Daily Current Affairs for UPSC CSE
Topics Covered
- Minimum Support Price
- Rights of Forest Dwellers
- India – UAE Relationship
- Facts for Prelims
1 . MSP
Context: Centre rules out MSP law; talks with farmers may resume.
What is Minimum Support Price (MSP)?
- Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.
- MSP is the minimum price set by the Government at which farmers can expect to sell their produce for the season.
- When market prices fall below the announced MSPs, procurement agencies step in to procure the crop and ‘support’ the prices. Hence minimum support prices are a guarantee price for their produce from the Government.
- The major objectives are to support the farmers from distress sales and to procure food grains for public distribution.
- In case the market price for the commodity falls below the announced minimum price due to bumper production and glut in the market, government agencies purchase the entire quantity offered by the farmers at the announced minimum price.
- The Cabinet Committee of Economic Affairs announces MSP for various crops at the beginning of each sowing season based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).
- The FCI and Nafed help the Centre procure select food crops with the help of the States. Procured farm products are kept in government warehouses and distributed through the PDS and various food security programmes.
- Currently, there are 20-plus crops that have an MSP announced for them every year before the beginning of the kharif and rabi seasons.
Factors taken into consideration for fixing MSP include:
In formulating the recommendations in respect of the level of minimum support prices and other non-price measures, the Commission takes into account, apart from a comprehensive view of the entire structure of the economy of a particular commodity or group of commodities, the following factors:-
- Cost of production
- Changes in input prices
- Input-output price parity
- Trends in market prices
- Demand and supply
- Inter-crop price parity
- Effect on industrial cost structure
- Effect on cost of living
- Effect on general price level
- International price situation
- Parity between prices paid and prices received by the farmers.
- Effect on issue prices and implications for subsidy
Cost of Production
- CACP considers both A2+FL and C2 costs while recommending MSPs. CACP reckons only A2+FL cost for return.
- However, C2 costs are used by CACP primarily as benchmark reference costs (opportunity costs) to see if the MSPs recommended by them at least cover these costs in some of the major producing States.
- The Union Budget for 2018-19 had announced the pre-determined principle to keep MSP at levels of one and half times of the cost of production. Accordingly, Government has increased the MSPs for all mandated Kharif, Rabi and other commercial crops with a return of atleast 50 per cent of cost of production for the agricultural year 2018-19.
- During 2019-20 also, Government has increased the MSP of all mandated kharif and rabi crops in line with the principle of fixing the MSP with a return of atleast 50 per cent of the cost of production.
Formulae to arrive at the cost of production
The CACP has three formulae to arrive at the cost of production: A2, A2+FL and C2.
- A2 costs cover all paid-out expenses, both in cash and kind, incurred by farmers on seeds, fertilisers, chemicals, hired labour, fuel and irrigation, among others.
- A2+FL covers actual paid-out costs plus an imputed value of unpaid family labour.
- C2 costs are more comprehensive, accounting for the rentals and interest forgone on owned land and fixed capital assets respectively, on top of A2 + FL
Crops Covered
- Government announces minimum support prices (MSPs) for 22 mandated crops and fair and remunerative price (FRP) for sugarcane.
- The mandated crops are 14 crops of the kharif season, 6 rabi crops and two other commercial crops. In addition, the MSPs of toria and de-husked coconut are fixed on the basis of the MSPs of rapeseed/mustard and copra, respectively. The list of crops are as follows.
- Cereals (7) – paddy, wheat, barley, jowar, bajra, maize and ragi
- Pulses (5) – gram, arhar/tur, moong, urad and lentil
- Oilseeds (8) – groundnut, rapeseed/mustard, toria, soyabean, sunflower seed, sesamum, safflower seed and nigerseed
- Raw cotton
- Raw jute
- Copra
- De-husked coconut
- Sugarcane (Fair and remunerative price)
- Virginia flu cured (VFC) tobacco
Advantages
- Price volatility makes life difficult for farmers. Though prices of agri commodities may soar while in short supply, during years of bumper production, prices of the very same commodities plummet.
- MSPs ensure that farmers get a minimum price for their produce in adverse markets. MSPs have also been used as a tool by the Government to incentivise farmers to grow crops that are in short supply.
