Daily Prelims Notes 27 November 2023

Daily Prelims Notes

27 November 2023

Table Of Contents

1. Ayushman Bharat centres to be now called Ayushman Arogya Mandir
2. Piezoelectricity: Why quartz ticks
3. Plants warn each other of danger, and now we can watch them
4. Decentralised Autonomous Organisations (Daos): Shaping The Digital Future
5. Why has Binance been fined by the U.S.?
6. Pulses, oil seeds, fruit output to lag demand till at least 2030-31: report
7. Fresh China outbreak attributed to multiple known pathogens
8. Sierra Leone
9. Greek island of Lesbos
10. Free legal aid
11. What are the Good Manufacturing Practices (GMP) for Pharma Companies?
12. Overview of the issues raised on Agriculture at WTO Meeting
13. Overview of Supplementary Demands for Grants (SDG)

1. Ayushman Bharat centres to be now called Ayushman Arogya Mandir

Subject : Govt Schemes

Section: Health

Context:

• The Union government has decided to rename Ayushman Bharat Health and Wellness Centres (AB-HWCs) to ‘Ayushman Arogya Mandir’ with the tagline ‘Arogyam Parmam Dhanam.’

More About News

• The renaming aims to emphasize a shift from illness to wellness and promote Ayushman India’s vision.
• States are urged to complete the rebranding by the end of 2023, uploading photographs of the rebranded facilities onto the AB-HWC portal.
• The logo of the National Health Mission (NHM) will be maintained in the newly rebranded centers.
• The initiative includes a proposed fund allocation of ₹3,000 per facility for renaming.
• Over 1.6 lakh AB-HWCs across India provide comprehensive primary healthcare services, including screenings and essential drugs.

What is Ayushman Bharat-PMJAY?

About:

• PM-JAY is the world’s largest health insurance scheme fully financed by the government.
• Launched in February 2018, it offers a sum insured of Rs.5 lakh per family for secondary care and tertiary care.
• Health Benefit Packages covers surgery, medical and day care treatments, cost of medicines and diagnostics.

Beneficiaries:

• It is an entitlement-based scheme that targets the beneficiaries as identified by latest Socio-Economic Caste Census (SECC) data.
• The National Health Authority (NHA) has provided flexibility to States/UTs to use non- Socio-Economic Caste Census (SECC) beneficiary family databases with similar socio-economic profiles for tagging against the leftover (unauthenticated) SECC families.

Funding:

• The funding for the scheme is shared – 60:40 for all states and UTs with their own legislature, 90:10 in Northeast states and Jammu and Kashmir, Himachal and Uttarakhand and 100% Central funding for UTs without legislature.

Nodal Agency:

• The National Health Authority (NHA) has been constituted as an autonomous entity under the Society Registration Act, 1860 for effective implementation of PM-JAY in alliance with state governments.
• The State Health Agency (SHA) is the apex body of the State Government responsible for the implementation of AB PM-JAY in the State.

2. Piezoelectricity: Why quartz ticks

Subject : Science and Tech

Section: Msc

Introduction 

• Piezoelectricity is a remarkable phenomenon whereby some materials – including quartz, ceramics such as lead zirconate titanate (PZT), and even certain biological substances like  bone and the tendons – can generate an electric charge in response to mechanical stress. 

What is the Piezoelectric Effect?

• The piezoelectric effect is a phenomenon in which certain materials produce an electrical charge in response to mechanical stress or pressure.
• This effect occurs when the material is subjected to a force that causes its molecules to become polarized, meaning that the positive and negative charges within the material are separated from each other.
• When this polarization occurs, an electric potential is generated across the material, and if the material is connected to a circuit, a current can flow.
• The reverse is also true: if an electric potential is applied to the material, it can cause a mechanical deformation.
• Piezoelectric materials are used in a variety of applications, such as in sensors, actuators, and energy harvesting devices. Some examples of common piezoelectric materials include quartz, ceramics, and certain types of crystals.
• Quartz is the most famous piezoelectric crystal, it is used in this capacity in analog wristwatches and clocks.
• The Piezoelectric effect was discovered in 1880, in quartz, by Jacques and Pierre Curie.
• Some materials also display an inverse piezoelectric effect, where the application of an electric current induces a mechanical deformation.
• Both direct and inverse piezoelectric materials are widely used in pressure sensors, accelerometers, and acoustic devices –where their ability to convert mechanical signals into  electrical signals is crucial.
• The piezoelectric effect is also what made quartz watches so common and,  over time, affordable.

