Daily Prelims Notes 6 January 2024

January 6, 2024
Posted by: OptimizeIAS Team
Category: DPN

Daily Prelims Notes

6 January 2024

Table Of Contents

1. After PM Modi’s visit, Lakshadweep remains top-searched keyword on Google for 2nd day in a row

Subject: Geography

Section: Mapping

Context: Lakshadweep, the Union Territory, became the most searched keyword on Google after Prime Minister Narendra Modi shared photos of the archipelago.

More on news:

The Prime Minister inaugurated the Kochi-Lakshadweep Islands Submarine Optical Fiber Connection and laid the foundation stone for the renovation of primary healthcare facilities and five model Anganwadi centers.
Similar to ‘Make in India’, a new movement known as ‘Wed in India‘ should begin to encourage young citizens to get married within India, while highlighting the country’s strength and abilities.
The Prime Minister’s push for Lakshadweep as an island destination among travelers could also be seen as a counter to India’s neighbor the Maldives – which is a popular beach destination among Indians.

About Lakshadweep:

India’s smallest Union Territory Lakshadweep is an archipelago consisting of 36 islands .
Capital: Kavaratti
It is a uni-district Union Territory and comprises 12 atolls, three reefs, five submerged banks.

Geography

It comprises ten inhabited islands, 17 uninhabited islands attached islets, four newly formed islets and 5 submerged reefs.
The inhabited islands are Kavaratti, Agatti, Amini, Kadmat, Kiltan, Chetlat, Bitra, Andrott, Kalpeni and Minicoy.
Amindivi Islands is the northernmost island, on the other hand Minicoy Islands is the southernmost island.
Andrott is the nearest island to the mainland and has an east-west orientation unlike other islands lying in the north-south direction. It is the Largest Island in the Lakshadweep.
The Eight Degree Channel separates the islands of Minicoy and Maldives.
The Nine Degree Channel separates the island of Minicoy from the main Lakshadweep archipelago

Demography

Malayalam is spoken in all the islands except Minicoy where people speak Mahl which is written in Dhivehi script and is spoken in Maldives also.
More than 93% of the population who are indigenous, are Muslims and majority of them belong to the Shafi School of the Sunni Sect.
The entire indigenous population has been classified as Scheduled Tribes because of their economic and social backwardness.
There are no Scheduled Castes in this Union Territory.

Flora and Fauna

Coconut, Thenga is the only crop of economic importance in Lakshadweep.
Two different varieties of sea grass are seen adjacent to the beaches are known as Thalassia hemprichin and Cymodocea isoetifolium. They prevent sea erosion and movement of the beach sediments.
Oceanic birds generally found in Lakshadweep are Tharathasi and Karifetu, generally found in one of the uninhabited islands known as PITTI. This island has been declared as a bird sanctuary.
The money cowrie is also found in abundance in the shallow lagoons and reefs of the islands.
Colorful coral fish such as parrot fish, Butterfly fish (Chaetodon auriga), Surgeonfish are also found in abundance.

History:

The Union Territory was formed in 1956 and it was named Lakshadweep in 1973.

Art and Culture:

Kolkali and Parichakali are the two popular folk art forms in the Territory. They are an integral part of the cultural milieu except in Minicoy where “LAVA” is the most popular dance form.
For marriages “OPPANA” is a common feature, a song sung by a lead singer and followed by a group of women.

2. ISRO successfully tests Polymer Electrolyte Membrane Fuel Cell on PSLV-C58’s orbital platform POEM3

Subject: Science and Tech

Section: Space tech

Context:

India’s space agency, the Indian Space Research Organisation (ISRO) has celebrated a significant achievement of a successful flight test of a fuel cell intended for space use.

More on news:

The Vikram Sarabhai Space Centre/ISRO conducted this test of assessing a 100 W class Polymer Electrolyte Membrane Fuel Cell based Power System (FCPS) within its orbital platform POEM3.
Throughout the test duration, an impressive 180 W of power was generated from Hydrogen and Oxygen gasses stored in high-pressure vessels.

Objective of the Experiment:

The objective is to assess Polymer Electrolyte Membrane Fuel cell operation in space and to collect data to facilitate the design of systems for future missions.

Hydrogen fuel cell:

Hydrogen fuel cells function by directly converting Hydrogen and Oxygen gasses into electricity, water, and heat, employing electrochemical principles.
The capacity to generate electricity directly from fuels without intermediate steps, these fuel cells boast exceptional efficiency.
Their emission-free nature, producing only water as a byproduct, positions them as ideal candidates for human-involved space missions, meeting critical requirements like electric power, water, and heat through a single system.
It is considered an optimal solution to replace current vehicle engines and power standby systems.
These cells boast equivalent range and fuel recharge times compared to conventional engines, offering a substantial advantage over batteries while promoting emission-free transportation.

