Daily Prelims Notes 19 August 2024

Daily Prelims Notes

19 August 2024

Table Of Contents

1. 33.9 mh of crops lost due to excess rains in 2015-21: WEF
2. India’s crude Oil demand
3. Banks’ Strategies Amid Slower Deposit Growth
4. Rajnath Singh inaugurates new maritime rescue coordination centre in Chennai
5. Mpox declared a global health emergency: will it trigger another pandemic?
6. UPSC issues ad for lateral entry into bureaucracy: What is the policy, why it has no reservation provision
7. Can Sheikh Hasina be extradited to Bangladesh? What are India’s options?
8. fMRI may reveal depression ‘subtypes’ and treatments that could work

1. 33.9 mh of crops lost due to excess rains in 2015-21: WEF

Sub: Schemes

Sec: Agri

Context:

• India lost 33.9 million hectares (mh) of crops due to excessive rains and an additional 35 mh due to drought between 2015 and 2021, a World Economic Forum (WEF) report has said.
• The impact of extreme climate events in India touches on nearly every aspect of its economy and society, but is more pronounced in particularly exposed sectors such as agriculture, which comprises 15 per cent of India’s GDP and employs around 40 per cent of its population — 70 per cent among its rural households

PM Fasal Bima Yojana (PMFBY):

• Launched in 2016, PMFBY is a large-scale crop subsidy insurance scheme that was aimed to safeguard farmers.
• PMFBY scheme was designed in line with the One Nation–One Scheme and replaces three older initiatives:

1. Modified National Agricultural Insurance Scheme (MNAIS),
2. Weather-based Crop Insurance Scheme and
3. National Agricultural Insurance Scheme (NAIS).

• Key objectives: PMFBY operates under the ‘One Nation, One Crop, One Premium’motto and aims to achieve the following goals:
  • Offer cost-effective and extensive insurance coverage for crops, guarding against failure, damage, and losses.
  • Increase the reach of crop insurance, with a primary emphasis on covering the entire cultivated area.
  • Maintain stable income for farmers while promoting sustainability in agricultural production.
  • Facilitate access to credit for the agriculture sector.
  • Encourage the adoption of innovative and modern farming practices among farmers.
  • Foster competition within the agricultural industry.
  • Shield farmers from risks associated with production.
  • Provide farmers with exemptions from goods and services tax (GST).
• Implementing agency: Department of Agriculture, Cooperation and Farmers’ Welfare under the Ministry of Agriculture, along with empanelled general insurance companies.

Salient Features of the Pradhan Mantri Fasal Bima Yojana (PMFBY)

a. Insurance Coverage Under Pradhan Mantri Fasal Bima Yojana

• The Pradhan Mantri Fasal Bima Yojana offers insurance coverage specifically designed for certain crops and the risks associated with their yield.
• The list of crops covered includes essential food crops like cereals, millets, and pulses, as well as oilseeds, annual commercial crops, and annual horticultural crops.
• It also covers all stages of the crop production cycle. The inclusions and exclusions of insurance coverage provided are as follows:
  • Initial Stage – Risks during sowing, planting, and germination:  When unfavourable weather conditions, such as low rainfall or adverse weather, hinder successful sowing, planting, or germination, the insured area is protected.
  • Growth Stage – Risks of crop failure during growth:  Insurance coverage extends to yield losses caused by uncontrollable factors like drought, dry spells, floods, inundation, pest infestations, crop diseases, landslides, natural fires, lightning, hailstorms, and cyclones.
  • Harvest Stage – Risks during post-harvest:  This applies to crops that require drying in bundles after harvesting. Coverage is provided for up to two weeks from harvesting and extends to losses resulting from hailstorms, cyclones, cyclonic rains, and unseasonal rains.
  • Protection against Calamities:  Coverage is available for loss or damage to designated insured crops caused by specific localized risks, including hailstorms, landslides, cloud bursts, and natural fires.
  • Exclusions:  Loss or damage to the specified insured crops due to war, nuclear risks, malicious damage, and other avoidable risks are not covered under this scheme.
• The size of the insurance claim depends on the percentage of yield shortfall from the threshold yield, multiplied by the insured sum.
• The insured sum is determined based on the financial scale provided to farmers, while the threshold crop yield is calculated using seven-year historical data and indemnity levels.

