Daily Prelims Notes 18 October 2024

Daily Prelims Notes

18 October 2024

Table Of Contents

1. Saudi Arabia launches new digital platform to ensure wage protection
2. Rising Tomato Prices Trigger Fresh Concerns Over Food Inflation Amid Festive Season
3. Fortified Rice in India: A Safe Solution for Combating Micronutrient Deficiencies
4. Long live the King Cobra(s): Scientists recategorize world’s longest venomous snakes into 4 distinct species, with one from the Western Ghats
5. Farmed salmon is endangering access to local fishes for poorer communities, warns study
6. Fungi may get its own taxonomical kingdom named ‘funga’ for conservation purposes
7. Antelope like Blackbuck and Gazelle like Chinkara are not ‘deer’; know the difference
8. Govt notifies seed varieties suitable for rabi season after 2 months of release by PM
9. NPPA revises the ceiling prices of eight scheduled drugs to meet the twin objectives of availability and affordability
10. How paddy variety PR-126 became a victim of its own popularity
11. Saudi Arabia launches new digital platform to ensure wage protection
12. How paddy variety PR-126 became a victim of its own popularity
13. RBI Orders ‘Cease and Desist’ on 4 NBFCs Over Usurious Pricing and Regulatory Deviations
14. Argentina’s La Rioja Province Introduces ‘Chachos’ as Emergency Tender Amid Austerity Measures

1. Saudi Arabia launches new digital platform to ensure wage protection

Sub: Polity

Sec: Constitution

Context:

• Saudi Arabia is implementing a series of digitally enforceable measures aimed at improving working conditions for foreign workers, including those from India.
• These measures align with the Kingdom’s Vision 2030 goals, focusing on labour rights and reducing illegal immigration.

Musaned Platform:

• The Musaned platform is a key component of the new labour regulations. It serves as a digital tool designed to benefit foreign workers in various sectors, particularly in domestic work.
• The Musaned platform is designed to safeguard human rights and ensure a stable working environment for both employees and employers.

Key Features of the platform:

• Easier access: Foreign workers can access and monitor their employment contracts through the Musaned platform.
• Mobile App: A dedicated Musaned labour app provides real-time updates regarding employment conditions and rights.
• Social security: The platform can be linked with contract insurance and health benefits, ensuring comprehensive support for workers.
• Financial Transaction Tracking: An essential feature of the Musaned platform is its ability to track financial transactions between employers and foreign workers. This ensures that employers meet their contractual obligations, providing an additional layer of security for workers.

Global Harmony Initiative:

• Saudi officials officially launched the Global Harmony Initiative which is a part of Saudi Arabia’s broader Quality of Life programme to attain its Vision 2030 objectives.
• It aims at promoting quality of life and developing stronger bonds between the local society and the Indian and other expatriate communities through cultural promotion.
• The initiative seeks to showcase the diverse cultures of expatriates and highlight their harmonious existence within Saudi society.

About Vision 2030:

• Launched in 2016, Vision 2030 is a blueprint for diversifying the economy, empowering citizens, creating a vibrant environment for both local and international investors, and establishing Saudi Arabia as a global leader.
• There are three stages to the programme, each lasting five years.

Indian community in Saudi:

• Indians are the largest expat community in Saudi Arabia with an approximate 6 million people.
• The community has increased by about 200,000 people over the past year.

2. Rising Tomato Prices Trigger Fresh Concerns Over Food Inflation Amid Festive Season

Sub: Eco

Sec: Inflation

Why in News

Food inflation in India has spiked, primarily due to a sharp rise in the price of vegetables, especially tomatoes. This surge is driven by reduced supply in markets and increased demand during the festive season, causing concern among households. The Centre has intervened by selling tomatoes at reduced prices to stabilize the situation.

Factors Behind the Price Surge

Excessive rainfall in September has severely impacted tomato supplies, with mandi arrivals dropping by more than half compared to August.

The ongoing festive season has led to an increase in demand, exacerbating the price pressure. Tomatoes have crossed the ₹100 per kilogram mark in many cities, further straining household budgets.

In contrast, prices for other key vegetables such as onions and potatoes remain elevated, adding to the burden of food inflation

What is Inflation?

Inflation refers to the general increase in the prices of goods and services over time, leading to a decrease in the purchasing power of money.

Inflation is typically measured using indices like the Consumer Price Index (CPI) or Wholesale Price Index (WPI).

Can result from demand-pull factors (increased demand), cost-push factors (higher production costs), or monetary factors (excess money supply).

What is Food Inflation?

Food inflation specifically refers to the rise in the prices of food items, leading to increased costs for consumers.

Caused by factors like supply disruptions, seasonal fluctuations, weather conditions (e.g., drought, floods), and market demand.

Part of the overall Consumer Price Index (CPI) but focuses solely on the prices of food products.

About Consumer Food Price Index (CFPI)

The Consumer Food Price Index (CFPI) measures changes in the retail prices of food items consumed by households. It tracks the inflation rate specific to food products, such as cereals, pulses, fruits, vegetables, meat, and dairy.