3. Plants warn each other of danger, and now we can watch them

Subject : Science and Tech

Section: Biotechnology

Context:

• For the first time, scientists were able to visualise plants sensing compounds released by other plants in danger .
• The scent of freshly cut grass, more than just a pleasant aroma, is a part of a complex plant communication system involving Green Leaf Volatiles (GLVs).
• For plants, these GLVs are not just fragrances but crucial signals that alert them to imminent threats, such as herbivore attacks.

Basics of Plant Eavesdropping

• Inter-Plant Communication: Plants have the remarkable ability to ‘eavesdrop’ on the distress signals of their neighbors, preparing themselves for similar threats.
• Agricultural Implications: Understanding this natural warning system could revolutionize pest control in agriculture, potentially reducing the need for harmful pesticides.

About Plant Defense Mechanisms

• Research involving mustard plants (Arabidopsis thaliana) has shown that calcium plays a crucial role in plant defense, with calcium levels spiking in response to damage.
• Using genetically modified plants that fluoresce in response to calcium surges, researchers have been able to visually track plant reactions to physical damage and GLV exposure.
• Experiments have demonstrated that plants can detect and respond to GLVs emitted by neighboring plants, as evidenced by fluorescence in modified mustard plants.
• Among the GLVs, specific compounds like E-2-HAL and Z-3-HAL were found to trigger significant responses in plants.

Defense Response at Gene-Level

• Defense Genes Activation: Exposure to GLVs leads to the activation of certain defence-related genes in plants, suggesting that they perceive these volatiles as danger signals.
• Consequences for Plant Protection: This gene activation could be a crucial step in natural plant defense mechanisms against herbivores.

Significance and Future Directions

• Alternative Strategies: While promising, researchers also consider other substances like jasmonic acid, balancing pest control with the plant’s growth and fruit production.
• Expanding Plant Sensory Research: The findings encourage further exploration into plant perception and response to external stimuli, particularly in natural environments where signaling dynamics are more complex.
• Challenges in Field Studies: One of the main challenges in studying plant volatile signaling in natural settings is the dilution of these compounds in the open air.
• Natural Pest Control: The study opens up possibilities for using GLVs in agricultural pest control, potentially reducing reliance on chemical pesticides.

4. Decentralised Autonomous Organisations (Daos): Shaping The Digital Future

Subject : Science and Tech

Section: Awareness in IT and Computers

Context

• DAOs operate at the crossroads of blockchain technology and governance.
• Governed by smart contracts, they aim to create self-sustaining, community-driven entities.
• The legality and regulatory framework surrounding DAOs provoke ongoing debate.

DAOs Genesis

• DAOs are organisations encoded as computer programs transparently controlled by members.
• Operate without government influence, fostering trust through smart contracts on block chain networks.
• Emphasis on self-sustainability, community-driven governance, and decentralisation.

Various Use Cases

• DAOs impact finance, art, governance, and supply chain management.
• Platforms like Compound and MakerDAO revolutionise lending and borrowing in finance.
• Artists tokenize creations, manage royalties through DAOs, transforming the art industry.
• Supply chain management benefits from transparency and traceability provided by DAOs.
• DAOs like DAOstack facilitate decentralised governance for online communities.

Implications for the Digital World:

• DAOs embody decentralisation, shifting power from centralised authorities to collective decision-making.
• Transparency and trust are fundamental; smart contracts are transparent, fostering trust among participants.
• DAOs champion inclusivity, democratise access to resources, and enable global participation.
• Inspire new forms of collaboration, allowing participants with shared goals to unite globally.

Challenges and Controversies

• The 2016 DAO hack exposed vulnerabilities, leading to a contentious hard fork in the Ethereum blockchain.
• Legal and regulatory uncertainties surround DAOs, with traditional legal systems struggling to adapt.
• Regulatory uncertainty persists as jurisdictions grapple with classifying and regulating DAOs.
• Challenges ; include legal liability, taxation, identity verification, compliance with AML and KYC regulations, and dispute resolution.

Addressing Challenges:

• Stakeholders actively collaborate to establish legal frameworks that balance innovation with compliance.
• Developing guidelines for governance, intellectual property, cross-border operations, and token-based decision-making.
• Ongoing discussions involving legal experts, blockchain developers, and policymakers to navigate complexities.
• DAOs revolutionize digital organization and collaboration, offering boundless potential for positive change. Collaboration is essential to navigate challenges and unlock DAOs’ transformative power.

