April 2021
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Foreign Policy Watch: India-Pakistan

Pakistan allows import of cotton, sugar from India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not Much

Mains level: India-Pakistan Trade

Partially reversing a two-year-old decision to suspend all trade with India, Pakistan recently announced that it would allow the import of cotton and sugar from across the border.

Ever wonder why the neighbour next door suddenly wants to normalize all ties? Read this edition of ours:

India-Pakistan trade relations

  • Trade between the subcontinental neighbours has always been linked to their political interactions, given their tumultuous relationship.
  • For instance, India’s exports to Pakistan dropped by around 16 per cent to $1.82 billion in the 2016-17 financial years from $2.17 billion in 2015-16.
  • This coincided with the rise in tensions between the two countries following the terrorist attacks in Uri in 2016 and the surgical strikes by India against Pakistan-based militants.

How much is the volume of trade?

  • Trade between the two countries grew marginally in subsequent years despite continuing tensions.
  • India’s exports to Pakistan increased to nearly 6 per cent to $1.92 billion in 2017-18, and by around 7 per cent to $2.07 billion in 2018-19.
  • Imports from Pakistan, though much lower than India’s exports to the country, also increased by 7.5 per cent to $488.56 million in 2017-18 from $454.49 million in 2016-17.
  • Growth of imports from Pakistan slowed to around $494.87 million in 2018-19 — an increase of around 1 per cent — before political relations between the two countries took a turn for the worse in 2019.

Why did Pakistan ban trade with India?

  • Pakistan’s decision to suspend bilateral trade with India in August 2019 was primarily a fallout of India’s decision to scrap Article 370.
  • Pakistan called the move “illegal”, and took this trade measure as a way of showing its dissatisfaction.
  • However, an underlying reason for suspending trade between the two countries was also the 200 per cent tariff imposed by New Delhi on Pakistani imports.
  • This was a move that India implemented earlier that year after revoking its status as a Most Favoured Nation following the suicide bomb attack on the CRPF in Pulwama.
  • Pakistan’s announcement, coupled with India’s decision to revoke its MFN status and hike duties on its goods, was considered by some experts to be one of the most drastic measures ever taken in diplomatic tensions.

Why is Pakistan allowing cotton and sugar import now?

  • Textiles from Pakistan are its value-added export.
  • The proposal to lift the ban on cotton imports came in the backdrop of a shortfall in raw material for Pakistan’s textile sector, which has reportedly been facing issues due to a low domestic yield of cotton in the country.
  • On top of this, imports from other countries like the US and Brazil have reportedly been more expensive and takes longer to arrive in the country.

Why only these two commodities?

  • Even when we had a very small positive list (of goods for trade with Pakistan), agricultural commodities were always there in the list.
  • Cotton has been one of Pakistan’s major imports from India. In 2018-19, Pakistan imported $550.33 million worth of cotton from India.
  • When coupled with $457.75 million worth of organic chemicals, these products made up around half of its total imports from India.
  • Where sugar is concerned, trade experts feel it is a result of a long-standing interdependence between India and Pakistan over such agricultural commodities and a potential shortage in domestic supply.
  • If finally approved, cotton and sugar would be the second and third commodities allowed for export from India after Islamabad lifted the ban on medicine and related raw material imports during the Covid-19 pandemic.

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Contention over South China Sea

Places in news: Whitsun Reef

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Whitsun Reef

Mains level: South China Sea Row

China’s aggressive expansion in the South China Sea has found a new ground, Whitsun Reef, where 220 Chinese vessels are currently anchored under the Philippines’ Exclusive Economic Zones (EEZ).

Once again, the South China Sea finds itself closer to becoming a security flashpoint amidst rising concerns over a military conflict.

Also, try this:

Q.Recently, Senkaku Island was in the news. Where is it located?

a) South China Sea

b) Indian Ocean

c) East China sea

d) Red sea

Whitsun Reef

  • Whitsun Reef is a reef at the northeast extreme limit of the Union Banks in the Spratly Islands of the West Philippine Sea.
  • It is the largest reef of the Union Banks.
  • The reef is V-shaped with an area of about 10 sq. km.
  • Until at least the 1990s it was submerged most of the time and was visible above the water only during the low tide, at other times the reef could be detected due to the pattern of breaking waves.
  • At the end of the 20th-century small sand dunes had developed on the reef making a territorial claim possible (an International Court of Justice judgment in 2012 stated that “low-tide elevations cannot be appropriated”).
  • The development of the dunes could have occurred naturally, but the rumours had it that the island was being built up by Vietnam and China.

Territorial disputes

  • As of 2016, the reef was unclaimed, the reports to the contrary (Chinese control) were based on confusion.
  • However, due to the reef’s strategic importance, it was expected that the reef would be occupied “soon”.
  • On 21 March 2021, about 220 Chinese fishing ships were moored at the reef ostensibly taking shelter due to the sea conditions.

