Note4Students
From UPSC perspective, the following things are important :
Prelims level: MEIS, RODTEP Scheme
Mains level: Export promotion schemes in India
The Centre has notified the rates and norms for the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme asserting that it would put ‘direct cash in the pockets of exporters’ soon.
RoDTEP Scheme
- RoDTEP is a scheme for Exporters to make Indian products cost-competitive and create a level playing field for them in the Global Market.
- It has been kicked in from January 2021, replacing the earlier Merchandise and Services Export Incentive Schemes (MEIS and SEIS) that were in violation of WTO norms.
- The new RoDTEP Scheme is a fully WTO compliant scheme.
- It will reimburse all the taxes/duties/levies being charged at the Central/State/Local level which are not currently refunded under any of the existing schemes but are incurred at the manufacturing and distribution process.
Answer this PYQ:
Q.With reference to the international trade of India at present, which of the following statements is/are correct?
- India’s merchandise exports are less than its merchandise imports.
- India’s imports of iron and steel, chemicals, fertilizers and machinery have decreased in recent years.
- India’s exports of services ye more than its imports of services.
- India suffers from an overall trade/current account deficit.
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 2 and 4 only
(c) 3 only
(d) 1, 3 and 4 only
Post your answers here (You need to sign-in for that).
Why need such a scheme?
- The scheme was announced last year as a replacement for the Merchandise Export from India Scheme (MEIS), which was not found not to be compliant with the rules of the World Trade Organisation.
- Following a complaint by the US, a dispute settlement panel had ruled against India’s use of MEIS as it had found the duty credit scrips awarded under the scheme to be inconsistent with WTO norms.
Coverage of the scheme
- It covers about 75% of traded items and 65% of India’s exports.
- To enable zero-rating of exports by ensuring domestic taxes are not exported, all taxes, including those levied by States and even Gram Panchayats, will be refunded under the scheme.
- Steel, pharma, and chemicals have not been included under the scheme because their exports have done well without incentives.
Back2Basics: Merchandise Exports from India Scheme (MEIS)
- MEIS was launched with an objective to enhance the export of notified goods manufactured in a country.
- This scheme came into effect on 1 April 2015 through the Foreign Trade Policy and was in existence till 2020.
- It intended to incentivize exports of goods manufactured in India or produced in India.
- The incentives were for goods widely exported from India, industries producing or manufacturing such goods with a view to making Indian exports competitive.
- The MEIS covered almost 5000 goods notified for the purpose of the scheme.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Ujjwala Scheme
Mains level: Not Much
Prime Minister has launched the second phase of the Ujjwala gas connection scheme for the poor and said it would provide the biggest relief to lakhs of migrant worker families in the country.
Ujjwala 2.0
- Under Ujjwala 2.0 migrant workers would no longer have to struggle to get address proof documents to get the gas connections, Mr. Modi said.
- Now migrant workers would only be required to submit a self-declaration of their residential address to get the gas connection.
- Along with a deposit-free LPG connection, Ujjwala 2.0 will provide the first refill and a hotplate free of cost to the beneficiaries.
About the PM Ujjwala Yojana
- Pradhan Mantri Ujjwala Yojana (PMUY) was launched in 2016, with the aim to provide Liquefied petroleum gas (LPG) connections to five crore women members of below poverty line (BPL) households in the first phase.
- he scheme was expanded in April 2018 to include women beneficiaries from seven more categories (SC/ST, PMAY, AAY, Most backward classes, tea garden, forest dwellers, Islands).
- In the second phase the target was expanded to eight crore LPG connections.
Significance of Ujjwala 2.0
- LPG infrastructure has expanded manifold in the country due to the Ujjwala scheme.
- In the last six years, more than 11,000 new LPG distribution centres have opened across the country.
- The LPG coverage in India is now very close to becoming 100 per cent.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NMEO-OP
Mains level: Oilseeds and India
The Centre has increased the financial outlay for the National Mission on Edible Oil-Oil Palm (NMEO-OP).
About NMEO-OP
- National Mission on Oilseeds and Oil Palm (NMOOP) was implemented during the 12th Five Year Plan, to expand the oil palm areas and increase the production of edible oils.
- It was later merged with the National Food Security Mission.
- NMEO-OP aims to resolve to allow India to be independent or self-reliant in edible oil production.
- Through this mission, more than ₹11,000 crores will be invested in the edible oil ecosystem.
- The government will ensure that farmers get all the needed facilities, from quality seeds to technology.
- Along with promoting the cultivation of oil palm, this mission will also expand the cultivation of our other traditional oilseed crops.
Why such a mission?
- India is one of the major oilseeds growers and importers of edible oils.
- India’s vegetable oil economy is the world’s fourth-largest after the USA, China & Brazil.
- The oilseed accounts for 13% of the Gross Cropped Area, 3% of the Gross National Product, and 10% value of all agricultural commodities.