The CFPI is a subset of the Consumer Price Index (CPI), focusing solely on the food component. Helps monitor food inflation and its impact on household expenditure and purchasing power.

Cost-push inflation occurs when overall prices increase (inflation) due to increases in the cost of wages and raw materials. Higher costs of production can decrease the aggregate supply (the amount of total production) in the economy. Since the demand for goods hasn’t changed, the price increases from production are passed onto consumers creating cost-push inflation.

Demand-pull inflation is the upward pressure on prices that follows a shortage in supply, a condition that economists describe as “too many dollars chasing too few goods. ““When demand surpasses supply, higher prices are the result.”

The main causes of inflation:

Monetary Policy: It determines the supply of currency in the market. Excess supply of money leads to inflation. Hence decreasing the value of the currency.

Fiscal Policy: It monitors the borrowing and spending of the economy. Higher borrowings (debt), result in increased taxes and additional currency printing to repay the debt.

Demand-pull Inflation: Increases in prices due to the gap between the demand (higher) and supply (lower).

Cost-push Inflation: Higher prices of goods and services due to increased cost of production.

Exchange Rates: Exposure to foreign markets is based on the dollar value. Fluctuations in the exchange rate have an impact on the rate of inflation.

The effects of a rise in the inflation rate:

A rise in an inflation rate can cause more than a fall in purchase power.

Inflation could lead to economic growth as it can be a sign of rising demand.

Inflation could further lead to an increase in costs due to workers demand to increase wages to meet inflation. This might increase unemployment as companies will have to lay off workers to keep up with the costs.

Domestic products might become less competitive if inflation within the country is higher. It can weaken the currency of the country.

Prevent inflation:

To prevent inflation, the primary strategy is to change the monetary policy by adjusting the interest rates. Higher interest rates decrease the demand in the economy. This results in lower economic growth and therefore, lower inflation. Other ways to prevent inflation are:

Controlling the money supply can also help in preventing inflation.

Higher Income Tax rate can reduce the spending, and hence resulting in lesser demand and inflationary pressures.

Introducing policies to increase the efficiency and competitiveness of the economy helps in reducing the long-term costs.

3. Fortified Rice in India: A Safe Solution for Combating Micronutrient Deficiencies

Sub: Sci

Sec: Health

Why in News

The safety of fortified rice has been under scrutiny due to concerns about its effects on individuals with blood disorders like Thalassemia and Sickle Cell Anaemia. The Centre, however, maintains that fortified rice is safe for all, as it follows WHO guidelines and is part of a national initiative to address micronutrient deficiencies.

Rice fortification:

Rice fortification is the process of adding essential vitamins and minerals to rice to improve its nutritional content and address micronutrient deficiencies. Fortified rice typically contains added iron, folic acid, vitamin B12, and sometimes zinc and vitamin A.

Process of Rice Fortification: Rice kernels are fortified with micronutrients through methods like dusting, coating, or extrusion, where nutrients are added to rice during processing. These fortified kernels are then blended with normal rice in a specific ratio, usually around 1:100, ensuring that the final product contains adequate levels of the added nutrients.

The Food Safety and Standards Authority of India (FSSAI) defines fortification as “deliberately increasing the content of essential micronutrients in a food so as to improve the nutritional quality of food and to provide public health benefit with minimal risk to health”.

The cooking of fortified rice does not require any special procedure.

After cooking, fortified rice retains the same physical properties and micronutrient levels as it had before cooking.

Fortified rice will be packed in jute bags with the logo (‘+F’) and the line “Fortified with Iron, Folic Acid, and Vitamin B12”.

Various technologies are available to add micronutrients to regular rice, such as coating, dusting, and ‘extrusion’.

The Extrusion technique involves the production of fortified rice kernels (FRKs) from a mixture using an ‘extruder’ machine.

Need of rice fortification:

India has very high levels of malnutrition among women and children.

According to the Food Ministry, every second woman in the country is anaemic and every third child is stunted.

Fortification of food is considered to be one of the most suitable methods to combat malnutrition.

What are the standards for fortification?

Under the Ministry’s guidelines, 10 g of FRK must be blended with 1 kg of regular rice.

According to FSSAI norms, 1 kg of fortified rice will contain the following: iron (28 mg-42.5 mg), folic acid (75-125 microgram), and vitamin B-12 (0.75-1.25 microgram).

Rice may also be fortified with zinc (10 mg-15 mg), vitamin A (500-750 microgram RE), vitamin B-1 (1 mg-1.5 mg), vitamin B-2 (1.25 mg-1.75 mg), vitamin B-3 (12.5 mg-20 mg) and vitamin B-6 (1.5 mg-2.5 mg) per kg.

Advantages

Fortified staple foods will contain natural or near-natural levels of micro-nutrients, which may not necessarily be the case with supplements.

It provides nutrition without any change in the characteristics of food or the course of our meals.

If consumed on a regular and frequent basis, fortified foods will maintain body stores of nutrients more efficiently and more effectively than will intermittently supplement.

