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UPSC Daily Current Affairs- 15th May 2023 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly PDF Download

GS-I

Palghat Gap: A break in the Western Ghats


UPSC Daily Current Affairs- 15th May 2023 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly

Why in News?

The article discusses the Palghat (Palakkad) Gap, a significant corridor in the Western Ghats of India. It provides information about the geological origin of the gap.

What is Palghat Gap?

  • The Palghat Gap is a 40 km wide corridor in the Western Ghats, known for its steep hills and serving as a gateway to Kerala.
  • It is a crucial passage for roads and railways connecting Coimbatore and Palakkad.
  • The Bharathappuzha River flows through the Palghat Gap.
  • The vegetation in the gap is classified as dry evergreen forest, different from the tropical rainforests of the Western Ghats.
  • The Palghat Gap marks a distinct divide in the flora and fauna of the region.

Geological origin of the Palghat Gap

  • The Palghat Gap is a geological shear zone running from east to west.
  • Shear zones are weak regions in the Earth’s crust, occasionally causing tremors in the Coimbatore region.
  • The formation of the Palghat Gap occurred when the continental shelves shifted after the separation of Australia and Africa from the Gondwana landmass.
  • India and Madagascar were connected until volcanic activity led to their split, with a similar gap called the Ranotsara Gap in Madagascar.

Biogeographic distinctions and ancient history

  • The biogeographic distinctions in species north and south of the Palghat Gap may be attributed to an ancient river or an incursion of the sea in the distant past.
  • Elephant populations on the Nilgiris side of the gap have different mitochondrial DNA from elephants in the Anamalai and Periyar sanctuaries.
  • DNA analysis of the White-bellied Shortwing, an endemic bird species, shows divergence between populations in the Nilgiris and the Anamalai regions.

Biodiversity south of the Palghat Gap

  • The southern region of the Western Ghats, located south of the Palghat Gap, exhibits high species richness and phylogenetic diversity.
  • A recent study reports over 450 tree species, including ancient species like Magnolia champaca, dating back 130 million years.
  • The warm weather and moist air of the southern Western Ghats support a diverse range of life, making it an island refuge during cycles of ice ages and droughts.
  • The southern Western Ghats receive rainfall more evenly throughout the year compared to the northern region.

Source: The Hindu

How are Nutrients in Millets Affected by Processing and Polishing?


UPSC Daily Current Affairs- 15th May 2023 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly

Why in News?

Millets – Millets, demand, nutritional value, impact of polishing on nutrition, steps taken by govt to promote millets

 About Millets:

  • Millets are a rich source of Protein, Fibre, Minerals, Iron, Calcium and have a low glycaemic index.
  • Millets are mostly grown during the Kharif season (June-September).
  • Major Millets crops grown in India and their percentage share of production are Pearl Millet (Bajra) – 61% share, Jowar (Sorghum) – 27%, and Finger Millet (Mandua/Ragi) – 10%.
  • According to the Agricultural and Processed Foods Development Authority, India is the world’s largest producer of millets.
  • In 2021-2022, the country accounted for 40.51% of the world’s pearl millet production and 8.09% of sorghum.

Why Millets are Sough After?

  • Millets have two broad features that render them attractive –
    • Nutritional value being comparable to that of the major extant food crops (and better on some counts)
    • Ability of millet crops to reliably withstand harsh, resource-poor conditions.
  • They are drought-tolerant, adapted to growing in warm weather, and require low moisture (axiomatically, they are particularly efficient consumers of water) and loamy soil.
  • According to the M.S. Swaminathan Research Foundation, millets also “thrive on marginal land in upland and hilly regions”.

Nutritional Value of Millets:

  • The nutritional content of millets includes carbohydrates, proteins, fibre, amino acids, and various minerals.
  • Different millet varieties have different nutrient profiles.
    • For example, pearl millet – one of the oldest cultivated varieties – has been found to have higher protein content than rice, maize, and sorghum, while being comparable to that of barley.
  • Overall, millets have been found to be important sources of micronutrients and phytochemicals.
  • This is why, according to various experts, millets deserve to be included in people’s diets.

How does Processing Affect the Nutrients?