- During the last few years, the domestic consumption of edible oils has increased substantially and has touched the level of 18.90 million tonnes in 2011-12 and is likely to increase further.
- A substantial portion of our requirement of edible oil is met through the import of palm oil from Indonesia and Malaysia.
- It is, therefore, necessary to exploit domestic resources to maximize production to ensure edible oil security for the country.
Alternative sources
- Oil Palm is comparatively a new crop in India and is the highest vegetable oil yielding perennial crop.
- With quality planting materials, irrigation, and proper management, there is a potential of achieving 20-30 MT Fresh Fruit Bunches (FFBs) per ha after attaining the age of 5 years.
- Therefore, there is an urgent need to intensify efforts for area expansion under oil palm to enhance palm oil production in the country.
- Tree Borne Oilseeds (TBOs), like Sal, Mahua, Simarouba, kokum, Olive, Karanja, Jatropha, Neem, Jojoba, Wild Apricot, Walnut, tung etc. are cultivated/grown in the country under different agro-climatic conditions.
- These TBOs are also good sources of vegetable oil and therefore need to be supported for cultivation.
Try answering this PYQ:
Q.An objective of the National Food Security Mission is to increase the production of certain crops through area expansion and productivity enhancement in a sustainable manner in the identified districts of the country. What are those crops?
(a) Rice and wheat only
(b) Rice, wheat, and pulses only
(c) Rice, wheat, pulses, and oilseeds only
(d) Rice, wheat, pulses, oilseeds, and vegetables
Post your answers here:
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Saansad Adarsh Gram Yojana
Mains level: Not Much
The Ministry of Rural Development has taken several measures for the successful implementation of the Sansad Adarsh Gram Yojana (SAGY) Gram Panchayats.
Saansad Adarsh Gram Yojana (SAGY)
- SAGY is a village development project launched in October 2014, under which each Member of Parliament will take the responsibility of developing physical and institutional infrastructure in three villages by 2019.
- SAGY aims at instilling certain values in the villages and their people so that they get transformed into models for others.
These values include:
- Adopting people’s participation as an end in itself – ensuring the involvement of all sections of society in all aspects related to the life of village, especially in decision- making related to governance
- Adhering to Antyodaya – enabling the “poorest and the weakest person” in the village to achieve well being
- Affirming gender equality and ensuring respect for women
- Guaranteeing social justice
- Instilling dignity of labour and the spirit of community service and voluntarism
- Promoting a culture of cleanliness
- Living in consonance with nature – ensuring a balance between development and ecology
- Preserving and promoting local cultural heritage
- Inculcating mutual cooperation, self-help and self-reliance
- Fostering peace and harmony in the village community
- Bringing about transparency, accountability and probity in public life
- Nurturing local self-governance
- Adhering to the values enshrined in the Fundamental Rights and Fundamental Duties of the Indian Constitution
Identification of an Adarsh Gram
- A Gram Panchayat would be the basic unit.
- It will have a population of 3000-5000 in plain areas and 1000-3000 in hilly, tribal and difficult areas.
- In districts where this unit size is not available, Gram Panchayats approximating the desirable population size may be chosen.
- The MP would be free to identify a suitable Gram Panchayat for being developed as Adarsh Gram, other than his/her own village or that of his/her spouse.
- Lok Sabha MP has to choose a Gram Panchayat from within his/her constituency and Rajya Sabha MP a from the rural area of a district of his/her choice in the State from which he/she is elected.
- Nominated MPs may choose a Gram Panchayat from the rural area of any district in the country.
- In the case of urban constituencies, (where there are no Gram Panchayats), the MP will identify a Gram Panchayat from a nearby rural constituency.
- The newly elected MPs will have the option to select the GP of their choice.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: MPLAD Scheme
Mains level: Not Much
Virtually, 50% of funds allotted for ongoing MPLADS projects have lapsed.
What is the MPLAD scheme?
- The Members of Parliament Local Area Development Scheme (MPLADS) is a program first launched during the Narasimha Rao Government in 1993.
- It was aimed towards providing funds for developmental works recommended by individual MPs.
Funds available
- The MPs then were entitled to recommend works to the tune of Rs 1 crore annually between 1994-95 and 1997-98, after which the annual entitlement was enhanced to Rs 2 crore.
- The UPA government in 2011-12 raised the annual entitlement to Rs 5 crore per MP.
Implementation
- To implement their plans in an area, MPs have to recommend them to the District Authority of the respective Nodal District.
- The District Authorities then identify Implementing Agencies that execute the projects.
- The respective District Authority is supposed to oversee the implementation and has to submit monthly reports, audit reports, and work completion reports to the Nodal District Authority.
- The MPLADS funds can be merged with other schemes such as MGNREGA and Khelo India.
Guidelines for MPLADS implementation
- The document ‘Guidelines on MPLADS’ was published by the Ministry of Statistics and Programme Implementation in June 2016 in this regard.
