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Jun 10 2023

Context: 

The Centre recently announced a 5.3% to 10.35% hike in Minimum Support Prices (MSP) of all mandated Kharif crops for marketing season 2023-24.

Probable Question:

Q. Examine the recent MSP hike and its potential impact on various aspects. Highlight the challenges associated with the implementation of MSP and suggest measures to enhance its effectiveness.

10.1

Image Source: The Indian Express

Need for MSP:

  • Acute lack of warehousing and cold storage in India, a farmer has little bargaining power in the market. 
  • To serve as a tool in the hands of the policymakers to tweak the production pattern. 
  • The government incentivises the production of certain crops to ensure that India does not run out of staple food grains.

About Minimum Support Price:

  • MSPs are “support prices” announced by the government (and sometimes state governments add a bonus amount to them) to provide a safety net for farmers.
  • By announcing MSPs, the government makes a promise that it will buy (called procurement) from farmers at the announced prices. 
  • During each cropping season, the government announces minimum support prices for 23 crops.
  • Announced by: The Commission for Agricultural Costs & Prices (CACP) recommends MSPs for 22 mandated crops and Fair and Remunerative Price (FRP) for sugarcane.
    • CACP is an attached office of the Ministry of Agriculture and Farmers Welfare.
  • Crops covered by MSPs include:
    • 7 types of cereals (paddy, wheat, maize, bajra, jowar, ragi and barley),
    • 5 types of pulses (chana, arhar/tur, urad, moong and masur),
    • 7 oilseeds (rapeseed-mustard, groundnut, soyabean, sunflower, sesamum, safflower, nigerseed),
    • 4 commercial crops (cotton, sugarcane, copra, raw jute)

While recommending MSPs, the CACP looks at the following factors:

  • The demand and supply of a commodity;
  • Its cost of production;
  • The market price trends (both domestic and international);
  • Inter-crop price parity;
  • The terms of trade between agriculture and non-agriculture (that is, the ratio of prices of farm inputs and farm outputs);
  • A minimum of 50 per cent as the margin over the cost of production; and
  • The likely implications of an MSP on consumers of that product.

Three Kinds of Production Costs:

  • A2: Covers all paid-out costs directly incurred by the farmer in cash and kind on seeds, fertilisers, pesticides, hired labour, leased-in land, fuel, irrigation, etc.
  • A2+FL: Includes A2 plus an imputed value of unpaid family labour.
  • C2: It is a more comprehensive cost that factors in rentals and interest forgone on owned land and fixed capital assets, on top of A2+FL.
  • CACP considers both A2+FL and C2 costs while recommending MSP.

MSPs and the Call for Statutory Backing:

  • The government’s procurement of farm produce at Minimum Support Prices (MSPs) is not uniform and varies based on crops and geographical regions. 
  • Moreover, MSPs currently lack statutory backing, meaning farmers cannot legally demand MSPs as a guaranteed right. 
Additional Information:

About Kharif Season:

  • Crops are sown from June to July and harvesting is done in between September-October.
  • Crops: Rice, maize, jowar, bajra, tur, moong, urad, cotton, jute, groundnut, soyabean etc.

MSP hike vs rate of food inflation and the rise in cost of production:

  • The prices of cereals went up by almost 14% in April this year. From that perspective, the MSP hike is modest.
  • However, the Citi Research note finds that cost of cultivation went up by 6.8% and from that perspective, a 7% hike in MSPs is enough to ensure that farm economy does not lose out to the non-farm economy.

Impact of MSP Hike:

  • Inflation and Monetary Policy:
    • MSP hike alone is unlikely to directly spike inflation. However, if the normal monsoon is affected by El Nino, it may lead to food inflation.
  • Government Finances:
    • Higher MSPs involve increased procurement, storage, and disbursal of subsidized food grains, which impose financial burdens on the government.
    • According to Citi Research, the recent MSP increase is not expected to materially alter the government’s food subsidy budgeting.
  • Impact on Rural India:
    • The impact on rural India is a crucial aspect of MSP decisions as the rural economy is a significant contributor to India’s overall GDP.
    • The recent consumption growth trends in the rural economy have been weak compared to urban areas.
    • The 7% MSP increase is considered modest and may just cover the increased production costs, but it may not lead to a significant boost in rural consumption.

