Economic Development - 5 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Manipur Invokes RBI’s Riot Provisions

Context

• The Manipur state government has announced that the whole State has been impacted due to the riots and violence which has also affected the economic activities and livelihood of the public.
• In order to provide the much-needed relief, the State government has invoked a rarely used Reserve Bank of India (RBI) provision pertaining to restructuring and rescheduling of loans.
• Such provisions have been mostly invoked in areas affected by natural calamities and not for a law and order situation.

About the Rules

• The Reserve Bank of India (Relief Measures by Banks in Areas Affected by Natural Calamities) Directions, 2018 has been issued to banks in regard to matters relating to relief measures to be provided in areas affected by natural calamity.
• These Directions are in effect from October 2018.
• The RBI provision provides relief to borrowers when economic activity comes to a halt and offers a moratorium on the repayment of loans.
• The provisions of these Directions shall apply to every Scheduled Commercial Bank (including Small Finance Banks (SFBs) and excluding Regional Rural Banks (RRBs)) licensed to operate in India by Reserve Bank of India.

UPU to Assess UPI for Cross-Border Remittances

Context

The Universal Postal Union (UPU) has announced plans to evaluate the integration of the Unified Payment Interface (UPI) with cross-border remittances using the global postal network.

• This evaluation aims to explore the potential of UPI in facilitating secure and efficient international money transfers.

What are the Benefits of Integrating UPI with UPU?

• UPI offers a secure, convenient, and real-time payment experience, making it a promising platform for cross-border remittances.
• Leveraging the global postal network, which has extensive reach and infrastructure, can further expand the reach of UPI-enabled remittances.
• The integration of UPI with postal channels can provide a reliable and accessible remittance solution for individuals, particularly in remote areas where traditional banking services may be limited.
• This initiative aligns with UPU's goal of promoting efficient and inclusive postal services globally.

What is Universal Postal Union (UPU)?

• About:
  • The UPU is a United Nations specialized agency and the postal sector's primary forum for international cooperation.
  • UPU is the second oldest international organization.
• Establishment and Structure:
  • The UPU was established in 1874 through the Treaty of Bern.
  • UPU's headquarters are located in Bern, Switzerland.
  • The organization consists of four bodies: Congress, the Council of Administration (CA), the Postal Operations Council (POC), and the International Bureau (IB).
  • It also oversees the Telematics and Express Mail Service (EMS) cooperatives.
• Membership:
  • Any member country of the United Nations can become a member of the UPU.
  • Non-member countries of the United Nations can join the UPU if approved by at least two-thirds of the member countries.
  • The UPU has now 192 member countries.
    • India joined the UPU in 1876.
• Role and Functions:
  • UPU coordinates postal policies among member nations and the global postal system.
  • The union sets rules for international mail exchanges and makes recommendations to stimulate growth in mail, parcel, and financial services volumes.
  • It aims to improve the quality of service for customers and promote efficiency in international postal operations.

Bhoomi Samman 2023

Context

Recently, the President of India presented the “Bhoomi Samman” 2023 at a function organised by the Union Ministry of Rural Development.

What is “Bhoomi Samman”?

• The “Bhoomi Samman” is a prestigious award scheme launched by the Union Ministry of Rural Development to recognize and incentivize the achievements of states and districts in the implementation of the Digital India Land Records Modernization Programme (DILRMP).
• The award is presented by the President of India to the state secretaries and district collectors along with their teams who have excelled in achieving saturation of the core components of DILRMP, such as:
  • Computerization of land records
  • Digitization of cadastral maps
  • Integration of textual and spatial data
  • Survey/re-survey using modern technology
  • Computerization of registration
  • Interoperability between registration and land records

What are the Advantages of Digitalisation of Land Records?