b. Premiums Under Pradhan Mantri Fasal Bima Yojana

• To access the insurance benefits offered by this program, farmers need to contribute a small portion of actuarial premiums.
• The contribution rates differ based on the type of crops: for Kharif crops (2%), Rabi crops (1.5%), Commercial crops (5%), and Horticultural crops (5%).
• However, the bulk of the actuarial premium, ranging from 95% to 98.5%, is covered jointly by both the state and central governments, with the costs shared equally on a 1:1 ratio.

c. Beneficiaries of Pradhan Mantri Fasal Bima Yojana

• According to the government, under this scheme, all farmers (including sharecroppers and tenant farmers) growing notified crops in the notified areas are eligible for coverage, if they have insurable interest for the insured crops.
• The eligible farmers can be broadly classified into two categories in Pradhan Mantri Fasal Bima Yojana;

Restructured Weather-based Crop Insurance Scheme (RWBCIS)

• Insurance protection for notified food crops, oilseeds and horticultural /commercial crops.
• Uniform maximum premium for all farmers like PMFBY:

1. Kharif Season – 2% of sum insured.
2. Rabi Season – 1.5% of sum insured.
3. Commercial/horticultural crops – 5% of sum insured.

• The difference between the actual premium and the rate of Insurance payable by farmers shall be shared equally by the Centre and State.
• When the Weather indices (rainfall/temperature/relative humidity/wind speed etc) is different (less/higher) from the Guaranteed Weather Index of notified crops, the claim payment equal to deviation/shortfall is payable to all insured farmers of notified area.
• Provision for assessment of losses caused by hailstorms and cloud bursts at individual farm level.

Sandbox for Agricultural and Rural Security, Technology and Insurance (SARATHI):

• Launched by: Ministry of Agriculture and Farmers Welfare
• SARTHI is the comprehensive digital insurance platform launched in collaboration with United Nations Development Programme (UNDP) India.
• It extends coverage to health, life, home, shop, agriculture implements, motor, and parametric products.
• It can be accessed via the AIDE app available on Android App Store.
• This ambitious endeavour, aligned with the Sustainable Development Goals, not only aims to safeguard farmers’ livelihoods but also to fortify the resilience of the agricultural sector as a whole.
• Significance:
  • It marks a significant advancement beyond traditional crop insurance, offering a diverse array of products tailored to farmers’ needs.
  • By expanding insurance coverage to include vital assets like tractor machinery, SARTHI empowers farmers to comprehensively mitigate risks, securing their livelihoods and fostering long-term sustainability in agriculture.

Women’s Climate Shock Insurance and Livelihood Initiative (WCS):

• As extreme heat continues to rise, it disrupts livelihoods, economies, and health globally. Women, in particular, face disproportionate impacts, including health issues and income loss.
• WCS is a global initiative, launched in India, designed to provide financial protection to women against the devastating effects of extreme heat.
• The initiative, started in April 2024 by Climate Resilience for All in partnership with the Self-Employed Women’s Association (SEWA) and Swiss Re Public Sector Solutions, combines financial protections with interventions like early warning systems.
• Financial Protections:WCS includes a microinsurance parametric product and cash assistance:
  • Microinsurance: Automatically pays out when temperatures exceed a pre-set threshold, helping women recover losses, protect their health, and ensure their families’ safety.
  • Cash Assistance: Provides small, direct payments at lower temperature thresholds, supplementing lost income and empowering women with more decision-making power after a heat shock.

Additional Support: Alongside financial protections, WCS includes job-specific heat early warning systems and protective equipment, such as tarps for crops and cool boxes for meat and produce. These measures enhance women’s ability to survive and thrive during extreme heat conditions.