5. Why has Binance been fined by the U.S.?

Subject : Economy

Section: Msc

Context:

• The U.S. government last week slammed Binance, the world’s largest cryptocurrency exchange, with a $4.3 billion fine after confirming serious protocol failures as it frequently violated U.S. sanctions.
• Thereafter, on November 22, Binance’s CEO and one of the crypto industry’s most powerful players, billionaire Changpeng Zhao, announced his resignation. The latest update has shocked thousands of traders worldwide who rely on Binance (legally or illegally) to conduct their crypto trades.

What are FTX and Binance?

• FTX and Binance are cryptocurrency exchanges, meaning they enable customers to trade digital currencies for other digital currencies or traditional money, and vice versa. The two exchanges process the majority of all crypto trades in the world.
• FTX, one of the world’s largest exchanges, was run by Sam Bankman-Fried and is headquartered in the Bahamas. Binance, the largest exchange, is run by billionaire Changpeng Zhao.
• Both companies built their businesses on risky trading options that are not legal in the United States. 

Cryptocurrencies Exchange

• A cryptocurrency exchange, or a digital currency exchange (DCE), is a business that allows customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money or other digital currencies.
• Exchanges may accept credit card payments, wire transfers or other forms of payment in exchange for digital currencies or cryptocurrencies.
• A cryptocurrency exchange can be a market maker that typically takes the bid–ask spreads as a transaction commission for its service or, as a matching platform, simply charges fees.

What is Cryptocurrency?

• A cryptocurrency is a medium of exchange, such as the rupee or the US dollar, but is digital in format that uses encryption techniques to both control the creation of monetary units and to verify the exchange of money.
• Bitcoin is considered to be the world’s best known cryptocurrency and is the largest in the world according to market capitalisation.
• Most cryptocurrencies are not regulated by national governments, they are considered alternative currency or means of financial exchange that are outside the scope of state monetary policy.
• However, In September 2021, El Salvador became the first country in the world to introduce Bitcoin as legal tender.

Where does India Stand in terms of Regulating Cryptocurrency?

• In 2017, the Reserve Bank of India (RBI) issued a warning that virtual currencies/cryptocurrencies are not a legal tender in India. However, no ban on virtual currencies took place.
• In 2019, RBI issued that trading, mining, holding or transferring/use of cryptocurrencies is subject to punishment in India with a financial penalty or/and imprisonment up to 10 years.
• RBI also declared that it may launch digital rupee as a legal tender in India in future.
• In 2020, the Supreme Court of India removed the ban on cryptocurrencies imposed by RBI.
• In 2022, the Government of India clearly mentioned in the Union budget 2022-23 that-the transfer of any virtual currency/cryptocurrency asset will be subject to 30% tax deduction.
• Gifts in the form of virtual assets/cryptocurrencies will be taxed in the hands of the receiver.
• In July 2022, The Reserve Bank of India (RBI) recommended a ban on cryptocurrencies citing ‘destabilising effects’ for the country’s monetary and fiscal health.

6. Pulses, oil seeds, fruit output to lag demand till at least 2030-31: report

Subject : Geography

Section: Economic geography

Context:

• India’s output shortfalls vis-a-vis demand for the key protein source (pulses), as well as edible oils and fruits, are expected to persist or even widen over the next seven years, as per a new research report by agricultural economists.

Details of the report:

• Report title: ‘Prospects of India’s Demand and Supply for Agricultural Commodities towards 2030’
• Published by: National Bank for Agriculture and Rural Development (NABARD) and the Indian Council for Research on International Economic Relations (ICRIER).
• The report reiterated the recommendation of a 2012 report from the Commission for Agricultural Costs and Prices (CACP) to raise the import duty whenever the import price of crude palm oil falls below $800 per tonne to protect Indian producers. However, it also added that attaining self-reliance in water-intensive and long gestation crops like oil palm may not be worth pursuing as a sustainable goal either.

Key Findings:

• The food deficit will lead to high import bills in the long run.
• Commodities like oilseed, pulses and fruits are expected to experience a supply and demand gap in the coming years.
• Therefore, there is a need to increase the level of production and productivity of oilseeds, pulses, and fruits since their demand in the future shows an increasing trend.
• Reason for rising demands:
  • As per capita incomes rise, the consumption basket of people tends to diversify towards nutritious and high-valued commodities, including fruits and vegetables and dairy products and away from staples such as rice and cereals.
  • So demand growth for non-cereals and high-valued commodities is expected to exceed the population growth rate and cereal commodities’ growth in coming years.
• Oil seeds production is expected to rise to around 35 to 40 million tonnes (MT) by 2030-31, with the gap between demand and supply likely to expand to 3 MT by 2025-26 and 6 MT by 2030-31, even if per capita incomes rise just 5.1%.

