Daily Prelims Notes 18 December 2024

December 18, 2024
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Category: DPN

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Daily Prelims Notes

18 December 2024

Table Of Contents

1. Parliamentary Standing Committee Recommends Statutory MSP to Alleviate Farmer Distress

Sub : Eco

Sec : Agri

Committee advocates for Legally Guaranteed MSP:
- The committee advocates for legally binding Minimum Support Prices (MSP) for crops.
- This measure is seen as essential to safeguard farmers’ livelihoods, promote rural economic growth, and enhance national food security.
- It stresses that the benefits outweigh the challenges, with long-term positive impacts on the agricultural economy.
Doubling Financial Assistance Under PM-KISAN Scheme:
- The panel recommends increasing the current annual ₹6,000 aid under the PM-KISAN scheme to ₹12,000 per farmer.
- It suggests extending these seasonal incentives to tenant farmers and farm laborers, ensuring broader coverage and financial inclusion.
Addressing Farmer Suicides:
- A statutory MSP system is projected to significantly reduce farmer suicides by:
  - Providing financial stability and protection from market volatility.
  - Reducing debt burdens and improving mental health for farmers.
Economic and Social Impact of MSP Implementation:
- Economic Activity:
  - Statutory MSP is expected to stimulate economic activity in farming areas, benefiting local businesses and rural economies.
- Investment in Agriculture:
  - With assured income, farmers are likely to invest in better farming practices, leading to increased productivity and sustainability.
- Food Security:
  - Long-term investments and improved agricultural practices will contribute to the nation’s food security.

Minimum Support Price (MSP)

MSP is a guaranteed price paid to farmers by the government for their produce, regardless of market fluctuations.
Purpose:
- Ensures remunerative prices for growers.
- Encourages crop diversification to maintain a balanced agricultural ecosystem.
Recommendations and Approval:
- The Commission for Agricultural Costs and Prices (CACP), under the Ministry of Agriculture and Farmers Welfare, recommends MSP based on factors like:
- Cost of production.
- Market trends.
- Demand-supply dynamics.
- Inter-crop price parity.
- Final approval is granted by the Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister.

Crops Under MSP

Mandated Crops:
- 22 crops covered under MSP:
  - 14 Kharif crops (e.g., paddy, maize, bajra).
  - 6 Rabi crops (e.g., wheat, barley, mustard).
  - 2 commercial crops (jute, cotton).
- Sugarcane Pricing:
  - Fair and Remunerative Price (FRP) is recommended for sugarcane.

Types of Production Costs Considered by CACP

A2:
- Direct costs incurred by farmers on inputs like seeds, fertilizers, pesticides, hired labor, leased land, irrigation, and fuel.
A2+FL:
- Includes A2 plus the imputed value of unpaid family labor.
C2:
- Comprehensive costs, including A2+FL, along with:
  - Rentals for owned land.
  - Interest on fixed capital assets.

CACP Usage:

A2+FL is used to calculate returns.
C2 serves as a benchmark reference for major producing states.

About Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Scheme

Direct Financial Support:
- The Central Government transfers ₹6,000 annually to landholding farmers in three equal instalments of ₹2,000 each.
- Funds are credited directly into beneficiaries’ bank accounts.
Launch and Administration:
- Introduced in February 2019.
- It is a Central Sector Scheme with 100% funding from the Government of India.
- Managed and implemented by the Ministry of Agriculture and Farmers Welfare.
Identification of Beneficiaries:
- State/UT Governments are responsible for identifying eligible farmer families.
- Applicable to all landholding farmers, regardless of the size of their land.

2. Why SEBI might introduce changes to SME IPOs

Sub : Eco

Sec :Capital market

Background and Rationale for Norm Overhaul

Concerns Raised by SEBI:
- Instances of price manipulation, fund diversion to shell companies, and fraudulent financial transactions.
- Lack of adequate checks and balances due to limited participation of private equity and sophisticated investors.
Surge in SME IPO Activity:
- 159 SME IPOs in FY2024 (till October 15), raising ₹5,700 crore.