- It stated the objective of the scheme to enable MPs to recommend works of developmental nature with emphasis on the creation of durable community assets based on the locally felt needs in their Constituencies.
- Right from the inception of the Scheme, durable assets of national priorities viz. drinking water, primary education, public health, sanitation, and roads, etc. should be created.
- It recommended MPs to works costing at least 15 percent of their entitlement for the year for areas inhabited by Scheduled Caste population and 7.5 percent for areas inhabited by ST population.
- It lays down a number of development works including construction of railway halt stations, providing financial assistance to recognized bodies, cooperative societies, installing CCTV cameras etc.
Answer this PYQ in the comment box:
Q. With reference to the funds under the Members of Parliament Local Area Development Scheme (MPLADS), which of the following statements are correct? (CSP 2020)
- MPLADS funds must be used to create durable assets like physical infrastructure for health, education, etc.
- A specified portion of each MP’s fund must benefit SC/ST populations.
- MPLADS funds are sanctioned on a yearly basis and the unused funds cannot be carried forward to the next year.
- The district authority must inspect at least 10% of all works under implementation every year.
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 3 and 4 only
(c) 1, 2 and 3 only
(d) 1, 2 and 4 only
“Post your answers here”
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Dalitha Bandhu Scheme
Mains level: Not Much
Telangana CM has recently been informed to spend Rs 80,000 crore to Rs 1 lakh crore for Dalit Bandhu Scheme, touted as the country’s biggest direct benefit transfer scheme, to empower Dalits across the state.
Dalit Bandhu Scheme
- Dalit Bandhu is the latest flagship program of the Telangana government.
- It is envisioned as a welfare scheme for empowering Dalit families and enable entrepreneurship among them through a direct benefit transfer of Rs 10 lakh per family.
- This is, once implemented on the ground, going to be the biggest cash transfer scheme in the country.
- Apart from monetary assistance, the government plans to create a corpus called the Dalit Security Fund permanently to support the beneficiary in the event of any adversities.
- This fund will be managed by the district collector concerned, along with a committee of beneficiaries.
- The beneficiary would be issued an identity card with an electronic chip, which will help the government monitor the progress of the scheme.
Where is the scheme being implemented?
- The CM decided to implement it on a pilot basis in the Huzurabad Assembly constituency.
- Based on the experiences of implementation in Huzurabad, the scheme will be rolled out across the state in a phased manner.
- Officials were asked to visit Dalit colonies and interact with Dalit families to find out their views and opinions before preparing guidelines for the scheme.
- The pilot project will focus on monitoring the implementation of the scheme, evaluating the results, and also creating a safety fund for the beneficiaries with the government’s participation.
How is Dalitha Bandhu being implemented?
- The CM has ensured that the Dalit Bandhu is free.
- The governments in the past came out with some schemes and asked for bank guarantees.
- This is not a loan. There is no need to repay it. There is no chance of any involvement of middlemen.
- To promote Dalit entrepreneurship, the government has decided to start a system of reservations for Dalits in sectors where the government issues licenses.
- The government will provide reservations for Dalits in issuing licenses for wine shops, medical shops, fertilizer shops, rice mills, etc.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: SMILE Scheme
Mains level: Transgenders rehabiliation
The Government has approved a comprehensive scheme named “Support for Marginalised Individuals for Livelihood and Enterprise (SMILE)” which includes a sub-scheme for Comprehensive Rehabilitation for Welfare of Transgender Persons.
About SMILE Scheme
- This scheme is a sub-scheme under the ‘Central Sector Scheme for Comprehensive Rehabilitation of persons engaged in the act of Begging’.
- It also focuses on rehabilitation, provision of medical facilities and intervention, counselling, education, skill development, economic linkages to transgender persons.
- It covers several comprehensive measures including welfare measures for persons who are engaged in the act of begging.
- The focus of the scheme is extensively on rehabilitation, provision of medical facilities, counselling, basic documentation, education, skill development, economic linkages and so on.
Its implementation
- The scheme would be implemented with the support of State/UT Governments/Local Urban Bodies, Voluntary Organizations, Community Based Organizations (CBOs), institutions and others.
- The scheme provides for the use of the existing shelter homes available with the State/UT Governments and Urban local bodies for rehabilitation of the persons engaged in the act of Begging.
- In case of the non-availability of existing shelter homes, new dedicated shelter homes are to be set up by the implementing agencies.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Bhartiya Prakritik Krishi Padhati (BPKP)
Mains level: Promotion of Organic Farming
The Union Minister of Agriculture has provided useful information regarding the Bhartiya Prakritik Krishi Padhati (BPKP).
Bhartiya Prakritik Krishi Padhati (BPKP)
- Natural farming is promoted as BPKP under a centrally sponsored scheme- Paramparagat Krishi Vikas Yojana (PKVY).