The overall costs of fortification are extremely low; the price increase is approximately 1 to 2 percent of the total food value.

It upholds everyone’s right to have access to safe and nutritious food, consistent with the right to adequate food and the fundamental right of everyone to be free from hunger

Issues with fortified food

Fortification and enrichment upset nature’s packaging. Our body does not absorb individual nutrients added to processed foods as efficiently compared to nutrients naturally occurring.

Supplements added to foods are less bioavailable. Bioavailability refers to the proportion of a nutrient your body is able to absorb and use.

They lack immune-boosting substances.

Fortified foods and supplements can pose specific risks for people who are taking prescription medications, including decreased absorption of other micro-nutrients, treatment failure, and increased mortality risk.

Importance in India:

India launched rice fortification as part of a national effort to improve nutrition, particularly through schemes like the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), aiming to reduce malnutrition and micronutrient deficiencies.

Safety for Individuals with Hemoglobinopathies

Thalassemia and Sickle Cell Anaemia: The Centre affirmed that fortified rice is safe for individuals suffering from these conditions.

The iron intake from fortified rice is minimal when compared to iron absorbed through regular blood transfusions in Thalassemia patients.

People with Sickle Cell Anaemia naturally regulate iron absorption due to elevated levels of hepcidin, a hormone controlling iron uptake.

About Sickle cell disease:

Sickle cell disease is an inherited blood disorder. It is marked by flawed haemoglobin. That’s the protein in red blood cells that carries oxygen to the tissues of the body. So, sickle cell disease interferes with the delivery of oxygen to the tissues.

Red blood cells with normal haemoglobin are smooth, disk-shaped, and flexible, like doughnuts without holes. They can move through the blood vessels easily. Cells with sickle cell haemoglobin are stiff and sticky.

When they lose their oxygen, they form into the shape of a sickle or crescent, like the letter C. These cells stick together and can’t easily move through the blood vessels. This can block small blood vessels and the movement of healthy, normal oxygen-carrying blood. The blockage can cause pain.

Normal red blood cells can live up to 120 days. But sickle cells only live for about 10 to 20 days. Also, sickle cells may be destroyed by the spleen because of their shape and stiffness. The spleen helps filter the blood of infections.

Sickled cells get stuck in this filter and die. With less healthy red blood cells circulating in the body, you can become chronically anaemic. The sickled cells also damage the spleen. This puts you are at greater at risk for infections.

About Thalassemia:

Thalassemia is an inherited blood disorder wherein the body produces an inadequate amount of haemoglobin. Haemoglobin is a protein molecule that carries oxygen in the red blood cells. This disorder results in the extreme destruction of red blood cells that leads to anaemia.

Anaemia is a condition in which the haemoglobin or red blood cells are less than the normal count.

Mild thalassemia requires no treatment, but acute thalassemia might require regular blood transfusions.

4. Long live the King Cobra(s): Scientists recategorize world’s longest venomous snakes into 4 distinct species, with one from the Western Ghats

Sub: Envi

Sec: Species 

Context:

• The king cobra, previously considered one species, has been reclassified into four distinct species across various regions: Mainland Asia, Maritime Southeast Asia, The Western Ghats of India, Luzon Island, Philippines

Key Discoveries:

• In 2021, the team identified four geographically separate lineages, termed as “confirmed candidate species (CCS).”
  • Endemic Western Ghats lineage (India)
  • Widespread Asian mainland lineage (northern/eastern India, China, Thailand)
  • Malesian lineage (Malay Peninsula, Greater Sunda Islands, parts of the Philippines)
  • Isolated Luzon Island lineage (Philippines)

Four New King Cobra Species:

1. Northern King Cobra (Ophiophagus hannah)
   • Found in:
     • Northern India, Nepal, Bhutan, Tibet
     • Eastern India, China, Myanmar, and parts of Southeast Asia
   • The type locality is Shibpur, near Kolkata, India.
2. Sunda King Cobra (Ophiophagus bungarus)
   • Inhabits:
     • Southern Thailand, West Malaysia, Singapore
     • Sumatra, Borneo, Java, Bali, southern Philippines
   • Named due to similarities with kraits (genus Bungarus), possibly in morphology or behaviour.
3. Western Ghats King Cobra (Ophiophagus kaalinga)
   • Found in the Western Ghats of India (Tamil Nadu, Kerala, Karnataka, Goa, and parts of Maharashtra).
   • Prefers mid-elevation rainforests but can be found from low foothills to high-elevation montane forests.
   • The name kaalinga comes from Kannada, referencing the snake’s dark colour.
4. Luzon King Cobra (Ophiophagus salvatana):
   • Exclusive to Luzon Island in the northern Philippines.
   • Named after the local Tagalog name for the king cobra.