Concerns Highlighted by SEBI

Promoter-Driven Companies:
- High concentration of shareholding among promoters or promoter group entities.
- Limited external oversight from institutional or sophisticated investors.
Misuse of Funds:
- Diversion of IPO proceeds to related parties, connected entities, or shell companies.
- Inflation of revenue through circular transactions.
- Excessive Related Party Transactions (RPTs)
- Oversubscription Frenzy
- Fraudulent Cases

Proposed Changes to SME IPO Norms

Increase in Minimum Application Size:
- Raise from ₹1 lakh to ₹2-4 lakh to reduce speculative participation.
Higher Minimum Allottees Requirement:
- Increase from 50 to 200 investors for IPO success.
Stricter Promoter Lock-In Period:
- Raise lock-in on Minimum Promoter Contribution (MPC) from 3 years to 5 years to ensure promoters maintain long-term commitment.
Eligibility Criteria for IPO:
- SME IPOs to be allowed only if:
  - Issue size exceeds ₹10 crore.
  - Operating profit of ₹3 crore in at least 2 out of the preceding 3 financial years.

Related Party Transactions (RPTs):

Related Party Transactions (RPTs) are transactions conducted between a company and parties related to it.
These transactions occur between entities that share a pre-existing business relationship, where one entity holds control, significant influence, or a close relationship with the other.

Key Relationships Involved in RPTs:

A listed company engages in transactions with its own related parties (such as subsidiaries, directors, or significant shareholders).
Transactions between a listed company and the related parties of its subsidiaries, where the subsidiary acts as an intermediary.
Transactions where a subsidiary of the listed entity engages in dealings with the listed company’s related parties.
Transactions between a subsidiary and the related parties of that subsidiary, potentially involving the listed entity indirectly.

3. India’s Position on Cryptocurrency Regulation

Sub : Eco

Sec :Capital market

Current Stance of the Government

Despite the global surge in Bitcoin’s popularity, there are no immediate plans to introduce comprehensive cryptocurrency regulations in India.

Global and Domestic Context

Bitcoin’s Growth:
- Post the U.S. presidential election, Bitcoin has surged, hitting $1,06,000, marking a 192% increase this year.
- Anticipation of a favourable U.S. regulatory regime under Trump 2.0 has driven investor sentiment.
India’s Scenario:
- Cryptocurrencies are gaining traction in India, prompting renewed demands for a regulatory framework.

Challenges in Regulating Cryptocurrencies

Borderless Nature of Virtual Digital Assets (VDAs):
- VDAs require international collaboration to address risks and prevent regulatory arbitrage.
- Comprehensive regulation depends on global consensus on taxonomy and standards.
Associated Risks:
- Regulatory measures must balance investor protection and innovation, while maintaining financial and monetary stability.
- The cross-border and digital nature of cryptocurrencies limits the effectiveness of investor protection measures.

Existing Measures in India

VDAs are governed under existing laws, including:
- Prevention of Money Laundering Act (PMLA), 2002.
- Income-Tax Act, 1961: As per the 2022-2023 Budget, cryptocurrencies and Non-Fungible Tokens (NFTs) will attract a 30% tax on any income derived from their transfer.
- Information Technology Act, 2000, and Companies Act, 2013: Regulate different aspects of cryptocurrencies.
- In March last year, the government officially brought VDAs under the PMLA framework.
Central Bank Digital Currency (CBDC):
- The Reserve Bank of India (RBI) launched a pilot project for the Retail Central Bank Digital Currency (CBDC), also known as the e-rupee, on December 1, 2022.
- CBDCs are legal tender issued by a central bank in digital form, with their value linked to the official currency of the country, in this case, the Indian Rupee.

International Collaboration and G20 Presidency

During India’s G20 presidency, the country adopted the IMF and Financial Stability Board’s Synthesis Paper and the G20 Roadmap on Crypto Assets.
This framework addresses risks associated with crypto assets, especially for emerging markets and developing economies.
India aims to align its regulatory stance with international recommendations while evaluating country-specific risks.

4. Why Arctic tundra is emitting more carbon than it absorbs, for first time in many millennia

Sub : Env

Sec : Climate Change

Context:

The Arctic tundra, once a massive carbon storage system, is now emitting greenhouse gases (GHGs) like carbon dioxide (CO2) and methane (CH4), according to the National Oceanic and Atmospheric Administration’s (NOAA) Arctic Report Card. This shift has significant implications for global warming, as it exacerbates climate change.

How the Arctic Tundra Stores Carbon?