- The scheme mainly emphasizes the exclusion of all synthetic chemical inputs and promotes on-farm biomass recycling.
- It stresses biomass mulching; use of cow dung-urine formulations; plant-based preparations and time to time working of soil for aeration.
- Under BPKP, financial assistance of Rs 12200/ha for 3 years is provided for cluster formation, capacity building, and continuous handholding by trained personnel, certification, and residue analysis.
About Paramparagat Krishi Vikas Yojana
- “PKVY” is an elaborated component of Soil Health Management (SHM) of the major project National Mission of Sustainable Agriculture (NMSA).
- Under PKVY Organic farming is promoted through the adoption of the organic village by cluster approach and PGS certification.
The Scheme envisages:
- Promotion of commercial organic production through certified organic farming.
- It will raise farmer’s income and create a potential market for traders.
Program implementation
- Fifty or more farmers will form a cluster having 50 acres of land to take up the organic farming under the scheme.
- In this way, during three years 10,000 clusters will be formed covering a 5.0 lakh acre area under organic farming.
- There will be no liability on the farmers for expenditure on certification.
- Every farmer will be provided Rs. 20,000 per acre in three years for the seed to harvesting crops and to transport produce to the market.
- Organic farming will be promoted by using traditional resources and organic products will be linked with the market.
- It will increase domestic production and certification of organic produce by involving farmers.
Answer this PYQ in the comment box:
Q.With reference to organic farming in India, consider the following statements:
- ‘The National Programme for Organic Production (NPOP) is operated under the guidelines and directions of the Union Ministry of Rural Development.
- ‘The Agricultural and Processed Food Products Export Development Authority (APEDA) functions as the Secretariat for the implementation of NPOP.
- Sikkim has become India’s first fully organic State.
Which of the above statements is/are correct? (CSP 2018)
(a) 1 and 2 only
(b) 2 and 3 only
(c) 3 only
(d) 1, 2 and 3
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: One District One Focus Product
Mains level: Not Much
ODOFP programme
- The ODOFP programme cover products of agriculture and allied sectors for 728 districts of the country.
- The products have been identified from agricultural, horticultural, animal, poultry, milk, fisheries, aquaculture, marine sectors across the country.
- These identified products will be supported under the PM-FME scheme of the Ministry of Food Processing Industries, which provides incentives to promoters and micro-enterprises
- This scheme is being implemented for a period of five years from 2020-21 to 2024-25.
- The scheme adopts One District One Product (ODOP) approach to reap the benefits of scale in terms of procurement of inputs, availing common services and marketing of products.
About ODOP
- The ODOP scheme aims to identify one product per district based on the potential and strength of a district and national priorities.
- A cluster for that product will be developed in the district and market linkage will be provided for that.
- It is operationally merged with the ‘Districts as Export Hub’ initiative implemented by the Director-General of Foreign Trade (DGFT), Department of Commerce.
- Under the initial phase of the ODOP programme, 106 Products have been identified from 103 districts across 27 States.
Back2Basics: PMFME Scheme
- A centrally sponsored scheme that aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry.
- It aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector,
- It further aims to promote formalization of the sector and provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain.
- The scheme envisions directly assist the 2,00,000 micro food processing units in providing financial, technical, and business support for the up-gradation of existing micro food processing enterprises.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Agriculture Infrastructure Fund (AIF) Schemes
Mains level: Read the attached story
The Centre has decided to allow state-run market yards to access financing facilities through its Agricultural Infrastructure Fund to calm the fears of protesting farmers that such market yards are being weakened.
Agriculture Infrastructure Fund (AIF) Schemes
- It is a Central Sector Scheme meant for setting up storage and processing facilities, which will help farmers, get higher prices for their crops.
- The Union Cabinet approved this scheme in July 2020 for a period of 10 years.
- It will support farmers, PACS, FPOs, Agri-entrepreneurs, etc. in building community farming assets and post-harvest agriculture infrastructure.
- These assets will enable farmers to get greater value for their produce as they will be able to store and sell at higher prices, reduce wastage and increase processing and value addition.
Note the following things about AIF:
1) It is a Central Sector Scheme
2) Duration of the scheme
3)Target beneficiaries
What exactly is the AIF?
- The AIF is a medium – long term debt financing facility for investment in viable projects for post-harvest management infrastructure and community farming assets through interest subvention and credit guarantee.
- Under the scheme, Rs. 1 Lakh Crore will be provided by banks and financial institutions as loans with an interest subvention of 3% per annum.
- It will provide credit guarantee coverage under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for loans up to Rs. 2 Crore.
Target beneficiaries
The beneficiaries will include farmers:
- PACS, Marketing Cooperative Societies, FPOs, SHGs, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Startups, and Central/State agency or Local Body sponsored Public-Private Partnership Projects
What are the new changes?