  • Processing and preparing millets for consumption can affect nutrients in three ways –
    • Enhance them, Suppress/remove them, and Ignore them.
  • Husk, an outer layer of the millets, is removed from the grains because it is composed of cellulosic matter that the human body can’t digest.
  • But at least one study has found that when this is done to pearl millets, their phytic acid and polyphenol contents drop.
  • The second common step is to decorticate the grain, i.e. remove any other outer covering and expose the seed.
  • While studies have found that mechanical and hand-worked decortication didn’t have significantly different effects on the grain, they both removed crude and dietary fibre.
  • The typical next steps are milling, to grind the grains into flour, and sieving to remove large ‘impurities’, including bran.
  • One 2012 study of finger millet found that while sieving made the flour more digestible and its nutrients more accessible to the body but reduced nutrient content due to the loss of bran.

What is the Effect of Polishing?

  • The longer the grains were milled, the more protein, fat, and fibre contents the process removed.
  • A different 2012 study found that barnyard millet could be polished with a rice polisher for up to three minutes without significant nutrient loss.
  • Polishing is the process whereby brown rice, for example, is changed to white rice by rubbing off the bran and the germ.

Steps taken by the Govt to Popularise Millets and other Cereals:

  • The Union government had proposed to the United Nations for declaring 2023 as International Year of Millets.
  • The proposal of India was supported by 72 countries and United Nations General Assembly (UNGA) declared 2023 as International Year of Millets in March, 2021.
  • Over 500 Startups are working in theMillet value chain with the Indian Institute on Millet Research.
    • More than Rs.6.2 crores has been disbursed to over 66 Startups while about 25 Startups have been approved for further funding.

Source: The Hindu

GS-II

Govt pushes ONDC as e-com’s UPI equivalent


UPSC Daily Current Affairs- 15th May 2023 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly

Why in News?

Recently, Centre directed the e-commerce companies and food delivery players to join the government-backed Open Network for Digital Commerce (ONDC).

  • Some players like Flipkart and Zomato are trying to set up step down subsidiaries to join this network.
  • However, some other big ones such as Amazon and Swiggy have chosen to stay away so far.

What is Open Network for Digital Commerce (ONDC)?

  • About
    • ONDC is an initiative aimed at promoting open networks for all aspects of exchange of goods and services over digital or electronic networks.
    • It is to be based on open-sourced methodology, using open specifications and open network protocols independent of any specific platform.
      • Making a software or a process open-source means that the code or the steps of that process is made available freely for others to use, redistribute and modify.
    • It is developed as a counter to the current duopoly in the Indian e-commerce market which is largely dictated by Amazon and Walmart-owned Flipkart.
    • ONDC is not an application, an intermediary, or software, but a set of specifications designed to foster open interchange and connections between shoppers, technology platforms, and retailers.
    • It should be noted that ONDC is not:
      • A government regulatory body
      • A super aggregator application or a platform
      • A central intermediary
      • A medium to help digitise business.
  • Promoters
    • It is a non-profit company established by the Department for Promotion of Industry and Internal Trade (DPIIT), Union Ministry of Commerce and Industry.
    • It was incorporated in 2021 with initial investment from Quality Council of India (QCI) and Protean eGov Technologies Limited (formerly NSDL e-Governance Infrastructure Limited).

What Led to the Creation of ONDC?

  • Technological self-reliance
  • Demand for level playing field mainly from small retailers
  • Lower the barrier of entry and discovery online
  • Adoption of open digital ecosystem across key sectors
  • Fixing the non-competitive behaviour of big e-commerce firms like Amazon and Flipkart
  • To capture the fast growing domestic retail market

How will the ONDC Work?

  • The ONDC platform lies in the middle of the interfaces hosting the buyers and the sellers.
  • Basically, ONDC ensures transition from platform-centric model to network-centric model.

What are the potential benefits of ONDC?

The strategy paper touts the following benefits of ONDC:

  • For sellers:
    • Access to more buyers
    • Better discoverability of products and cost
    • Autonomy on terms because of multiple choices for being digitally visible
    • Lower cost of doing business
    • More options for value chain services like logistics and fulfilment
  • For buyers:
    • Access to more sellers and therefore more choices
    • Better service and faster deliveries due to access to hyper-local retailers
    • Better customer experience
  • For technology platforms:
    • New opportunities for start-ups to drive innovation in various parts of the network
    • Access to the growth of digital commerce through buyer and seller side applications
    • Reduced time-to-market and time-to-scale
    • Focus on niche aspects leaving other partners to focus on different aspects