Taxonomic Revision and its implication:

• The study presents a formal revision of the genus Ophiophagus, describing two new species.
• The new classification has implications for:
  • Snakebite management
    • King cobra bites, though rare, can be fatal due to potent neurotoxic venom.
    • The new taxonomy could help in improving treatments for snakebites, as venom compositions may differ between species.
  • Species conservation
    • Western Ghats and Luzon king cobras are of particular concern due to their restricted habitats, which are biodiversity hotspots.
    • Threats include habitat destruction, poaching, and fear-driven killings.
  • Future research

About the King Cobra:

• They are the world’s longest venomous snake.
• First Classification (1836): Danish zoologist Theodore Edward Cantor named the king cobra.
• Scientific Name: Ophiophagus hannah
  • Ophiophagus: Derived from Greek, meaning “snake-eater” (ophis for snake, phagos for eater).
• It preys chiefly on other snakes and occasionally on some other vertebrates, such as lizards and rodents.
• It is a highly venomous and dangerous snake when agitated or provoked that has a fearsome reputation in its range, although it is typically shy and avoids confrontation with humans when possible.
• The king cobra is a prominent symbol in the mythology and folk traditions of India, Sri Lanka and Myanmar.
• It is the national reptile of India.
• It is threatened by habitat destruction and has been listed as Vulnerable on the IUCN Red List since 2010.
• In Southeast Asia, the king cobra is threatened foremost by habitat destruction owing to deforestation and expansion of agricultural land.
• It is also threatened by poaching for its meat, skin and for use in traditional Chinese medicine.
• The king cobra is listed in CITES Appendix II.
• It is protected in China and Vietnam.
• In India, it is placed under Schedule II of Wildlife Protection Act, 1972.
• Killing a king cobra is punished with imprisonment of up to six years.

5. Farmed salmon is endangering access to local fishes for poorer communities, warns study

Sub : Env

Sec: Species in news 

Context:

• Impact of Farmed Salmon Demand on Coastal Communities and Fisheries
  Study published in Science Advances, October 16, 2024.

Key Findings:

• The increasing demand for farmed salmon is impacting global coastal communities by limiting their access to affordable local fish like sardines and anchovies. These small fish are often diverted to produce fishmeal and fish oil (FMFO), primarily used as feed for farmed fish.
• Implications for Coastal Communities:
  • Local Deprivation: Many reduction fisheries operate in poor coastal regions, depriving communities of fish that are crucial for their sustenance and livelihoods.
  • Global Impact: This raises concerns about the sustainability of the aquaculture industry‘s dependence on FMFO, especially in regions heavily reliant on small pelagic fish.
• Fish-In-Fish-Out (FIFO) Ratio:
  • Industry Practices: The study critiques the misleading use of the FIFO ratio, which measures how much wild fish is needed to produce farmed fish. By averaging feed inputs for herbivores and carnivores, the ratio conceals the high feed demands of carnivorous fish like salmon.
  • Rising Demand for Fish Oil: Fish oil is a limited resource, heavily used in salmon farming. In 2020, farmed Atlantic salmon alone accounted for 60% of global fish oil consumption, with salmon farms now supplying 70% of the world’s salmon.

Challenges Ahead:

• Climate Change: Fish populations, including Peruvian anchoveta, are declining due to climate change, particularly in warmer waters where fish contain less oil.
• Overfishing Juveniles: Poor fisheries management is leading to higher juvenile fish catches, which reduces oil yields and threatens stock sustainability.

Reduction Fisheries:

• Reduction fisheries are fisheries that “reduce,” or process their catch, into fishmeal and fish oil. They rely largely on small and medium-sized pelagic species; that is, fish found in the upper layers of the open sea, such as menhaden, anchovies, and sardines.
• 12 of the top 20 global fisheries (by volume) are reduction fisheries, where fish are processed into FMFO.
• These fisheries exploit forage fish such as anchovies and sardines, which make up 26% of global fish catches by volume.
• The largest reduction fishery, by far, is that for Peruvian anchoveta. The catch from some fisheries, such as the anchoveta in Peru or Gulf menhaden in the US are almost exclusively used for reduction purposes. 

Salmon:

• Salmon is a common food fish classified as an oily fish with a rich content of protein and omega-3 fatty acids.
• Norway is a major producer of farmed and wild salmon, accounting for more than 50% of global salmon production.
• Farmed and wild salmon differ only slightly in terms of food quality and safety, with farmed salmon having lower content of environmental contaminants and wild salmon having a higher content of omega-3 fatty acids.

Sardines:

• Sardines (“pilchards”) are a nutrient-rich, small, oily fish widely consumed by humans and as forage fish by larger fish species, seabirds and marine mammals.
• Sardines are a source of omega-3 fatty acids.

Peruvian anchoveta:

• The Peruvian anchoveta (Engraulis ringens) is a species of fish of the anchovy family, Engraulidae, from the Southeast Pacific Ocean.
• It is one of the most commercially important fish species in the world, with annual harvests varying between 3.14 and 8.32 million tonnes from 2010 to 2021.

6. Fungi may get its own taxonomical kingdom named ‘funga’ for conservation purposes

Sub : Env

Sec: Species in news 

Context: Fungi May Get Their Own Taxonomical Kingdom: ‘Funga’

Proposal for Recognition:

• Chile and the United Kingdom are preparing a proposal to establish a new taxonomical kingdom, “Funga,” for fungi (mushrooms, moulds, yeast, lichen, and mildew).
• The proposal will be presented at the UN Convention on Biological Diversity (CBD) during the COP16 in Cali, Colombia starting on October 21, 2024.