2. India’s crude Oil demand

Sub: Eco

Sec: External Sector

• Rising Oil Import Dependency:
  • India’s reliance on imported crude oil has increased to 88.3% in the first four months of FY25 (April-July 2024).
  • This is up from 87.8% during the same period last year.
• Domestic Oil Production vs. Demand:
  • Despite efforts to boost domestic production, India’s self-sufficiency in crude oil has declined to 11.7%.
  • Domestic crude oil production was 9.5 million tonnes, while total domestic consumption of petroleum products rose to 80.9 million tonnes.
• Impact on the Economy:
  • High import dependency makes India vulnerable to global oil price volatility, affecting the trade deficit, foreign exchange reserves, and inflation.
  • The gross oil import bill for April-July 2024 increased by 17% year-on-year to $49 billion.
• Government’s Efforts and Challenges:
  • The government had set a target in 2015 to reduce oil import dependency to 67% by 2022, but this goal has not been met, and the dependency has grown instead.
  • Efforts to reduce reliance on imported oil include promoting electric mobility, biofuels, and incentivizing domestic oil exploration and production.
  • However, these measures have not been sufficient to offset the growing demand for petroleum products.
• Continued Demand Growth:
  • India’s domestic consumption of petroleum products rose by 4.8% year-on-year, reflecting strong demand, particularly for transportation fuels like petrol and diesel.
• Significance of the Issue:
  • The continuous increase in oil import dependency is a significant concern for India’s energy security and economic stability.

3. Banks’ Strategies Amid Slower Deposit Growth

Sub: Eco

Sec: Monetary Policy

• Slower Deposit Growth:
  • Banks are witnessing a slowdown in deposit growth as customers explore alternative investment avenues like capital markets for better returns.
  • SBI’s deposits fell to Rs 49.01 lakh crore in the June 2024 quarter, down from Rs 49.16 lakh crore in March 2024.
  • Similarly, Bank of Baroda saw deposits decrease from Rs 13.26 lakh crore to Rs 13.06 lakh crore in the same period.
• CASA Deposits Decline:
  • CASA (Current Account and Savings Account) deposits also declined, with SBI’s CASA deposits falling to Rs 19.41 lakh crore from Rs 19.14 lakh crore in March 2024.
• Credit Growth Outpaces Deposits:
  • Credit growth has outpaced deposit growth, rising by 15.1% as of July 2024, compared to 14.6% a year earlier.
  • Deposit growth, however, declined to 10.6% from 12.9% in the same period.
• Banks Launch Special Schemes:
  • To counter the decline in deposits, banks are launching special term deposit schemes to attract depositors.
  • For example, SBI launched ‘Amrit Vrishti’, offering 7.25% interest on deposits for 444 days.
  • Bank of Baroda introduced the ‘Monsoon Dhamaka’ deposit scheme, with interest rates of 7.25% for 399 days and 7.15% for 333 days.
• Advice to Banks:
  • RBI Governor urged banks to mobilize deposits through innovative product offerings and to leverage their wide branch networks.
• Focus on Small Deposits:
  • Finance Minister Nirmala Sitharaman emphasized the need for banks to focus on mobilizing small deposits, which are essential for sustainable lending.
• Impact on Lending Rates:
  • The slower deposit growth has led to an increase in the cost of funds, causing banks like SBI to raise their marginal cost of funds (MCLR) by up to 30 basis points in certain tenors.
• Mutual Funds vs. Bank Deposits:
  • Mutual funds have provided higher returns than bank deposits, leading to a shift in household savings towards the capital markets.
  • However, mutual fund industry experts argue that this shift won’t impact banking system liquidity, as the money remains within the system.
• Growing Retail Participation in Mutual Funds:
  • Systematic Investment Plans (SIPs) have become increasingly popular, with contributions reaching an all-time high of Rs 23,332 crore in July 2024.
  • Themutual fund industry’s net assets under management reached a record Rs 64.97 lakh crore by July 31, 2024.