Challenges faced by ONDC

  • Awareness and information overload
    • A massive awareness campaign has to be organized because most small business owners lack the technical expertise to get involved in this program.
    • Another challenge is the sheer information overload that customers has to shift through.
  • ONDC and UPI
    • ONDC is a far more complex system than UPI.
      • The UPI loop closes the moment a transaction is completed.
      • But in ONDC, the loop is much longer – you buy something, it has to be delivered offline.
      • There needs to be a mechanism for returns, grievance redressal.
    • Unlike UPI, which the government has consistently funded, ONDC stakeholders are banks and financial institutions.
    • Hence, ONDC is unlikely to receive similar financial or policy support.
  • Viability
    • So far big players are reluctant to join the network.
    • Hence, it raises the question whether ONDC can be a success without the participation of the very entities whose hold over the e-commerce market it is vying to challenge.
  • Government’s own statements on how it wants to roll out ONDC
    • Initially, the Commerce Ministry said that ONDC will help small retailers from the onslaught of big tech companies.
    • Later, everyone – big and small, global or national – was invited to join the ONDC.
    • This has raised many questions about ONDC’s strategy. This is because, as long as big players compete with the smaller ones on the same platform, they are most likely to come out on top.

Source: The Hindu 

Supreme Court guideline for granting Bail


UPSC Daily Current Affairs- 15th May 2023 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly

Why in News?

The Supreme Court emphasized that orders in bail cases should adhere to the constitutional principle of personal liberty.

Supreme Court on Bail

  • Short debates: Prolonged debates on bail may prejudice the accused in their case.
  • Upholding liberty: Delays in pronouncing bail decisions impinge on the personal liberty of the undertrial.
  • No extensive discussions and elaborations: The Supreme Court highlights the significance of brevity (state of being brief, concise) in bail orders.
  • No early delving into case details: Long orders may unnecessarily delve into the details of the case, which is not appropriate at the bail stage.
  • Ensuring fairness and impartiality: Such brevity ensures that the case is not unduly influenced or prejudiced during the bail proceedings.
  • Promptness in pronouncing bail decisions: The Court emphasized the need for prompt pronouncement of bail decisions. Every day of waiting affects the personal liberty of the undertrial.

What is Bail?

  • Bail is the conditional release of a defendant with the promise to appear in court when required.
  • The term also means the security that is deposited in order to secure the release of the accused.

Types of Bail in India

  • Depending upon the sage of the criminal matter, there are commonly three types of bail in India:
  1. Regular bail: Regular bail is generally granted to a person who has been arrested or is in police custody. A bail application can be filed for the regular bail under section 437 and 439 of CrPC.
  2. Interim bail: This type of bail is granted for a short period of time and it is granted before the hearing for the grant of regular bail or anticipatory bail.
  3. Anticipatory bail: Anticipatory bail is granted under section 438 of CrPC either by session court or High Court. An application for the grant of anticipatory bail can be filed by the person who discerns that he may be arrested by the police for a non-bailable offense.

Conditions for Grant of Bail in Bailable Offences

  • Section 436 of the Code of Criminal Procedure, 1973, lays down that a person accused of a bailable offence under IPC can be granted bail if:
  1. There are sufficient reasons to believe that the accused has not committed the offence.
  2. There is sufficient reason to conduct a further inquiry in the matter.
  3. The person is not accused of any offence punishable with death, life imprisonment or imprisonment up to 10 years.

Conditions for Grant of Bail in Non-Bailable Offences

  • Section 437 of Code of Criminal Procedure, 1973 lays down that the accused does not have the right to apply for bail in non-bailable offences.
  • It is discretion of the court to grant bail in case of non-bailable offences if:
  1. The accused is a woman or a child, bail can be granted in a non-bailable offence.
  2. There is a lack of evidence then bail in non-Bailable offenses can be granted.
  3. There is a delay in lodging FIR by the complainant, bail may be granted.
  4. The accused is gravely sick.

Why bail needs reform?

  • Huge pendency of undertrials: Referring to the state of jails in the country, where over two-thirds lodged are undertrials,
  • Indiscriminate arrests: Of this category of prisoners, majority may not even be required to be arrested despite registration of a cognizable offense, being charged with offenses punishable for seven years or less.
  • Disadvantageous for some sections: They are not only poor and illiterate but also would include women. Thus, there is a culture of offense being inherited by many of them.
  • Colonial legacy: Theoretically, the court also linked the idea of indiscriminate arrests to magistrates ignoring the rule of “bail, not jail” to a colonial mindset.

What is the law on bail?

  • The CrPC does not define the word bail but only categories offences under the Indian Penal Code as ‘bailable’ and ‘non-bailable’.
  • The CrPC empowers magistrates to grant bail for bailable offences as a matter of right.
  • This would involve release on furnishing a bail bond, without or without security.

