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DAILY CURRENT AFFAIRS, 29 JANUARY 2025

GENOME MAPPING

 

1. Context

Recently, the Department of Biotechnology (DBT) has made the genome data of 10,000 individuals publicly accessible, under the Genome India Project (GIP). The sequences of healthy individuals — from 99 ethnic populations of the country — have helped create a baseline map of India’s genetic diversity.

2. Human Genome Project (HGP)

  • One of the most comprehensive genome mapping projects in the world is the Human Genome Project (HGP), which began in 1990 and reached completion in 2003.
  • The international project, which was coordinated by the National Institutes of Health and the US Department of Energy, was undertaken with the aim of sequencing the human genome and identifying the genes that contain it.
  • The project was able to identify the locations of many human genes and provide information about their structure and organization.

3. Genome Mapping

  • Gene mapping refers to the technique used to identify a gene's location and distance between genes.
  • The distances between various sites inside a gene can also be described through gene mapping.
  • Placing several molecular markers at specific locations on the genome is the fundamental element of all genome mapping.
  • There are many types of molecular markers. When creating genome maps, genes can be observed as a particular class of genetic markers mapped similarly to other markers.

4. Types of Gene Mapping

  • Genetic linkage maps and physical maps are the two main categories of "Maps" used in gene mapping.
  • Both maps consist of genetic markers and gene loci. While physical maps involve actual physical distances, often measured in a number of base pairs, distances of genetic maps are based on genetic linkage information.
  • There are many gene mapping methods, including comparative, physical, and genetic-linkage mapping. However, physical, and genetic-linkage mapping are more common.

5. What does genome mapping tell us?

  • According to the Human Genome Project, there are estimated to be over 20,500 human genes.
  • Genome refers to an organism's complete set of DNA, which includes all its genes, and mapping these genes simply means finding out the location of these genes in a chromosome.
  • In humans, each cell consists of 23 pairs of chromosomes for a total of 46 chromosomes, which means that for 23 pairs of chromosomes in each cell, there are roughly 20,500 genes located on them.
  • Some of the genes are lined up in a row on each chromosome, while others are lined up quite close to one another and this arrangement might affect the way they are inherited.
  • For Example, if the genes are placed sufficiently close together, there is a probability that they get inherited as a pair.
  • Genome mapping, therefore, essentially means figuring out the location of a specific gene on a particular region of the chromosome and also determining the location of relative distances between other genes on that chromosome.
  • Significantly, genome mapping enables scientists to gather evidence if a disease transmitted from the parent to the child is linked to one or more genes.
  • Furthermore, mapping also helps in determining the particular chromosome which contains that gene and the location of that gene in the chromosome.
  • According to the National Human Genome Research Institute (NHGRI), genome maps have been used to find out genes that are responsible for relatively rare, single-gene inherited disorders such as cystic fibrosis and Duchenne muscular dystrophy.
  • Genetic maps may also point out scientists to the genes that play a role in more common disorders and diseases such as asthma, cancer, and heart disease among others.

6. Why it is more important?

  • A complete human genome makes it easier to study genetic variation between individuals or between populations.
  • A genome refers to all of the genetic material in an organism, and the human genome is mostly the same in all people, but a very small part of the DNA does vary between one individual and another.
  • By constructing a complete human genome, scientists can use it for reference while studying the genome of various individuals, which would help them understand which variations, if any, might be responsible for the disease.

7. What was missing?

  • The genetic sequence made available in 2003 from the Human Genome Project, an international collaboration between 1990 and 2003, contained information from a region of the human genome known as the euchromatin.
  • Here, the chromosome is rich in genes, and the DNA encodes for protein. The 8% that was left out was in the area called heterochromatin. This is a smaller portion of the genome and does not produce protein. 
  • There were at least two key reasons why heterochromatin was given lower priority. This part of the genome was thought to be “junk DNA” because it had no clear function.
  • Besides, the euchromatin contained more genes that were simpler to sequence with the tools available at the time.
  • Now, the fully sequenced genome is the result of the efforts of a global collaboration called the Telomere-2- Telomere (T2T) project.
  • The invention of new methods of DNA sequencing and computational analysis helped complete the reading of the remaining 8% of the genome. 