In most ecosystems, carbon cycles through photosynthesis, decomposition, and release back into the atmosphere.
In the Arctic, cold temperatures slow decomposition, trapping organic matter like plant and animal remains in permafrost (ground frozen for at least two years).
Arctic soils hold over 1.6 trillion metric tonnes of carbon — double the amount of carbon in Earth’s atmosphere.

Why Is the Arctic Tundra Emitting More Carbon?

The Arctic is warming four times faster than the global average.
In 2024, the region recorded its second-warmest annual temperature since 1900.
Thawing permafrost activates microbes that break down organic matter, releasing CO2 and CH4 into the atmosphere.
- Permafrost is like frozen chicken—safe until thawed, after which microbes cause decay.
Increase in Wildfires:
- Wildfire intensity and frequency in the Arctic are at record highs.
- Wildfires contribute to GHG emissions and accelerate permafrost thaw.
- Between 2001 and 2020, wildfires and rising temperatures caused the tundra to release more carbon than it absorbed — likely for the first time in millennia.

Consequences and Next Steps:

The Arctic emitting more GHGs worsens climate change, leading to more extreme weather and global temperature rise.
Reducing global GHG emissions can help the tundra regain its role as a carbon sink.
The Global Carbon Project estimates 2024 emissions (including fossil fuels and land-use changes) to reach 41.6 billion tonnes, up from 40.6 billion tonnes in 2023.

Source: IE

5. How would a US bitcoin strategic reserve work?

Sub: Eco

Sec : Monetary Policy

Context:

Bitcoin reached a record high of over $107,000 on Monday after President-elect Donald Trump reiterated plans to establish a U.S. Bitcoin strategic reserve, which boosted enthusiasm among crypto advocates.

What is a strategic reserve:

A strategic reserve is a stock of a critical resource which can be released at times of crisis or supply disruptions.
The best-known example is the U.S. Strategic Petroleum Reserve, the world’s largest supply of emergency crude oil, which was created by an act of Congress in 1975 after a 1973-74 Arab oil embargo throttled the U.S. economy.
Other countries, like Canada, have reserves for unique resources such as maple syrup, and China maintains strategic reserves of metals, grains, and pork products.

About Bitcoin:

Bitcoin is a cryptocurrency first used in 2009. The bitcoin record uses Blockchain technology.
Bitcoin is a type of digital currency that enables instant payments to anyone. Bitcoin is based on an open-source protocol and is not issued by any central authority.
Cryptocurrency is a specific type of virtual currency, which is decentralised and protected by cryptographic encryption techniques. Bitcoin, Ethereum, Ripple are a few notable examples of cryptocurrencies.
The origin of Bitcoin is unclear, as is who founded it. A person, or a group of people, who went by the identity of Satoshi Nakamoto are said to have conceptualised an accounting system in the aftermath of the 2008 financial crisis.

Benefits of a Bitcoin Reserve:

Creating a bitcoin reserve would help the U.S. dominate the global bitcoin market in the face of growing competition from China.
Holding a stockpile of Bitcoin, which could appreciate over time, might help the U.S. reduce its budget deficit without raising taxes.
This would also strengthen the U.S. dollar, providing more economic leverage over foreign adversaries such as China and Russia.

Risks of a Bitcoin Reserve:

Critics argue that, unlike traditional commodities, Bitcoin lacks intrinsic value and is not crucial to the functioning of the U.S. economy.
Bitcoin is known for its extreme price volatility, which could cause significant fluctuations in the U.S. reserves, impacting the broader economy.
Crypto wallets are often targeted by cybercriminals, and the U.S. would need to safeguard its Bitcoin holdings from potential cyberattacks.

6. Myanmar rebels recapture headquarters after 30 years

Sub: IR

Sec : Places in news

Context:

The Karen National Union (KNU), an ethnic rebel group from Myanmar, announced that it had recaptured its former headquarters, Manerplaw, from the Myanmar military (junta) after almost 30 years.

About Manerplaw:

Manerplaw was a village in Kayin State, Myanmar, on the Moei River. It was the proposed capital of an independent state governed by the Karen people, known locally as Kawthoolei.