- The Union Cabinet decided to extend the AIF to State agencies and Agricultural Produce Marketing Committees (APMCs), as well as federations of cooperative organizations, Farmers Producers Organizations and self-help groups.
- They will now be eligible for interest subvention for loans up to ₹2 crores, with APMCs allowed to access separate loans for different kinds of infrastructure projects to build cold storage, silos, sorting, grading and assaying units in their market yards.
- The scheme has also been extended to 2032-33.
Why such a move?
- The modifications in the Scheme will help to achieve a multiplier effect in generating investments while ensuring that the benefits reach small and marginal farmers.
- The APMC markets are set up to provide market linkages and create an ecosystem of post-harvest public infrastructure open to all farmers.
- This is also proof that APMC will not end as the farmers’ concern since the three farm laws.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Tele Law Scheme
Mains level: Pendency issue in Indian Judiciary
The Law Ministry recently commemorated an event to mark the coverage of more than nine lakh beneficiaries of the government’s tele-law scheme, using common service centres (CSCs) to provide justice across the country.
Tele-Law Scheme
- The concept of Tele-Law is to facilitate the delivery of legal advice through a panel of lawyers stationed at the State Legal Services Authorities (SALSA) and CSC.
- Tele-Law means the use of communications and information technology for the delivery of legal information and advice.
- The project initiates to connect citizens with lawyers through video conferencing facilities by the Para-Legal Volunteers stationed at identified 50,000 CSCs.
- This e-interaction between lawyers and people would be through the video-conferencing infrastructure available at the CSCs.
Features of the program
- Under this programme, smart technology of video conferencing, telephone/instant calling facilities available at the vast network of CSC.
- It enables anyone to seek legal advice without wasting precious time and money.
- The service is free for those who are eligible for free legal Aid as mentioned under Section 12 of the Legal Services Authority Act, 1987.
- For all others, a nominal fee is charged.
Back2Basics: Free legal aid in India
- Article 21 of the Constitution of India states, “No person shall be deprived of his life or personal liberty except according to procedure established by law”.
- Hence ensuring legal aid to everyone is necessary for ensuring substantive equality.
- Article 39A of the Constitution of India provides for free legal aid to the poor and weaker sections of the society, to promote justice on the basis of equal opportunity.
- Articles 14 and 22(1) also make it obligatory for the State to ensure equality before the law and a legal system that promotes justice on a basis of equal opportunity to all.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Nutrient Based Subsidy (NBS) Scheme
Mains level: Fertilizer subsidies in India
The Union Cabinet has approved the proposal of the Department of Fertilizers for fixation of Nutrient Based Subsidy Rates for P&K Fertilizers for the year 2021-22.
Key Points
About Di-Ammonium Phosphate (DAP):
- DAP is the second most commonly used fertiliser in India after urea.
- Farmers normally apply this fertiliser just before or at the beginning of sowing, as it is high in phosphorus (P) that stimulates root development.
- DAP (46% P, 18% Nitrogen) is the preferred source of Phosphorus for farmers. This is similar to urea, which is their preferred nitrogenous fertiliser containing 46% N.
About Subsidy Scheme for Fertilisers:
-
- Under the current scheme, the MRP of Urea is fixed but the subsidy can vary while MRP of DAP is decontrolled (i.e subsidy is fixed but the MRP can vary).
- All Non-Urea based fertilisers are regulated under Nutrient Based Subsidy Scheme.
About Nutrient-Based Subsidy (NBS) Regime:
-
- Under the NBS regime – fertilizers are provided to the farmers at the subsidized rates based on the nutrients (N, P, K & S) contained in these fertilizers.
- Also, the fertilizers which are fortified with secondary and micronutrients such as molybdenum (Mo) and zinc are given additional subsidy.
- The subsidy on Phosphatic and Potassic (P&K) fertilizers is announced by the Government on an annual basis for each nutrient on a per kg basis – which are determined taking into account the international and domestic prices of P&K fertilizers, exchange rate, inventory level in the country etc.
- NBS policy intends to increase the consumption of P&K fertilizers so that optimum balance (N:P:K= 4:2:1) of NPK fertilization is achieved.
- This would improve soil health and as a result the yield from the crops would increase, resulting in enhanced income to the farmers.
- Also, as the government expects rational use of fertilizers, this would also ease off the burden of fertilizer subsidy.
- It is being implemented from April 2010 by the Department of Fertilizers, Ministry of Chemicals & Fertilizers.
Issues Related to NBS:
1.Imbalance in Price of Fertilisers:
- Urea is left-out in the scheme and hence it remains under price control as NBS has been implemented only in other fertilizers.
- There is an imbalance as the price of fertilizers (other than urea) — which were decontrolled have gone up from 2.5 to four times during the 2010-2020 decade.
- However, since 2010, the price of urea has increased only by 11%. This has led to farmers using more urea than before, which has further worsened fertilizer imbalance.