8. What is in the 8%?

  • The new reference genome, called T2TCHM13, includes highly repetitive DNA sequences found in and around the telomeres (structures at the ends of chromosomes) and the centromeres (at the middle section of each chromosome).
  • The new sequence also reveals long stretches of DNA that are duplicated in the genome and are known to play important roles in evolution and disease.
  • The fact that the sequences are repetitive is enlightening. The findings have revealed a large number of genetic variations, and these variations appear in large part within these repeated sequences.
  • A significant amount of human genetic material turns out to be long, repetitive sections that occur over and over.
  • Although every human has some repeats, not everyone has the same number of them. And the difference in the number of repeats is where most of the human genetic variation is found,” the University of Connecticut said in a press release.
  • Many of the newly revealed regions have important functions in the genome even if they do not include active genes. 
For Prelims: Genome mapping, Genome Sequencing, Human Genome Project (HGP), Indian Institute of Science (IISc), DNA, National Human Genome Research Institute (NHGRI), Telomere-2- Telomere (T2T) project, T2TCHM13.
For Mains: 1. What is India’s genome mapping project? Discuss its importance and potential benefits. (250 Words)

Previous year Question

1. With reference to agriculture in India, how can the technique of 'genome sequencing', often seen in the news, be used in the immediate future? (UPSC 2017)
1. Genome sequencing can be used to identify genetic markers for disease resistance and drought tolerance in various crop plants.
2. This technique helps in reducing the time required to develop new varieties of crop plants.
3. It can be used to decipher the host-pathogen relationships in crops.
Select the correct answer using the code given below:
A. 1 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
Answer: D
 
 
Source: The Indian Express
 

INDIA - CHINA BORDER DISPUTE

 
 
1. Context
 
 Marking a major diplomatic breakthrough after the disengagement process between India and China was completed last November, New Delhi and Beijing decided on a slew of measures to improve bilateral exchanges: resuming Kailash Mansarovar Yatra in the summer this year; restoring direct flights between the two capitals; issuing visas for journalists and think tanks, and working towards sharing trans-border river data, an official statement from the Ministry of External Affairs
 
2. Standoff between India and China
 
The standoff between India and China, particularly along the Line of Actual Control (LAC), has been a recurring issue rooted in historical disputes, strategic rivalries, and geopolitical ambitions.
 
Here is an analysis of the situation:
 

Border Dispute:

  • The India-China border is divided into three sectors:
    • Western Sector: Aksai Chin, claimed by India but controlled by China.
    • Middle Sector: Less contentious, but areas like Barahoti in Uttarakhand witness minor disputes.
    • Eastern Sector: Arunachal Pradesh, claimed by China as part of South Tibet.
  • The Sino-Indian War of 1962 remains a significant point of contention, with unresolved border claims.

Recent Standoffs

  • Doklam (2017):

    • A 73-day standoff occurred at the tri-junction of India, China, and Bhutan.
    • Triggered by Chinese road construction near Bhutanese territory, viewed as a threat to India's strategic Siliguri Corridor (Chicken’s Neck).
  • Galwan Valley (2020):

    • Marked by the first casualties in 45 years; 20 Indian soldiers and an unknown number of Chinese troops died.
    • Followed by a series of disengagement talks.
  • Eastern Ladakh (2020-present):

    • Ongoing disputes in areas like Pangong Tso Lake, Depsang Plains, and Hot Springs.
    • Despite disengagement in some areas, tensions persist.
 