Key Points:

• Fungi’s Role:
  • Fungi are essential for ecological processes like decomposition and forest regeneration.
  • They are critical for human food production (bread, cheese, wine, beer, chocolate).
  • Fungi play a major role in climate change mitigation and wildlife conservation by regulating carbon dioxide levels and cleaning polluted soils.
• Neglect in Conservation:
  • Fungi have historically been excluded from conservation strategies, despite their importance.
  • The International Union for Conservation of Nature (IUCN) noted that no life on Earth is possible without fungi.
• Understudied:
  • It is estimated that only 8% of the 2.2–3.8 million fungal species have been scientifically identified, with around 2,000 new species discovered annually.

Fungal Threats:

• Environmental Threats:
  • Deforestation, climate change, pollution, and widespread use of fungicides impact fungi significantly.
  • Overharvesting and nitrogen enrichment also pose threats to fungal populations.
• Fungi and Climate Change:
  • Fungi, particularly those in boreal forests, absorb large amounts of carbon through their symbiotic relationship with plant roots.
  • They can serve as a sustainable food source, potentially reducing deforestation driven by cattle ranching and soy farming.

Global Significance:

• If adopted, funga will join flora and fauna as one of the three recognized kingdoms of life: plants, animals, and fungi.

In 2021, the International Union for the Conservation of Nature Species Survival Commission (IUCN SSC) and IUCN Rewild became the first organizations to recognize fungi as a separate kingdom of life.

7. Antelope like Blackbuck and Gazelle like Chinkara are not ‘deer’; know the difference

Sub : Env

Sec: Species in news 

Context:

• There is frequent confusion between antelope and deer in Indian media. Despite their similar appearances, the two belong to distinct taxonomic families.

Taxonomy:

• Both deer and antelope are part of the Kingdom Animalia and belong to the Artiodactyla order, meaning they are even-toed ungulates (hooved animals).
• Deer belong to the Cervidae family, while antelope falls under the Bovidae family, which also includes cattle, sheep, and goats.
• Other members of the Artiodactyla order include pigs, giraffes, camels, and alpacas.
• Perissodactyla (odd-toed ungulates), on the other hand, includes horses, rhinoceroses, and tapirs, which bear weight on one or three toes.

Key Differences:

• Antlers vs. Horns:
  • Deer have antlers that are branched and shed annually, present only in males.
  • Antelope have horns, which are permanent, unbranched, and do not shed.

Distribution and Diversity:

• Antelope:
  • Africa is the primary haven for antelopes, home to 91 species.
  • Antelopes inhabit a wide range of environments, from forests to savannahs, deserts, and even semi-aquatic habitats.
  • India has six species of antelope, including the Blackbuck and Chinkara.
• Deer:
  • There are 43 species of deer worldwide, ranging from the tiny Pudu in South America to the largest Moose in North America.
  • India has 12 species of deer, including the Sambar and Indian Mouse Deer.

Source: DTE

8. Govt notifies seed varieties suitable for rabi season after 2 months of release by PM

Sub : Geo

Sec: Eco Geo 

Context:

• Prime Minister Narendra Modi launched 109 new seed varieties in August as part of a 100-day government initiative aimed at boosting agricultural productivity.

Details:

• Of these, 20 varieties are suitable for the rabi season, including wheat, gram (chana), barley, lentil, and safflower.
• However, these varieties were only officially notified on October 8, after the sowing season had already begun, potentially delaying their commercial cultivation by 2-3 years. Seed breeders need this time to develop and multiply the seeds before they are available for wide-scale use by farmers.
• Notable Rabi Seed Varieties:
  • Wheat: HI 1665, HI 8840
  • Barley: DWRB-219
  • Gram (Chana): PG 265, NbeG 1267
  • Lentil: PL 320, Kota Masoor 6, PSL 17
  • Safflower: ISF-123-sel-15, ISF 300
  • Berseem: JB 08-17
  • Sugarcane: Co 17018, CoLk 16202, CoLk 16470, CoPb 17215
  • Maize: APCH-2, APCH-3, IMH 230
  • Grain Amaranth: RMA 120, GA 8 SKNA 1407
• The seeds were approved by the Central Sub-Committee on Crop Standards.
• These seeds were developed by various research centres under ICAR (Indian Council of Agricultural Research) to increase farm productivity, with many of the varieties being high-yielding, climate-resilient, and biofortified.

Future reforms:

• The government is merging the existing Seednet portal with the recently launched SATHI portal (Seed Authentication, Traceability, and Holistic Inventory) to streamline information related to seed supply, demand, and regulatory matters. Additionally, Krishi Vigyan Kendras (KVKs) have been tasked with educating farmers monthly about the benefits of these new varieties to ensure awareness and increased adoption.