Challenges of MSP:

  • The procurement is concentrated in only a few states — in Punjab, Haryana, western Uttar Pradesh, Chhattisgarh, and Telangana for paddy, in Telangana and Maharashtra for cotton, and in Maharashtra and Karnataka for pulses,” states the CRISIL report.
  • MSPs have limited reach, with only rice and wheat being effectively procured.
  • Implementation of MSPs is ineffective, with a small percentage of farmers actually benefiting.
  • The focus on fulfilling NFSA requirements makes MSPs more of a procurement price.
  • The dominance of MSPs for rice and wheat hampers diversification and income growth for farmers.
  • Dependence on middlemen adds complexity and hurdles for smaller farmers.

Way Forward: 

  • MSP can incentivize the production of crops important for nutritional security, such as coarse cereals, pulses, and edible oils.
  • Focus should also be on investing in animal husbandry, fisheries, fruits, and vegetables, as they offer greater nutritional benefits.
  • Private sector involvement and efficient value chains based on a cluster approach can be incentivized.
  • Agricultural pricing policy should transition to a combination of state-supported and market-driven pricing.
    • A deficiency payments scheme like Madhya Pradesh’s Bhavantar Bhugtan Yojana (BBY) could be considered as a solution.
  • Effective implementation of key initiatives such as e-NAM, doubling farmer’s income by 2022, price stabilization fund, and the recommendations of the Swaminathan and Shanta Kumar committees are essential for achieving desired outcomes.

News Source: The Indian Express

Context: 

The Union Government recently launched a National Mission to quickly identify emerging technologies in the power sector and develop them indigenously, at scale, for deployment within and outside India. 

About the Mission:

  • Launched by: Ministry of Power and the Ministry of New and Renewable Energy
  • Aim
    • To facilitate indigenous research, development and demonstration of the latest and emerging technologies in the power sector. 
    • To identify emerging technologies and take them to the implementation stage
    • To leverage emerging technologies as the main fuel for future economic growth and thus make India a manufacturing hub of the world.
  • Funding
    • By pooling financial resources of the Ministry of Power, Ministry of New and Renewable Energy and the Central Public Sector Enterprises under the two Ministries. 
    • Any additional funding needed will be mobilised from Government of India’s budgetary resources.
  • Duration of Mission: Planned for an initial period of five years from 2023-24 to 2027-28, the Mission will follow the technology life cycle approach of Idea to Product.

Objectives:

  • To provide a common platform for Power Sector Stakeholders for collective brainstorming, synergetic technology development and devise pathways for smooth transfer of technology.
  • To support pilot projects of indigenous technologies (developed especially by Indian Start-ups) and facilitate their commercialization.
  • To leverage foreign alliances and partnerships to accelerate research & development of advanced technologies and to build competencies, capabilities and access to advanced technologies through bilateral or multilateral collaborations, thereby facilitating exchange of knowhow and technology transfer.
  • To seed, nurture and scale up scientific and industrial R&D and to create a vibrant & innovative ecosystem in the Power Sector of the country.
  • To make India among the leading countries in Power System related Technologies & Applications development.

Areas Identified for Research:

  • Alternatives to Lithium-Ion storage batteries
  • Modifying electric cookers / pans to suit Indian cooking methods
  • Green hydrogen for mobility (High Efficiency Fuel Cell)
  • Carbon capture
  • Geo-thermal energy
  • Solid state refrigeration.
  • Nano technology for EV battery
  • Indigenous CRGO technology

News Source: PIB

Context: 

Recently, IFS officer Jagdish S Bakan won the prestigious Michel Batisse award 2023 for biosphere reserve management from United Nations Educational, Scientific and Cultural Organization (UNESCO).

About Michel Batisse Award for Biosphere Reserve Management:

  • The award is given in memory of Dr Michel Batisse for outstanding achievements in the management of the biosphere reserves in line with the recommendations of the Seville Strategy.
  • The Michel Batisse Award only acknowledges completed work accomplished within a Biosphere Reserve in the World Network.
  • Applications that are not endorsed by a MAB National Committee or a National Commission for UNESCO are not eligible for consideration. 

