Daily Prelims Notes 24 April 2024

Daily Prelims Notes

24 April 2024

1. Government should act on FMCG firms using ‘misleading’ ads: Supreme Court

Subject: Polity

Sec: Legislation in news

Context:

• The Supreme Court of India, led by Justice Hima Kohli, emphasized the need for the government to take action against FMCG companies using misleading advertisements, especially those targeting vulnerable groups such as families with babies and schoolchildren.

Recent cases of FMCG companies using misleading advertisements:

• Higher sugar levels in Nestle’s baby food products sold in India and other regions.
• Patanjali Ayurved and its co-founders, Baba Ramdev and Acharya Balkrishna, allegedly advertising their ayurvedic drugs in contravention of the Drugs and Magic Remedies Act, despite previously assuring the court they would not.

Details:

• Such deceptive practices could negatively affect public health, including that of children.
• The Union Consumer Affairs Ministry has directed the Food Safety and Standards Authority of India to investigate these claims against prominent FMCG companies.
• Participant ministries in the case concerning ‘misleading advertisements by FMCG companies’- Ministries of Consumer Affairs, Information and Broadcasting, and AYUSH Ministry.
• The Advertising Standards Council of India had reported 948 objectionable advertisements to the AYUSH Ministry over the past two years and questioned the follow-up actions taken on these reports.

FMCG companies:

• Fast-Moving Consumer Goods (FMCG) can be defined as packaged goods that are consumed or sold at regular and small intervals.
• Household and personal care products account for 50% of the sales in the FMCG industry, healthcare accounts for 31-32% and food and beverage accounts for the remaining 18-19%.
• FMCG is the fourth largest sector in the Indian economy.

Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954:

• It is a legislative framework to control the advertisement of drugs and prohibit claims of magical qualities in remedies.
• It encompasses various forms of advertisements, including written, oral, and visual mediums.
• Under the Act, the term “drug” refers to medicines intended for human or animal use, substances for diagnosis or treatment of diseases, and articles affecting the body’s functions.
• Other than articles meant for consumption, the definition for “magic remedy” under this Act also extends to talismans, mantras, and charms that allegedly possess miraculous powers for healing or influencing bodily functions.
• It imposes strict regulations on the publication of advertisements related to drugs.
• It prohibits advertisements that give false impressions, make false claims, or are otherwise misleading.
• Violations of these provisions can result in penalties, including imprisonment or fines, upon conviction.
• The term “advertisement,” under the Act, extends to all notices, labels, wrappers, and oral announcements.
• Who comes under the Magic Remedies Act?
  • The Act applies to all individuals and entities involved in the publication of advertisements, including manufacturers, distributors, and advertisers.
  • The Act can hold both individuals and companies accountable for contraventions.
  • If a company violates the act, individuals in charge of its business operations may also be deemed guilty unless they can prove a lack of knowledge or demonstrate due diligence in preventing the offence.
  • Directors, managers, or officers of the company may also be held liable if they consented to or neglected the offence.
• Punishment
  • Violating the Act can result in imprisonment, fines, or both.
  • If this is the first conviction for the violator, they may face up to six months in prison, fines or both.
  • For a subsequent conviction, imprisonment may extend to one year, fine, or both.
  • The Act does not include any limits for the fines that may be imposed on individuals or organisations.

Advertising Standards Council of India (ASCI):

• ASCI is a self-regulatory organization for the advertising industry in India, founded in 1985 and registered as a non-profit under section 25 of the Company Act.
• ASCI is dedicated to self-regulation in advertising to protect consumer interests.
• The organization ensures advertisements across all media (including print, TV, radio, online, and promotional materials) comply with its Code for Self-Regulation, which demands legality, decency, honesty, truthfulness, and safety in ads.
• ASCI also strives for fairness in competition and addresses complaints about misleading and harmful advertisements.
• Recognized and supported by various government bodies such as the Department of Consumer Affairs, FSSAI, Ministry of AYUSH, and Ministry of Information and Broadcasting for its role in co-regulating and curbing misleading advertisements.
• The Supreme Court of India, in a 2017 judgment, affirmed ASCI’s self-regulatory mechanism as an effective preemptive action against misleading TV and radio advertising.
• ASCI is part of the Executive Committee of the International Council on Ad Self-Regulation (ICAS).
• It has received several awards from the European Advertising Standards Alliance (EASA), including two Gold Global Best Practice Awards for its mobile app “ASCIonline” and for reducing the time to process complaints.