3. Line of Actual Control (LAC)
 

The Line of Actual Control is a 4,057-kilometer-long (2,520 mile) disputed border line that separates Indian-controlled territory from Chinese-controlled territory in the Himalayan region. It runs through the disputed border regions of Ladakh, Aksai Chin, and other areas along the India-China border.

Key characteristics of the LAC include:

  • Undefined Demarcation: Unlike most international borders, the LAC is not precisely demarcated or delineated. It is essentially a loose line of perception where both Indian and Chinese troops are positioned.
  • Historical Context: The LAC emerged after the Sino-Indian War of 1962, which resulted in a ceasefire but did not resolve the underlying territorial disputes.
  • Disputed Sections: There are multiple areas along the LAC where both countries have different perceptions of where the actual line should be, leading to occasional tensions and military standoffs.
  • Strategic Importance: The region is geographically challenging, with high-altitude terrain including mountain passes, glaciers, and rugged landscapes.
  • Periodic Tensions: In recent years, particularly in 2020, there have been significant military confrontations between Indian and Chinese troops, most notably in the Galwan Valley region of Ladakh.

The LAC is divided into three sectors:

  • Western Sector (Ladakh)
  • Middle Sector (Uttarakhand, Himachal Pradesh)
  • Eastern Sector (Arunachal Pradesh)
 
4. India-China Relations during the Nehruvian Era
 
The India-China relationship during the Nehruvian era (1947–1964) was characterized by idealism, cooperation, and eventual conflict. It began with mutual admiration and solidarity as post-colonial nations but deteriorated into distrust and confrontation, culminating in the Sino-Indian War of 1962
 
Key Phases India China relations during Nehruvian Era
 

Early Friendship (1947–1954)

  • Common Goals and Anti-Colonial Sentiments:

    • India and China, as newly independent nations, sought to rebuild their societies and oppose colonialism and imperialism.
    • Prime Minister Jawaharlal Nehru admired China’s cultural legacy and revolutionary transformation under the Communist regime led by Mao Zedong.
  • Support for China on the Global Stage:

    • India was one of the first non-communist nations to recognize the People’s Republic of China (PRC) in 1949.
    • Nehru supported China's entry into the United Nations, arguing that the PRC represented the Chinese people rather than Taiwan (Republic of China).
  • Signing of the Panchsheel Agreement (1954):

    • India and China signed the Panchsheel Agreement, based on five principles of peaceful coexistence:
      1. Mutual respect for sovereignty and territorial integrity.
      2. Non-aggression.
      3. Non-interference in each other's internal affairs.
      4. Equality and mutual benefit.
      5. Peaceful coexistence.
    • The slogan "Hindi-Chini Bhai-Bhai" symbolized the optimism in bilateral ties

Emerging Tensions (1954–1959)

  • The Tibetan Question:

    • China's annexation of Tibet (1950–51) and its suppression of Tibetan uprisings created friction.
    • India’s grant of asylum to the 14th Dalai Lama in 1959 after the failed Tibetan rebellion was viewed as interference by China.
  • Border Disputes:

    • Despite the Panchsheel Agreement, India and China had unresolved territorial disputes:
      • Aksai Chin (Western Sector): Controlled by China, claimed by India.
      • Arunachal Pradesh (Eastern Sector): Claimed by China as South Tibet.
    • Discovery of China's construction of a road in Aksai Chin (1957–58) intensified tensions

Deterioration and War (1959–1962)

  • Border Incursions and Skirmishes:

    • China’s aggressive patrols and incursions along the Line of Actual Control (LAC) exacerbated hostilities.
    • Nehru’s "Forward Policy" (establishing advanced Indian outposts along the disputed border) was seen as provocative by China.
  • Sino-Indian War (October–November 1962):

    • China's invasion of Aksai Chin and parts of Arunachal Pradesh marked a turning point.
    • The war exposed India's military vulnerabilities, resulting in territorial losses in Aksai Chin.
    • China declared a unilateral ceasefire and withdrew from Arunachal Pradesh but retained control over Aksai Chin.
5.‘De-induction’ ‘Disengagement’ and ‘De-escalation
 
The terms ‘De-induction’, ‘Disengagement’, and ‘De-escalation’ are often used in the context of military and diplomatic operations, particularly in situations of conflict or standoff. They are critical stages in reducing tensions and maintaining peace, especially in border conflicts like those between India and China along the Line of Actual Control (LAC).
 