About Gulf of Mannar Biosphere Reserve:

  • First Marine Biosphere Reserve in South and South-East Asia
  • Administrative region: Gulf of Mannar Biosphere Reserve (GoMBR), extends between Toothukudi & Ramanathapuram districts; joint declaration of Government of India & Government of Tamil Nadu.
  • Global International Designation: UNESCO Biosphere Reserve
  • National legal designation: Marine National Park – Gulf of Mannar Biosphere Reserve
  • Flora and Fauna: Critically endangered Dugong dugon (sea cow), all protected sharks (IWPA, 1972) including whale shark, sea horses, green and hawksbill sea turtles, dolphins and sea cucumbers and several endemic species of Balanoglossus, sea grass, crabs and mangroves.

News Source: The Hindu

Context:

Recently, palaeontologists in South Africa said they have found the oldest known burial site in the world, containing remains of a small-brained distant relative of humans previously thought incapable of complex behaviour.

About the discovery:

  • Researchers said they discovered several specimens of Homo naledi — a tree-climbing, Stone Age hominid — buried about 30 metres (100 feet) underground in a cave system within the Cradle of Humankind, a UNESCO world heritage site near Johannesburg.
  • These are the most ancient interments yet recorded in the hominin record, earlier than evidence of Homo sapiens interments by at least 100,000 years. 
    • The oldest burials previously unearthed, found in the Middle East and Africa, contained the remains of Homo sapiens
  • The findings challenge the current understanding of human evolution, as it is normally held that the development of bigger brains allowed for the performing of complex, “meaning-making” activities such as burying the dead.

Homo Naledi:

  • It is a primitive species at the crossroads between apes and modern humans.
  • It had brains about the size of oranges i.e. 450 to 600 cubic centimetres. – just one-third of that of modern humans and stood about 1.5 metres (five feet) tall.
  • It had curved fingers and toes, tool-wielding hands and feet made for walking.
  • Their shoulders were built for climbing and their teeth were shaped like that of older primates. 
  • Homo naledi is named after the “Rising Star” cave system where the first bones were found in 2013.
  • Homo naledi was capable of complex emotional and cognitive behaviour.

News Source: The Hindu

Context: 

A tomb-like structure was accidentally discovered in the Siri Fort area while the Archaeological Survey of India (ASI) was carrying out renovation work at the Siri Fort Children’s Park.

About Siri Fort:

  • Siri Fort was built in the 13th Century by Alauddin Khilji- ruler of the Khilji dynasty.
  • It was used as a garrison town where his army used to reside. 
  • Hauz Khas village was an extension of the fort, which was designed to meet the water needs of the army. 
  • The main motive behind building the Khilji Fort was to save the Delhi sultanate from the attacks of Mongols.
  • The fort is currently in ruins and the only structure that remains is its boundary walls.
Additional Information:

Archaeological Survey of India

  • Established in: 1861 
  • Founding head: Alexander Cunningham. 
  • Nodal Ministry: Ministry of Culture
  • Role: 
    • It is the apex organisation of the country engaged in exploration, excavation, archaeological research & publication and preservation of cultural heritage of India.
    • It regulates all the archaeological activities in the country as per the provisions of the Ancient Monuments and Archaeological Sites and Remains Act, 1958 and the Antiquities and Art Treasure Act, 1972.

News Source: Indian Express

Context

Three persons engaged as mahouts in the Kaziranga National Park and Tiger Reserve have been arrested for capturing and consuming a rare species of a freshwater turtle- Spotted Pond Turtle. 

About Spotted Pond Turtle:

  • Common Names: Black Pond Turtle, Black Spotted Turtle, Hamilton’s Terrapin
  • Distribution:
    • The species is found in north and north-eastern Indian subcontinent primarily in India, Pakistan, Nepal and Bangladesh. 
    • It is found in the Indus and Ganga river drainage, from Pakistan to Bangladesh and also in northeast India. 
    • It is also reported to be found in Gomti and Girwa rivers in Uttar Pradesh, Aravalli foothills and Gandak Dam in Bihar.
  • Conservation Status:
    • IUCN : Endangered
    • Wildlife (Protection) Act, 1972: Schedule I
    • CITES : Appendix I 
  • Characteristics, Habitat and Behaviour:
    • Black spotted turtles are black in colour with yellowish streaks or spots and wedge-shaped marks. 
    • Their head is black with yellow spots and is extremely large, short-snouted. 
    • The neck is greyish and has white spots. The skin at the backside of the forehead of this species is divided into shields.
    • They are freshwater turtles found in lentic water bodies. 
    • They are mainly carnivorous and feed on snails and insect larvae, however, vegetative material has also been found in some of the digestive tracts.
  • Major Threats:
    • Habitat loss due to land fillings and conversion of the lentic water bodies into agricultural land such as rice fields and for human settlements.
    • The species is subjected to commercial exploitation for meat consumption.