Source: TH

2. A Critical Examination of a Persistent Indian View on the Manufacturing Sector

Subject: Economy

Sec: National Income and Indian economy

• Historical Perspective:
  • India’s political, economic, and business elite have long advocated manufacturing as the country’s top priority since independence over 77 years ago.
  • Reasons cited include greater productivity, job creation, and GDP growth, aligning with economic models like the Lewis two-sector model.
• Essential Claims:
  • Advocates for manufacturing emphasize the under-productivity of India’s agricultural sector, ease of labor mobility between sectors, and comparative advantage in manufacturing.
  • Some voices call for easing regulations on worker rights and land acquisition to facilitate manufacturing growth.
• Complexity of Agricultural Productivity:
  • Despite claims of under-productivity, agricultural productivity has shown improvement, with cereal yields per hectare rising by over 20% from 2012 to 2022.
  • The increase in value added per worker in agriculture indicates enhanced productivity, challenging the notion of complete under-productivity.
• Labor Mobility and Skill Gap:
  • The ease of labor mobility between sectors has been contested, with concerns raised about the qualification of Indian manufacturing workers compared to global counterparts.
  • Former RBI Governor Raghuram Rajan highlighted the skill gap among Indian manufacturing workers.
• Comparative Advantage and Government Initiatives:
  • The Ricardian theory of comparative advantage suggests a focus on lowering opportunity costs to specialize in manufacturing exports.
  • The government’s “Make in India” initiative aims to attract foreign enterprises through various measures like improving the Ease of Doing Business index and offering incentives like the Production Linked Incentive scheme.
• Manufacturing Challenges and Service Sector Growth:
  • Manufacturing value added as a percentage of GDP has stagnated around 13% since the 60s, facing challenges like poor infrastructure and lack of skilled labor.
  • In contrast, the services sector has seen significant growth, indicating India’s competitiveness in services, driven by its educated population.
• Human Capital Investment:
  • Redirecting investments from manufacturing to enhancing human capital in services and education could offer more significant economic benefits.
  • Investing in literacy rates, healthcare, and higher education may yield better returns than focusing solely on manufacturing.
• Value Addition and Intellectual Property:
  • Most of the value addition in manufacturing, especially in products like mobile phones, comes from proprietary design technology, often owned by foreign firms.
  • India may benefit more from capturing a higher share of value addition through design rather than focusing solely on local assembly.
• Conclusion:
  • The effectiveness of shifting towards manufacturing as an economic goal is constrained by productivity issues, labour mobility challenges, and comparative advantage constraints.
  • Redirecting investments towards enhancing human capital in services and education may offer more significant economic benefits in the long run.

3. Ecuador’s raid on the Mexican Embassy triggers outrage across Latin America

Subject: IR

Sec: Places in news

Context:

• Ecuador’s raid on the Mexico embassy in Quito breaches diplomatic norms outlined in the Vienna Convention on diplomatic relations.

About Ecuador- Mexico diplomatic tension:

• Ecuador’s security forces stormed the Mexican embassy in Quito to arrest former Vice President Jorge Glas, who had been granted political asylum by Mexico.
• Jorge Glas, sought on corruption charges, had been granted asylum by Mexico just the day before the raid and was subsequently transported under heavy security to a jail in Guayaquil.
• Latin American countries, including Argentina, Bolivia, Brazil, Chile, Colombia, Cuba, Peru, Uruguay, and Venezuela, expressed strong disapproval of Ecuador’s actions.
• Mexican President Andres Manuel Lopez Obrador criticized the incursion as a violation of international law and Mexico’s sovereignty. Ecuador’s President Daniel Noboa justified the raid due to the corruption charges against Glas.
• The Organization of American States called for dialogue and respect for international treaties, including the right to asylum.
• ​​Mexico has now moved the International Court of Justice in the Netherlands, demanding the expulsion of Ecuador from the UN.

Asylum-seeker definition and meaning:

• An asylum-seeker is someone who intends to seek or is awaiting a decision on their request for international protection.
• In some countries, it is used as a legal term for a person who has applied for refugee status and has not yet received a final decision on their claim.

The right to seek asylum:

• Seeking asylum is a human right and every person in the world has the right to apply for asylum if they are fleeing conflict or persecution.
• They must not be expelled or returned to situations where their lives or freedoms would be in danger.
• This is the principle of non-refoulement which is enshrined in the 1951 Refugee Convention.
• It is also part of human rights law and customary international law and must be guaranteed by all countries.