• Transparency and Accountability: Digitization increases transparency in land transactions, reducing the scope for unethical and illegal activities related to land.
• Disaster Management: Digital records are more resilient to natural calamities like floods and fires, safeguarding essential land-related documents from loss.
• Land Parcel Identification Number: Similar to Aadhaar Card, the Unique Land Parcel Identification Number provided under the Digital India Land Information Management System allows efficient land utilization and enables the formulation and implementation of new welfare schemes.
• Resolution of Land Disputes: Access to land-related information in a free and convenient manner aids in resolving ownership and land-use disputes, reducing the burden on the administration and judiciary.

What are the Challenges Associated with Digitisation of Land Records?

• Fragmented Land Records: India's land records are maintained by multiple authorities at different levels - village, district, and state.
  • The lack of uniformity and integration between these records can create difficulties when attempting to centralize and digitize them.
• Technological Infrastructure and Connectivity: Digitization requires adequate technological infrastructure, including hardware, software, and internet connectivity.
  • In rural areas, where most land is located, the availability of such infrastructure can be limited, hindering the digitization process.
• Data Security and Privacy: Land records contain sensitive personal and property-related information.
  • Ensuring the security and privacy of this data during digitization and beyond is crucial to prevent unauthorized access and misuse.

Way Forward

• Blockchain-based Land Records: Implement a blockchain-based system to store and manage land records.
  • Blockchain's decentralized and immutable nature ensures transparency, reduces the possibility of fraud, and fosters trust in land transactions.
• Drone Surveys and GIS Mapping: Use drones equipped with high-resolution cameras and Lidar technology to conduct accurate surveys of land parcels.
  • Integrate the data with Geographic Information System (GIS) mapping to create a dynamic and real-time representation of land records.
• Standardization and Interoperability: Establish uniform data standards and formats to ensure compatibility and seamless integration of land records across different departments and systems.
  • This will enable efficient data sharing and retrieval.

Tomatoes Price Volatility

Context

Tomato prices have reached sky-high in two months and yet the inflation rate of its prices is negative.

How is tomato produced in India?

• India grows two major crops of tomato annually
  1. Kharif - comes to markets from September
  2. Rabi - hits the market between March and August annually
• Andhra Pradesh, Madhya Pradesh, Karnataka, Odisha, and Gujarat accounts for close to 50% of total production of tomato.
• The production accounts for 90% along with the states Chhattisgarh, West Bengal, Tamil Nadu, Bihar, Maharashtra, Uttar Pradesh, Haryana, and Telangana.
• In the summer, Andhra Pradesh’s Madanapalle region alone accounts for tomato cultivation in the entire country.
• In 2021-22, the tomato production dropped to 20.69MT and 20.62MT in 2022-23.

What is fuelling the price rise?

• There are multiple factors for the drop in overall tomato production this year.
• The two key reasons are extreme weather conditions and low commercial realisation of the crop for farmers in the months before June.
• Weather - The heatwaves and high temperatures in April and May and the delayed monsoon showers in southern India and Maharashtra led to pest attacks in tomato crops.
• Supply crunch - Farmers sold inferior tomatoes at low prices and even some abandoned their crops between last December and April which led to supply crunch.
• Heightening reasons - Tamil Nadu, Gujarat, and Chhattisgarh saw a 20% drop in production, which aggravated tomato supplies in the 2022-23 crop year (July-June).
• The lean production period for tomato (July-August) has compounded the issue.
• Crop shift - Many tomato farmers in the Kolar district of Karnataka shifted to beans owing to the higher prices it fetched last year which reduced sizeable tomato supplies.
• Seasonal price volatility - The data on tomato prices of the last 5 years shows that the rates had risen every year at this time.

Do tomato price volatility impact CPI?

• There are concerns over the high seasonal price volatility of tomatoes and its impact on the overall Consumer Price Index (CPI).
• The contribution of TOP (tomato, onion, potato) to the overall CPI has been quite volatile, even with a low weightage of 2.20.
• In June 2022, at 8.9%, tomato had the largest contribution among 299 commodities in the CPI basket.

Why there is volatility in tomato prices?

