAC) separates  (Karnataka Civil Police Constable 2020) A.India and Pakistan B.India and Afghanistan C.India and Nepal D.India and China Answer (D) 2.LAC (Line of Actual Control) is an effective border between India and ______. (SSC CHSL 2020) A.Pakistan B.Bhutan C.Sri Lanka D.China Answer (D)

 

 

 

Source:indianexpress

 

MINIMUM SUPPORT PRICE

1. Context

The Union government Wednesday announced minimum support prices (MSP) for six rabi crops for the 2025-26 rabi marketing season (RMS), with wheat — the country’s second-largest crop — seeing an increase of `150 per quintal, or 6.59 per cent, over its current MSP.

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