Report recommendations:

• There is a need for policy attention to ensure a balance between domestic production and the absorption of these commodities, diversification towards high-value commodities that require major investments in market infrastructure, processing, and cold storage and warehousing facilities to build an efficient and reliable value chain.
• Such measures can significantly reduce food wastage.

Source: The Hindu

7. Fresh China outbreak attributed to multiple known pathogens

Subject : Science and Tech

Section: Health

Context:

• China has set at rest fears surrounding its recent outbreak of a mysterious pneumonia-like illness and informed the World Health Organization (WHO) that there has been a general increase in respiratory illnesses due to multiple known pathogens in some parts of the country.

Details:

• As per the information provided by Chian, the causes of illness are Mycoplasma pneumoniae, respiratory syncytial virus (RSV), adenovirus and influenza virus.
• Surveillance data provided by the National Influenza Centre in China to the WHO’s FluNet revealed that influenza-like illnesses (ILI) exceeded usual levels for this time of the year and are increasing in the country’s northern provinces. The viruses identified commonly were of A (H3N2) and B/Victoria lineage.
• According to WHO’s risk assessment, there is not enough information available to characterise the overall rise in cases of respiratory illnesses seen in children.
• The WHO has recommended vaccines against influenza and maintaining appropriate social distancing from people who are ill, getting tested and medical care as needed, wearing masks as appropriate; ensuring good ventilation, and practising regular hand washing.

Source: Down To Earth

8. Sierra Leone

Subject: IR

Section: Places in news

Context: Sierra Leone’s president declared a nationwide curfew after gunmen attacked the military’s main and largest barracks

More about the news:

• Sierra Leone’s president imposed a nationwide curfew following a violent attack by gunmen on the capital’s main military barracks, leading to the overrun of detention centers, including a major prison holding over 2,000 inmates.
• The incident has heightened concerns about a potential breakdown of order in the region, which has witnessed a series of military coups in recent years.

Some facts about Sierra Leone

• Sierra Leone, officially the Republic of Sierra Leone, is a country on the southwest coast of West Africa.
• The country is bordered by Guinea to the north and east, Liberia to the southeast, and the Atlantic Ocean to the west and southwest
• The country’s capital, Freetown, was founded as a settlement for freed slaves in the late 18th century.
• Temne and Mende are the largest ethnic group of Sierra Leone.
•  The country is rich in natural resources, especially diamond, gold, bauxite and aluminum.
• Sierra Leone has one of the world’s largest deposits of rutile, a titanium ore used as paint pigment and welding rod coatings.

9. Greek island of Lesbos

 Subject: IR

Section: Places in news

Context:4 Indians among 13 crew members missing after ship sinks off Greek island

More about the news:

• The cargo ship “Raptor” sank off the Greek island of Lesbos in stormy seas.
• The ship, en route to Istanbul from Alexandria, Egypt, with a cargo of 6,000 tons of salt, reported a mechanical problem before sending a distress signal and disappearing southwest of Lesbos.
• The crew of 14 included Egyptians, Indians, and Syrians.
• One crew member was found dead, one was rescued, and 12 remain missing.

Some facts about Lesbos:

• Lesbos, also known as Lesvos or Mitilini, is a Greek island located in the northeastern Aegean Sea.
• It is the third-largest island in Greece and the eighth-largest in the Mediterranean
• It is separated from Asia Minor by the narrow Mytilini Strait.
• On the southeastern coast is the island’s capital and largest city, Mytilene 

10. Free legal aid

Subject : Polity

Section: Judiciary

Context: Poor state of legal aid in India.

Constitutional Basis of Legal System:

• Article 39A of the Constitution of India provides that State shall secure that the operation of the legal system promotes justice on a basis of equal opportunity, and shall in particular, provide free legal aid, by suitable legislation or schemes or in any other way, to ensure that opportunities for securing justice are not denied to any citizen by reason of economic or other disability.
• Articles 14 and 22(1) also make it obligatory for the State to ensure equality before law and a legal system which promotes justice on a basis of equal opportunity to all.
• Legal aid strives to ensure that constitutional pledge is fulfilled in its letter and spirit and equal justice is made available to the poor, downtrodden and weaker sections of the Society.
• 1987, the Legal Services Authorities Act was enacted by the Parliament which came into force on 9th November, 1995 to establish a nationwide uniform network for providing free and competent legal services to the weaker sections of the society on the basis of equal opportunity. The National Legal Services Authority (NALSA) has been constituted under the Legal Services Authorities Act, 1987 to monitor and evaluate implementation of legal aid programmes and to lay down policies and principles for making legal services available under the Act.
• In every State, a State Legal Services Authority and in every High Court, a High Court Legal Services Committee have been constituted. District Legal Services Authorities, Taluk Legal Services Committees have been constituted in the Districts and most of the Taluks to give effect to the policies and directions of the NALSA and to provide free legal services to the people and conduct Lok Adalats in the State.
• Supreme Court Legal Services Committee has been constituted to administer and implement the legal services programme insofar as it relates to the Supreme Court of India.