Criticisms
- The Government of India has an MSP for 23 crops, but procurement at the MSP is effectively limited to rice and wheat, and that too concentrated in a few States only.
- Some critics argue that a rise in the MSP will lead to increase in food inflation, while others that it will augment farmers’ income
- Substantial proportion of crops are sold to local private traders and input dealers to whom the resource-poor marginal and small landholders are obligated to sell their crops due to tie-up with credit.
- A vast majority of the farming population is unaware of its existence as per the National Sample Survey’s (NSS) Situation Assessment Survey of Agricultural Households 2013, even for paddy and wheat, less than one-third of farmers were aware of the MSP; for other crops, such awareness was negligible.
Committee on MSP
- The committee, which was set up to “promote Zero budget based farming, to change crop pattern keeping in mind the changing needs of the country, and to make MSP more effective and transparent”, was notified by the Union Ministry of Agriculture and Farmers’ Welfare in 2022.
- The committee, which has 26 members, is headed by a former agriculture secretary.
- Its other members are (i) NITI Aayog member (Agriculture) (ii) two agricultural economists, (iii) an award-winning farmer, (iv) five representatives of farmers’ organisations other than the Samyukta Kisan Morcha (SKM), (v) two representatives of farmers’ cooperatives/ groups, (vi) one member of the Commission for Agricultural Costs and Prices (CACP), (vii) three persons from agricultural universities and institutions, (viii) five secretaries of the Government of India, (ix) four officers from four states, and (x) one joint secretary from the Agriculture Ministry.
- Under the category of farmers’ representatives, the committee had three positions for members of the SKM, the umbrella body of farmers’ unions that had spearheaded the 2020-21 agitation, but they did not join the committee.
- The SKM has not joined the ongoing protest so far. The farmers currently marching to Delhi belong to the Kisan Mazdoor Morcha (KMM) and Samyukta Kisan Morcha (non-political), a breakaway faction of the SKM.
Mandate of panel
- The ministry’s 2022 notification said the committee’s “subject matter” has three points: MSP, natural farming, and crop diversification.
- On the MSP, the committee has been asked for suggestions to “make available MSP to farmers of the country by making the system more effective and transparent”.
- The panel is also supposed to make recommendations to strengthen the Agricultural Marketing System “as per the changing requirements of the country to ensure higher value to the farmers through remunerative prices of their produce by taking advantage of the domestic and export opportunities”.
- The committee was also asked for suggestions on the “practicality to give more autonomy to Commission for Agricultural Costs and Prices (CACP) and measures to make it more scientific”.
Progress in panel
- The committee on MSP had its first meeting on August, 2022.
- The Agriculture Ministry has said the committee has been meeting on a “regular basis actively to deliberate” on the “subject matters assigned to it”. Six main meetings and thirty-one sub-group meetings/ workshops have been held by the committee so far, according to the ministry.
- The July 2022 notification did not specify the tenure of the Sanjay Agrawal committee. Therefore, the committee has no deadline by which it is required to present its report.
2 . Rights of Forest Dwellers
Context: Recently ,the notification of the Thanthai Periyar Sanctuary in Erode district of Tamil Nadu triggered consternation among forest-dwellers around it. They expressed fear that this is a prelude to their rights under the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act 2006 (FRA) being denied.
About the news
- The forest-dwellers of Thanthai Periyar Sanctuary have accused the district and State administrations of violating relevant laws.
- Six tribal forest villages which were denied basic rights and facilities because these are not revenue villages, have been excluded from the sanctuary.
- These settlements are confined to an arbitrary area of 3.42 sq. km.
What are forest villages?
- In 1990, the Union Ministry of Environment and Forests (MoEF) had ordered that all forest villages be converted to revenue villages.
- The FRA, enacted 18 years ago, also required all forest villages to be converted to revenue villages.
- During conversion, “the actual land use of the village in its entirety, including lands required for current or future community uses, like schools, health facilities and public spaces,” were to be recorded as part of the revenue village. These rights continue to be denied to date.
- 21 roads 147.1 km long have also been excluded from the notification, as if such exclusion is required for them to remain in use. This is not so by law.
- As of 2016, Tamil Nadu had 736 forest villages with a population of 23,125 on record. Of them, 7,764 were from Scheduled Tribe (ST) communities. The corresponding all-India figures are 4,526 forest villages with a population of 22 lakh, with 13.3 lakh from ST communities. There are more unrecorded forest habitations.
