September 2024
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Food Processing Industry: Issues and Developments

Wide-ranging reforms undertaken in food-processing sector in last 10 years

Note4Students

From UPSC perspective, the following things are important :

Mains level: Food Processing Industry;

Why in the News?

Prime Minister Narendra Modi stated on Thursday that over the past decade, India has implemented “comprehensive” reforms to revolutionize the food-processing sector.

What are the steps taken by Govt in food processing industry in India?

  • Priority Sector Lending: In April 2015, food and agro-based processing units were included as agricultural activities under the Priority Sector Lending norms, facilitating easier access to credit for these businesses.
  • FDI Policies: The government allows 100% Foreign Direct Investment (FDI) under the automatic route for the food processing sector, encouraging foreign investment and technological transfer.
  • Special Food Processing Fund: A fund of ₹2,000 crore was established with NABARD to support food processing projects and infrastructure development.
  • Regulatory Reforms: The Food Safety and Standards Authority of India (FSSAI) shifted from product-by-product approvals to an ingredient-based approval process in 2016, simplifying compliance for businesses.
  • Infrastructure Development: Initiatives such as the Pradhan Mantri Kisan Sampada Yojana (PMKSY) aim to create a robust infrastructure for food processing through cold storage facilities, processing units, and logistics support.

Status of food processing industries in India

  • Economic Contribution: The sector accounts for approximately 13% of India’s total exports and 6% of industrial investment. It is expected to generate around 9 million jobs by 2024.
  • Growth Rate: The industry has been growing at an average annual rate of about 11.18% over recent years, indicating significant potential for expansion.
  • Market Share: Despite being one of the largest producers of agricultural commodities, India’s food processing sector represents only about 10% of total food production.

What are the still challenges present in food processing industry in India? 

  • Inadequate Infrastructure: A lack of cold storage and transportation facilities leads to over 30% post-harvest losses.
  • Fragmented Supply Chains: The supply chain is highly fragmented, causing inefficiencies and increased costs due to poor connectivity and coordination among stakeholders.
  • Regulatory Complexities: The industry is burdened by a complex web of regulations that can hinder business operations and compliance efforts.
  • Lack of Skilled Labor: There is a significant shortage of skilled professionals in areas such as food technology and quality control, which hampers innovation and adherence to safety standards.
  • Limited Technology Adoption: Many processors still rely on outdated technologies, which affects productivity and product quality. High costs and lack of technical expertise further inhibit technological advancements.

What should be done by Govt to resolve these challenges? (Way forward)

  • Infrastructure Investment: Increase investments in cold chain logistics and transportation infrastructure to minimize post-harvest losses and improve supply chain efficiency.
  • Financial Support Mechanisms: Facilitate easier access to finance through specialized loans for small and medium enterprises (SMEs) in the food processing sector.
  • Skill Development Programs: Enhance vocational training initiatives focused on food technology and safety management.
  • Regulatory Simplification: Streamline existing regulations to reduce bureaucratic hurdles. A unified regulatory framework could help clarify compliance requirements and foster a more conducive environment for business operations.
  • Promote R&D Investment: Encourage investment in research and development to foster innovation within the sector.

Mains PYQ:

Q Elaborate the policy taken by the Government of India to meet the challenges of the food processing sector. (UPSC IAS/2019)

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Food Procurement and Distribution – PDS & NFSA, Shanta Kumar Committee, FCI restructuring, Buffer stock, etc.

Cabinet approves continuation of PM-AASHA to provide better prices to farmers

Note4Students

From UPSC perspective, the following things are important :

Prelims level: PM-AASHA scheme;

Mains level: Significance of PM-AASHA;

Why in the News?

The government has approved the extension of the PM-AASHA scheme, allocating ₹35,000 crore, to ensure farmers receive better prices for their produce and to regulate price fluctuations of essential commodities for consumers.

What is PM-AASHA?

Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) is an umbrella scheme launched by the Government of India in September 2018, aimed at ensuring remunerative prices for farmers’ produce. It integrates various existing schemes to provide a comprehensive approach to price support, including:

  • Price Support Scheme (PSS): Physical procurement of specific crops by central agencies.
  • Price Deficiency Payment Scheme (PDPS): Direct payments to farmers for the difference between the Minimum Support Price (MSP) and market prices.
  • Pilot of Private Procurement & Stockist Scheme (PPPS): Involvement of private players in crop procurement.

The scheme has been extended until 2025-26 with a financial outlay of ₹35,000 crore to enhance its effectiveness and reach.

What are the implications of PM-AASHA?

  • Income Security: By ensuring MSP, PM-AASHA aims to stabilize farmers’ incomes and protect them from price fluctuations in the market.
  • Increased Production: The assurance of remunerative prices is expected to encourage farmers to increase production, particularly in pulses and oilseeds, which have historically been underproduced.
  • Market Stability: The scheme helps regulate prices of essential commodities, making them affordable for consumers while ensuring fair compensation for producers.
  • Strengthened Procurement Mechanism: The integration of various schemes under PM-AASHA enhances the overall procurement process, making it more efficient and transparent.

What are the issues related to MSP?

  • Limited Coverage: MSP is primarily applicable to a few crops like wheat and rice, leaving many farmers without guaranteed prices for their produce.
  • Inefficient Procurement Infrastructure: The existing infrastructure for procurement is inadequate, leading to delays and inefficiencies that affect farmers’ ability to sell their produce at MSP.
  • Lack of Awareness: Many farmers are unaware of their rights regarding MSP or how to access these benefits effectively.
  • Regional Disparities: There are significant regional disparities in the implementation of MSP. States like Punjab and Haryana benefit more from MSP due to better procurement systems, while farmers in other states may struggle to access these benefits.
  • Market Distortions: The MSP system leads to market distortions, encouraging overproduction of certain crops while neglecting others.

What should be done to resolve the issues related to MSP?

  • Expand MSP Coverage: The government should consider extending MSP to a wider range of crops, particularly those that are crucial for food security and farmer livelihoods.
  • Enhance Procurement Infrastructure: Investments should be made in developing better procurement facilities, including storage and transportation systems, especially in rural areas.
  • Increase Awareness Campaigns: Implementing educational programs for farmers about their rights regarding MSP and how they can benefit from it would empower them significantly.

Mains PYQ:

Q What do you mean by Minimum Support Price (MSP)? How will MSP rescue the farmers from the low income trap?  (UPSC IAS/2016)

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Freedom of Speech – Defamation, Sedition, etc.

Bombay HC strikes down amended IT rules

Note4Students

From UPSC perspective, the following things are important :

Mains level: IT Rules 2023;

Why in the News?

The Bombay High Court on Friday struck down the amended IT Rules, 2023, which allowed the Centre to establish a fact-check unit for monitoring government-related misinformation.

Background of the Case

  • In April 2023, the Ministry of Electronics and IT (MEiTY) amended the Information Technology (IT) Rules, 2021, to establish a Fact Check Unit (FCU) aimed at identifying “fake, false, and misleading” information about the Central government on social media platforms.

Reason Behind the Strike Down

  • Violation of Fundamental Right: Justice Chandurkar struck down the amended IT Rules 2023 on grounds that they violated Articles 14 (right to equality), 19 (freedom of speech and expression), and 19(1)(g) (freedom to practice any profession) of the Constitution.
  • Lack of clear defination: The terms “fake, false and misleading” were deemed vague due to the absence of clear definitions, leading to potential misuse and a chilling effect on intermediaries’ operations.
    • The ruling emphasized that the lack of clarity in the rules could lead to arbitrary censorship by the government, undermining democratic principles.

What are the IT Rules 2023?

  • The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023 empower the government to mandate social media platforms like Facebook, Twitter, Instagram, and YouTube to remove content deemed “fake, false or misleading” regarding government affairs.
  • The Fact Check Unit (FCU) was designated as the authority to identify such content. If intermediaries failed to comply with its directives, they risked losing their safe harbour status under Section 79 of the IT Act, 2000.