NALSA

• It has been constituted under the Legal Services Authorities Act, 1987, to provide free legal services to weaker sections of society.
• It aims to ensure that opportunities for securing justice are not denied to any citizen by reasons of economic or other disabilities. The ‘Nyaya Deep’ is the official newsletter of NALSA.
• It has also been providing assistance to prisoners who were eligible to be released on parole or interim bail under the relaxed norms, through its panel lawyers.

Composition of NALSA:

• The Chief Justice of India shall be the Patron-in-Chief, as per section 3(2) of Legal Service Authorities Act.
• The Second senior-most judge of Supreme Court of India is the Executive-Chairman.

Functions performed by NALSA:

• It organize Lok Adalat for amicable settlement of disputes.
• It Identify specific categories of the marginalised and excluded groups and formulates various schemes for the implementation of preventive and strategic legal service programmes.
• It provides free legal aid in civil and criminal matters for the poor and marginalised people who cannot afford the services of a lawyer in any court or tribunal.

 State Legal Services Authorities:

• It has been constituted to give effect to the policies and directions of the NALSA and to give free legal services to the people and conduct LokAdalat in the State.
• It is headed by Hon’ble the Chief Justice of the respective High Court who is the Patron-in-Chief of the State Legal Services Authority.

District Legal Services Authority:

• It has been constituted to implement Legal Services Programmes in the District.
• It is situated in the District Courts Complex in every District and chaired by the District Judge of the Respective District.

Other provisions for alternate justice:

• The amendments to the Commercial Courts Act now mandates pre institutional mediation. India passed the Mediation Act, 2023 to improve mediation institutions and reduce judicial workload.
• Other issues facing the legal aid system include rising criminal cases and police station bail restrictions. Even
• though Section 320(1) of the Code of Criminal Procedure allows compounding (conversion into penalties) without court permission, our police officers are taught to register cases that do not fit under this provision, avoiding station level compounding. Even the recently passed Mediation Act, 2023 ignores this. It could have permitted mediated settlement in cases falling under Section 320(1) of CrPC.

11. What are the Good Manufacturing Practices (GMP) for Pharma Companies?

Subject : Science and Tech

Section: Health

Context: In the last 10 days, two Indian companies have come in for serious observations from the US Food and Drug Administration (FDA) on their non-adherence to current Good Manufacturing Practices(cGMP).

Good Manufacturing Practices

Good Manufacturing Practices (GMP, also referred to as ‘cGMP’ or ‘current Good Manufacturing Practice’) is the aspect of quality assurance that ensures that medicinal products are consistently produced and controlled to the quality standards appropriate to their intended use and as required by the product specification.

GMP defines quality measures for both production and quality control and defines general measures to ensure that processes necessary for production and testing are clearly defined, validated, reviewed, and documented, and that the personnel, premises and materials are suitable for the production of pharmaceuticals and biologicals including vaccines. GMP also has legal components, covering responsibilities for distribution, contract manufacturing and testing, and responses to product defects and complaints. Specific GMP requirements relevant to classes of products such as sterile pharmaceuticals or biological medicinal products are provided in a series of annexes to the general GMP requirements.

GMP guidance

The first WHO draft text on GMP was adopted in 1968. In 1969, when the World Health Assembly recommended the first version of the WHO Certification Scheme on the quality of pharmaceutical products moving in the global market, it accepted the WHO GMP as an integral part of the Scheme. A supplementary annex on biological medicinal products was adopted by the Expert Committee on Biological Standardization (ECBS) in 1991 and establishes the general approach to the quality control of biological medicines that include products such as vaccines, blood and blood products, antigens, cell and tissue therapies, biopharmaceutical products, and others.

More than 100 countries have incorporated the WHO GMP provisions into their national medicines laws, and many more countries have adopted its provisions and approach in defining their own national GMP requirements. The WHO GMP continues to be used as a basis for the WHO Certification Scheme and prequalification of vaccines for procurement by UN agencies.