Way forward

  • Bail Law would certainly take care of not only the unwarranted arrests but also the clogging of bail applications before various courts.
  • With restrictive bail conditions and a conservative view on bail, we may forget the meaning of personal liberty, which is the greatest of human freedoms enjoyed in India.

Source: The Hindu

What is NOTA (None of the Above)?


UPSC Daily Current Affairs- 15th May 2023 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly

Why in News?

According to the Election Commission (EC) figures, over 2.6 lakh voters opted for NOTA in the recently held Karnataka assembly polls.

About NOTA (None of the Above):

  • It is a ballot option provided in the elections to the Indian voter.
  • It is the option which enables the voter to officially register a vote of rejection for all candidates who are contesting.
  • If a voter chooses to press NOTA, it indicates that the voter has not chosen to vote for any of the parties.
  • Objective: To enable electors who do not wish to vote for any of the candidates to exercise their right to reject without violation of the secrecy of their decision.
  • When was it first used?
    • NOTA was used for the first time in the 2013 Assembly elections in five states - Chhattisgarh, Mizoram, Rajasthan, Delhi, and Madhya Pradesh - and later in the 2014 General Elections.
    • It was introduced into the electoral process following the 2013 Supreme Court directive in the PUCL versus Union of India case.
  • How does a person cast a NOTA vote?
    • The NOTA option in the Electronic Voting Machines (EVMs) is given at the bottom of the candidates' list.
    • Earlier, in order to cast a negative ballot, a voter had to inform the presiding officer at the polling booth.
    • Now the voter has just to press the NOTA option on the EVM.
  • Does it have any impact on the results?
    • NOTA has no electoral value in the Indian system.
    • Even if the maximum votes are given in favour of NOTA, the candidate with the largest number of votes, which could theoretically even be just one, will still be declared the winner.

Source: Hindustan Times

GS-III

UK sees success in Mitochondrial Replacement Therapy

UPSC Daily Current Affairs- 15th May 2023 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly

Why in news?

The birth of a baby using three persons’ DNA using Mitochondrial Replacement Therapy (MRT) in the UK has generated significant attention and discussion.

  • The baby has three parents, with the mitochondria coming from a donor in addition to the genetic material from the biological parents.
  • This pioneering technology was employed to prevent the baby from inheriting the mother’s mitochondrial disease.

What is Mitochondria?


Description
StructureMembrane-bound organelles with outer and inner membranes
Energy ProductionGenerate ATP through cellular respiration and oxidative phosphorylation
ATP ProductionBreakdown of carbohydrates, fats, and proteins in the inner membrane
DNA and ReplicationPossess their own circular DNA (mtDNA) and can replicate independently
Other FunctionsInvolved in calcium signalling, apoptosis, and synthesis of molecules
InheritanceMaternally inherited during fertilization
Evolutionary OriginArise from a symbiotic relationship with bacteria-like organisms
DisordersMutations or dysfunction can cause mitochondrial diseases

 

  • Certain defects in mitochondria can lead to mitochondrial diseases, impacting the function of energy-hungry tissues in various organs.
  • Mitochondrial diseases have no cure but can be treated, and their incidence is estimated to be one in 5,000 people.
  • In this case, the mother had a mitochondrial disease that she wanted to avoid passing on to her baby, but she did not want to use a donor egg.

What is Mitochondrial Replacement Therapy (MRT)?

  • MRT is a medical technique used to prevent the transmission of certain mitochondrial diseases from a mother to her child.
  • It involves replacing faulty mitochondria in an egg or embryo with healthy mitochondria from a donor.
  • The procedure is typically performed using in vitro fertilization (IVF) techniques.
  • The nucleus, containing the majority of the genetic material, is transferred from the intended parents’ egg or embryo to a donor egg or embryo with healthy mitochondria.
  • The resulting embryo, with nuclear DNA from the intended parents and healthy mitochondria from the donor, is then implanted into the mother’s uterus for gestation.

How does it work?

  • The father’s sperm fertilizes the eggs from the biological mother and a female donor with healthy mitochondria.
  • The genetic material from the donor’s egg is replaced with that of the biological parents, resulting in an egg with the parents’ DNA and the donor’s mitochondria.
  • This modified egg is then implanted into the mother’s uterus and carried to full term, resulting in a baby free from the mother’s mitochondrial disease.