The implications of FCU: 

  • Potential censorship of political discourse and criticism.
  • Increased pressure on social media platforms to comply with government directives.
  • A risk of undermining independent journalism and fact-checking efforts by civil society organizations.

Way forward: 

  • Clear Definitions and Safeguards: Introduce precise definitions for terms like “fake, false, and misleading” and establish an independent oversight mechanism to prevent arbitrary censorship, ensuring the protection of free speech and democratic values.
  • Strengthen Accountability: Encourage collaboration between the government, civil society, and tech platforms to create transparent and accountable fact-checking processes while protecting intermediaries’ safe harbour status and upholding freedom of expression.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Adjusted Gross Revenue (AGR)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Adjusted Gross Revenue (AGR)

Why in the News?

The Supreme Court has dismissed the curative petitions filed by major telecom service providers, seeking relief from the 2019 judgment regarding Adjusted Gross Revenue (AGR) dues.

What is Adjusted Gross Revenue (AGR)?

  • AGR is the usage and licensing fee that telecom operators are charged by the Department of Telecommunications (DoT).
  • It forms the basis for calculating telecom companies’ dues to the government, including the license fee and spectrum usage charges (SUC).
  • The AGR is divided into:
  1. Spectrum Usage Charges (SUC): These are pegged at 3-5% of AGR, depending on the telecom company’s spectrum holdings.
  2. License Fees: Telecom operators are required to pay 8% of their AGR as a license fee to the government.

Contention over AGR Calculation

  • The DoT maintains that AGR should include all revenues earned by telecom companies, including non-telecom sources such as deposit interest, asset sales, and dividends.
  • Telecom operators, on the other hand, insist that AGR should only include revenues generated from core telecom services, excluding income from non-telecom sources like interest and capital gains.

Legal Disputes on AGR

  1. Beginning of the Dispute (2005): The AGR saga began in 2005 when the Cellular Operators Association of India (COAI) challenged the government’s definition of AGR in court. The dispute centered on whether non-telecom revenue should be included in the AGR calculation.
  2. TDSAT Ruling (2015): In 2015, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) ruled in favor of telecom companies. TDSAT held that AGR should include only revenue from core telecom activities and exclude non-core sources such as rent, profit from the sale of assets, dividends, and interest income.
  3. Supreme Court Ruling (2019): Setting aside the TDSAT decision, the SC upheld the DoT’s definition of AGR on October 24, 2019, declaring that AGR must include all revenue sources, including non-telecom activities like interest and capital gains. This ruling significantly increased the financial liabilities of telecom companies, as they had to pay outstanding dues.

Financial Impact of the AGR Ruling

The Supreme Court ruling had serious financial implications for telecom companies:

  • Massive Liabilities: Telecom companies, especially Vodafone Idea and Bharti Airtel, faced huge financial liabilities. The ruling resulted in unpaid dues amounting to over ₹1.4 lakh crore, which included penalties and interest.
  • Vodafone Idea’s Crisis: Vodafone Idea, in particular, was hit hard by these liabilities and faced potential insolvency, with its future in the Indian telecom sector hanging in the balance.
  • Sector Consolidation: The financial pressure from the AGR liabilities led to the consolidation of the telecom sector, with smaller players exiting the market.

PYQ:

[2019] In India, which of the following review the Independent regulators in sectors like telecommunications, insurance, electricity, etc.?

  1. Ad Hoc Committees set up by the Parliament
  2. Parliamentary Department Related Standing Committees
  3. Finance Commission
  4. Financial Sector Legislative Reforms Commission
  5. NITI Aayog

Select the correct answer using the code given below:

(a) 1 and 2

(b) 1, 3 and 4

(c) 3, 4 and 5

(d) 2 and 5

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Promoting Science and Technology – Missions,Policies & Schemes

Bio-RIDE Scheme

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Bio-RIDE Scheme

Why in the News?