Differences Between the Terms

Term Scope Focus Finality
De-induction Broader withdrawal Long-term stability Final withdrawal of troops
Disengagement Specific sites/areas Preventing skirmishes Temporary or site-specific
De-escalation Entire conflict zone Reducing overall tensions Long-term trust-building
 
 
 
For Prelims: Current events of national and international importance.
 
For Mains: General Studies II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
 
Previous Year Questions
 
1.“Belt and Road Initiative” is sometimes mentioned in the news in the context of the affairs of : (UPSC CSE 2016)
(a) African Union
(b) Brazil
(c) European Union
(d) China
 
Answer (d)
 

The Belt and Road Initiative (BRI) is a global development strategy launched by China in 2013 under President Xi Jinping. It aims to enhance connectivity and cooperation among countries primarily in Asia, Africa, and Europe through infrastructure projects, investments, and trade networks. The BRI includes two main components:

  1. Silk Road Economic Belt: Land-based connectivity linking China to Europe through Central Asia.
  2. 21st Century Maritime Silk Road: Sea-based routes connecting China to Southeast Asia, South Asia, Africa, and beyond.

BRI is often in the news due to its economic, geopolitical, and strategic implications for participating countries and its criticism for creating debt traps

Mains

1.‘China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’, In the light of this statement, discuss its impact on India as her neighbour. (UPSC CSE GS2, 2017)

2.With respect to the South China sea, maritime territorial disputes and rising tension affirm the need for safeguarding maritime security to ensure freedom of navigation and over flight throughout the region. In this context, discuss the bilateral issues between India and China. (UPSC CSE GS2, 2014)

Source: Indianexpress
 

CURRENT ACCOUNT DEFICIT

1. Context 

Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” These words of Albert Einstein apply not just to investments but to economic growth as well.

2. What is a Current Account Deficit (CAD)?

  • The Current Account Deficit (CAD) refers to a situation where a country's total imports of goods, services, investment incomes, and unilateral transfers exceed its total exports. It represents a deficit or negative balance in the country's current account, which is a component of its balance of payments.
  • CAD reflects a nation's dependence on foreign sources to finance its consumption and investment. A persistent deficit in the current account might indicate that a country is spending more on foreign goods and services than it is earning, leading to increased borrowing from other countries to cover the shortfall.
  • This deficit is not necessarily negative on its own, as it can be financed by foreign investments or borrowing. However, if it becomes unsustainable or grows excessively large, it could pose risks to the country's economic stability, currency value, and overall financial health. Governments often monitor and aim to manage their current account deficits to maintain a healthy balance in their economy.

3. The significance of CAD

  • When the value of the goods and services that a country imports exceed the value of the products it exports, it is called the current account deficit.
  • CAD and the fiscal deficit together make up the twin deficits the enemies of the stock market and investors.
  • If the current account of the country's trade and transactions with other countries show a surplus, that indicates money is flowing into the country, boosting the foreign exchange reserves and the value of the rupee against the dollar.
  • These are factors that will have ramifications on the economy and the stock markets as well as on returns on investments by people.

4. RBI on CAD

  • According to the RBI, the CAD which was at $36.4 billion for the quarter ending September 2022, is expected to moderate in the second half of 2022-23 and remain eminently manageable and within the parameters of viability.
  • CAD for the first half of 2022-23 stood at 3.3. per cent of the GDP.
  • The situation has shown improvement in Q3: 2022-23 as imports moderated in the wake of lower commodity prices, resulting in the narrowing of the merchandise trade deficit.