Polymer Electrolyte Membrane Fuel Cell:

Proton-exchange membrane fuel cells (PEMFC) are known as polymer electrolyte membrane (PEM) fuel cells.
PEMFCs generate electricity and operate on the opposite principle to PEM electrolysis, which consumes electricity.
They use a proton-conducting polymer membrane as the electrolyte.
Hydrogen is typically used as the fuel.
It is a type of fuel cell being developed mainly for transport applications, as well as for stationary fuel-cell applications and portable fuel-cell applications.

About POEM:

The PSLV Orbital Experimental Module(POEM) is a platform that will help perform in-orbit experiments using the final, and otherwise discarded, stage of ISRO’s Polar Satellite Launch Vehicle (PSLV).

The PSLV is a four-stage rocket where the first three spent stages fall back into the ocean, and the final stage (PS4) after launching the satellite into orbit ends up as space junk.

POEM has a dedicated Navigation Guidance and Control (NGC) system for attitude stabilization, which stands for controlling the orientation of any aerospace vehicle within permitted limits.

POEM will derive its power from solar panels mounted around the PS4 tank, and a Li-Ion battery.

3. “Panchayat se Parliament tak”

Subject: Schemes

Section: Vulnerable section

Context: The Parliament on Friday hosted a programme named ‘Panchayat Se Parliament Tak’ for over 500 women representatives of diverse backgrounds from Panchayats and urban local bodies.

More on news: ‘Panchayat Se Parliament Tak’ is aimed at empowering and supporting women grassroots leaders.

Lok Sabha Speaker Om Birla inaugurated the programme in the Central Hall of Samvidhan Sadan.
Reference was made to the Nari Shakti Vandan Act ,which was passed by the government in the very first session of the new building of Parliament.
The Nari Shakti Vandan Act (One Hundred and Sixth Amendment) Act, 2023 is aimed at giving one-third reservation to women in Lok Sabha and State/Union Territory Legislatures to enable greater participation of women as public representatives in policy making at the National and State levels.
The purpose of this Act is to reserve one-third of the total seats in the Lok Sabha and State Legislatures for women

Panchayat Se Parliament Tak:

This awareness programme was organized by the Institute of Constitutional Parliamentary Studies (ICPS) in coordination with the National Commission for Women.
The initiative is aimed at making panchayats as agents of change at the village level.
This will help in achieving self-reliant villages and in turn accelerated economic development leading to the path of Viksit Bharat.
A strong panchayat is necessary to build a self-reliant village to strengthen the foundation of our

About Institute of Constitutional and Parliamentary Studies:

Institute of Constitutional and Parliamentary Studies is a premier research institute.
It is headed by the Speaker of Lok Sabha who is ex-officio President of the Institute.
The Institute was formally inaugurated on 10 December 1965 by the then President of India and Chief Patron of the Institute Dr. S. Radhakrishnan in the Central Hall of Parliament House, New Delhi.
The Institute was created with the objective of organizing academic, research and training programmes in the fields of constitutional and parliamentary studies

4. Discovery of palaeolithic tools adds to the understanding of human settlements

Subject: History

Section: Ancient

Context:

Recent floods in Mulugu district, Telangana. Palaeolithic quartzite tools were found in a dried-up stream post-flood.

Discovery Details:

Found between Gurrevula and Bhupatipuram villages in the Mulugu district.
These were identified based on chipping style, material, and size.
Stone axe dimensions: 15.5cm x 11cm x 5.5cm.
Discovered by researcher Eleswaram Janardanachari.
Belongs to the Lower Palaeolithic period, about 3 million years old.
Tools were likely used for woodcutting and hunting by early humans.
Significance:
- Adds to understanding human habitations in Telangana and central India.
- The Chennai discovery is linked to early human culture and tools.
- The discoveries led to identifying the Madras Hand-Axe Industry or Madrasian Culture.
Similar Discoveries:
- Tools similar to those found worldwide from the Palaeolithic era.
- In 1863, a similar site near Chennai revealed tools dating back 1.5 million years.

Palaeolithic Age:

Lasted for about 10,000 years, dating back around 3.3 million years BC.
Divided among- The Lower Palaeolithic Age, Middle Palaeolithic Age and Upper Palaeolithic Age.