The Union Cabinet has approved the “Biotechnology Research Innovation and Entrepreneurship Development (Bio-RIDE) scheme” to support cutting-edge research and development in biotechnology.

About Bio-RIDE Scheme

Details
Objective To support cutting-edge research, bio-entrepreneurship, and bio-manufacturing in biotechnology.
Total Outlay ₹9,197 crore for the 15th Finance Commission period (2021-22 to 2025-26).
Components
  • Merges Biotechnology Research and Development (R&D) and Industrial & Entrepreneurship Development (I&ED).
  • Introduces Bio-manufacturing and Bio-foundry as new components.
Key Aims
  • Fostering Innovation: Promote bio-entrepreneurship and strengthen India’s position in biotechnology.
  • Bridging Gaps: Accelerate research and product development.
Implementation Focus
  • Promoting Bio-Entrepreneurship: Seed funding, incubation, mentorship for startups.
  • Advancing Innovation: Grants for research in synthetic biology, bio-pharma, and bio-plastics.
Focus Areas
  • Extramural Funding for research in agriculture, healthcare, bioenergy, and environmental sustainability.
  • Nurturing human resources in biotechnology.
Industry-Academia Collaboration Synergies between academic institutions and industry to accelerate commercialization of bio-based products.
Significance
  • Enhances bio-innovation and supports sustainable development.
  • Contributes to achieving green goals and global leadership in biotechnology.

 

PYQ:

[2019] Atal Innovation Mission is set up under the

(a) Department of Science and Technology

(b) Ministry of Labour and Employment

(c) NITI Aayog

(d) Ministry of Skill Development and Entrepreneurship

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GI(Geographical Indicator) Tags

Nagaland’s King Chilli Festival

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Naga King Chilli

Why in the News?

The village of Seiyhama in Nagaland hosted the 3rd edition of the Naga King Chilli Festival, celebrating the importance of the Naga king chilli, one of the world’s hottest chillies.

About Naga King Chilli

  • The Naga King Chilli, also known as Raja Mircha or Bhut Jolokia, is one of the world’s hottest chillies, with heat levels exceeding 1 million Scoville Heat Units (SHU).
  • It is primarily grown in the Northeast Indian states of Nagaland, Assam, Manipur, and Arunachal Pradesh.
  • In 2006, it was certified by the Guinness World Records as the hottest chilli in the world, a title it held for several years.
  • In 2008, it received a GI tag, recognizing its unique origin and significance in the global spice market.
  • The chilli has a heat range of 800,000 to 1,041,427 SHU, making it significantly hotter than common chillies like the jalapeño, which has a SHU of 2,500 to 8,000.
  • Benefits offered:
    • Rich in capsaicin, it is known for its pain-relieving properties and potential health benefits, such as boosting metabolism, promoting heart health, and relieving pain and inflammation.
    • Traditionally, the chilli has been used to preserve food in Nagaland’s hot, humid climate, helping to extend the shelf life of food and reduce waste.
  • Cultivation:
    • The chilli is grown in bamboo groves using ancient cultivation methods.
    • Farming begins in December or January, with peak harvests in August and September.
    • Approximately 150 households in Seiyhama village, Nagaland, cultivate the Naga King Chilli, with the annual harvest reaching 14,000 kg, valued at ₹70 lakh.

PYQ:

[2015] Which of the following has/have been accorded ‘Geographical Indication’ status?

1. Banaras Brocades and Sarees

2. Rajasthani Daal-Bati-Churma

3. Tirupathi Laddu

Select the correct answer using the codes given below:

(a) 1 only

(b) 2 and 3 only

(c) 1 only 3 only

(d) 1, 2 and 3

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Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

[pib] Pest-Control Pheromone Dispenser

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Pest-Control Pheromone Dispenser

Why in the News?

A new sustainable pheromone dispenser has been developed through a collaborative research project by scientists from Jawaharlal Nehru Centre for Advanced Scientific Research (JNCASR) and ICAR–National Bureau of Agricultural Insect Resources (ICAR–NBAIR).