5. Narrowed Trade deficit 

  • January trade deficit narrowed to $17.7 billion, led by a sharp fall in imports, while exports fell by a smaller amount.
  •  The sharp drop in imports was due to non-oil imports falling, mainly due to a price impact (softening in coal prices from mid-December), likely softening in domestic demand post the festival season (Such as lower imports of transport equipment) and the seasonal impact of the Chinese New Year holidays.
  • On the other hand, after the Rs 26, 000 crore sell-off by foreign portfolio investors in January, FPI outflows have come down to Rs 4, 400 crores in February so far.
  • Workers' remittances went up to $ 30 billion in the April-September 2022 period from $ 25. 48 billion in the same period a year ago.
  • At the same time, gold imports fell to $20 billion from $ 23.9 billion a year ago.

6. Improvement of Capital flow

  • While there is a perception in the markets that capital flows could come under some pressure with China's reopening and any deviations in monetary policy expectations, inflows are expected to increase the economy on the whole as foreign investors are unlikely to keep away from India, which is expected to witness one of the highest growth rates among large economies.
  • At a time when the economies of many developed markets are expected to take a hit, the RBI has projected the GDP growth for the next fiscal (FY2024) at 6.4 per cent and the Union Budget has indicated a capital expenditure of Rs 10 lakh crore (over $120 billion).
  • Moreover, with the rise in interest rates in India after the RBI hiked the repo rate by 250 basis points to 6.50 per cent, non-resident Indian deposits, remittances and FPI investment in debt are expected to rise further.
  • NRI deposits had increased by $3.62 billion to $ 134.49 billion in the April-November period of 2022.
  • Capital flow into India came under pressure in 2022 following the sharp rise in interest rates in the US.
  • While FPIs pulled out Rs 121, 439 crores in 2022, even in the first six weeks of 2023, the FPI flow has been negative and the equity markets have witnessed a net outflow of Rs 32, 887 crores till February 16.
  • While the flow of capital will depend upon the interest rate movement and currency movements vis-a-vis the US dollar, there is optimism among global investors about India.

7. Moderate CAD impact on Market

  • While rising CAD raises concerns among investors as it hurts the currency and thereby the inflow of funds into the markets a notable decline in CAD in January has improved market sentiments.
  • The benchmark Sensex at BSE rose 407 points intraday on Thursday before closing at 61, 319 with a gain of 44 points or 0.07 per cent.
  • CAD is very important for the currency and the value of an economy hinges a lot on the value of its currency thereby, it also supports the equity markets by keeping the fund flow intact.
  • While the numbers for January have come good, experts say this needs to be sustained.

For Prelims & Mains

For Prelims: Current Account Deficit, RBI, Union Budget, GDP, Capital flow, 
For Mains:
1. What is Current Account Deficit? Discuss its significance and impact on the Indian market (250 Words)
 
Previous Year Questions
 

1.Economic growth in country X will necessarily have to occur if (UPSC CSE 2013)

(a) there is technical progress in the world economy

(b) there is population growth in X

(c) there is capital formation in X

(d) the volume of trade grows in the world economy

Answer (c)

Economic growth in country X is not guaranteed by factors such as technical progress in the world economy, population growth, or global trade expansion alone. However, capital formation—which includes investments in physical assets like infrastructure, machinery, and technology—is a direct driver of economic growth.

  • Capital formation increases the productive capacity of an economy by enabling businesses to expand, produce more goods and services, and generate employment.
  • While technical progress (option a) can contribute to growth, it must be adopted and utilized within country X.
  • Population growth (option b) alone does not ensure economic growth unless accompanied by job creation and productivity gains.
  • Increase in world trade volume (option d) may benefit country X but does not necessarily lead to its economic growth unless it actively participates in trade and enhances its competitiveness.

