DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam –11th May 2024
Archives (PRELIMS & MAINS Focus) Export-import in agri sector Syllabus Mains – GS 2 & GS 3 Context: India’s agricultural exports fell 8.2% in the fiscal year ended March 31, 2024 on the back of shipment curbs on a host of commodities, from cereals and sugar to onions. Background:- The value of farm exports totaled $48.82 billion in 2023-24, down from the record $53.15 billion of 2022-23 and $50.24 billion for the previous fiscal, according to Department of Commerce data. Key takeaways Exports declined during the initial years of the Narendra Modi government (from $43.25 billion in 2013-14 to $35.60 billion in 2019-20), while accompanied by an increase in imports (from $15.53 billion to $21.86 billion). That was largely because of a crash in global agri-commodity prices. Low international prices reduced the cost competitiveness of the country’s exports, while also making it more vulnerable to imports. But the global price recovery following the Covid-19 pandemic and Russia’s invasion of Ukraine resulted in India’s farm exports as well as imports zooming to all-time-highs in 2022-23, before dropping in the fiscal just ended. Drivers of exports: The fall in exports to have been led primarily by sugar and non-basmati rice.The government hasn’t allowed any sugar to go out of the country during the current production year from October 2023. Concerns over domestic availability and food inflation have similarly triggered a ban on exports of all white non-basmati rice since July 2023. Currently, only parboiled grain shipments are being permitted within the non-basmati segment, while also attracting a 20% duty. Two other items that have borne the brunt of export restrictions — again triggered by domestic shortages and rising prices — are wheat and onion. Drivers of imports: There is 7.9% dip in overall agri imports during 2023-24 due to a single commodity: edible oils. Lower global prices, in turn, brought down the vegetable oil import bill to below $15 billion during last fiscal. But even as the foreign exchange outflow on account of cooking oil has reduced, imports of pulses almost doubled to $3.75 billion in 2023-24, the highest since the $3.90 billion and $4.24 billion levels of 2015-16 and 2016-17 respectively. Policy takeaways Farmers and agri-traders, like all businessmen, want policy stability and predictability. When governments resort to banning/restricting agri export they usually privilege the interests of consumers over producers. These actions hurt more when taken overnight, like with wheat exports. Building export markets takes time and effort. A more predictable and rules-based policy — say, introducing temporary tariffs instead of outright bans or quantitative restrictions — is what many economists would recommend. The same goes for imports. The Modi government has done away with import duties on most pulses — arhar (pigeon pea), urad (black gram), masoor (red lentils), yellow/white peas and, earlier this month, chana (chickpea) — and kept it at 5.5% for crude palm, soyabean and sunflower oil. The above zero/low tariffs are at variance with the government’s own objective to promote crop diversification — weaning away farmers from rice, wheat and sugarcane to growing pulses and oilseeds, which are less water-guzzling and also significantly imported. Source:Indian Express Air Pollution Syllabus Prelims & Mains – Environment Context: Environmental, climate change, and air pollution issues have featured in the 2024 Lok Sabha manifestos of most top political parties. But is it among the top priorities or guarantees for parties or candidates? This brings us to another question: Will we ever witness actual improvement in air quality without it becoming a people’s movement or a political issue? Background: Despite mention in manifestos, pollution hasn’t become a campaign issue. It is a reflection of low traction at grassroots level. Key Takeaways According to a 2019 study, the yearly deaths attributable to air pollution translate to an economic loss of Rs 2.7 lakh crore, that is, around 1.36 per cent of the country’s GDP. Another recent survey has revealed that the Indian GDP would have been 4.5 per cent higher if air pollution had grown 50 per cent slower each year. What needs to be done to tackle air pollution? Any effective step to tackle pollution will come only when the issue becomes a mass movement. What it needs is public awareness in its true sense.It is the job of academicians, scientific communities, experts, scholars, and bureaucrats alongside local governmental bodies to make common Indians realise that clean air is also a fundamental right like clean water, health, food, shelter, etc. In addition to core research and scientific activities, a significant portion of the fund should be allocated for on-ground activities aimed at pollution reduction. Activities to tackle pollution need a federal structure, where policies and strategies need to be decentralised and diffused into micro environments through district and local bodies. Every ward under the municipalities or municipal corporations and every village under the blocks should be thoroughly scrutinised by the respective local bodies to find out the pollution source in the vicinity as well as the scope for air quality improvement. This information should then be disseminated to the people who are residents of the area. There should be specific plans to identify open areas favourable for the ventilation of air — and hence the pollutants — open water bodies, green cover for every ward in a city, and all of them should immediately be marked as green zones and restored. These measures will ensure that air pollution, as an issue, directly connects to every single individual in these micro environments. Regular outreach or public awareness programmes should be conducted at the municipality or block level, and facilitated by local experts, academicians, and teachers. These initiatives must aim to disseminate knowledge about environmental pollution and provide guidance on both actions to take and actions to avoid. Source: Indian Express NON-MARKET ECONOMY (NME) Syllabus Prelims – Economy Context: Vietnam has been actively advocating for a shift from its current “non-market economy” status to a “market economy” designation in the United States. Background: For over two decades, Vietnam has remained on Washington’s list of non-market economies. By achieving market economy status,
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