2.Costs on Economy and Environment :
Fertilizer subsidy is the second-biggest subsidy after food subsidy, the NBS policy is not only damaging the fiscal health of the economy but also proving detrimental to the soil health of the country.
3.Black Marketing :
- Subsidised urea is getting diverted to bulk buyers/traders or even non-agricultural users such as plywood and animal feed makers.
- It is being smuggled to neighbouring countries like Bangladesh and Nepal.
Implications of Increasing the Subsidy on DAP :
- As farmers will start sowing operations for Kharif Crops, it is highly important for them to get the fertilisers at subsidised rate so as to keep inflation at check.
- Politically, too, to turn down the farmer protests, during the time of the Covid’s second wave, is the last thing the government would want.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: OMSS Scheme
Mains level: Schemes related to food security
The Centre has informed the Supreme Court regarding the purchase of grains by the States and the UTs under the Open Market Sales Scheme (OMSS) in 2021-2022 while debunking apprehensions that those without ration cards may be left to die.
Open Market Sale Scheme (OMSS)
- OMSS refers to the selling of food grains by the government/government agencies at predetermined prices in the open market from time to time.
- This scheme aims to enhance the supply of grains especially during the lean season and thereby to moderate the general open market prices, especially in the deficit regions.
- The Food Corporation of India (FCI) on the instructions from the Government, sells wheat and rice in the open market from time to time.
- This enhances the supply of wheat and rice especially during the lean season and moderates the open market prices, especially in the deficit regions.
Components of the scheme
The present form of OMSS comprises 3 schemes as under:
- Sale of wheat to bulk consumers/private traders through e-auction.
- Sale of wheat to bulk consumers/private traders through e-auction by dedicated movement.
- Sale of Raw Rice Grade ‘A’ to bulk consumers/private traders through e-auction.
Selling through a transparent process
- For transparency in operations, the Corporation has switched over to e-auction for sale under Open Market Sale Scheme (Domestic).
- The FCI conducts a weekly auction to conduct this scheme in the open market using the platform of commodity exchange NCDEX (National Commodity and Derivatives Exchange Limited).
- The State Governments/ Union Territory Administrations are also allowed to participate in the e-auction if they require wheat and rice outside TPDS & OWS.
Answer this PYQ in the comment box:
Q.The economic cost of food grains to the Food Corporation of India is Minimum Support Price and bonus (if any) paid to the farmers plus:
(a) Transportation cost only
(b) Interest cost only
(c) Procurement incidentals and distribution cost
(d) Procurement incidentals and charges for godowns
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Aspirational Districts Programme
Mains level: Success of the ADP
In an independent appraisal report released today, United Nations Development Programme (UNDP) India has lauded the Aspirational Districts Programme (ADP) as a very successful model of local area development.
Aspirational Districts Programme
- Launched in January 2018, the ‘Transformation of Aspirational Districts’ initiative aims to remove this heterogeneity through a mass movement to quickly and effectively transform these districts.
- The broad contours of the programme are Convergence (of Central & State Schemes), Collaboration (of Central, State level ‘Prabhari’ Officers & District Collectors), and Competition among districts driven by a spirit of mass Movement.
- With States as the main drivers, this program will focus on the strength of each district, identify low-hanging fruits for immediate improvement, measure progress, and rank districts.
Selection of districts
- A total of 117 Aspirational districts have been identified by NITI Aayog based upon composite indicators.
- These include Health & Nutrition, Education, Agriculture & Water Resources, Financial Inclusion and Skill Development and Basic Infrastructure which have an impact on Human Development Index.
Weightage has been accorded to these districts as below:
- Health & Nutrition (30%)
- Education (30%)
- Agriculture & Water Resources (20%)
- Financial Inclusion & Skill Development (10%)
- Basic Infrastructure (10%)
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Bell of Faith’ scheme
Mains level: Old age security
The ‘Bell of Faith’ scheme will now be implemented for senior citizens staying alone in villages. Scheme to cover 250 houses in city in the first phase.
What is the ‘Bell of Faith’ scheme all about?
- It is a safety project conceived under Kerala’s Community Policing Scheme.
- It will help elderly citizens attract the attention of their neighbours using a loud, remote-controlled alarm in emergencies.
- It has been under implementation in Kerala since 2018.
- A welfare fund of ₹3.5 crore sanctioned by the State government would be used for the initiative that gives preference to those staying alone in their houses.
- In the first phase, around 250 houses selected by the local Janamaithri scheme coordinators will be covered under the scheme
Significance of the Project:
- It sets an example for community participation to ensure the well-being and safety of the elderly.
- It can be of great support for the aged during the COVID-19 pandemic as many live in fear for their health.
- The electronic bells, installed free of cost with wireless control mechanism, will help senior citizens in quickly seeking the support of neighbours during emergencies.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Midday Meal Scheme
Mains level: Food and nutrition security measures
The Centre has decided to give about ₹100 each to children studying in Class 1 to Class 8 in government schools, who are beneficiaries of the Mid Day Meal scheme.