Lower Palaeolithic Age (between 600,000 and 150,000 BC):

The Lower Palaeolithic or the Early Old Stone Age covers the greater part of the ice age.
It may have begun in Africa around two million years ago, but in India, it is not older than 600,000 years. This date is given to Bori in Maharashtra, and this site is considered to be the earliest Lower Palaeolithic site.
This age consists of two principal tool-making or cultural traditions:
- The Soanian tradition forms part of the East and Southeast Asian chopper chopping tool tradition, and
- The Handaxe-cleaver or biface assemblages constituting the Acheulian tradition, which is widely known from the western half of the Old World (Africa, Western Europe, West and South Asia)
People used hand axes, cleavers, and choppers. The axes found in India are more or less similar to those of western Asia, Europe, and Africa. Stone tools were used largely for chopping, digging, and skinning.
Early Old Stone Age sites have been found in the valley of river Son or Sohan in Punjab, now in Pakistan.
Several sites have been found in Kashmir and the Thar desert.
Lower Palaeolithic tools have also been found in the Belan Valley in UP and the desert area of Didwana in Rajasthan.
Nagarjunakonda in Andhra Pradesh is an important site, and the caves and rock shelters of Bhimbetka near Bhopal also show features of the Lower Palaeolithic age.
- The rock shelters may have served as seasonal camps for human beings.
The people of the Lower Stone Age seem to have principally been food gatherers. They took to small game hunting and lived also on fish and birds.

Middle Paleolithic Age (between 150,000 and 35,000 BC):

The Middle Palaeolithic industries were largely based upon flakes or small pieces of stone which have been found in different parts of India with regional variations.
This culture consists of a variety of tools made from flakes, and these flakes are produced by specialized techniques. Therefore, it is widely referred to as the flake tool industry.
The artefacts of this age are found at several places on the river Narmada, and also at several places, south of the Tungabhadra river.
The Belan Valley (UP), which lies at the foothills of the Vindhyas, is rich in stone tools and animal fossils including cattle and deer. These remains relate to both the Lower and Middle Stone Ages.

Upper Paleolithic Age (between 35,000 and 10,000 BC):

This age, in the world context, marks the appearance of new flint industries and men of the modern type.
The Upper Palaeolithic is marked by technological advances in stone tool manufacture by the production of parallel-sided blades which are finished into a variety of tools by blunting one side or by backing.
In India, we notice the use of blades and burins, which have been found in AP, Karnataka, Maharashtra, central MP, southern UP, Jharkhand and adjoining areas.
Caves and rock shelters for use by human beings in the Upper Palaeolithic phase have been discovered at Bhimbetka
An Upper Palaeolithic assemblage, characterized by comparatively large flakes, blades, burins, and scrapers has also been found in the upper levels of the Gujarat sand dunes.

Source: The Hindu

5. Cabinet gives nod to ‘Prithvi’ programme for earth observation

Subject: Science and Tech

Section: Schemes

In the news:

The Union Cabinet cleared a ₹4,797-crore programme called ‘Prithvi’ (Earth) that is expected to subsume five existing schemes of the Ministry of Earth Sciences (MoES).
Cabinet approval for an agreement between the Indian Space Research Organisation and the Mauritius Research and Innovation Council to jointly develop a “small satellite.”

PRITHvi VIgyan (PRITHVI) Program Objectives:

Enhance long-term observations of various Earth components (atmosphere, ocean, geosphere, etc.) to monitor planetary changes.
Develop models for weather prediction, understanding climate hazards, and studying climate change.
Explore polar and high-seas regions to uncover new phenomena and resources.
Create technology for sustainable exploration and utilization of oceanic resources for societal needs.
Apply insights from Earth system science to benefit society, the environment, and the economy.

Deep Ocean Mission (DOM):

Launched by MoES, focusing on various activities including sending a manned submersible 6,000 meters into the Indian Ocean.
Part of the broader Prithvi programme, integrating major activities of the Ministry.
Approved by the Cabinet in 2021 with an allocation of ₹4,000 crore for five years.

Ministry’s Activities:

The research and development and operational (services) activities of the Ministry are carried out by its 10 institutes.
They are the India Meteorological Department, the National Centre for Medium-Range Weather Forecasting, the Centre for Marine Living Resources and Ecology, the National Centre for Coastal Research, the National Centre for Seismology, the National Institute of Ocean Technology, the Indian National Centre for Ocean Information Service, the National Centre for Polar and Ocean Research, the Indian Institute of Tropical Meteorology, and the National Centre for Earth Science Studies.
Supported by a fleet of research vessels for required research.

Source: The Hindu

6. ‘India’s oldest’ sloth bear in captivity dies in Bhopal zoo

Subject: Environment

Section: Species in news

In the news:

A 36-year-old male sloth bear died due to multi-organ failure at a zoo-cum-animal rescue centre in Bhopal.
The bear, named Bablu, was the oldest one in captivity in the country and died at the Van Vihar National Park.