About Vienna Convention on Diplomatic Relations:

• It was adopted on 14th April 1961 by the United Nations Conference on Diplomatic Intercourse and Immunities and entered into force on April 24, 1964.
• Currently, 193 countries are parties to this convention.
• It is nearly universally ratified, with Palau and South Sudan being the exceptions. India has ratified the convention.
• Framework: Vienna Convention provides a complete framework for the establishment, maintenance and termination of diplomatic relations on the basis of consent between independent sovereign States.
• Article 22: Ecuador’s police action on Mexico’s embassy violated Article 22 of the Vienna Convention.
  • Principle of Inviolability: The premises of the mission shall be inviolable, the agents of the receiving State may not enter them except with the consent of the head of the mission.
  • Duties of the State: The receiving State shall take appropriate steps to protect the premises of the mission against any intrusion or damage and to prevent any disturbance of the peace of the mission or impairment of its dignity.
  • Immunity: The premises of the mission, their furnishings and other property thereon and the means of transport of the mission shall be immune from search, requisition, attachment or execution.

Source: AlJazeera

4. Five dead trying to cross English Channel hours after U.K. passes deportation law

Subject: IR

Sec: Places in news

Context:

• Five individuals died trying to cross the English Channel, soon after the British Parliament passed a law allowing the deportation of asylum-seekers to Rwanda.

Details:

• The “Safety of Rwanda Bill” was passed, and Prime Minister Sunak announced that the first flights deporting migrants to Rwanda could occur within 10-12 weeks.
• The legislation faced opposition, especially concerning provisions for Afghans who assisted the U.K. military, but ultimately passed without those amendments.
• Migration issues are central as the U.K. approaches a general election.
• Several human rights organizations, including the UN refugee agency and the Council of Europe, have criticized the U.K.’s new deportation law.

English channel:

• Also known as the Channel, it is an arm of the Atlantic Ocean that separates Southern England from northern France.
• It links to the southern part of the North Sea by the Strait of Dover at its northeastern end. It is the busiest shipping area in the world.
• It is about 560 kilometres (300 nautical miles; 350 statute miles) long and varies in width from 240 km (130 nmi; 150 mi) at its widest to 34 km (18 nmi; 21 mi) at its narrowest in the Strait of Dover.
• It is the smallest of the shallow seas around the continental shelf of Europe, covering an area of some 75,000 square kilometres (22,000 square nautical miles; 29,000 square miles).
• The Channel was a key factor in Britain becoming a naval superpower and has been utilised by Britain as a natural defence mechanism to halt attempted invasions, such as in the Napoleonic Wars and in the Second World War.
• The population around the English Channel is predominantly located on the English coast and the major languages spoken in this region are English and French.

5. Is your masala pack upping your cancer risk? FSSAI doesn’t permit use of ethylene oxide in any food product.

Subject: Science and tech

Sec: Health

Context:

• Authorities in Hong Kong and Singapore withdrew four spice mixes from two of India’s top manufacturers, MDH and Everest, after finding high levels of the carcinogen ethylene oxide in them.

More on news:

• If the two manufacturers are found guilty, action would be taken as per the Food Safety Act.

What is ethylene oxide?

• Ethylene oxide is a pesticide that has been classified as a Group 1 carcinogen by the International Agency for Research on Cancer, meaning there is sufficient evidence from human studies that it can cause cancer.
• It is used by the spice industry as a fumigant to reduce microbial contamination, such as E. coli and Salmonella. 
• It is a colorless, highly flammable and very reactive gas that kills bacteria, viruses and fungi. 
• It is an industrial chemical.

How can ethylene oxide impact your health?

• Ethylene oxide can damage DNA during sterilization procedures. 
• While the risk from occasional, low-level exposure may be minimal, spices and spice blends like those flagged are commonly used in household cooking across multiple dishes.
• This can lead to chronic, persistent exposure over time, which has been linked to an increased risk of cancers like leukemia, stomach cancer and breast cancer. 
• It can even lead to respiratory irritation and lung injury, headache, nausea, vomiting, diarrhea and shortness of breath.

Where else is ethylene oxide banned?