INDIA and cGMP

The Central government is looking to tighten norms through the revised cGMP norms or (Schedule M). In August, the Health Ministry gave large companies six months to implement the norms, while small and medium sized companies were given 12 months.

The present Schedule M norms for manufacturing are stringent, and sometimes all that’s needed is technical hand-holding by regulators, or financial help to upgrade systems and documentation.

Schedule M norms:  It is good manufacturing practice norm.

12. Overview of the issues raised on Agriculture at WTO Meeting

Subject : Economy

Section: External sector

1. The three-day WTO Committee on Agriculture (CoA) meeting is set to begin.
2. Key Focus Areas for India:
   • Clarifications on the WTO-compatibility of the five-year extension for the PM Garib Kalyan Ann Yojna (PMGKAY) or the free foodgrains scheme.
   • Detailed information on the reasons behind the ban on the export of non-basmati rice.
3. Countries Submitting Questions:
   • The US, EU, Canada, Australia, Switzerland, and New Zealand have submitted questions.
   • The questions primarily relate to India’s Minimum Support Price (MSP) commitments and export restrictions.
4. Canada’s Inquiries:
   • Canada seeks information on whether procurement under the extended PMGKAY will be done at administered prices instead of the current market price.
   • Inquiry about India’s consideration of the impact of this approach on its WTO domestic support commitments.
5. ‘Peace Clause’ and Subsidy Limits:
   • The ‘peace clause’ allows developing countries to breach the 10% subsidy limit under specific conditions.
   • India has invoked the ‘peace clause’ for breaching the subsidy limit on rice.
6. Export Ban on Non-Basmati Rice:
   • Questions on the basis for imposing an export ban on non-basmati rice.
   • Concerns raised about the adequate availability of non-basmati rice.
7. Granting Export Quotas:
   • Questions about India’s decision to grant export quotas for non-basmati rice to certain countries after the export ban.
8. Expiry Dates for Farm-Related Measures:
   • Many countries demand that India should provide expiry dates for its farm-related products.
9. Expected Discussions:
   • Discussions will likely focus on India’s agricultural policies and their compliance with WTO rules.
   • Emphasis on subsidies and export restrictions in the agricultural sector.

Agreement on Agriculture (AoA) in WTO:

1. Introduction:
   • The AoA is a WTO treaty negotiated during the Uruguay Round of GATT in 1994 and ratified in Marrakesh, Morocco.
   • Came into effect in 1995 with reduction commitments for both developing and developed countries.
2. Scope and Exclusions:
   • Covers agricultural products but excludes forestry, fishery, rubber, sisal, jute, coir, and abaca.
   • Least Developed Countries (LDCs) were exempt from reduction commitments.
3. Market Access:
   • Tariffication:
     • Abolishment of non-tariff barriers, converted to tariffs.
   • Tariff Reduction:
     • Developing countries obliged to reduce tariffs by 24% in 10 years.
     • Minimum access opportunities established, starting at 3% of domestic consumption in 1986-88, rising to 5% by 1995.

4. Export Subsidies:
   • Reduction Mandate:
     • Developed countries to reduce export subsidy volume by 21% and expenditure by 36% in 6 years.
     • Developing countries to reduce volume by 14% and expenditure by 24% over ten years.

5. Domestic Support:
   • Reduction Requirements:
     • Reduction in domestic subsidies distorting free trade and fair prices.
     • Developed countries to reduce Aggregate Measurement of Support (AMS) by 20% in 6 years; developing countries by 13% in 10 years.
   • Trade Distorting (Amber Box):
     • Reduction of total AMS, with policies below 5% for developed, and 10% for developing countries excluded.
   • Non-Trade Distorting (Green Box):
     • Excludes assistance from reduction commitments, includes environmental programs.
     • Government-funded, unrelated to current production or prices, and covers diverse areas like research and rural infrastructure.

Blue Box:

• “Amber Box with Conditions” to reduce distortion, includes direct payments with an upper limit.
• Special and Differential Box:
  • Allows developing countries to implement measures subject to reduction, such as investment and input subsidies.
• Peace Clause:
  • Legally protects countries from disputes regarding food security programs even if subsidy limits are breached.
  • Protects India’s food procurement programs against WTO actions for breaching the subsidy ceilings.