What is the Pest-Control Pheromone Dispenser?

Details
What is it? A device designed to release pheromones that alter the behaviour of pests, primarily used in agriculture to control infestations and prevent crop damage.
Developed By A collaborative project by scientists from Jawaharlal Nehru Centre for Advanced Scientific Research (JNCASR), Bengaluru, and ICAR–National Bureau of Agricultural Insect Resources (ICAR–NBAIR), India.
How it Works
  • Releases synthetic pheromones that mimic natural insect signals.
  • Attracts pests to traps or disrupts mating cycles, preventing infestations.
Technology
  • Uses mesoporous silica matrix technology for controlled release.
  • Ensures consistent pheromone release, independent of external factors like temperature.
Benefits
  • Cost-effective: Fewer replacements of pheromones reduce overall costs.
  • Labor-saving: Longer intervals between replacements lower labor requirements.
  • Environmentally friendly: Reduces chemical pesticide use, promoting sustainable agriculture.
  • Increased efficacy: Stable release rate ensures effective pest control over extended periods.
Scalability Suitable for both small-scale farms and large industrial agricultural operations, making it highly scalable.

 

PYQ:

[2018] With reference to the Genetically Modified mustard (GM mustard) developed in India, consider the following statements:

1. GM mustard has the genes of a soil bacterium that give the plant the property of pest-resistance to a wide variety of pests.

2. GM mustard has the genes that allow the plant cross-pollination and hybridization.

3. GM mustard has been developed jointly by the IARI and Punjab Agricultural University.

Which of the statements given above is/are correct?

(a) 1 and 3 only

(b) 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

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International Space Agencies – Missions and Discoveries

Square Kilometer Array (SKA) becomes partially functional

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Square Kilometer Array (SKA) Project

Why in the News?

The Square Kilometer Array (SKA), the world’s largest radio telescope, has carried out its first observations, marking a major milestone.

About Square Kilometer Array (SKA) Project:

Details
Project Overview SKA is a global project aimed at building the world’s largest radio telescope network to explore the universe, galaxies, dark matter, and extraterrestrial life.
Construction Phases Two phases:

  1. SKA-Mid in South Africa operates in higher frequency ranges.
  2. SKA-Low in Australia operates in lower frequency ranges.

Phase 1 (SKA- Mid) began in December 2022. Full operations expected by 2029.

Headquarters Jodrell Bank Observatory, UK
Site Locations Telescope arrays in Australia (low-frequency) and South Africa (mid-frequency).
Design and Features
  • 197 parabolic radio antennae in South Africa
  • 131,072 low-frequency antennae in Australia

These are capable of detecting faint radio signals from vast distances.

Global Consortium 16 member countries, including Australia, South Africa, India, China, Japan, and several European nations.
India’s Role
  • India’s Giant Metrewave Radio Telescope (NCRA, TIFR) is a key partner
  • SKA India consortium (20+ institutions) involved in software, signal processing, and digital hardware development
Key Technologies Advanced interferometer system using wave interference for data collection.
Scientific Objectives
  • Explore galaxies at the edge of the universe
  • Study the ‘Dark Ages’ and phenomena like dark matter and dark energy
  • Search for extraterrestrial life
Frequency Range Operates between 50 MHz to 15.4 GHz
Global Collaboration Key collaboration among India, Australia, South Africa, Italy, and other member nations for data generation, analysis, and installation of antennas.

 

PYQ:

[2022] Launched on 25th December, 2021, James Webb Space Telescope has been much in the news since then. What are its unique features which make it superior to its predecessor Space Telescopes? What are the key goals of this mission? What potential benefits does it hold for the human race?

[2015] In the context of modern scientific research, consider the following statements about ‘IceCube’, a particle detector located at South Pole, which was recently in the news:

1. It is the world’s largest neutrino detector, encompassing a cubic kilometre of ice.

2. It is a powerful telescope to search for dark matter

3. It is buried deep in the ice.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3 only

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