• Ethylene oxide was banned by the European Union (EU) in 2011 for fumigation of food and animal feed during transport and storage.
• The use of ethylene oxide is now only permitted in disinfection and sterilization of medical devices.

6. NCBC slams blanket categorisation of Muslims as backward caste in Karnataka

Subject: Polity

Sec: Constitution

Context:

• The Karnataka government’s decision to categorize the entire Muslim community as a backward caste for reservation purposes in the state has drawn criticism from the National Commission for Backward Classes (NCBC).

More on news:

• According to the data submitted by the Karnataka Backward Classes Welfare Department, all castes and communities within the Muslim religion have been enlisted as socially and educationally backward classes under Category IIB in the State List of Backward Classes.
• All castes/communities of Muslim religion of Karnataka are being treated as socially and educationally backward classes of citizens and listed as Muslim Caste separately under Category IIB in the State List of Backward Classes for providing them reservation in admission into educational institutions and in appointments to posts and vacancies in the services of the State for the purpose of Articles 15(4) and 16(4) of the Constitution of India.
• This categorisation has led to the provision of reservation benefits for 17 socially and educationally backward castes under Category I and 19 castes under Category II-A.

Who are OBCs?

• Other Backward Classes, are a group of socially and educationally disadvantaged communities in India.
• The concept of OBCs emerged in the context of social reform movements during the colonial period and post-independence era.
• The Mandal Commission’s report, submitted in 1980, led to the implementation of 27% reservations for OBCs in government jobs and educational institutions in 1990.
• Article 15(4) empowers the State to make any special provision for the advancement of any socially and educationally backward classes of citizens or for SCs & STs.

Constitutional Provisions:

• Article 340 deals with the need to, inter alia, identify those “socially and educationally backward classes”, understand the conditions of their backwardness, and make recommendations to remove the difficulties they face.
• 102nd Constitution Amendment Act inserted new Articles 338 B and 342 A.
• The amendment also brings about changes in Article 366.
• Article 338B provides authority to NCBC to examine complaints and welfare measures regarding socially and educationally backward classes.
• Article 342 A empowers the President to specify socially and educationally backward classes in various states and union territories. He can do this in consultation with the Governor of the concerned State.
• Law enacted by Parliament will be required if the list of backward classes is to be amended.

7. Centre asks states to monitor, inspect organ transplants involving foreigners

Subject: Polity

Sec: legislation in news

Context:

• The Centre has directed the states to ensure that a NOTTO (National Organ and Tissue Transplantation Organisation) ID is generated for the donor and recipient for living-donor as well as deceased-donor transplants.

More on news:

• Pointing to reports of alleged commercial dealings in organ transplants involving foreign citizens, the Union Health ministry has directed state authorities to investigate such cases and take appropriate action for violations, if any.
• In Rajasthan, fake NoCs were allegedly issued to Bangladeshi nationals, and in Delhi, poor Myanmar nationals were allegedly paid to donate kidneys.
• India offers world class transplantation at a fraction of the cost as compared to several Western countries. 
• There cannot be any commercial trading of organs if they are getting the transplant in India because the Indian law does not permit that.

Organ Donation in India:

• NOTTO-ID being mandatory for considering allocation of organs in case of deceased-donor transplant, this ID in case of a living-donor transplant shall also be generated at the earliest, maximum within 48 hours after the transplant surgery is done.
• Organs of the deceased donor are anonymously allocated to people waiting for a transplant, while an organ can be donated by a living person only if they (donor and recipient) are close relatives or share a close bond and want to donate altruistically.
• Commercial trading of organs is not allowed under Indian laws.

About NOTTO:

• National Organ and Tissue Transplant Organization (NOTTO) is a National level organization set up under the Directorate General of Health Services, Ministry of Health and Family Welfare, Government of India.
• NOTTO would function as apex center for All India activities of coordination and networking for procurement and distribution of Organs and Tissues and registry of Organs and Tissues Donation and Transplantation in the country.
• It lays down policy guidelines and protocols for various functions.
• Network with similar regional and state level organizations.
• It handles the dissemination of information to all concerned organizations, hospitals and individuals.