Sloth Bears:

It is a Myrmecophagous bear species.
Distribution:
- They are endemic to the Indian sub-continent and 90% of the species population is found in India with small populations in Nepal and Srilanka.
- It occurs in a wide range of habitats including moist and dry tropical forests, savannahs, scrublands and grasslands below 1,500 m (4,900 ft) on the Indian subcontinent, and below 300 m (980 ft) in Sri Lanka’s dry forests. It is regionally extinct in Bangladesh.
- Sloth bears are found in all parts of the country except Jammu and Kashmir and northeastern States.
Characteristics:
- They are nocturnal animals.
- It feeds on fruits, ants and termites.
- Sloth bears do not hibernate.
Protection Status
- IUCN red list: listed as ‘vulnerable’
- Wildlife Protection Act of India, 1972: listed under Schedule I
Threats:
- Animal-Human conflict: Over the past few years there has been a rise of incidents of human sloth bear conflict in States like Gujarat, Rajasthan and Maharashtra among other states.
- Exploitation: Sometimes captured and kept as pets, which can lead to their exploitation and mistreatment.

Van Vihar National Park:

Located in Bhopal, Madhya Pradesh
It is situated right next to the famous Upper Lake of Bhopal also known as the “Bada Talab” which is a Ramsar Site and one of the two lakes of Bhoj Wetland.
Van Vihar is a part of the Upper Lake catchment area which checks siltation and contributes to pollution-free water in the lake, one of the major sources of water for the city.

Source: The Hindu

7. Indian Navy thwarts hijacking attempt in Arabian Sea

Subject: IR

Section: International Organisation

Context:

Indian warship INS Chennai and its marine commandos thwarted the attempted hijack of a Liberia-flagged merchant vessel ‘Lila Norfolk’.

About Maritime Piracy

As per the UN Convention on the Law of the Sea (UNCLOS), maritime piracy is when people on a private boat or ship commit crimes like kidnapping, violence, or robbery for personal gain.
UNCLOS is an international treaty which was adopted and signed in 1982 in Montego Bay, Jamaica.
It lays down a comprehensive regime of law and order in the world’s oceans and seas establishing rules governing all uses of the oceans and their resources.
This happens on the open sea and is targeted at another vessel or its people and property.

Various Steps taken by India

Operational steps
- The Indian government has deployed naval ships with armed helicopters to patrol the piracy prone areas.
- The Indian Navy commenced anti-piracy patrols in the Gulf of Aden from October 2008.
- In recent years, task Groups comprising destroyers and frigates have been deployed to undertake maritime security operations and render assistance to merchant vessels in case of any incident.
- Also, aerial surveillance by long-range maritime patrol aircraft and Unmanned Aerial Vehicles has been enhanced to have a complete maritime domain awareness.
- India participates in the various multilateral fora set up to combat piracy.
- The Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia (ReCAAP) is a government-to-government agreement that aims to enhance multilateral cooperation among 16 regional countries.
- The Regional Maritime Security Initiative (RMSI) is a partnership between regional nations with varying capabilities and capacities.
Institutions created by India
- The Navy’s Information Management and Analysis Centre (IMAC) and Information Fusion Centre for Indian Ocean Region (IFC-IOR) are institutions involved in maintaining maritime security.
- Besides, Indian Navy also coordinates with Coast Guard to maintain enhanced surveillance within the Exclusive Economic Zone (EEZ).
Legislative steps
- India enacted the Maritime Anti-Piracy Act, 2022 to give effect to arrest and prosecute pirates and strengthen the fight against piracy.
- Also, the government’s SAGAR (Security and Growth For All in the Region) Doctrine provides a framework for maritime co-operation in the Indian Ocean region.

Djibouti Code of Conduct:

It is also known as the Code of Conduct concerning the Repression of Piracy and Armed Robbery against Ships in the Western Indian Ocean and the Gulf of Aden.

It was adopted on 29th January 2009.

It was established under the International Maritime Organization (IMO).

Under the code, the signatories agreed to co-operate to the fullest possible extent in the repression of piracy and armed robbery against ships.

Jeddah Amendment: An amendment to DCOC was made in 2017 to cover other illicit maritime activities, including human trafficking and illegal, unreported and unregulated fishing and to build national and regional capacity to address wider maritime security issues, as a basis for sustainable development of the maritime sector.

Signatories: It has been signed by 20 countries including Djibouti, Ethiopia, Kenya, Madagascar, Maldives, Seychelles, Somalia, the United Republic of Tanzania, Yemen, Comoros, Egypt, Eritrea, Jordan, Mauritius, Mozambique, Oman, Saudi Arabia, South Africa, Sudan and the United Arab Emirates. The member states are located in areas adjoining the Red Sea, Gulf of Aden and the east coast of Africa and include island nations in the Indian Ocean.