• A NABARD study notes that tomato is the most volatile out of all the three TOP (tomato, onion, potato) agri-commodities.
• Reasons for volatility - Tomato is more perishable than onion and potato.
• Supply chain issues in transporting the vegetable from areas where it is grown to regions where it is not grown.
• The cyclical price drop led to a lot of farmers cultivating tomatoes in lesser land area and shifting to other crops.

Why the inflation rate of tomato is negative despite price hike?

• The inflation rate in tomato prices is negative.
• The inflation rate suggests that tomato prices are crashing despite actual soaring in prices.
• The tomato prices have been experiencing ‘deflation’ since November 2022.
• Inflation rate - It is based on the value of an index and is calculated on a year-on-year basis in India.

How can volatility be controlled?

• Produce - Increase tomato yields in India (now at 25 tonnes per hectare (t/ha)) at par with the global average of 37 t/ha.
• Encouraging cultivation in structures called poly houses and greenhouses (like done in European countries) to can control pest attacks.
• Storage and Processing - Since tomato is highly perishable, improved value and supply chains can help with the problem.
• Increasing the processing capacity for tomatoes and building more processing units.
• Farmers’ income - Eliminating middlemen and encouraging Farmer Producers Organisations (FPOs) to sell produce directly to increase farmers’ share.
• Amending rules of Agricultural Produce Market Committees (APMC) to reduce commission and other fees has also been suggested.

Quick Facts

• CPI - Consumer Price Index (CPI) is a comprehensive measure used for estimation of price changes in a basket of goods and services representative of consumption expenditure in an economy.
• Inflation is measured using CPI in India.
• The National Statistical Office (NSO) under Ministry of Statistics and Programme Implementation (MoSPI) releases CPI.

Tomato

• Tomato (Lycopersicon esculentum) is an annual or short lived perennial herb.
• The flowers are off white bearing fruits which are red or yellow in colour and is a self-pollinated crop.
• The plant is a warm season crop that cannot withstand frost and high humidity.

International Symposium on Sustainable Livestock Transformation

Context

Under the Agriculture Working Group (AWG) of G20, the International Symposium on Sustainable Livestock Transformation was inaugurated at National Dairy Development Board, Anand.

What is the Status of Livestock Sector in India?

• About:
  • Livestock provides livelihood to two-third of rural community. Also, the sector contributes to around 4% of country’s GDP.
    • Dairy is the single-largest agri commodity in India. India is ranked 1st in milk production contributing 23% of global milk production.
  • There are about 303.76 million bovines (cattle, buffalo, mithun and yak), 74.26 million sheep, 148.88 million goats, 9.06 million pigs and about 851.81 million poultry as per 20^th Livestock Census in the country.
  • According to Food and Agriculture Organization Corporate Statistical Database (FAOSTAT) production data (2020), India ranks 3^rd in Egg Production and 8^th in meat production in the world.
• Related Constitutional Provisions:
  • Directive Principle of State Policy:
    • Article 48: The State shall work towards organizing agriculture and animal husbandry on modern and scientific lines.
    • It shall take steps to preserve and improve the breeds of cows, calves, and other milch and draught cattle and prohibit their slaughter.
  • Fundamental Duty:
    • Article 51A(g): It is the duty of every citizen to protect and improve the natural environment, including forests, lakes, rivers, and wildlife, and to show compassion for all living creatures.
• Challenges Related to Livestock Sector in India:
  • Resource Scarcity and Feed Shortages: The demand for animal feed, including grains and fodder, surpasses supply, resulting in higher costs for farmers and compromised animal nutrition.
    • This scarcity affects livestock health, productivity, and overall welfare, necessitating innovative solutions for sustainable feed production and distribution.
    • According to the Indian Grassland and Fodder Research Institute (IGFRI), India faces a green fodder shortage of 63.5%, and the shortage of dry fodder is 23.5%.
  • Inadequate Healthcare Infrastructure: Limited access to veterinary services and vaccines poses a threat to disease control, leading to frequent outbreaks that impact livestock productivity and quality of produce e.g., lumpy skin disease.
  • Climate Change and Environmental Pressures: Erratic weather patterns, water scarcity, and rising temperatures impact both feed and water availability, making livestock vulnerable to heat stress and related diseases.
    • A study by the National Dairy Research Institute (NDRI) found that heat stress reduced milk yield by 0.45 kg per cow per day during summer months in India.
  • Quality Breeding and Genetic Improvement: Livestock breeding in India often faces limitations in terms of access to quality breeding stock and genetic improvement programs.
    • According to the Department of Animal Husbandry & Dairying (DAHD), only 30% of the breedable female bovines are covered under artificial insemination services in India.
  • Animal Welfare and Ethical Concerns: Ethical issues related to livestock farming, such as animal cruelty and inhumane practices, have gained increasing attention in recent years.
• Government Initiatives Related to Livestock Sector:
  • National Animal Disease Control Program (NADCP)
  • Animal Husbandry Infrastructure Development Fund (AHIDF)
  • National Livestock Mission
  • Prevention of Cruelty to Animals Act, 1960
    • Animal Welfare Board of India (AWBI) was established in 1962 under Section 4 of the Act.