4. Rajnath Singh inaugurates new maritime rescue coordination centre in Chennai

Sub: Sci

Sec: Defence

Context:

• The defence minister inaugurated a new Maritime Rescue Coordination Centre (MRCC) of the Coast Guard in Chennai.
• Healso inaugurated two new Coast Guard units – the Regional Marine Pollution Response Centre (RMPRC) in Chennai and a Coast Guard Air Enclave in Puducherry.

About MRCC: 

• The new MRCC would facilitate enhanced coordination for rescue of mariners and fishermen in distress at sea.
• The centre is installed with the latest equipment for distress monitoring through terrestrial and satellite systems, and has advanced communication systems.

About RMPRC:

• It is a first-of-its-kind facility for coordinating response against marine pollution in the waters adjoining the coastal States in the Indian Ocean Region.
• It is also located in

AboutCoast Guard Air Enclave:

• The Coast Guard Air Enclave in Puducherry would be equipped with Chetak and Advanced Light Helicopter Squadrons.
• Both these helicopters are indigenously built, and can carry out maritime patrol, search and rescue and other such missions from the land as well as Coast Guard ships patrolling at sea.

5. Mpox declared a global health emergency: will it trigger another pandemic?

Sub: Sci

Sec: Health

Context:

• WHO has declared the ongoing outbreaks of mpox in Congo and elsewhere in Africa to be a global emergency, requiring urgent action to curb the virus’ transmission.
• Sweden has since announced it had found the first case of a new form of mpox previously only seen in Africa in a traveller.

About Mpox:

• Mpox, also known as monkeypox, is spread primarily through close skin-to-skin contact with infected people or their soiled clothes or bedsheets.
• It often causes visible skin lesions.

Is mpox going to trigger another pandemic?

• Experts suggest that itshighly unlikely.
• Pandemics like COVID-19, are typically sparked by airborne viruses that spread quickly.
• Europe’s Centre for Disease Prevention and Control said that more imported cases of mpox from Africa were “highly likely,” but the chances of local outbreaks in Europe were very low.

How different is mpox from COVID-19?

• Mpox spreads very slowly unlike the coronavirus.
• There are vaccines and treatments available for mpox unlike in the early days of the COVID-19 pandemic.

What is an Epidemic?

The Centers for Disease Control and Prevention (CDC) an epidemic as an unexpected increase in the number of disease cases in a specific geographical area. Yellow fever, smallpox, measles, and polio are prime examples of epidemics. An epidemic disease doesn’t necessarily have to be contagious. West Nile fever and the rapid increase in obesity rates are also considered epidemics. Epidemics can refer to a disease or other specific health-related behavior (e.g., smoking) with rates that are clearly above the expected occurrence in a community or region.

What is a Pandemic?

The World Health Organization (WHOdeclares a pandemic when a disease’s growth is exponential. This means the growth rate skyrockets, and each day cases grow more than the day prior. In being declared a pandemic, the virus has nothing to do with virology, population immunity, or disease severity. It means a virus covers a wide area, affecting several countries and populations.

What does Endemic mean?

A disease outbreak is endemic when it is consistently present but limited to a particular region. This makes the disease spread and rates predictable. Malaria, for example, is considered endemic in certain countries and regions.

6. UPSC issues ad for lateral entry into bureaucracy: What is the policy, why it has no reservation provision

Subject:  Polity

Sec: executive

Context:

The Centre has opened a fresh round of lateral recruitments, from the private sector and elsewhere, into senior posts in the bureaucracy. Such appointments have also been criticised for not extending reservations to SC, ST and OBC communities.

More on News:

• A total of 45 posts have been advertised with individuals having appropriate qualifications and experience from State/UT governments, PSUs, statutory organisations, research institutes and universities, and even the private sector eligible to apply.
• The advertisement mentions that all posts are “suitable for candidates belonging to the category of Persons with Benchmark Disability (PwBD).”

 Positions open for lateral entry:

• The first vacancies for lateral entrants were advertised in 2018, but only for Joint Secretary level positions.
• A Joint Secretary, appointed by the Appointments Committee of the Cabinet (ACC), has the third-highest rank (after Secretary and Additional Secretary) in a Department, and functions as the administrative head of a wing in the Department.
• Directors are one rank below Joint Secretaries, and Deputy Secretaries are one rank below Directors, although in most ministries, they perform the same job.