- The notification that created the sanctuary concedes that the rights admitted under the Tamil Nadu Forest Act 1882 — a time when forests were reserved — and those conferred under the FRA “shall remain and continue to be enjoyed by the persons concerned”.
- The issue is that Tamil Nadu has been one of the most laggard States in implementing the FRA in the country.
What are the rights in the new Sanctuary?
- Cattle-grazers can no longer graze in the Thanthai Periyar Sanctuary. Bargur cattle, a traditional breed native to the Bargur forest hills, may now be prevented from accessing their traditional grazing grounds.
- In 2022, the Madras High Court revised an older order imposing a total ban on cattle grazing in all the forests of Tamil Nadu and restricted the ban to national parks, sanctuaries, and tiger reserves.
- Tamil Nadu is the only State in the country where there is such a ban.
- This order is despite the FRA, which, aside from other community rights, recognised “grazing (both settled or transhumant) and traditional seasonal resource access of nomadic or pastoralist communities” in all forests, including in national parks, sanctuaries, and tiger reserves.
- Grazing rights are community rights of the habitation-level villages and are to be regulated by their gram sabhas.
- Of Tamil Nadu’s land, 26,419 sq. km or 20.3% is under notified forests.
- The recorded forest area is a bit higher, around 23.7%. Some 6% of the State is under Protected Areas, with five national parks and 34 sanctuaries (half of which are bird sanctuaries).
- The State has constituted five tiger reserves in these Protected Areas. The 801-sq.-km Thanthai Periyar Sanctuary joins them now.
What does the WLP Act 1972 provide?
- Sanctuaries and national parks are notified under the Wildlife (Protection) Act (WLPA) 1972.
- People inside sanctuaries continue to enjoy all their rights unless prohibited, but they don’t in National Parks.
- No new rights are permitted once the notice of intent is issued. The Collector is to inquire into the rights of all persons, their nature and extent, in the proposed sanctuary or national park. Then, the Collector’s office has to decide whether to admit the claims in sanctuaries and to acquire all rights in national parks.
- The law mandates similar procedures when some land is initially notified as forest. But governments have not followed them.
- While courts routinely condone these violations, they have become entrenched within the forest department since the start of the colonial era, with the forest bureaucracy inheriting the same tendencies.
- In addition, the Indian Forest Act 1927 and its clones, such as the Tamil Nadu Forest Act 1882, the WLPA, the Forest (Conservation) Act 1980, and the Compensatory Afforestation Fund Act 2016 are all erected on this colonial edifice.
How was the Forest Rights Act established?
- A dam of anger ruptured around the nation after the MoEF misinterpreted a Supreme Court order and, in 2002, required States “to evict ineligible encroachers and all post-1980 encroachers from forest lands in a time-bound manner”.
- In 2004, the MoEF acknowledged in an affidavit to the Supreme Court in Godavarman versus Union of India that “the historical injustice done to the tribal forest dwellers through non-recognition of their traditional rights must be finally rectified”.
- In 2006, the Indian government enacted the FRA to explicitly undo this “historical injustice” resulting from the inadequate recognition of “forest rights on ancestral lands and their habitat in the consolidation of State forests during the colonial period as well as in independent India”.
- The FRA requires and authorises the gram sabhas to determine and recognise forest rights, and protect and preserve the forests, wildlife, and biodiversity within their customary and traditional boundaries, including inside Protected Areas. These responsibilities were earlier vested with the Forest Department.
How do FRA and WLPA compare?
- Being a later law, the FRA overrides the WLPA. All provisions in the WLPA that contravene provisions in the FRA are null and void. As a result, when notifying a Protected Area under the WLPA, the government needs to determine rights under the FRA and acquire the consent of the gram sabhas.
- The government specifically incorporated these requirements in a 2006 amendment vis-à-vis the notification of tiger reserves.
- The FRA became operational when its Rules were notified in January 2008. Since then, until 2023, the country has acquired 15,605 sq. km of Protected Areas — nine national parks of 3,462 sq. km and 77 sanctuaries of 12,143 sq km — while disregarding the changed legal regime. Of these, Tamil Nadu’s share has been 15 sanctuaries spanning 4,146.7 sq. Km.