Observers: India, Japan, Norway, the UK and the USA.

8. Why piracy off the Coast of Somalia

Subject: IR

Section: Places in news

Various factors have contributed to the rise of piracy off the Somali coast. These factors include: illegal fishing and dumping of toxic waste, existence of busy sea lanes high rewards and ineffective security structure, Eritrea’s hostile relationship with Ethiopia and instability within Somalia.

9. ‘Deep tech’ policy to be sent to Cabinet for approval, says scientific adviser

Subject: S&T

Section: Awareness in IT

Context:

The Indian government is set to approve a new ‘deep tech’ policy after public comments on the draft released in July 2023, the final version of the policy is ready for Cabinet approval.

Basics of ‘Deep Tech’

‘Deep tech’ refers to startups that develop intellectual property based on new scientific breakthroughs, aiming for significant impact. Ex. AI, ML, Blockchain, Quantum Computing etc.

Facts:

As per Startup India, there are 10,298 startups in various sub-sectors of deep tech as of May 2023.
India ranks third globally in the startup ecosystem, with over 3000 deep tech businesses.
These firms are expanding into areas like agriculture, life sciences, chemistry, aerospace, and green energy.

Draft National Deep Tech Startup Policy (NDTSP) 2023

Policy Goals:
- The NDTSP aims to address challenges in funding, talent acquisition, and scaling R&D operations for deep tech startups.
- The policy is designed to promote innovation, economic growth, and societal development in the deep tech sector.
Key Pillars:
- The policy focuses on securing India’s economic future, progressing towards a knowledge-driven economy, bolstering national capability, and encouraging ethical innovation.
Public Consultation:
- The draft policy was open for public feedback until September 15, after consultations with stakeholders in the deep tech ecosystem.
Funding and Innovation:
- The policy proposes financial support through grants, loans, and venture capital, along with regulatory simplifications and academia-industry collaboration.
Talent Development:
- Emphasis on STEM education, training opportunities, and attracting international talent.
Infrastructure and Technology Access:
- Establishment of deep tech incubation centers, testing facilities, and shared infrastructure resources.
Public Procurement and Market Opportunities:
- Encouraging government agencies to adopt deep tech solutions and facilitating international market access.
Intellectual Property Protection:
- Establishing a uniform IP framework and implementing cybersecurity measures.

10. Antimicrobial resistance: Health issue that will negate advances in medicine

Subject: Science and Tech

Section: Health

About Anti-microbial resistance

Antimicrobial resistance (AMR) threatens the effective prevention and treatment of an ever-increasing range of infections caused by bacteria, parasites, viruses and fungi.
AMR occurs when bacteria, viruses, fungi and parasites change over time and no longer respond to medicines making infections harder to treat and increasing the risk of disease spread, severe illness and death.
As a result, the medicines become ineffective and infections persist in the body, increasing the risk of spread to others.
Antimicrobials – including antibiotics, antivirals, antifungals and antiparasitics – are medicines used to prevent and treat infections in humans, animals and plants. Microorganisms that develop antimicrobial resistance are sometimes referred to as “superbugs”.

Multicentric Point Prevalence Survey of Antibiotic Use

The ‘First Multicentric Point Prevalence Survey of Antibiotic Use at 20 NAC-NET Sites India 2021-22’ conducted by the National Centre for Disease Control under the Health Ministry has thrown up startling statistics, but more importantly, examining the minutiae italicises key issues that have been flagged by experts for years now.
Over 70% of the patients in tertiary-care hospitals across 15 States and two Union Territories were prescribed antibiotics; over 50% of antibiotics prescribed have the potential to cause AMR.
But the most crucial reveal was that 55% of the patients surveyed were prescribed antibiotics as prophylaxis, or as a preventive; only 45% were prescribed antibiotics to actually treat infections; of this, only 6% were prescribed the drugs after identifying the specific bacteria.

Occurrence of AMR and causes

AMR occurs when pathogens evolve, fortifying themselves against drugs, and stop responding to antimicrobial drugs.
While it is the nature of pathogens to evolve, this ever-increasing crisis is constantly being exacerbated by unsound medical, and animal husbandry practices. It is precisely the sort of misuse and overuse of antimicrobials, as revealed by the survey, which cause the development of drug-resistant pathogens that in turn pose great risk to life and exacerbate morbidity.
The World Health Organization (WHO) estimates that bacterial AMR was directly responsible for 1.27 million global deaths in 2019 and contributed to 4.95 million deaths.

What are the Steps taken by the Government to address AMR?