Union government’s logic behind introducing lateral entries:

• In 2019, Minister of State for the Department of Personnel and Training (DoPT) Jitendra Singh told the Rajya Sabha that “lateral recruitment is aimed at achieving the twin objectives of bringing in fresh talent as well as augment the availability of manpower”.
• The idea behind lateral recruitment is for the government to tap into individuals’ domain expertise and specialised know-how, regardless of whether they are career bureaucrats or not.
• Aim: It allows individuals with specialized skills, expertise, and experience in specific domains to join the bureaucracy at higher levels. 
• By bringing in professionals from diverse backgrounds, it intends to inject fresh perspectives, innovative ideas, and specialized expertise into the administrative system.

7. Can Sheikh Hasina be extradited to Bangladesh? What are India’s options?

Subject: IR

Sec: Places in news

Context:

India and Bangladesh have an extradition treaty, under whose provisions Bangladesh may seek the extradition of former Prime Minister Sheikh Hasina. But this does not necessarily mean that she will be extradited to her home country, where she faces a number of criminal cases.

Do India and Bangladesh have an extradition treaty?

Yes. India and Bangladesh signed an extradition treaty in 2013, which was then amended in 2016 to ease and hasten the exchange of fugitives between the two countries.

What does the treaty say?

• According to the treaty, India and Bangladesh are supposed to extradite individuals “who have been proceeded against… or have been charged with or have been found guilty of, or are wanted for… committing an extraditable offence” by a court of the requesting country.
• The treaty says, is one which carries a minimum punishment of one year imprisonment. This includes financial offences.
• Crucially, for an offence to be extraditable, the principle of dual criminality must apply, meaning that the offence must be punishable in both countries.
• Extradition shall also be granted if there is an “attempt to commit or aiding, abetting, inciting or participating as an accomplice in the commission of an extraditable offence”.

Are there exceptions to these rules?

• The treaty says that extradition may be refused if the offence is of “political nature”. But this is limited by the nature of offence.
• And the list of offences which cannot be deemed as “political” is rather long. These include murder; manslaughter or culpable homicide; assault; causing of an explosion; the making or possession of an explosive substance or weapons by a person intending to endanger life; the use of a firearm with intent to resist or prevent arrest; damaging property with intent to endanger life; kidnapping or taking of a hostage; incitement to murder; and any other offence related to terrorism.
• Article 8 lists out multiple grounds for refusal including cases in which an accusation has not been “made in good faith in the interests of justice” or in case of military offences which are not “an offence under the general criminal law”.

8. fMRI may reveal depression ‘subtypes’ and treatments that could work

Subject: Sci

Sec: Health

Context:

Antidepressants and therapy can provide much needed relief to people with mental health illnesses. Antidepressants can provide much needed relief to people with mental health illnesses.

Brain biomarker:

• Like the heart, the brain has electrical activity, too. A functional magnetic resonance imaging (fMRI) machine can capture this activity and the way it changes over time through electric signals.
• In those with mental illness, the underlying brain circuits that connect different regions don’t activate normally.
• One region can have more intense electrical activity than it does in a healthy person.
• Different people have different patterns, both normal and abnormal.
• When some of them were shared between people with a specific mental illness, the researchers called it a subtype.
• In this way, many studies have subtyped depression based on brain activity. But the new study used a “theory-driven” approach to create subtypes that are also clinically relevant.

MRI:

• Magnetic resonance imaging (MRI) is anon-invasive diagnostic procedure used to obtain detailed images of soft tissues within the body.
• It is particularly valuable forimaging sophisticated structures like the brain, cardiovascular system, spinal cord, joints, muscles, liver, and arteries.
• MRI is instrumental in diagnosing and monitoring various conditions, including cancer, neurological disorders (such as Alzheimer’s and stroke), and cardiovascular diseases.
• Functional MRI (fMRI) can also assess brain activity by monitoring changes in blood flow.