History of Manerplaw:

The base, located on the Thai border, was a symbol of the KNU’s resistance against Myanmar’s military rule.
Manerplaw had served as the KNU’s stronghold and headquarters, where it coordinated its fight for autonomy and rights for the Karen ethnic minority group.
Following a split within the Christian-majority KNU, the junta and a breakaway Buddhist faction captured the base in 1995.
The KNU forces were forced to retreat into Thailand, and the Myanmar junta renamed the area Kayin State. The Democratic Kayin Buddhist Organization, a military ally of the junta, took control of the region after the KNU’s departure.

About Karen community:

The Karen, also known as the Kayin, Kariang or Kawthoolese, are an ethnolinguistic group of Tibeto-Burman language-speaking people.
These Karen groups reside primarily in Kayin State of southern and southeastern Myanmar. The Karen account for around 69% of the Burmese population.

7. SC orders status quo till next hearing in Malankara Church dispute case

Sub: History

Sec : Medieval India

Context:

The Supreme Court of India issued a ruling to maintain the status quo in the ongoing dispute between the Jacobite and Orthodox factions of the Malankara Church.
This decision was made after both factions expressed difficulty in complying with a December 3 order that required the Jacobite faction to hand over the administration of six churches in Ernakulam and Palakkad districts to the Orthodox faction.
This ruling was in compliance with earlier Court judgments and the 1934 Constitution of the church.

About the case:

The dispute revolves around the administration of certain churches in Ernakulam and Palakkad districts of Kerala.
The two main factions involved in the dispute are the Jacobite Syrian Christian Church (Jacobites) and the Malankara Orthodox Syrian Church (Orthodox).

Background:

The Malankara church was formed in the 17th century as a result of local Christian groups on the Malabar coast resisting the attempts of the then Portuguese colonialists to follow the Latin Catholic rites. There was widespread resentment among the locals towards the Portuguese who were mainly Catholics.
The feud between the two factions of the non-Catholic community dates back to 1912 when the Malankara Syrian Church split into two, prompting both of them to engage in legal battles over control of churches and allied properties.
The Jacobite Faction follows the Syriac Orthodox Church of Antioch, led by the Patriarch of Antioch, and claims rightful control over the Malankara Church’s properties as its true inheritors.
The Orthodox Church is based in Kottayam and considers the native Malankara Metropolitan as its head.

Fight for leadership:

A constitution for the Church was drafted and adopted in 1934 approving the Patriarch of Antioch as the spiritual head. But it also added that he can govern only with the cooperation of members of the Orthodox faction.
In 1958, the Supreme Court of India derecognised the leadership of the Patriarch and since then, the two groups have clashed physically and spiritually mainly over who it chooses as its leader. Though they reunited in 1959, the truce lasted briefly until 1972.

Christian denominations in Kerala:

Kerala has a diverse Christian population, which includes Catholics, Jacobite Syrians, Orthodox Syrians, Mar Thomites and Pentecostals.
While Catholics constitute 61% of the state’s Christian population, the Malankara Church represents 15.9%.

8. MGNREGS Wages Lag Behind Rising Cost of Living

Sub : Polity

Sec: Legislation in news

Why in News

A Parliamentary Committee has recently raised concerns regarding the inadequacy of wages paid under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).

Key Findings of the Parliamentary Panel:

The current wages paid under MGNREGS are not commensurate with the rising cost of living.
The panel highlighted that these low wages fail to provide sufficient financial support to workers.
Insufficient wages and delays in payments discourage participation in the scheme and push workers to migrate in search of better-paying opportunities.
In the financial year 2024–25, MGNREGS wages saw an average increase of ₹28 per day across India.
Haryana offers the highest daily wage under MGNREGS at ₹374, while Arunachal Pradesh and Nagaland provide the lowest, at ₹234.
The base rate for wage fixation under MGNREGS has remained unchanged since the scheme’s inception.
The Government of India uses the Consumer Price Index for Agricultural Labour (CPI-AL) to notify wage rates. However, the indexation process relies on outdated benchmarks, with the base rate fixed at either ₹100 or the rate as of April 1, 2019, whichever is higher.

Recommendations by the Panel

The panel has strongly recommended linking MGNREGS wages to a national inflation index that better reflects the cost of living.
A periodic revision of the base rate for wage fixation is essential to ensure that the scheme remains relevant and effective in combating rural unemployment.
Addressing delays in wage payments is critical to maintaining the credibility of the scheme and ensuring worker satisfaction.