SATHI portal:

• SATHI, or Seed Authentication, Traceability & Holistic Inventory, strives to create a nurturing digital environment.
• It is an initiative of the Ministry of Agriculture and Farmers’ Welfare, Govt. of India.
• It aims to oversee seed production, ensure quality certification, and manage distribution with utmost care.
• The core objective is to offer complete traceability of seeds from their inception to the hands of farmers across successive generations.

Salient features:

• GIS reports based on the Bharat Map Interface
• Provision of wallet service
• Offline-friendly and device-agnostic mobile application
• Quality inspection module for the quality check of the inspection process
• System-generated sample slip on processed verification data
• Online forwarding of the samples to the seed testing laboratory
• Issuing of tag certificate based on digital tag register

Services offered:

1. Registration of Seed Producing Agencies: Apply for registration or check the status of Seed Producing Agency under Seed Certification Agencies for different state
2. Registration of Seed Processing Plants: Apply for registration or check the status of Seed Processing Plants under Seed Certification Agencies for different state
3. Seed Dealership License: Any business unit can apply or check the status for a Seed Dealership license to issuing authorities for different state
4. Download Field Inspection Report: Can download the field inspection report uploaded by the quality inspector
5. Trace Tag Number: Can trace the detailed seed information from source to destination with a quality certificate

9. NPPA revises the ceiling prices of eight scheduled drugs to meet the twin objectives of availability and affordability

Sub : Sci

Sec: Health

Context:

• The National Pharmaceutical Pricing Authority (NPPA) has approved a 50% increase in the ceiling prices of eleven essential formulations from eight different drugs.
• Drugs Affected: These drugs are primarily low-cost and widely used as first-line treatments for conditions such as asthma, glaucoma, thalassemia, tuberculosis, and mental health disorders. They play a crucial role in public health programs.

Reason for the Price Hike:

• To ensure the availability of essential drugs at affordable prices.
• The NPPA emphasised that price regulation should not make these drugs unavailable in the market, which would jeopardise public health.
• Factors Behind the Increase:
  • Manufacturers have requested price revisions due to:
    • Rising costs of active pharmaceutical ingredients (APIs).
    • Increased production costs.
    • Changes in exchange rates.
  • Some companies have even applied to discontinue certain formulations, citing financial unviability.
• Legal and Policy Context:
  • The NPPA invoked extraordinary powers under Paragraph 19 of the Drugs (Prices Control) Order (DPCO), 2013, to implement the increase.
• Drugs with Revised Prices:
  • Atropine injection (0.6 mg/ml).
  • Streptomycin powder for injection (750 mg and 1000 mg).
  • Salbutamol (tablet 2 mg and 4 mg; respirator solution 5 mg/ml).
  • Pilocarpine (2% eye drops).
  • Cefadroxil (tablet 500 mg).
  • Desferrioxamine (injection 500 mg).
  • Lithium (tablet 300 mg).
• Previous Price Revisions:
  • Similar price increases occurred in 2019 and 2021, where NPPA raised the prices of 21 and 9 formulations, respectively, to maintain the availability of these essential medicines.

About National Pharmaceutical Pricing Authority (NPPA):

• Establishment: NPPA was established in 1997 as an independent body under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Government of India.
• Primary function: Its main role is to fix/revise the prices of controlled bulk drugs and formulations and to enforce prices and availability of medicines in India.
• Key responsibilities:
  • Implement and enforce the provisions of the Drugs (Prices Control) Order
  • Monitor the availability of drugs
  • Identify shortages and take remedial steps
  • Collect and maintain data on production, exports, imports, and market share of pharmaceutical companies
• Price control: NPPA fixes the ceiling price of essential medicines as per the National List of Essential Medicines (NLEM).
• Drug Price Control Order (DPCO): NPPA implements the DPCO, which is an order issued by the government to regulate drug prices in India.
• Consumer protection: It works to ensure that essential medicines are available at reasonable prices to consumers.
• Authority: NPPA has the power to review prices of non-scheduled drugs and can take appropriate action if any medicine is deemed to be priced unreasonably.
• Challenges: The authority often faces challenges in balancing the interests of pharmaceutical companies with those of consumers, and in ensuring drug availability while maintaining price controls.

10. How paddy variety PR-126 became a victim of its own popularity

Sub : Geo

Sec: Eco geo

About the controversy:

• In the recent years, PR-126 has faced scrutiny due to alleged low milling out-turn ratios (OTR), leading to rice shellers refusing to accept this variety.
• The controversy has escalated into a political issue, with opposition parties criticizing the Punjab government’s handling of paddy procurement.
• The primary issue facing PR-126 stems from the influx of non-certified hybrid varieties being marketed under its name. Millers have expressed concerns about these hybrids having lower OTRs (60%-62%) compared to PR-126’s consistent 67%.
• Millers do not have a problem with PR-126 per say. Rather, they are concerned about hybrid varieties sold under the name of PR-126.