Way Forward

• Nutritional Innovation for Livestock Feed: Encouraging research and development in alternative and sustainable feed sources.
  • There is a need to invest in technologies for insect-based protein, algae-based supplements, and byproduct utilization to reduce dependency on traditional feed crops.
• Livestock Waste-to-Energy Projects: Promote the establishment of bioenergy plants that utilize livestock waste for biogas production.
  • This not only addresses waste management but also generates renewable energy for rural communities.
    • The byproducts of biogas production can be used as organic fertilizers, closing the loop on resource utilization and enhancing sustainability.
  • Also, promoting circular economies by converting agricultural waste into nutritious animal feed which can be both eco-friendly and cost-effective.
• Genetic Surveillance: Genetic Surveillance especially of viruses needs to be strengthened for livestock in India.
  • As the lumpy skin disease outbreak continues to spread rapidly with high mortality, there is a need to scrutinise its genetic structure and analyse its behaviour to tackle this issue effectively.
• Towards One-Health Approach: Recognizing the One Health Approach is crucial, understanding the interconnectedness of people, animals, plants, and the environment.
  • Encouraging interdisciplinary collaborations in research and knowledge sharing can promote health sustainability and effectively address zoonotic diseases.

Credit Guarantee Scheme for Livestock Sector

Context

The Ministry of Fisheries, Animal Husbandry, and Dairying has launched the “Credit Guarantee Scheme” under the Animal Husbandry Infrastructure Development Fund (AHIDF) to support the rural economy by leveraging Micro, Small & Medium Enterprises (MSMEs) in the Livestock sector.

What is Credit Guarantee Fund?

The Credit Guarantee Fund is a financial mechanism that provides risk mitigation for lending institutions, by lending to individuals or businesses, even without sufficient collateral. If the borrower defaults, the fund reimburses the lending institution for the guaranteed portion of the loan.

 The Credit Guarantee Fund Trust, established in March 2021, is India’s first-ever fund trust under the Credit Guarantee Scheme for the agriculture and Animal Husbandry sector. It aims to significantly increase the number of MSMEs benefiting from the AHIDF scheme and strengthen the ecosystem for collateral-free credit from banks.

Features of the Scheme

Under the scheme, the Department of Animal Husbandry & Dairying has established a Credit Guarantee Fund Trust of Rs. 750.00 crores (under NABARD), which provides credit guarantee coverage of up to 25% for credit facilities extended to MSMEs by eligible lending institutions.

Advantages

This initiative aims to improve access to finance for underserved livestock entrepreneurs, especially first-generation and underprivileged individuals who lack collateral security.

About AHIDF

It is a Central Sector Scheme launched by the Ministry of Animal Husbandry, Fisheries, and Dairying. Its aim is to encourage investments in dairy and meat processing infrastructure, as well as animal feed plants.