National Action Plan (NAP) for AMR: In April 2017, India’s NAP for AMR was released by the Union Ministry of Health and Family Welfare. The objectives of the NAP include increasing awareness, strengthening surveillance, promoting research, and improving infection prevention and control.
Signing the Delhi Declaration on AMR: The Delhi Declaration on Antimicrobial Resistance (AMR) is an inter-ministerial consensus that was signed by the ministers of the concerned ministries in India.
Antibiotic Stewardship Program (AMSP): The Indian Council of Medical Research (ICMR) has initiated the AMSP on a pilot project basis in 20 tertiary care hospitals across India. The program aims to control the misuse and overuse of antibiotics in hospital wards and ICUs.
Ban on inappropriate fixed dose combinations (FDCs): On the recommendations of the ICMR, the Drug Controller General of India (DCGI) has banned 40 FDCs that were found to be inappropriate.
Ban on the use of Colistin as a growth promoter in animal feed: The ICMR, in collaboration with the Indian Council of Agriculture Research, Department of Animal Husbandry, Dairy and Fisheries, and the DCGI, has banned the use of Colistin as a growth promoter in animal feed in poultry.
One Health approach: The government is working on a One Health approach by encouraging interdisciplinary collaboration at the human-animal-environmental interface. The key priority areas include zoonotic diseases, food safety, and antibiotic resistance.
Integrated One Health Surveillance Network for AMR: The ICMR has undertaken a project on an “Integrated One Health Surveillance Network for Antimicrobial Resistance” in collaboration with the Indian Council of Agriculture Research to assess the preparedness of Indian Veterinary laboratories to participate in an integrated AMR surveillance network.

11. Key Points from the Agriculture and Commodity Summit 2024

Subject: Economy

Section: Indian Economy and National Income

Call for Increased Private Investments:

Urged a Fivefold increase in private investments in agriculture by 2030, targeting of 10%, current is 2%.
Emphasis on diversifying farmer income beyond traditional crops.

Focus on Industrial Needs:

Farmers encouraged to explore opportunities in meeting industrial needs such as ethanol production through crops like maize.
Maize identified as a future crop to meet ethanol industry demand and address climate change concerns.
Advocated for the democratization of credit and insurance in farming.

Impact of Formal Credit on Agri Contribution:

10% increase in formal credit could lead to a 1% increase in agricultural contribution to overall GDP.

Investment in Productivity-Enhancing Practices:

Stressed the importance of investing in productivity-enhancing agriculture practices using fertilizer, high-yielding seeds, and irrigation.
Emphasis on sustainable practices to ensure long-term food security.

Challenges Posed by Climate Change:

Lack of funds and the impact of climate change

Role of Women in Agriculture:

Calls for providing women farmers with access to technology and recognizing them as entrepreneurs.

Easing Access to Finance:

The fintech agriculture ecosystem expected to add $100 billion to India’s GDP in the next five years.
Experts urged the government to be realistic in distributing free food grains through the public distribution system.

Livestock Sector Potential:

Industry experts highlighted the potential of the dairy, poultry, and fisheries sectors to provide nutritional security to the malnourished at an affordable cost.

State of Agriculture in India: –

Pre-1991 (Before Liberalization):

Government Intervention:

The agricultural sector in India was characterized by significant government intervention. Policies such as land reforms, minimum support prices (MSP), and public distribution systems were prevalent.

Green Revolution:

The 1960s and 1970s saw the Green Revolution, introducing high-yielding varieties of seeds, fertilizers, and irrigation.
Increased production of wheat and rice, leading to food self-sufficiency.

Focus on Food Grains:

The emphasis was primarily on the production of staple food grains like rice and wheat.

Post-1991 (Liberalization Era):

Economic Reforms:

The liberalization policies of 1991 aimed at reducing government control and promoting market-oriented reforms.

Private Investments:

There was a shift towards encouraging private investments in agriculture.
Increased participation of private entities in the agribusiness sector.

Technology Adoption:

Adoption of modern farming practices, including the use of genetically modified (GM) crops.
Mechanization and technology-driven agriculture became more prevalent.

Diversification of Crops:

Farmers started diversifying into high-value cash crops, horticulture, and floriculture.
Increased focus on organic farming and sustainable practices.

FDI in Agriculture:

Foreign Direct Investment (FDI) policies were relaxed to attract foreign capital.
Joint ventures and collaborations with international agricultural firms increased.

Infrastructure Development:

Investments in rural infrastructure, including irrigation, storage facilities, and transportation networks.
Introduction of e-marketing platforms and digital technologies.

Government Initiatives:

Implementation of schemes like the National Mission on Sustainable Agriculture (NMSA) and Pradhan Mantri Krishi Sinchayee Yojana (PMKSY).
Efforts to provide better market access to farmers.