The legal Framework in India

Transplantation of Human Organs Act (THOA) 1994 was enacted to provide a system of removal, storage and transplantation of human organs for therapeutic purposes and for the prevention of commercial dealings in human organs. THOA is now adopted by all States except Andhra and J&K, who have their own similar laws. Under THOA, source of the organ may be:

• Near Relative donor (mother, father, son, daughter, brother, sister, spouse)
• Other than near relative donor: Such a donor can donate only out of affection and attachment or for any other special reason and that too with the approval of the authorisation committee.
• Deceased donor, especially after Brain stem death e.g. a victim of road traffic accident etc. where the brain stem is dead and person cannot breathe on his own but can be maintained through ventilator, oxygen, fluids etc. to keep the heart and other organs working and functional. Other type of deceased donor could be donor after cardiac death.

Brain Stem death is recognized as a legal death in India under the Transplantation of Human Organs Act, like many other countries, which has revolutionized the concept of organ donation after death. After natural cardiac death only a few organs/tissues can be donated (like cornea, bone, skin and blood vessels) whereas after brain stem death almost 37 different organs and tissues can be donated including vital organs such as kidneys, heart, liver and lungs.

Government of India initiated the process of amending and reforming the THOA 1994 and consequently, the Transplantation of Human Organs (Amendment) Act 2011 was enacted. Some of the important amendments under the (Amendment) Act 2011 are as under:-

1. Tissues have been included along with the Organs.
2. ‘Near relative’ definition has been expanded to include grandchildren, grandparents.

• Provision of ‘Retrieval Centres’ and their registration for retrieval of organs from deceased donors. Tissue Banks shall also be registered.

1. Provision of Swap Donation included.
2. There is provision of mandatory inquiry from the attendants of potential donors admitted in ICU and informing them about the option to donate – if they consent to donate, inform retrieval centre.
3. Provision of Mandatory ‘Transplant Coordinator’ in all hospitals registered under the Act

• To protect vulnerable and poor there is provision of higher penalties has been made for trading in organs.
• Constitution of Brain death certification board has been simplified- wherever Neurophysician or Neurosurgeon is not available, then an anaesthetist or intensivist can be a member of board in his place, subject to the condition that he is not a member of the transplant team.

1. National Human Organs and Tissues Removal and Storage Network and National Registry for Transplant are to be established.
2. There is provision of Advisory committee to aid and advise Appropriate Authority.
3. Enucleation of corneas has been permitted by a trained technician.

• Act has made provision of greater caution in case of minors and foreign nationals and prohibition of organ donation from mentally challenged persons

In pursuance to the amendment Act, Transplantation of Human Organs and Tissues Rules 2014 have been notified on 27-3-2014

8. Concerns over anti-subsidy duties imposed by the U.S. and the EU on Indian exports

Subject: Economy

Sec: Exports

• Issue: Concerns over anti-subsidy duties imposed by the U.S. and the EU on Indian exports benefiting from the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.
• Background:
  • Despite the clear connection between remission rates and input taxes, the U.S. and the EU imposed countervailing (anti-subsidy) duties on certain Indian products.
  • Products affected include paper file folders, common alloy aluminum sheet, forged steel fluid end blocks, and certain graphite electrode systems.
• Government Response: Implementing a verification process to address these concerns.
• Verification Process:
  • A verification team comprising officials from the Department of Revenue and DGFT will conduct random inspections of manufacturers.
  • Inspections triggered by complaints from importing countries, such as the U.S., regarding alleged subsidy payouts for specific products.
  • Objective: Ensure that only input duties have been remitted under the RoDTEP scheme.
  • Verification: All input taxes paid by selected manufacturers will be compared with the RoDTEP payments received.
  • Purpose: Reassure importing countries that only duties and taxes paid during production have been remitted under the scheme.

Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme:

The RoDTEP scheme, introduced to replace the Merchandise Export from India Scheme (MEIS), has been notified by the Government of India, outlining rates and norms to support exporters.

Objective: To refund embedded central, state, and local duties or taxes that were not previously rebated, addressing the non-compliance issues with the World Trade Organization (WTO) rules.

Key Features:

• Scope:
  • Covers 8,555 tariff lines, constituting around 75% of traded items and 65% of India’s exports.
  • Budgetary allocation of ₹12,454 crore for the fiscal year 2021-22.
• Zero Rating of Exports:
  • Aims to achieve zero rating of exports by ensuring that domestic taxes are not exported.
• Refund Mechanism:
  • Refunds encompass all taxes, including those levied by states and local bodies.
  • Refund rates, considered WTO-compliant, range from 0.5% to 4.3% of the Free On Board (FOB) value of outbound consignments.
• Rate Variation:
  • Rates vary based on the product category. For example:
    • Lowest rates for items like chocolates, toffees, and sugar confectionery.
    • Highest rates for yarns and fibers.
    • Exclusion of certain sectors like steel, pharma, and chemicals.
  • International Standards and Automatic Refunds:
    • Enables Indian exporters to meet international standards for exports.
    • Provides affordable testing and certification within the country, reducing dependence on international organizations.
    • Facilitates automatic tax assessment and refunds for GST, streamlining the process for exporters.