WTO and Subsidies:

1. WTO’s “Box” Classification:
   • Subsidies are categorized into boxes with colors resembling traffic lights: green (permitted), amber (need reduction), and blue (exemption).
   • Agriculture Agreement lacks a red box but prohibits domestic support exceeding reduction commitment levels in the amber box. The blue box is for subsidies tied to production-limiting programs.
2. Types of Subsidies in AoA:
   • Green Box:
     • Non-distorting or minimally distorting subsidies.
     • Not restricted by the trade agreement as they are considered non-trade-distorting.
     • Must be government-funded, not involving price support, and not directed at specific products.
   • Amber Box:
     • Domestic support measures distorting production and trade.
     • 30 WTO members commit to reducing trade-distorting supports in this box.
     • Others must maintain supports within five to ten percent of the value of production.
   • Blue Box:
     • Includes support payments exempt from amber box reduction.
     • Direct payments under production-limiting programs.
     • Payments linked to fixed areas, yields, or livestock numbers, with limitations on production.

Peace Clause, Public Stockholding (PSH) for Food Security Purposes, and Special Safeguard Mechanism (SSM):

1. Peace Clause:

The Peace Clause is an agreement reached at the World Trade Organization’s (WTO) Bali Ministerial meeting in December 2013.

It provides developing countries with certain flexibilities, allowing them to exceed subsidy limits on food crops, specifically addressing concerns related to Public Stockholding (PSH) for food security.

A provision in WTO agreements that protects a member country’s domestic support measures from legal challenges even if they exceed agreed-upon limits.

Purpose: Allows developing countries to exceed subsidy limits temporarily without facing disputes, particularly concerning food security programs.

Conditions: Includes conditions related to notifications, data submission, and protecting the food security of other countries.

2. Public Stockholding (PSH) for Food Security Purposes:

Refers to government holding and maintaining stocks of essential food commodities to ensure food security for the population.

Addressed under the WTO Agreement on Agriculture (AoA).

Challenges: Developing countries faced demands for more data and proof to establish that subsidized stocks were not being dumped in the global market.

Peace Clause: Invoked under the peace clause to exceed the 10% subsidy limit on rice.

3. Special Safeguard Mechanism (SSM):

A mechanism that allows developing countries to impose additional tariffs on agricultural products in the face of import surges or price declines, providing a safeguard against sudden import increases.

Part of the AoA to protect developing countries’ agricultural sectors.

Typically triggered by specified import quantity or price thresholds.

Helps developing countries protect domestic farmers from import surges that could harm local production and food security.

Developing countries often advocate for strengthening the SSM to enhance their ability to respond to import disruptions.

G33:

The G33 is a coalition of developing countries within the World Trade Organization (WTO) that focuses on issues related to agriculture.

It includes countries from Asia, Africa, the Caribbean, and Latin America.

The primary objective of the G33 is to address the concerns of developing countries regarding agriculture, particularly issues related to food security and rural livelihoods.

Focus Areas:

• Special Products (SP): The G33 advocates for the designation of certain agricultural products as “Special Products,” allowing developing countries to maintain higher levels of support for these products without facing challenges under WTO rules.
• Special Safeguard Mechanism (SSM): Members of the G33 often support the enhancement of the Special Safeguard Mechanism, which allows developing countries to impose additional tariffs on agricultural products to safeguard against import surges or price declines.
• Public Stockholding (PSH): G33 members emphasize the importance of public stockholding for food security purposes and seek flexibility in implementing such programs without facing disputes.

Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY):

1. Objective:
   • Scheme is a part of Atmanirbhar Bharat, PM-GKAY aims to provide free food grains to migrants and the poor.
2. Overview:
   • World’s largest food security scheme designed to ensure sufficient food during the COVID-19 crisis.
   • Announced as part of the initial relief package in response to the pandemic.
3. Beneficiaries:
   • Targets beneficiaries under the public distribution system (TPDS), including Antyodaya Anna Yojana (AAY) and Priority Household (PHH) ration cardholders.
   • Eligible beneficiaries receive 5kg of food grains and 1 kg of Gram per month.
4. Eligibility Criteria:
   • AAY Category:
     • Identified by States/UTs based on criteria prescribed by the Central Government.
     • Includes households headed by widows, terminally ill persons, disabled persons, or individuals aged 60 years or more with no assured means of subsistence or societal support.
     • Also covers widows, terminally ill persons, disabled persons, individuals aged 60 years or more, single women or men with no family or societal support, and all primitive tribal households.
   • PHH Category:
     • Identified by State Governments/Union Territory Administrations based on their criteria.
     • Encompasses landless agriculture laborers, marginal farmers, rural artisans / craftsmen, slum dwellers, and those earning livelihoods in the informal sector.
     • Includes eligible Below Poverty Line families of HIV positive persons.