 


Source: The Indian Express

UNIVERSAL BASIC INCOME

 

1. Context

The debate about instituting a legally binding Minimum Support Price (MSP) for crops is both narrow and counterproductive. While it aims to address farmers’ challenges, it overlooks complexities that can exacerbate rural poverty and destabilise agricultural markets.

2. Universal Basic Income (UBI)

  • Universal Basic Income (UBI) is a social welfare program that aims to provide all citizens of a country with a regular and unconditional cash transfer from the government.
  • The concept of UBI has gained traction in recent years as a potential solution to address economic inequality, poverty, and unemployment in society.
  • Under this system, every individual, regardless of income, employment status, or wealth, would receive a fixed amount of money regularly.
  • Under a UBI program, all citizens, including children and the elderly, receive a fixed amount of money regularly, usually every month.
  • The payment is unconditional, meaning that individuals are not required to meet any specific criteria or work requirements to receive the income.
  • The amount of the UBI payment can vary depending on the country's economic conditions and the objectives of the program.

3. Significance of Universal Basic Income:

  • Poverty Reduction: One of the primary goals of UBI is to alleviate poverty by providing a basic level of financial security to all citizens. It ensures that every individual has access to a minimum standard of living, reducing the risk of extreme poverty and improving overall well-being.
  • Economic Stimulus: UBI can serve as an economic stimulus by putting more money directly into the hands of consumers. Increased consumer spending can lead to higher demand for goods and services, potentially boosting economic growth.
  • Job Displacement and Automation: With the rise of automation and advancements in technology, UBI has been proposed as a way to address potential job losses. By providing a regular income, individuals who lose their jobs due to automation can have a safety net while they seek new opportunities or reskill themselves.
  • Social Equality and Human Dignity: UBI promotes social equality by providing every citizen with the same basic income, regardless of their socio-economic background. It recognizes the inherent dignity of individuals and their right to a decent standard of living.
  • Streamlining Social Welfare Programs: UBI has the potential to simplify the existing complex welfare systems, reducing bureaucracy and administrative costs. By consolidating various means-tested programs, UBI can make social support more accessible and efficient.

4. Criticisms and Challenges of Universal Basic Income:

  • Cost and Funding: One of the main challenges of implementing UBI is its cost. Providing a regular income to every citizen requires significant financial resources, and funding such a program without negatively impacting the economy or burdening taxpayers is a major concern.
  • Inflationary Pressures: Critics argue that introducing UBI might lead to inflation, as increased consumer spending could drive up prices, reducing the purchasing power of the UBI payment.
  • Work Incentives: Some opponents of UBI fear that providing unconditional income might disincentivize people from working or seeking employment, potentially leading to a decline in labor force participation.
  • Targeting and Equity: Critics argue that UBI might not effectively target those who are most in need of financial assistance, as it provides the same amount to every citizen, including those who might not require additional support.
  • UBI Pilots and Experiments: Several countries and regions have conducted pilot projects and experiments to test the feasibility and impact of UBI. These experiments aim to gather data on the potential benefits and drawbacks of implementing such a program on a larger scale.

5. India’s Pilot Project, Madhya Pradesh

  • In 2011, SEWA, funded by UNICEF, conducted a pilot study of Universal Basic Income in 8 villages of Madhya Pradesh for 18 months. 
  • Most villagers did not prefer subsidies (covering, Rice, wheat, kerosene, and sugar) as a result of the basic income experience. They Choose each transfer over subsidies.
  • Many people used the money to improve their housing infrastructure by building roofs and walls, toilets, etc.
  • This meant a reduced number of diseases emanating from dirty surroundings, which indirectly reduces their expenditure on fighting such diseases. It was also reported that nutrition levels improved, particularly among the Scheduled Castes (SCs) and the Scheduled Tribes (STs).
For Prelims: Universal Basic Income(UBI), United Nations International Children's Emergency Fund (UNICEF), Sikkim Democratic Front (SDF), and Self-employed Women Associations (SEWA).
For Mains: 1. Discuss the concept of Universal Basic Income (UBI) as a potential solution to address economic inequality and poverty. Evaluate its advantages and disadvantages in the context of a developing economy like India.(250 Words)
 