The RoDTEP scheme aligns with India’s efforts to facilitate a conducive environment for exporters, promoting economic growth and enhancing the country’s position in the global market.

9. Govt Plans to Focus on 20 Items as Agri Exports Slip 9%

Subject: Economy

Sec: Exports

• Decline in Agricultural Exports:
  • India’s agricultural exports fell by nearly 9% between April to February in FY24 to $43.7 billion.
  • Factors contributing to the decline include the Red Sea crisis, the Russia-Ukraine war, and domestic restrictions.
• Government Initiatives:
  • The government is formulating plans to boost exports of 20 items with significant growth potential in global markets.
  • Items targeted for export promotion include bananas, mangoes, potatoes, baby corn, fresh grapes, guava, pomegranate, watermelon, onion, green chili, capsicum, okra, garlic, groundnut, alcoholic beverages, cashew nut, buffalo meat, jaggery, and natural honey.
• Export Expansion Goals:
  • The aim is to increase India’s share in global exports from 2.5% to about 4-5% in the coming years.
  • In 2022, India’s exports of the identified items totaled $9.03 billion, while global imports stood at $405.24 billion.
• Focus on Sea Routes:
  • APEDA is collaborating with different institutes to develop sea protocols for ginger, pineapple, mangoes, and oranges to promote shipments through sea routes.
  • Developing sea protocols reduces logistics costs for exporting horticulture produce to long-distance markets, facilitating increased exports of items like bananas, mangoes, and pomegranates.
• Export Performance:
  • Exports of the 719 scheduled agri-products in the APEDA basket declined by 6.85% to $22.4 billion during the 11-month period of the last fiscal.
  • However, 17 out of 24 principal commodities recorded positive growth, including fresh fruit, buffalo meat, processed vegetables, basmati rice, and bananas.
  • Basmati rice exports increased by 22% from $4.2 billion in April-February 2022-23 to $5.2 billion in April-February 2023-24.

Despite challenges, the government’s targeted approach aims to revitalize agricultural exports and enhance India’s position in global markets.

APEDA stands for the Agricultural and Processed Food Products Export Development Authority. It is an autonomous organization under the Ministry of Commerce and Industry, Government of India. APEDA is responsible for the promotion and development of export of various agricultural and processed food products from India. It aids exporters in improving the quality of their products, enhancing their packaging and marketing strategies, and facilitating their access to international markets. APEDA also undertakes market research, organizes trade fairs and exhibitions, and implements various export promotion schemes to boost India’s agricultural exports.Top of Form

INTRODUCTION

The agriculture sector is the largest source of livelihood in India. The country is one of the largest producers of agriculture and food products in the world. In 2021-22, India’s agriculture sector growth rate was estimated to be at 3.9% as compared to the 3.6% in the previous year. The country produces many crops and food grains such as rice, wheat, pulses, oilseeds, coffee, jute, sugarcane, tea, tobacco, groundnuts, dairy products, fruits, etc.

During 2021-22. India’s tea production stood at 1,344.40 million kg. Coffee production during the same period was 3420 lakh tonnes, a 2.39% YoY increase. During 2021-22, oilseeds production of India crossed the estimated 37.15 million tonnes while other products such as rice, wheat, maize, pulses, mustard, and sugarcane reached a record high production.

The top crops producing states in India are West Bengal, Uttar Pradesh, Punjab, Gujarat, Haryana. Madhya Pradesh, Assam, Andhra Pradesh, Karnataka and Chhattisgarh. Most of the wheat produced in the country comes from Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, Rajasthan, Bihar and Gujarat. Uttar Pradesh is the largest producer of sugarcane in India contributing about 48%, followed by Maharashtra and Karnataka at 23% and 9% of the total production respectively.

EXPORT TREND

India is one of the largest agricultural product exporters in the world. During 2021-22, the country recorded US$ 49.6 billion in total agriculture exports with a 20% increase from US$ 41.3 billion in 2020-21. India’s agriculture sector primarily exports agri & allied products, marine products, plantation, and textile & allied products. Agri & allied products exports were valued at US$ 37.3 billion, recording a growth of 17% over 2020-21.