Why is the Philippines concerned?

  • The Philippines considers the reef to be a part of its exclusive economic zone and continental shelf and protested the Chinese presence.
  • Currently, Philippine military aircraft and navy are monitoring the situation daily, and China has been warned that there will be an increased military presence to conduct ‘sovereignty patrols’.
  • If China is successful with its moves, the Philippines may lose another fishing ground, similar to what happened in 2012 when China took control of Scarborough Shoal.

The larger dispute

  • China and the Philippines, along with other Southeast Asian countries, have long been part of disputes over sovereign claims over the region’s islands, reefs and seabeds.
  • A third of the world’s maritime trade travels through the South China Sea annually.
  • The seabeds here are believed to be reserves of oil and natural gas while being home to fisheries essential for the food security of millions in South Asia.
  • The majority of the disputes concern the lack of adherence to the international ‘Exclusive Economic Zones’ which stretch up to 200 nautical miles from the coast of any state.
  • China, especially, has been notorious for disregarding the law on various occasions.

What does China have to say?

  • On the present matter, the Chinese have reiterated that the vessels are mere fishing boats seeking shelter from unruly weather, though no bad weather has been reported in the area.
  • It is also unlikely that fishermen would have the financial capital to remain stationary for weeks on end.
  • Experts say through their present occupation, China might be looking to create a civilian base on the reef, an artificial island or even just control the airspace.
  • It is widely assessed that Philippines’s soft approach has further strengthened China’s ambitions in the South China Sea.

Back2Basics: South China Sea Row

  • It is a dispute over territory and sovereignty over ocean areas, and the Paracels and the Spratlys – two island chains claimed in whole or in part by a number of countries.
  • China, Vietnam, the Philippines, Taiwan, Malaysia and Brunei all have competing claims.
  • Alongside the fully-fledged islands, there are dozens of rocky outcrops, atolls, sandbanks and reefs, such as the Scarborough Shoal.
  • China claims by far the largest portion of territory – an area defined by the “nine-dash line” which stretches hundreds of miles south and east from its most southerly province of Hainan.
  • Beijing says its right to the area goes back centuries to when the Paracel and Spratly island chains were regarded as integral parts of the Chinese nation, and in 1947 it issued a map detailing its claims.
  • It showed the two island groups falling entirely within its territory. Those claims are mirrored by Taiwan.

Spat over Chinese claims

  • China has backed its expansive claims with island-building and naval patrols.
  • The US says it does not take sides in territorial disputes but has sent military ships and planes near disputed islands, calling them “freedom of navigation” operations to ensure access to key shipping and air routes.
  • Both sides have accused each other of “militarizing” the South China Sea.
  • There are fears that the area is becoming a flashpoint, with potentially serious global consequences.

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Animal Husbandry, Dairy & Fisheries Sector – Pashudhan Sanjivani, E- Pashudhan Haat, etc

What are Military Farms?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Military farms, Project Freiswal

Mains level: NA

Military farms have been closed after 132 years of service.

Read till the end to know what Project Freiswal is.

What are Military Farms?

  • The farms were set up with the sole requirement of supplying hygienic cow milk to troops in garrisons across British India.
  • The first military farm was raised on February 1, 1889, at Allahabad.
  • Post-independence, the farms flourished with 30,000 heads of cattle in 130 farms all over India.
  • They were even established in Leh and Kargil in the late 1990s.

Why are they shutdown?

  • The major task was the management of large tracts of defence land, production and supply of baled hay to animal holding units.
  • There have been several recommendations in the past to shut down the farms.
  • In 2012, the Quarter Master General branch had recommended their closure.
  • Again in December 2016 by Lt. Gen. DB Shekatkar (retd) committee was appointed to recommend measures to enhance combat capability and rebalance defence expenditure of the armed forces.

Their significance

  • For more than a century, the farms with dedication and commitment supplied 3.5 crore litres of milk and 25,000 MT of hay yearly.
  • It is credited with pioneering the technique of artificial insemination of cattle and the introduction of organised dairying in India, providing yeoman service during the 1971 war.
  • It also supplied milk at the Western and Eastern war fronts as well as during the Kargil operations to the Northern Command.

Another initiative: Project Freiswal

  • It utilizes Friesian-Sahiwal cross-breeds as a base for the evolution of a new milch strain – “Frieswal” – through interbreeding, selection and progeny testing of bulls.
  • It was introduced on 3 November 1987 at the Military Farm School and Research Centre in Meerut.
  • It had the objective of studying the genetic aspects of Holstein x Sahiwal crossbreeds and those of important indigenous cattle breeds for their improvement through selection.

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