Uses of MRT

  • Prevention of Mitochondrial Diseases: MRT helps prevent the transmission of certain mitochondrial diseases from mothers to their children.
  • Family Planning: It enables individuals or couples with mitochondrial DNA mutations to have genetically related children without the risk of disease inheritance.
  • Improved Health: MRT can significantly improve the overall health and well-being of individuals by avoiding debilitating mitochondrial diseases.
  • Ethical Considerations: It provides an alternative to traditional donor egg options, allowing intended parents to have a child with their own genetic material while avoiding disease transmission.
  • Scientific Advancements: MRT contributes to scientific research and advancements in assisted reproductive technologies, expanding our understanding of mitochondrial biology and potential treatment options for mitochondrial disorders.

Recent advancements in UK

  • The baby primarily carries DNA from its biological parents and a small percentage from the donor whose mitochondria was used during fertilization.

Scientific process

  • Mitochondrial diseases are inherited from the mother, prompting research to find ways to protect infants from inheriting these diseases.
  • The Newcastle Fertility Clinic developed an advanced in vitro fertilization technique known as Mitochondrial Donation Treatment (MDT).
  • The UK government amended the law in 2015 to allow for mitochondrial replacement therapy (MRT) or MDT.
  • The Newcastle Fertility Centre became the first center to obtain a license to perform the procedure, and the first cases were approved in 2018.

Issues with MRT

  • Transfer of Defective Mitochondria: There is a minimal risk of transferring small amounts of defective mitochondria along with healthy ones during the procedure.
  • Long-Term Safety: The long-term safety of MRT is still being studied, and ongoing monitoring is necessary to assess any potential risks or effects.
  • Ethical and Social Concerns: MRT raises ethical and social considerations related to the creation and destruction of embryos, use of donor gametes, and altering the germline.
  • Limited Availability: MRT is a highly regulated procedure, and its availability may be limited to specific countries or cases approved by regulatory bodies.
  • Emotional and Psychological Impact: Undergoing MRT involves emotional implications and decision-making, which can have an impact on individuals and couples involved.

Source: The Hindu

Managing Inflation and Ensuring Food Security in India


UPSC Daily Current Affairs- 15th May 2023 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly

Why in News?

India’s recent decline in consumer price index (CPI) inflation and food price inflation has brought a degree of comfort to the Reserve Bank of India (RBI). However, the challenge lies in managing inflation while aiming for a GDP growth of 6 to 6.5 percent in FY24. Collaborative efforts between the RBI and the Government of India are crucial to achieving this twin objective.

Current Inflation Scenario

  • The CPI inflation for April 2023 stood at 4.7 percent, with food price inflation even lower at 3.84 percent.
  • Maintaining overall inflation below 5 percent and GDP growth above 6 percent throughout the year would be a commendable achievement.

Importance of Managing Food Inflation

  • Managing food inflation is crucial due to its significant weightage in the consumer price index (CPI) basket in India. The food and beverages component holds the highest weightage of 45.86% among G20 countries.
  • Food inflation directly impacts the cost of living for the general population, particularly vulnerable sections that spend a significant portion of their income on food.
  • High food inflation can lead to increased household expenses, lower purchasing power, and a decline in the overall standard of living.
  • Food inflation can also have social and political implications, as rising food prices can cause public unrest and dissatisfaction.
  • Effective management of food inflation contributes to maintaining price stability, ensuring food affordability, and supporting macroeconomic stability.