Rice is the largest exported agricultural product from India and contributed to more than 19% of the total agriculture export during the year 2021-22. Sugar, spices and buffalo meat are among the largest exported products with the contribution of 9% 8% and 7% to 2021-22 agriculture exports, respectively. Wheat exports were valued at US$ 2.1 billion in 2021-22 after recording significant growth over exports of US$ 568 million in 2020-21. Coffee exports have crossed US$ 1 billion for the first time, which has improved realizations for coffee growers in Karnataka, Kerala and Tamil Nadu. Higher exports of marine products, at USS 7.7 billion, is benefitting farmers in the coastal states of West Bengal. Andhra Pradesh, Odisha, Tamil Nadu, Kerala, Maharashtra and Gujarat.

The government’s commitment to increase farmers income can be seen through significant nise witnessed in Agri-exports through giving thrust on boosting exports. Various initiatives taken by the government through APEDA such as organizing B2B exhibitions, in different countries, exploring new potential markets through product specific and general marketing campaigns have worked as catalyst to growth exports. The government of India has created products matrix for 50 agricultural products with strong export potential and recognized 220 labs to provide services of testing a wide range of products to enable exporters across India

EXPORT DESTINATION:

The largest importers of India’s agricultural products are USA, Bangladesh, China, UAE. Indonesia, Vietnam, Saudi Arabia, Iran. Nepal and Malaysia. The other importing countries are Korea, Japan, Italy, and the UK. During 2021-22, USA was the largest importer of Indian agricultural products at US$ 5.7 billion with share at 11.5% of the total exports. Bangladesh is the major importer of Agri & allied products at US$ 3.8 billion followed by UAE at US$ 2.3 billion. USA and China are major importer of India’s marine products.

The government of India is keen to organize virtual buyer seller meets (V-BSM) on agricultural and food products with the major importing countries across the world to promote geographical indications (GI) registered with agricultural and processed food products in India. So far 17 V-BSMs have been organized with Kuwait, Indonesia, Switzerland. Belgium and Iran. Similar programs have been organized for Canada (Organic products). UAE & USA (Gl products), Germany, South Africa. Australia, Thailand. Oman, Bhutan, Azerbaijan and Qatar.

The government has set up thirteen Agri-Cells in Indian embassies in Vietnam, USA, Bangladesh, Nepal, UAE. Iran. Saudi Arabia. Malaysia, Indonesia. Singapore, China, Japan and Argentina to provide inputs on real time basis to improve Indian exports at these destinations by promoting trade, tourism, technology and investment goals.

10. ‘Extreme Weather, Geopolitical Issues Risk to Near-Term Inflation’

Subject: Economy

Sec: Inflation and unemployment

• Adverse Weather Conditions and Geopolitical Tensions:
  • Pose threats to near-term inflation, according to the Reserve Bank of India’s (RBI) monthly bulletin.
  • Recent trends show Consumer Price Index (CPI) inflation at 4.9% in March, down from a peak of 5.7% in December 2023.
  • Food inflation remains elevated, adding to risks despite some signs of moderation.
  • Overlapping food price shocks and geopolitical tensions may impact inflation in the short term.
• Weather Alerts and Global Warming:
  • The World Meteorological Organization (WMO) warns of global warming in its “State of the Global Climate 2023” report.
  • Urgent response needed as extreme weather events escalate, reflecting in Indian Meteorological Department (IMD) data.
  • Possibility of 2024 becoming the hottest year on record heightens freshwater shortage concerns.
• La Nina and Economic Outlook:
  • Australia’s Bureau of Meteorology and the US National Oceanic and Atmosphere Administration suggest increased chances of La Nina, leading to heavy rainfall in India.
  • Economic conditions in India favor an extension of the upward GDP growth trend, aiming for 8-10% growth annually over the next decade.
  • Capital deepening and resurgence of private investment contribute to growth trajectory.
  • Favorable credit quality of Indian corporates and sustained domestic demand support economic outlook.
• Developmental Strategy:
  • India’s developmental strategy should focus on maximizing the contribution of its young and rising labor force to Gross Value Added (GVA).
  • Aim to breach the low middle-income barrier and achieve sustained economic growth over the next few decades.