Previous year Questions

1. A recent radical idea to overcome the problem of poor targeting and misallocation of social welfare schemes is that of (APPSC Group 1 2017)
A. Universal Basic Income
B. Direct Beneficiary Transfer
C. Direct allocation of funds to Local Bodies
D. Privatization of all subsidy schemes
Answer: A
Source: The Indian Express
 
 

MINIMUM SUPPORT PRICE

 

1. Context

The debate about instituting a legally binding Minimum Support Price (MSP) for crops is both narrow and counterproductive. While it aims to address farmers’ challenges, it overlooks complexities that can exacerbate rural poverty and destabilise agricultural markets.

2. What is Minimum Support Price (MSP)?

  • MSP is the minimum price a farmer must be paid 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.
  • 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 nigerseed) and
  • 4 commercial crops (sugarcane, cotton, copra, and raw jute).

3. How MSP is Cauclated?

  • 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 labor, leased-in land, fuel, irrigation, etc.
  • A2+FL includes A2 plus an imputed value of unpaid family labor.
  • 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 MSP 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. Why has the committee been set up?

  • It has been constituted by the Ministry of Agriculture and Farmers Welfare as a follow-up to an announcement by the Prime Minister when he declared the government’s intention to withdraw the three farm laws.
  • The protesting farm unions had demanded a legal guarantee on MSP based on the Swaminathan Commission’s ‘C2+50% formula’ (C2 is a type of cost incurred by farmers;). This was in addition to their demand for repeal of the three farm laws.

8. Committee on MSP, Natural Farming and Crop Diversification

 On Minimum Support Price (MSP)
  • To suggest measures to make MSP available to farmers by making the systems more effective and transparent, 
  • Give more autonomy to Commission for Agricultural Costs and Prices (CACP).

On Natural Farming: To make suggestions for programs and schemes for value chain development, protocol validation, and research for future needs and support for area expansion under the Indian Natural Farming System.

On Crop diversification:

To provide suggestions related to crop diversification including 

  • Mapping of existing cropping patterns of agro-ecological zones of producer and consumer states,
  • Strategy for diversification policy to change the cropping pattern according to the changing needs of the country and 
  •  A system to ensure remunerative prices for the sale of new crops.

9. Why have the protesting farm unions opposed this committee?

  • Firstly, this committee includes members who supported the now-repeated farm laws.
  • Secondly, the terms and references of the committee do not mention the legal guarantee to MSP. Instead, it mentions making MSP more effective and transparent.

10. 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 reforms 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 meager income of the small farmers and driving them into debt.
  • Lack of Mechanism: There is no mechanism that 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 (MSP), World Trade Organisation (WTO), Commission for Agricultural Costs and Prices (CACP), Cabinet Committee on Economic Affairs, Food Corporation of India (FCI).
For Mains: 1. The Minimum Support Price (MSP) scheme protects farmers from price fluctuations and market imperfections. In light of the given statement, critically analyze the efficacy of the MSP. (250 Words)
 
Previous year Question
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)
 
 Source: The Indian Express
 

ISRAEL-PALESTINE

 
 
1. Context
US President Donald Trump on Saturday told reporters that he would like Egypt and Jordan to “take” Palestinian refugees to “just clean out” the Gaza Strip.  “You’re talking about a million and half people, and we just clean out that whole thing,” he said. Both Egypt and Jordan immediately and firmly opposed the idea. 
Why the Palestinian group Hamas launched an attack on Israel? All to know |  Israel-Palestine conflict News | Al Jazeera
Source: Al Zajeera
 