Mid Day Meal Scheme
- The Midday Meal Scheme is a school meal programme in India designed to better the nutritional standing of school-age children nationwide.
- It is a wholesome freshly-cooked lunch served to children in government and government-aided schools in India.
- The programme supplies free lunches on working days for children in primary and upper primary classes in government, government-aided, local body and alternate innovative education centres, Madarsa and Maqtabs.
- Serving 120,000,000 children in over 1,265,000 schools and Education Guarantee Scheme centres, it is the largest of its kind in the world.
- The programme has undergone many changes since its launch in 1995. The Midday Meal Scheme is covered by the National Food Security Act, 2013.
The scheme aims to:
- avoid classroom hunger
- increase school enrolment
- increase school attendance
- improve socialization among castes
- address malnutrition
- empower women through employment
Answer this PYQ in the comment box:
Q.An objective of the National Food Security Mission is to increase the production of certain crops through area expansion and productivity enhancement in a sustainable manner in the identified districts of the country. What are those crops?
(a) Rice and wheat only
(b) Rice, wheat, and pulses only
(c) Rice, wheat, pulses, and oilseeds only
(d) Rice, wheat, pulses, oilseeds, and vegetables
What is the new move?
- The money, ₹1200 crore in total, will be given to 11.8 crore children through direct benefit transfer as a one-time payment.
- The money comes from the cooking cost component of the scheme, it said.
- This decision will help safeguard the nutritional levels of children and aid in protecting their immunity during challenging pandemic times.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NPS
Mains level: Various pension schemes in India
The National Pension System (NPS) will no longer compel investors to convert 40% of their accumulated retirement corpus into an annuity.
An annuity is a long-term investment that is issued by an insurance company and is designed to help protect you from the risk of outliving your income. Through annuitisation, your purchase payments (what you contribute) are converted into periodic payments that can last for life.
Why such a move?
- Poor yields on annuities and high inflation are translating into negative returns.
- Since annuities are taxable, deducting the tax and factoring in inflation means annuities are yielding negative returns.
Try this PYQ:
Q.Who among the following can join the National Pension System (NPS)?
(a) Resident Indian citizens only
(b) Persons of age from 21 to 55 only
(c) All-State Government employees joining the services after the date of notification by the respective State Governments
(d) All Central Governments Employees including those of Armed Forces joining the services on or after 1st April 2004
National Pension Scheme (NPS)
- NPS is a government-sponsored pension scheme. It was launched in January 2004 for government employees.
- It was extended to all citizens of Indian on a voluntary basis from May 2009 and to corporates in December 2011 and to Non-Resident Indians in October 2015.
- PFRDA is the statutory authority established by an enactment of the Parliament, to regulate, promote and ensure orderly growth of the NPS and pension schemes to which this Act applies.
- The scheme allows subscribers to contribute regularly in a pension account during their working life.
- On retirement, subscribers can withdraw a part of the corpus in a lump sum and use the remaining corpus to buy an annuity to secure a regular income after retirement.
Who can join NPS?
- Any Indian citizen between 18 and 60 years can join NPS.
- The only condition is that the person must comply with know your customer (KYC) norms.
- An NRI can join NPS. However, the account will be closed if there is a change in the citizenship status of the NRI.
- Now, any Indian citizen, resident or non-resident and OCIs are eligible to join NPS till the age of 65 years.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Shaphari Scheme
Mains level: Not Much
Commerce Ministry wants to build confidence in quality, antibiotic-free shrimp products from India for the global market.
Shaphari Scheme
- The Marine Products Exports Development Authority (MPEDA) has developed a certification scheme for aquaculture products called ‘Shaphari’, a Sanksrit word that means the superior quality of fishery products suitable for human consumption.
- The Shaphari scheme is based on the United Nations’ Food and Agriculture Organization’s technical guidelines on aquaculture certification.
- It will have two components — certifying hatcheries for the quality of their seeds and, separately, approving shrimp farms that adopt the requisite good practices.
- The certification of hatcheries will help farmers easily identify good quality seed producers.
- Those who successfully clear multiple audits of their operations shall be granted a certificate for a period of two years.
- The entire certification process will be online to minimize human errors and ensure higher credibility and transparency.
Bolstering confidence in India’s Shrimp production
- To bolster confidence in India’s frozen shrimp produce, the country’s biggest seafood export item, the Centre has kicked off a new scheme called ‘Shaphari’ to certify hatcheries and farms that adopt good aquaculture practices.
- Frozen shrimp is India’s largest exported seafood item.
- But a combination of factors had hurt export volumes in recent months, including container shortages and incidents of seafood consignments being rejected because of food safety concerns.