About PR-126:

• PR-126, a short-duration paddy variety developed by Punjab Agricultural University (PAU), gained popularity among farmers in Punjab since its introduction in 2016.
• It was favoured for its shorter growth cycle, high yield, lower pesticide needs and excellent OTR.
• It offers an average yield of over 30 quintals per acre.
• In the 2023-2024 season, PR-126 was cultivated on approximately 8.59 lakh hectares, constituting about 33% of non-Basmati paddy cultivation in Punjab and is expected to increase to 44% this year.

Advantages of PR-126:

• Punjab has seen a record-high area under paddy cultivation, roughly 32 lakh hectares, in the 2023-24 and 2024-25 seasons, but the state is facing a severe groundwater crisis.
• Shifting to paddy varieties which can be grown in a shorter duration likely offers the best solution for the water crisis. This is where PR-126 comes in.
• It gives farmers more time to manage stubble, reducing the need for burning.

Victim of its own popularity:

• This year, the demand for PR-126 was huge, and when enough seed wasn’t available, seed and pesticide companies took advantage of the situation by selling hybrid varieties under the PR-126 name.

Out-turn ratio (OTR):

• out-turn ratio refers to the post milling yield of a crop.
• The out-turn ratio of rice from paddy is the percentage of rice produced from a given amount of paddy.

Who are Arhtiyas:

• Arhtiyas are traditional commission agents or middlemen in the Indian agricultural market, primarily responsible for facilitating the sale and purchase of agricultural produce between farmers and buyers.
• They play a crucial role in the marketing of crops, especially in states like Punjab and Haryana.

11. Saudi Arabia launches new digital platform to ensure wage protection

Sub : Polity

Sec: Constitution

Context:

• Saudi Arabia is implementing a series of digitally enforceable measures aimed at improving working conditions for foreign workers, including those from India.
• These measures align with the Kingdom’s Vision 2030 goals, focusing on labour rights and reducing illegal immigration.

Musaned Platform:

• The Musaned platform is a key component of the new labour regulations. It serves as a digital tool designed to benefit foreign workers in various sectors, particularly in domestic work.
• The Musaned platform is designed to safeguard human rights and ensure a stable working environment for both employees and employers.

Key Features of the platform:

• Easier access: Foreign workers can access and monitor their employment contracts through the Musaned platform.
• Mobile App: A dedicated Musaned labour app provides real-time updates regarding employment conditions and rights.
• Social security: The platform can be linked with contract insurance and health benefits, ensuring comprehensive support for workers.
• Financial Transaction Tracking: An essential feature of the Musaned platform is its ability to track financial transactions between employers and foreign workers. This ensures that employers meet their contractual obligations, providing an additional layer of security for workers.

Global Harmony Initiative:

• Saudi officials officially launched the Global Harmony Initiative which is a part of Saudi Arabia’s broader Quality of Life programme to attain its Vision 2030 objectives.
• It aims at promoting quality of life and developing stronger bonds between the local society and the Indian and other expatriate communities through cultural promotion.
• The initiative seeks to showcase the diverse cultures of expatriates and highlight their harmonious existence within Saudi society.

About Vision 2030:

• Launched in 2016, Vision 2030 is a blueprint for diversifying the economy, empowering citizens, creating a vibrant environment for both local and international investors, and establishing Saudi Arabia as a global leader.
• There are three stages to the programme, each lasting five years.

Indian community in Saudi:

• Indians are the largest expat community in Saudi Arabia with an approximate 6 million people.
• The community has increased by about 200,000 people over the past year.

12. How paddy variety PR-126 became a victim of its own popularity

Sub : Geo

Sec: Eco geo

About the controversy:

• In the recent years, PR-126 has faced scrutiny due to alleged low milling out-turn ratios (OTR), leading to rice shellers refusing to accept this variety.
• The controversy has escalated into a political issue, with opposition parties criticizing the Punjab government’s handling of paddy procurement.
• The primary issue facing PR-126 stems from the influx of non-certified hybrid varieties being marketed under its name. Millers have expressed concerns about these hybrids having lower OTRs (60%-62%) compared to PR-126’s consistent 67%.
• Millers do not have a problem with PR-126 per say. Rather, they are concerned about hybrid varieties sold under the name of PR-126.

About PR-126:

• PR-126, a short-duration paddy variety developed by Punjab Agricultural University (PAU), gained popularity among farmers in Punjab since its introduction in 2016.
• It was favoured for its shorter growth cycle, high yield, lower pesticide needs and excellent OTR.
• It offers an average yield of over 30 quintals per acre.
• In the 2023-2024 season, PR-126 was cultivated on approximately 8.59 lakh hectares, constituting about 33% of non-Basmati paddy cultivation in Punjab and is expected to increase to 44% this year.

Advantages of PR-126:

• Punjab has seen a record-high area under paddy cultivation, roughly 32 lakh hectares, in the 2023-24 and 2024-25 seasons, but the state is facing a severe groundwater crisis.
• Shifting to paddy varieties which can be grown in a shorter duration likely offers the best solution for the water crisis. This is where PR-126 comes in.
• It gives farmers more time to manage stubble, reducing the need for burning.