- The FRA violations, in the case of Scheduled Tribes, are also crimes under the 2016 amendment to the Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities) Act, 1989.
How has Tamil Nadu implemented the FRA?
- According to the 2011 Census, there were 1,808 revenue villages in Tamil Nadu with numerous habitations in them accessing 15,826.9 sq. km of forests within revenue boundaries.
- But as of 2023, the State had recognised and issued individual titles to an extent of just 38.96 sq. km – a paltry coverage of 0.25%. Reportedly, the State has issued 531 community titles but the extent of the area thus titled remains a mystery.
- Tamil Nadu is not an exception. The same pattern, more or less, runs across the country: the Environment Ministry and the forest bureaucracy continue to defy the laws, Parliament, and the will of the people, leaving forests, forest-dwellers, and wildlife in peril.
3 . India – UAE Relationship
Context: India-UAE relations serve as a model for the world: Modi.
Areas of cooperation:
Economic and Trade Relations
- Bilateral trade between India and the UAE has been growing steadily, with both countries being significant trading partners.
- Cooperation in sectors such as energy, infrastructure, agriculture, and technology has been expanding, driven by investment opportunities and joint ventures.
Energy Security
- The UAE is a major supplier of crude oil and natural gas to India. Both countries have strategic energy partnerships, including long-term oil supply contracts and investments in energy infrastructure projects.
Investment and Finance
- The UAE has emerged as a key destination for Indian investments, particularly in sectors like real estate, construction, finance, and hospitality.
- Both countries have established mechanisms to promote investment and facilitate business partnerships, such as the UAE-India High-Level Joint Task Force on Investments.
Defense and Security Cooperation
- India and the UAE have been enhancing defense and security cooperation through joint military exercises, intelligence-sharing, and counter-terrorism initiatives.
- Collaborative efforts in maritime security and defense technology exchanges have strengthened bilateral ties in the security domain.
Infrastructure Development
- India and the UAE collaborate on infrastructure development projects, including roads, ports, airports, and industrial zones, leveraging expertise and investment from both sides.
Cultural and People-to-People Exchanges
- Cultural ties between India and the UAE are reinforced through cultural events, festivals, and exchanges that promote mutual understanding and appreciation of each other’s heritage.
- The large Indian expatriate community in the UAE contributes significantly to the socio-economic fabric of both countries, fostering people-to-people connections.
Healthcare and Education
- Cooperation in healthcare and education sectors, including medical tourism, academic partnerships, and skill development programs, is strengthening bilateral relations and human capital development.
Challenges
- Labor Issues: The treatment and working conditions of Indian expatriate workers in the UAE have been a recurring concern. Issues such as labor rights, wages, and working conditions have led to occasional tensions between the two countries.
- Security Challenges: While India and the UAE collaborate on security matters, including counter-terrorism efforts, regional security dynamics pose challenges. Instability in the Middle East, including conflicts in neighboring countries, can impact regional security and stability, affecting both India and the UAE.
- Trade Barriers: Despite strong economic ties, certain trade barriers and regulations in the UAE can hinder the smooth flow of goods and services between the two countries. Addressing trade barriers and enhancing trade facilitation measures remain a challenge.
- Cultural Sensitivities:Cultural differences and sensitivities between India and the UAE can sometimes lead to misunderstandings or miscommunications. Bridging these gaps and fostering mutual respect for cultural diversity is important for strengthening relations.
- Competition for Influence: The UAE’s relations with other regional and global powers, as well as its growing engagement in South Asia, may sometimes create competition for influence with India. Balancing interests and managing competition in areas of mutual concern is necessary.
4 . Facts for Prelims
HAPS
- National Aerospace Laboratories (NAL) successfully flew a prototype of a new-generation unmanned aerial vehicle (UAV) that is being seen as a huge technology breakthrough.
- It could fly at great heights, about 20 km from ground, runs entirely on solar power, and can remain in the air for months on end.
- Such UAVs belong to a class of flying objects called HAPS, or high-altitude pseudo-satellite vehicles, or HALE, that is high-altitude long-endurance vehicles.
- The primary utility of HAPS vehicles is in the field of surveillance and monitoring, but there are other situations, like disaster management, wherein it can be very useful.