13. Overview of Supplementary Demands for Grants (SDG)

Subject : Polity

Section: Parliament

1. Likely Allocations:
   • Additional allocation for fertilizer, food, fuel subsidy, and Rural Employment Guarantee Scheme expected in SDG.
   • Winter Session of Parliament (starting December 4) to witness SDG presentation.
2. Funding Sources:
   • Some funds allocated for subsidy and rural employment through the contingency fund, subject to parliamentary regularization.
   • Anticipation of additional allocation through SDG, but not a significant fresh cash outflow expected.
3. Increase in Expenses:
   • FY 24 Budget size exceeds ₹45 lakh crore, with over 47% spent in April-September.
   • Significant increase in capital expenditure; revenue expenditure on Fertilizer Subsidy and Urea Subsidy already high.
   • Cabinet approved over ₹22,000 crore additional expenditure, likely provisioned through SDG.
4. Potential Areas for Additional Allocation:
   • Petroleum subsidy may exceed budgeted ₹2,257 crore due to additional Ujjwala LPG scheme connections and increased subsidy for Ujjawala customers.
   • Demand for assistance from oil marketing companies facing a ₹200 price cut on each domestic LPG cylinder.
   • Possible allocation for the free food grains scheme.
   • Expected need for more funds for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).

Supplementary Demands for Grants: Overview

1. Definition:
   • Supplementary Demands for Grants are necessary for government expenditure beyond the amount approved during the Budget session.

2.   Constitutional Provisions:

• Article 115:
  • Pertains to supplementary, additional, or excess grants.
• Article 116:
  • Pertains to Votes on Account, Votes of Credit, and exceptional grants.
• Articles 115 and 116 cover Supplementary, Additional, or Excess Grants, and Votes on Account, Votes of Credit, and Exceptional Grants, respectively.

3. Procedure:
   • When approved grants fall short, an estimate for Supplementary or Additional grants is presented to and passed by Parliament before the fiscal year-end.
   • If actual expenditure exceeds approved grants, the Ministry of Finance presents a Demand for Excess Grant.
   • The Comptroller and Auditor General of India highlights excesses to Parliament.
   • The Public Accounts Committee reviews excesses and provides recommendations.
   • Demand for Excess Grants is presented after the fiscal year-end.

Other Types of Grants:

• Additional Grant:
  • Granted for additional expenditure on a new service not in the budget for the current fiscal year.
• Excess Grant:
  • Granted when spending on any service exceeds the allocated budget amount.
  • Voted by Lok Sabha after the fiscal year, following approval by the Public Accounts Committee.
• Vote of Credit:
  • Granted to meet an unexpected demand on India’s resources with no specific details.
  • Functions like a blank cheque given by Lok Sabha to the Executive.
• Exceptional Grant:
  • Granted for a special purpose unrelated to the current service of any fiscal year.
• Token Grant:
  • Granted when funds for new service expenditure can be made available by reappropriation.
  • A token sum (Re 1) demand is submitted to Lok Sabha; if approved, funds become available.
  • Reappropriation involves transferring funds between budget heads without additional expenditure.

Nutrient-Based Fertilizer Subsidy:

• A subsidy provided for fertilizers based on their nutrient content rather than a flat subsidy for all fertilizers.
• Intended to promote balanced use of fertilizers and improve soil fertility.
• Implementation:
  • The subsidy is calculated based on the nutrient content of the fertilizers, such as nitrogen, phosphorus, and potassium.
  • Farmers receive subsidies to make fertilizers more affordable and encourage judicious use.

Urea Subsidy:

• Urea is a crucial nitrogenous fertilizer.
• Urea subsidy involves financial support to ensure its availability at an affordable price for farmers.
• Implementation:
  • The government provides a subsidy to fertilizer manufacturers, making urea accessible to farmers at lower prices.
  • Aims to support agricultural productivity and address farmers’ concerns about fertilizer costs.

Mahatma Gandhi National Rural Employment Guarantee Act (NREGA):

• Objective:
  • Guaranteeing at least 100 days of wage employment in rural areas to every household whose adult members volunteer to do unskilled manual work.
• Implementation:
  • Provides a social safety net by ensuring livelihood security.
  • Focuses on sustainable development through the creation of productive assets in rural areas.

Ujjwala LPG Scheme:

• Objective:
  • To provide clean cooking fuel (LPG) to women from Below Poverty Line (BPL) households.
• Implementation:
  • Subsidized LPG connections are provided to eligible BPL women.
  • Aims to reduce indoor air pollution, health risks, and time spent on collecting traditional fuels.