Challenges Persist:

Challenges such as small landholding sizes, lack of access to credit, and vulnerability to climate change persisted.
Issues related to minimum support prices (MSP) and market fluctuations

Post-2020 and COVID-19 Impact:

The agriculture sector gained importance during and after the COVID-19 pandemic.
Increased focus on self-sufficiency and local production.

Brief overview of key schemes under the Ministry of Agriculture in India:

Pradhan Mantri KISAN Samman Nidhi (PM-KISAN):

Aim: Income support of Rs. 6,000 per year to small and marginal farmers.
Direct cash transfer to the bank accounts of eligible farmers.

Pradhan Mantri Fasal Bima Yojana:

Crop insurance scheme to provide financial support to farmers in case of crop failure.
Covers all food crops, oilseeds, and horticultural crops.

Pradhan Mantri Krishi Sinchai Yojana:

Focus on improving water use efficiency through efficient irrigation practices.
Aims to achieve “Per Drop More Crop.”

Ayushman Sahakar Scheme:

Promotes healthcare services through cooperatives.
Aims to enhance the role of cooperatives in creating healthcare infrastructure.

E-NAM (National Agriculture Market):

An online trading platform for agricultural commodities.
Facilitates transparent and efficient online trading.

Pradhan Mantri Kisan Maan-Dhan Yojana (PM-KMY):

Pension scheme for small and marginal farmers.
Provides a fixed monthly pension after the age of 60.

Krishi Kalyan Abhiyan:

Outreach program to promote best agricultural practices.
Focus on improving farmers’ income and welfare.

Soil Health Cards (SHC) Scheme:

Provides information about soil nutrient status to farmers.
Aims to promote balanced and judicious use of fertilizers.

National Bamboo Mission:

Promotes the holistic development of the bamboo sector.
Focus on increasing the area under bamboo cultivation and value addition.

Green Revolution – Krishonnati Yojana:

Integrates various agricultural schemes to promote sustainable farming.
Aims to double farmers’ income by 2022.

Yuva Sahakar-Cooperative Enterprise Support and Innovation Scheme:

Encourages youth to take up cooperative ventures in agriculture.
Provides financial support and training.

Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA):

Aims to ensure remunerative prices to farmers for their produce.
Involves Price Support Schemes, Price Deficiency Payment Scheme, and Pilot of Private Procurement and Stockist Scheme.

Paramparagat Krishi Vikas Yojana:

Promotes organic farming and certification.
Aims to improve soil health and conserve natural resources.

National Food Security Mission:

Enhances food production and productivity.
Focus on increasing the production of rice, wheat, pulses, and coarse cereals.

Pandit Deen Dayal Upadhyay Unnat Krishi Shiksha Yojana (PDDUUKSY):

Promotes higher education in agriculture and allied sciences.

Rashtriya Gokul Mission:

Aims to conserve and develop indigenous cattle breeds.
Focus on enhancing milk productivity and promoting sustainable breeding.

CACP – Commission for Agricultural Costs and Prices:

The Commission for Agricultural Costs and Prices (CACP) is an attached office under the Ministry of Agriculture and Farmers Welfare. Established in 1965, its primary role is to recommend Minimum Support Prices (MSPs) for major agricultural crops to ensure a fair return to farmers for their produce.

Key Functions of CACP:

MSP Recommendations:
- CACP recommends MSPs for various crops based on factors such as the cost of production, market prices, and agricultural input prices. MSP is the minimum price at which the government procures crops from farmers.
Cost of Cultivation Studies:
- The commission conducts studies on the cost of cultivation of various crops, taking into account factors like input costs, labor, land, and other related expenses.
Price Policy Formulation:
- CACP formulates and recommends price policies that aim to promote agricultural production, encourage farmers to adopt modern technology, and ensure remunerative prices.
Market and Price Analysis:
- The commission analyzes market trends, price movements, and other relevant factors affecting agricultural commodities.
Interactions with Stakeholders:
- CACP engages with various stakeholders, including farmers, policymakers, and experts, to understand the challenges and dynamics of the agricultural sector.
Reports and Publications:
- CACP prepares reports and publications on agricultural price policies, cost of cultivation, and related topics. These documents serve as valuable resources for policymakers and researchers.

Minimum Support Price (MSP): MSP is the minimum price set by the government at which it procures crops from farmers to support their income. The objective is to provide farmers with a fair and remunerative price, ensuring stability in agricultural production.

12. SEBI Announces Disclosure Norms for Short Sale Transactions

Subject: Economy

Section: Capital Market

The Securities and Exchange Board of India (SEBI) has issued new guidelines pertaining to the disclosure of short-sale transactions by institutional and retail investors. The move comes in the wake of a Supreme Court directive to investigate alleged Adani Group stock manipulation.