News Source:The Hindu, WII

Context: 

Recently, ISRO chairman said that the Indian Space Research Organisation (ISRO) will begin a fresh bid to land a rover on the moon in the middle of July this year through the launch of the Chandrayaan-3 mission.

What is Chandrayaan-3?

  • Chandrayaan-3 is the third lunar exploration mission planned by ISRO. 
  • Objective: 
    • To explore the far side of the Moon.
    • The primary will be to demonstrate soft landing capability on the Moon.
  • Chandra Surface Thermophysical Experiment (ChaSTE): It will measure the thermal conductivity and temperature, while the Instrument for Lunar Seismic Activity (ILSA) will measure the seismicity around the landing site.
  • Instruments used: 
    • Langmuir Probe (LP): It will estimate the plasma density and its variations and a passive Laser Retroreflector Array from NASA is accommodated on the mission for lunar laser ranging studies.
    • Lander and Rover: The Lander will have the capability to soft land at a specified lunar site and deploy the Rover which will carry out in-situ chemical analysis of the lunar surface during the course of its mobility.
    • Spectro-polarimetry of Habitable Planet Earth’ (SHAPE): SHAPE will analyse Earth’s spectrum to generate data on habitable exoplanets, contributing to the study of exoplanetary habitability and the search for potential life beyond our Solar System.

How has Chandrayaan-3 improved upon Chandrayaan-2?

  • Simplified payload: 
    • Unlike Chandrayaan-2, which comprised the Vikram lander, Pragyan rover, and an orbiter, Chandrayaan-3 will be equipped with a lander and a rover only. 
    • The existing orbiter launched with Chandrayaan-2 will be utilised for communication and terrain mapping requirements during the mission.
    • While Chandrayaan-2’s orbiter carried nine in-situ instruments, Chandrayaan-3’s propulsion module will house a single instrument called ‘spectro-polarimetry of habitable planet earth’ (SHAPE). 
  • Enhanced lander capabilities:
    • Chandrayaan-3 incorporates ‘lander hazard detection & avoidance cameras’ to assist in coordination with the orbiter and mission control during the lander’s descent to the lunar surface. 
    • Chandrayaan-3 will feature two such cameras compared to the single camera on its predecessor.
Additional Information:

About Chandrayaan-1 and Chandrayaan-2 Mission:

  • Chandrayaan-1 was launched in 2008, whereas Chandrayaan-2 was launched in 2019. 
  • Both were launched from Satish Dhawan Space Centre, Sriharikota.
  • Chandrayaan-1 made more than 3400 orbits around the moon and was operational for 312 days till 29 August, 2019. 
    • The mission life of Chandrayaan-2 orbiter was one year and Lander and Rover was one Lunar Day, that is 14 earth days.
  • Chandrayaan-1 was launched by India’s Polar Satellite Launch Vehicle, PSLV-C11. 
    • Chandrayaan-2 was launched by GSLV MK-III M1 launch vehicle.
  • Achievements: 
    1. Chandrayaan-1 discovered some traces of water on the moon. Also, in the North polar region of the Moon, Chandrayaan-1 discovered water ice. 
    2. Some minerals on the surface of the Moon like magnesium, aluminium and silicon were also detected.
    3. The discovery of Chromium and Manganese on the lunar surface and a variability of the Argon-40 at the middle and higher latitudes of the Moon was identified by Chandrayaan-2.

News Source: Business Standard


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 Final Result – CIVIL SERVICES EXAMINATION, 2023.   Udaan-Prelims Wallah ( Static ) booklets 2024 released both in english and hindi : Download from Here!     Download UPSC Mains 2023 Question Papers PDF  Free Initiative links -1) Download Prahaar 3.0 for Mains Current Affairs PDF both in English and Hindi 2) Daily Main Answer Writing  , 3) Daily Current Affairs , Editorial Analysis and quiz ,  4) PDF Downloads  UPSC Prelims 2023 Trend Analysis cut-off and answer key

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UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
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