2. Israel-Palestine Conflict
The Israel-Palestine conflict is a long-standing and deeply rooted dispute over territory and national identity between Israelis and Palestinians. It is one of the most protracted conflicts in the world and has resulted in significant political, social, and humanitarian ramifications
Source: The Hindu
 
The following are the various aspects of the Israel-Palestine Conflict:
 
Historical Background: The conflict can be traced back to the late 19th and early 20th centuries when Jewish immigration to Palestine, then part of the Ottoman Empire, increased due to Zionist aspirations for a Jewish homeland. After World War I, the League of Nations granted Britain a mandate to govern Palestine, leading to increased tensions between Jewish and Arab communities
Partition and the Creation of Israel: In 1947, the United Nations proposed a partition plan to divide Palestine into separate Jewish and Arab states, with Jerusalem as an international city. The plan was accepted by the Jewish leadership but rejected by Arab leaders. In 1948, Israel declared independence, leading to the first Arab-Israeli war
Arab-Israeli Wars and Conflicts: Over the years, there have been several wars and conflicts, including the Suez Crisis (1956), the Six-Day War (1967), and the Yom Kippur War (1973), with Israel often pitted against various Arab states
Occupation and Settlements: After the 1967 Six-Day War, Israel occupied the West Bank, East Jerusalem, Gaza Strip, and Golan Heights. Israeli settlements in these territories have been a major point of contention, as Palestinians view them as an obstacle to the establishment of a Palestinian state.
Palestinian Resistance and Nationalism: Palestinian resistance movements, including the Palestine Liberation Organization (PLO), have played a significant role in seeking Palestinian self-determination and statehood. The PLO was recognized as the representative of the Palestinian people by the United Nations.
Peace Processes: Numerous attempts have been made to negotiate a peaceful resolution to the conflict, with varying degrees of success. The Oslo Accords in the 1990s established the Palestinian Authority and outlined a framework for a two-state solution, but progress has been slow.
Jerusalem: The status of Jerusalem is a particularly contentious issue. Both Israelis and Palestinians claim it as their capital, and its final status has been a major point of contention in peace negotiations.
 
3. Challenges of their Conflict
The conflict has had a profound humanitarian impact on the Palestinian people, including displacement, economic hardships, and restrictions on movement.
The Gaza Strip, in particular, has faced significant challenges, including blockades and conflict-related destruction
The international community, including the United States, has played a role in attempting to mediate and resolve the conflict.
The United Nations and various international organizations have also been involved in efforts to address the humanitarian aspects of the conflict.
 
4. Abrahamic accords
  • The Abraham Accords are a series of agreements aimed at normalizing diplomatic and economic relations between Israel and several Arab states.
  • These accords represent a significant shift in the political landscape of the Middle East and have garnered international attention.
  • The Abraham Accords were first announced in August 2020. They are named after the biblical figure Abraham, who is considered a father figure in Judaism, Christianity, and Islam.
  • Several Arab nations have entered into normalization agreements with Israel as part of the Abraham Accords
  • The countries that had officially normalized relations with Israel under the Abraham Accords included the United Arab Emirates (UAE), Bahrain, Sudan, and Morocco
  • These agreements involve mutual diplomatic recognition between Israel and the participating Arab states.
  • Israel and these countries established formal diplomatic relations, including opening embassies and appointing ambassadors
  • Israel & the UAE signed a normalisation deal in 2020 that came into effect the next year. Also brokered by the US, the “Abrahamic Accords” led to the UAE becoming the third Arab country, after Egypt in 1979 and Jordan in 1994, to agree to formally normalise its relationship with Israel. The two also signed a trade deal in May 2022
  • The Abraham Accords initially included the UAE and Bahrain, and later, Sudan and Morocco.
5. Way forward
The conflict continues to be a subject of global concern and diplomacy, with many advocating for a peaceful and negotiated resolution that addresses the legitimate aspirations and rights of both Israelis and Palestinians.
 
Source: indianexpress
 
 
 

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