MGNREGA:

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), passed in 2005, guarantees the “right to work” for rural citizens by providing 100 days of unskilled manual labor annually to an eligible household.

Eligibility Criteria

Citizenship: Must be an Indian citizen.
Age Requirement: Minimum age is 18 years.
Rural Residence: Applicant must belong to a rural household.
Willingness for Unskilled Work: Must agree to undertake unskilled manual labour.

Employment Guarantees

100 Days of Work: Assures 100 days of employment at government-mandated wages.
Unemployment Allowance: If work is not assigned within 15 days, an unemployment allowance is provided.
Proximity of Work: Employment is offered within 5 km of the applicant’s residence.
Travel Allowance: Provided if the worksite is beyond 5 km.
Working Conditions: Includes basic amenities, medical facilities, and compensation for injuries.

Administrative Framework

Gram Sabhas suggest and oversee at least 50% of the works.
Section 17 mandates social audits to ensure accountability and transparency.
Citizens and community groups actively participate in audits of MGNREGA projects.

Achievements

Employment Generation: A vital safety net for rural workers during economic downturns.
Women Empowerment: Over 50% of MGNREGA workers are women, boosting their participation in the labor force.
Reduction in Migration: Provides rural employment, reducing the need for migration to urban areas.
Mazdoor Kisan Shakti Sangathan (MKSS): Played a crucial role in advocating for the right to work.
Jean Drèze: Development economist who contributed significantly to the conceptualization and design of the Act.

Consumer Price Index (CPI):

CPI measures the changes in the price level of a basket of consumer goods and services purchased by households over time.
It reflects inflation by showing how prices vary for essential goods and services.
Types of CPI in India:

CPI for Industrial Workers (CPI-IW): For industrial labourers.
CPI for Agricultural Labourers (CPI-AL): For agricultural workers.
CPI for Rural Labourers (CPI-RL): For rural non-agricultural workers.
CPI Combined: For urban and rural consumers.

Base Year: The latest base year is 2012 for CPI.

CPI-AL (Consumer Price Index for Agricultural Labourers):

A sub-category of CPI, specifically tracking the price changes of goods and services consumed by agricultural labour households.
Measures the cost of living for agricultural workers and serves as a benchmark for determining wages in schemes like MGNREGA.
Includes food items, clothing, housing, fuel, light, and other services.
Used to set rural wages and analyse inflationary trends affecting rural India.

9. India’s Treatment of Rohingya Refugees

Sub: IR

Sec: Places in news

Why in News

A recent report by The Azadi Project and Refugees International highlights severe violations of human and constitutional rights faced by Rohingya refugees detained in India. It underscores India’s failure to adhere to its international human rights obligations.

Key Findings of the Report:

Arbitrary Detentions: Over 676 Rohingya refugees are detained across India, with 608 having no pending legal cases or sentences.
Detainees include pregnant women, breastfeeding mothers, differently-abled individuals, and the elderly.
Extended Detention: Many Rohingya refugees remain detained even after completing their sentences.
UNHCR-Registered Rohingya Refugees in India: Approx. 22,500.
Detainees in Immigration Centers: 676, of which 50% are women and children.

India’s International Obligations:

India is a signatory to multiple international treaties, such as:
- Universal Declaration of Human Rights (UDHR).
- International Covenant on Civil and Political Rights (ICCPR).
Despite these commitments, the treatment of Rohingya refugees violates these norms.
India lacks a comprehensive refugee policy and continues to rely on the Foreigners Act, 1946, to address refugee issues.

Foreigners Act, 1946:

Regulates the entry, stay, and exit of foreigners in India.
Key Provisions Related to Refugees:
- Section 3: Grants the Central Government the power to issue orders restricting or prohibiting foreigners’ entry or stay in India.
- Section 8: Governs the internment or restriction of movement of foreigners.
- No specific provision for refugees, but Rohingya and other asylum seekers are often detained under this Act.
- The Act does not distinguish between refugees and illegal immigrants, leaving refugees without explicit legal protection.