Key Points:

Mandatory Disclosure:
- Institutional Investors: All institutional investors are required to disclose short sale transactions upfront at the time of placing orders.
- Retail Investors: Retail investors must make a similar disclosure by the end of the trading day.
Supreme Court Ruling:
- The SEBI’s decision is prompted by the Supreme Court’s order to investigate potential market manipulation related to short positions during the publication of the Hindenburg report on Adani Group stocks.
Transparency and Informed Decision-making:
- The move is expected to enhance transparency in the market and facilitate informed decision-making among market participants.
Aggregate Short Interest Display:
- Exchanges will display aggregate short interest data for each stock daily, providing visibility into short selling activity.
Process Details:
- Brokers are mandated to collect and upload scripwise short sell positions to exchanges before the next trading day.
- This process aims to increase visibility into short-selling activity, enabling better monitoring by regulators and contributing to more stable prices.
Introduction of Securities Lending and Borrowing (SLB) Scheme:
- SEBI plans to introduce a comprehensive SLB scheme concurrently with institutional investors engaging in short selling.
- The SLB scheme is intended to provide the necessary infrastructure to support short selling activities.

Short Selling:

Short selling is a trading strategy where an investor sells borrowed securities with the expectation that the price will decline. The investor intends to buy back the same securities later at a lower price, returning them to the lender and profiting from the price difference.

Example:

Borrowing Shares: An investor borrows 100 shares of Company X from a broker.
Selling Shares: The investor sells these borrowed shares in the market at the current market price.
Waiting for Price Decline: The investor anticipates that the stock price of Company X will decrease.
Buying Back Shares: If the stock price falls as expected, the investor buys back 100 shares at the lower price.
Returning Borrowed Shares: The investor returns the 100 shares to the broker, completing the short sale transaction.

Profit or Loss:

If the stock price falls, the investor makes a profit by buying back the shares at a lower price.
If the stock price rises, the investor incurs a loss as they need to buy back the shares at a higher price than they sold them.

Naked Short Selling:

Naked short selling occurs when an investor sells shares without actually borrowing them or ensuring that they can be borrowed. This practice is generally considered illegal or highly regulated in many markets due to its potential for market manipulation.

Example:

Selling Shares without Borrowing: An investor sells 100 shares of Company Y without actually borrowing them from a broker.
No Ownership or Borrowing Agreement: The investor doesn’t own the shares and hasn’t entered into any borrowing agreement.
Market Impact: This creates artificial selling pressure in the market, potentially influencing the stock’s price.
Buy-In Requirement: If the shares are not delivered by the settlement date, the broker may be forced to buy them in the open market to fulfill the delivery requirement.

Key Differences:

In short selling, shares are borrowed before selling, while in naked short selling, shares are sold without borrowing.
Short selling is a legitimate trading strategy, while naked short selling is often prohibited or strictly regulated to prevent market manipulation.

Securities Lending and Borrowing (SLB):

Securities Lending and Borrowing (SLB) is a financial arrangement where one party (the lender) temporarily lends securities to another party (the borrower) in exchange for a fee. This arrangement allows investors to earn additional income by lending their securities to those who need them, typically for short-selling purposes.

Lender and Borrower:
- Lender: The entity or investor who owns the securities and is willing to lend them.
- Borrower: The entity or investor who borrows the securities for a specified period, usually to sell them in the market.
Collateral:
- The borrower provides collateral to the lender to secure the loan. This collateral is usually in the form of cash or other securities and serves as a guarantee against any default by the borrower.
Fee or Interest:
- The borrower pays a fee or interest to the lender for the right to borrow the securities. This fee compensates the lender for the temporary transfer of ownership.
Loan Period:
- SLB transactions have a specified loan period, after which the borrower must return the borrowed securities to the lender.
Securities Transfer:
- The securities are transferred from the lender’s account to the borrower’s account for the duration of the loan.
Risk Management:
- SLB transactions include risk management measures to protect both parties, such as the requirement for collateral and the return of securities at the end of the loan period.

Purpose of SLB:

Facilitate Short Selling:
- Borrowed securities are often used by investors who engage in short selling. The borrower sells the borrowed securities with the expectation that their price will fall, allowing them to buy them back at a lower price.
Liquidity Enhancement:
- SLB contributes to market liquidity by making additional securities available for borrowing, supporting various trading and investment strategies.
Income Generation:
- Lenders earn additional income by charging fees or receiving interest for lending their securities.
Arbitrage Opportunities:

Traders may engage in SLB to exploit price differentials between the cash and derivatives markets, taking advantage of arbitrage opportunities.