Implications of Monsoon Season

  • Agricultural Production: The monsoon is crucial for agricultural production as it provides the majority of the water needed for irrigation. A normal or above-normal monsoon season supports adequate water availability, leading to higher crop yields and increased agricultural output. Conversely, a below-normal monsoon can lead to drought-like conditions, affecting crop productivity and agricultural incomes.
  • Food Prices: The monsoon significantly influences food production, particularly for rain-fed crops. Insufficient rainfall can lead to lower agricultural output, resulting in reduced supplies and higher food prices. Inadequate monsoon rains can impact staple crops such as rice, wheat, pulses, and oilseeds, leading to inflationary pressures on food prices.
  • Rural Economy: As agriculture plays a vital role in the rural economy, the monsoon directly impacts rural livelihoods and income levels. A good monsoon season can boost rural incomes, increase agricultural employment opportunities, and stimulate rural consumption. Conversely, a poor monsoon can lead to income losses, lower agricultural wages, and reduced rural demand.
  • Hydroelectric Power Generation: The monsoon contributes to water reservoirs, which are essential for hydroelectric power generation. Adequate rainfall ensures sufficient water levels in reservoirs, supporting electricity generation from hydroelectric plants. Inadequate monsoon rains can result in lower water levels, impacting power generation and potentially leading to electricity shortages.
  • Groundwater Recharge: The monsoon plays a crucial role in replenishing groundwater levels. Adequate rainfall helps recharge aquifers, which are vital sources of water for irrigation, drinking water, and industrial use. Insufficient monsoon rains can lead to depleted groundwater levels, affecting agriculture, water availability, and overall water security.
  • Economic Growth: The performance of the agricultural sector, influenced by the monsoon, has implications for overall economic growth. Agriculture contributes significantly to India’s GDP and employment. A good monsoon season can stimulate rural demand, enhance agricultural productivity, and contribute to higher economic growth. Conversely, a poor monsoon can dampen agricultural output, impacting overall economic performance.
  • Fiscal Impact: The monsoon season also has implications for government finances. Adequate rainfall supports agricultural production and reduces the need for government interventions such as subsidies or price support measures. In contrast, a poor monsoon can strain government resources, necessitating increased spending on irrigation infrastructure, relief measures, or support to affected farmers.

What are the challenges in milk inflation?

  • Supply-side Factors: Milk inflation is influenced by supply-side dynamics. Factors such as adverse weather conditions, including drought or floods, can impact the availability of fodder and water for cattle, leading to reduced milk production. Any disruptions in the supply chain, such as transportation issues or logistical challenges, can also affect the supply of milk and contribute to inflationary pressures.
  • Disease Outbreaks: Disease outbreaks among cattle, such as lumpy skin disease, foot-and-mouth disease, or other health issues, can affect milk production. These outbreaks may result in a decrease in the number of healthy and productive cattle, leading to a decline in milk output and subsequently driving up milk prices.
  • Fodder Prices: The cost of animal feed, such as fodder, plays a significant role in milk production costs. Fluctuations in fodder prices can impact the overall cost of maintaining dairy cattle. If fodder prices increase due to factors like supply-demand imbalances, weather conditions, or changes in agricultural practices, it can contribute to higher milk prices.
  • Input Costs: Various input costs involved in milk production, such as labor, veterinary services, and energy costs, can affect the overall cost structure. Increases in input costs, including wages, veterinary medicines, or energy prices, can exert upward pressure on milk prices.
  • Import Dependence: In some cases, countries may rely on milk imports to meet domestic demand. If the import costs increase due to factors like changes in international prices, trade policies, or exchange rate fluctuations, it can contribute to higher domestic milk prices.
  • Market Structure and Competition: The market structure and competition within the dairy industry can impact milk prices. If the market is concentrated with a limited number of dominant players, it may lead to less competition, allowing suppliers to exercise greater pricing power. This can contribute to higher milk prices for consumers.
  • Government Policies and Regulations: Government policies and regulations related to milk production, procurement, and pricing can influence milk inflation. Policies such as subsidies, import restrictions, quality standards, or pricing mechanisms can affect the overall supply-demand dynamics and pricing in the milk market

Way ahead

  • Focus on buffer stocking policy: To tackle cereal inflation, using the buffer stocking policy more proactively is important. Unloading excess stocks in open market operations can be an effective tool in managing cereal inflation.
  • Preemptive policy actions: It is important to implement policy actions in a preemptive manner rather than being reactive to events. This includes timely unloading of excess stocks and adjusting import duties to maintain price stability.
  • Monitor and address external shocks: Given that food price inflation can be triggered by external shocks like droughts and supply chain disruptions, it is crucial to closely monitor such factors and take appropriate measures to mitigate their impact.
  • Strengthen milk production: To address milk inflation, efforts should be made to address factors like the lumpy skin disease and high fodder prices that have strained milk production. Policies supporting the growth and sustainability of the milk industry should be implemented.
  • Lower import duties on fat and skimmed milk powder (SMP): By reducing import duties to around 10 to 15 percent, there could be an increase in imports of fat and SMP, which may help in controlling milk and milk product prices.

Conclusion

  • By effectively managing inflation, implementing proactive policies, and fostering collaboration between the RBI and the Government of India, India can navigate the challenges of inflation management, ensure economic stability, and promote sustainable development in critical sectors.

Source: The Hindu

The document UPSC Daily Current Affairs- 15th May 2023 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly is a part of the UPSC Course Current Affairs & Hindu Analysis: Daily, Weekly & Monthly.
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