Universal Declaration of Human Rights (UDHR):

Adopted by the United Nations General Assembly on December 10, 1948.
Provides a universal framework for protecting human rights.
Articles Relevant to Refugees:
- Article 3: Right to life, liberty, and personal security.
- Article 13: Right to freedom of movement and residence within a state.
- Article 14: Right to seek and enjoy asylum from persecution in other countries.
- Article 25: Right to an adequate standard of living, including food, shelter, and healthcare.

International Covenant on Civil and Political Rights (ICCPR):

Adopted in 1966; entered into force on March 23, 1976.
Ratified by 173 countries (India ratified in 1979).
Ensures the protection of civil and political rights globally.
Key Provisions Related to Refugees:
- Article 9: Right to liberty and protection against arbitrary detention.
- Article 13: Right against expulsion without a lawful process.
- Article 16: Right to recognition as a person before the law.
- Article 26: Right to equality before the law and protection against discrimination.

Rohingya Refugees:

The Rohingya are a predominantly Muslim ethnic minority from Myanmar’s Rakhine State.
Facing systemic discrimination and violence in Myanmar, especially during the 2017 military crackdown, many fled to neighbouring countries, including India.
India lacks a specific legal framework for refugees, relying instead on the Foreigners Act, 1946, and the Passport (Entry into India) Act, 1920, which do not distinguish between refugees and illegal immigrants.
India is not a signatory to the 1951 UN Refugee Convention or its 1967 Protocol, limiting international obligations toward refugees.

10. Cyclone Chido Devastates Mayotte

Sub: Geo

Sec: Climatology

Why in News

Cyclone Chido, a category 4 storm, struck Mayotte, a French overseas territory in the Indian Ocean, causing unprecedented destruction and leaving hundreds feared dead.

About Cyclone Chido:

Category: 4 on the Saffir-Simpson scale, indicating wind speeds exceeding 220 km/h (136 mph).
Impact Zone: Mayotte, an archipelago located between Madagascar and the African continent, with a population of over 320,000 residents and an estimated 100,000 migrants.
The strongest cyclone to hit Mayotte since the 1930s.
70% of the population gravely affected.
Mamoudzou (Capital): Total destruction of schools, hospitals, offices, and homes.
Extensive damage to Mayotte’s sole airport, leaving some areas inaccessible to emergency teams.

Tropical Cyclones:

Tropical cyclones are violent storms that originate over oceans in tropical areas and move over to the coastal areas bringing about large-scale destruction due to violent winds, very heavy rainfall and storm surge.
They are irregular wind movements involving closed circulation of air around a low-pressure centre. This closed air circulation is a result of rapid upward movement of hot air which is subjected to Coriolis force.
A characteristic feature of tropical cyclones is the eye, a central region of clear skies, warm temperatures, and low atmospheric pressure.

Conditions favourable for Tropical Cyclone formation:

Large sea surface with temperature higher than 27°C.
Presence of the Coriolis force enough to create a cyclonic vortex.
Small variations in the vertical wind speed.
A pre-existing weak low-pressure area or low-level-cyclonic circulation.
Upper divergence above the sea level system.

Name of Tropical cyclones in different regions:

Atlantic: Hurricanes
Western Pacific and South China Sea: Typhoons
Western Australia: Willy-Willies
Indian Ocean: Cyclones

Saffir-Simpson Hurricane Wind Scale:

The Saffir-Simpson Hurricane Wind Scale is a 1 to 5 categorization based on a hurricane’s sustained wind speeds, estimating potential property damage.
Categories:
- Category 1: Wind speeds of 74-95 mph (119-153 km/h); causes minimal damage.
- Category 2: Wind speeds of 96-110 mph (154-177 km/h); leads to moderate damage.
- Category 3: Wind speeds of 111-129 mph (178-208 km/h); results in devastating damage.
- Category 4: Wind speeds of 130-156 mph (209-251 km/h); causes catastrophic damage.
- Category 5: Wind speeds exceeding 157 mph (252 km/h); leads to catastrophic damage.

Mayotte:

Mayotte is a French overseas department located in the Indian Ocean, between Madagascar and the coast of Mozambique.
The territory comprises two main islands, Grande-Terre and Petite-Terre, along with several smaller islets.
Approximately 321,000 residents, with a significant portion being Muslim.
Mayotte became an overseas department of France in 2011, making it part of the European Union.
Cultivation of crops like vanilla, coffee, and fragrant plants.