- Some recent consignments sourced from Indian shrimp farms being rejected due to the presence of antibiotic residue and this is a matter of concern for exporters.
- The National Residue Control Programme for food safety issues in farm produce and pre-harvest testing system is already in place.
- But this certification was proposed as a market-based tool for hatcheries to adopt good aquaculture practices and help produce quality antibiotic-free shrimp products to assure global consumers.
Frozen shrimp export potential
- Frozen shrimp is India’s largest exported seafood item. It constituted 50.58% in quantity and 73.2% in terms of total U.S. dollar earnings from the sector during 2019-20.
- India exported frozen shrimp worth almost $5 billion in 2019-20, with the U.S. and China its the biggest buyers.
- Andhra Pradesh, West Bengal, Odisha, Gujarat and Tamil Nadu are India’s major shrimp producing States, and around 95% of the cultured shrimp produce is exported.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: ECLGS 3.0
Mains level: Paper 3-ECLGS 3.0
The Government has extended the scope of Emergency Credit Line Guarantee Scheme (ECLGS) through introduction of ECLGS 3.0 to cover business enterprises in Hospitality, Travel & Tourism, Leisure & Sporting sectors.
ECGL Scheme
- Under the Scheme, 100% guarantee coverage to be provided by National Credit Guarantee Trustee Company Limited (NCGTC) for additional funding of up to Rs. 3 lakh crore to eligible MSMEs and interested MUDRA borrowers.
- The credit will be provided in the form of a Guaranteed Emergency Credit Line (GECL) facility.
- The Scheme would be applicable to all loans sanctioned under GECL Facility during the period from the date of announcement of the Scheme to 31.10.2020.
Aims and objectives
- The Scheme aims at mitigating the economic distress faced by MSMEs by providing them additional funding in the form of a fully guaranteed emergency credit line.
- The main objective is to provide an incentive to Member Lending Institutions (MLIs), i.e., Banks, Financial Institutions (FIs) and NBFCs to increase access to, and enable the availability of additional funding facility to MSME borrowers.
- It aims to provide a 100 per cent guarantee for any losses suffered by them due to non-repayment of the GECL funding by borrowers.
Salient features
- The entire funding provided under GECL shall be provided with a 100% credit guarantee by NCGTC to MLIs under ECLGS.
- Tenor of the loan under Scheme shall be four years with a moratorium period of one year on the principal amount.
- No Guarantee Fee shall be charged by NCGTC from the Member Lending Institutions (MLIs) under the Scheme.
- Interest rates under the Scheme shall be capped at 9.25% for banks and FIs, and at 14% for NBFCs.
ECLGS 3.0
- It would involve extension of credit of upto 40% of total credit outstanding across all lending institutions.
- The tenor of loans granted under ECLGS 3.0 shall be 6 years including moratorium period of 2 years.
- Further, the validity of ECLGS i.e. ECLGS 1.0, ECLGS 2.0 & ECLGS 3.0 have been extended upto 30.06.2021 or till guarantees for an amount of Rs. 3 lakh crore are issued.
- The revised operational guidelines in this regard shall be issued by National Credit Guarantee Trustee Company Ltd (NCGTC).
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: RODTEP Scheme
Mains level: Not Much
The notification of benefit rates payable to exporters under the Remission of Duties and Taxes on Export Products (RODTEP) scheme is expected to take more time as it is facing ‘teething issues’.
Try this PYQ:
Q.Among the following, which one is the largest exporter of rice in the world in the last five years? (CSP 2019)
(a) China
(b) India
(c) Myanmar
(d) Vietnam
RODTEP Scheme
- RoDTEP is a scheme for Exporters to make Indian products cost-competitive and create a level playing field for them in the Global Market.
- It has replaced the current Merchandise Exports from India Scheme, which is not in compliance with WTO norms and rules.
- The new RoDTEP Scheme is a fully WTO compliant scheme.
- It will reimburse all the taxes/duties/levies being charged at the Central/State/Local level which are not currently refunded under any of the existing schemes but are incurred at the manufacturing and distribution process.
Why need such a scheme?
- The scheme was announced last year as a replacement for the Merchandise Export from India Scheme (MEIS), which was not found not to be compliant with the rules of the World Trade Organisation.
- Following a complaint by the US, a dispute settlement panel had ruled against India’s use of MEIS as it had found the duty credit scrips awarded under the scheme to be inconsistent with WTO norms.
Back2Basics: Merchandise Exports from India Scheme (MEIS)
- MEIS was launched with an objective to enhance the export of notified goods manufactured in a country.
- This scheme came into effect on 1 April 2015 through the Foreign Trade Policy and will be in existence till 2020.
- MEIS intended to incentivize exports of goods manufactured in India or produced in India.
- The incentives were for goods widely exported from India, industries producing or manufacturing such goods with a view to making Indian exports competitive.
- The MEIS covered almost 5000 goods notified for the purpose of the scheme.
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