Victim of its own popularity:

• This year, the demand for PR-126 was huge, and when enough seed wasn’t available, seed and pesticide companies took advantage of the situation by selling hybrid varieties under the PR-126 name.

Out-turn ratio (OTR):

• out-turn ratio refers to the post milling yield of a crop.
• The out-turn ratio of rice from paddy is the percentage of rice produced from a given amount of paddy.

Who are Arhtiyas:

• Arhtiyas are traditional commission agents or middlemen in the Indian agricultural market, primarily responsible for facilitating the sale and purchase of agricultural produce between farmers and buyers.
• They play a crucial role in the marketing of crops, especially in states like Punjab and Haryana.

13. RBI Orders ‘Cease and Desist’ on 4 NBFCs Over Usurious Pricing and Regulatory Deviations

Sub: Eco

Sec: Monetary Policy

• Action by RBI:
  • The Reserve Bank of India (RBI) has issued a ‘cease and desist’ order to four non-banking financial corporations (NBFCs).
  • The action is taken due to usurious pricing and other regulatory violations observed in their lending practices.
• NBFCs Involved:
  • The four NBFCs named by the RBI are:
    • Asirvad Micro Finance Ltd. (MFI arm of Manappuram Finance Ltd.)
    • Arohan Financial Services Ltd.
    • DMI Finance Private Ltd. (backed by Mitsubishi UFJ Financial Group)
    • Navi Finserv Ltd.
• Reasons for Action:
  • Material supervisory concerns were noted in the pricing policy of these companies, particularly their Weighted Average Lending Rate (WALR) and the interest spread over their cost of funds.
  • Violations were identified in several areas:
    • Usurious pricing practices.
  • Non-compliance with regulatory guidelines on:
    • Assessment of household income.
    • Consideration of existing or proposed monthly repayment obligations in microfinance.
  • Additional deviations, including:
    • Evergreening of loans (renewing or extending loans to avoid recognizing defaults).
    • Practices related to the gold loans portfolio.
    • Mandated disclosure requirements for interest rates and fees.
    • Outsourcing of core financial services, contrary to regulatory norms.
  • Implementation of Restrictions:
    • The business restrictions on these NBFCs will take effect from October 21, 2024.
    • These curbs will not affect services to existing customers.
    • The restrictions will be reviewed once the RBI is satisfied with the remedial actions taken by these companies.
  • Response from NBFCs:
    • Navi Finserv and Asirvad Microfinance have acknowledged the RBI’s action:
    • They have stated that they value the feedback and will work towards addressing the concerns raised.
    • Asirvad has called for an urgent board meeting to monitor and implement corrective actions within a time-bound plan.
  • Implications:
    • This regulatory action underscores the RBI’s commitment to protect borrowers from unfair lending practices.
    • It highlights the importance of strict compliance with guidelines to ensure ethical conduct and transparency in financial services.

Evergreening of Loans

Evergreening loans is a practice where new or additional loans are extended to borrowers who are unable to repay existing loans. This method effectively conceals the actual status of non-performing assets (NPAs) or bad loans. It is often referred to as a form of zombie lending, as it allows financially distressed borrowers to continue operating without addressing underlying financial issues.

14. Argentina’s La Rioja Province Introduces ‘Chachos’ as Emergency Tender Amid Austerity Measures

Sub: IR

Sec: Places in news

Introduction of ‘Chachos’:

• Chachos are newly introduced emergency tender in La Rioja, not a part of the national currency (Argentine pesos) or U.S. dollars.
• These are initiated by the left-wing populist governor of La Rioja as a response to economic challenges.
• Reason for Introduction:
  • The move came after far-right President Javier Milei implemented austerity measures, reducing federal budget transfers to provinces, which led to a financial crisis in La Rioja.
  • La Rioja heavily depends on federal taxes, covering 90% of its provincial budget, and public payroll makes up two-thirds of the registered workforce.
• Usage and Acceptance of Chachos:
  • “Chachos accepted here” decals are visible across supermarkets, gas stations, restaurants, and hair salons in La Rioja’s capital.
  • The local government has ensured a 1-to-1 exchange rate with pesos.
  • Chachos can be used for tax payments and utility bills within La Rioja.
• Limitations:
  • Chachos cannot be used outside La Rioja, making them limited in circulation.
  • Only registered businesses can exchange chachos for pesos at government-approved exchange points, adding a level of regulation to their use.
• Impact of Austerity Measures by President Milei:
  • After assuming office in December 2023, President Milei imposed ‘shock therapy’ aimed at curbing budget deficits stemming from years of populist spending.
  • These cuts have affected all 23 provinces but led to a full-blown crisis in La Rioja, given the province’s dependency on federal funds.
• Implications:
  • The introduction of chachos is a temporary measure to address local liquidity issues and maintain economic stability amid federal cutbacks.
  • It highlights the strained relations between local and federal governments and raises questions about the long-term sustainability of such emergency currencies.

In summary, the economic challenges in La Rioja have led to the creation of a local tender, ‘chachos’, to maintain economic activities amid severe federal budget cuts, reflecting regional responses to national austerity policies.