India-China Border Dispute, Adani Green Solar Power and Potato production

India, China ‘reflect on lessons learnt’, Doval and Wang to hold talks soon

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

What’s the ongoing story: Days after completing the process of troop disengagement at two friction points along the Line of Actual Control in eastern Ladakh, India and China held the first official-level talks in New Delhi Thursday, “reflected on the lessons” learnt from the military standoff and agreed on the need for “effective border management” and “maintenance of peace and tranquillity” as part of bilateral pacts.

Key Points to Ponder:

• Standoff between India and China-what you know about the same?

• Friction between India and China-what are the reasons?

• India-China Relations during Nehruvian Era-Know in detail

• The 1962 India-China War-Know the background

• India-China Border Dispute- Know the background

• Map Work– Line of Control, Line of Actual Control, Chang Chenmo river, Gogra-Hot Springs, Kongka Pass, Galwan Valley, Depsang Plains, and Charding Nala region

• Know the terms ‘De-induction’ ‘Disengagement’ and ‘De-escalation’?

• What ‘De-induction’, ‘Disengagement’ and ‘De-escalation’ means in India-China Context

• What is the present situation?

• Discuss the significance of the Working Mechanism for Consultation and Coordination (WMCC) in addressing India-China border disputes.

• “Effective border management is essential for maintaining peace and tranquillity along the Line of Actual Control (LAC).” In light of the recent disengagement process between India and China, analyse the measures taken to strengthen border management and their implications on bilateral relations.

• Examine the importance of adhering to past agreements and bilateral protocols in ensuring peace along the India-China border. Discuss the challenges involved in their implementation.

• Recent disengagement and restoration of patrolling rights along the LAC have set the stage for de-escalation and improvement in India-China relations. Critically analyze this statement with reference to the events since 2020.

Key Takeaways:

• At the meeting of the Working Mechanism for Consultation and Coordination (WMCC) on India-China Border Affairs, the two sides also prepared for the next meeting of the Special Representatives on the boundary question – National Security Advisor Ajit Doval and Chinese Foreign Minister Wang Yi are the two SRs.
—At the WMCC meeting Thursday, the two sides agreed to revive several dialogue mechanisms including the Special Representatives dialogue on the boundary question.

• This was the first meeting between top officials of the two countries after the disengagement of troops and restoration of patrolling rights at the friction points of Depsang Plains and Demchok.

• The border patrolling pact, announced on October 21, led to a meeting between Prime Minister Narendra Modi and Chinese President Xi Jinping on the sidelines of the BRICS Summit in the Russian city of Kazan on October 23.

• Two days ago, External Affairs Minister S Jaishankar informed Parliament that the “conclusion of disengagement” has set Delhi-Beijing ties “in the direction of some improvement”.

• While “disengagement has now been achieved in full in eastern Ladakh through a step-by-step process”, he said “the next priority will be to consider de-escalation, that would address the massing of troops along the LAC”. In this context, he said the “Special Representatives and Foreign Secretary-level mechanisms will be convening soon”.

• Jaishankar listed three key principles that had to be observed in all circumstances. “One, both sides should strictly respect and observe the LAC; two, neither side should attempt to unilaterally alter the status quo; and three, agreements and understandings reached in the past must be fully abided by in their entirety,” he said.

Do You Know:

• The Line of Actual Control (LAC) is the demarcation that separates Indian-controlled territory from Chinese-controlled territory. India considers the LAC to be 3,488 km long, while the Chinese consider it to be only around 2,000 km. It is divided into three sectors: the eastern sector which spans Arunachal Pradesh and Sikkim, the middle sector in Uttarakhand and Himachal Pradesh, and the western sector in Ladakh.

• The alignment of the LAC in the eastern sector is along the 1914 McMahon Line, and there are minor disputes about the positions on the ground as per the principle of the high Himalayan watershed. This pertains to India’s international boundary as well, but for certain areas such as Longju and Asaphila. The line in the middle sector is the least controversial but for the precise alignment to be followed in the Barahoti plains.

• According to the Maj Gen (retd) Prof G G Dwivedi, every conflict has a cycle – it begins with escalation, and is followed by contact, stalemate, de-escalation, resolution, peace-building and reconciliation. The de-escalation process entails talks at multiple levels, and ground action in various stages. For example, there have been three rounds of talks at the Corps Commander level, simultaneous talks between Joint Secretaries, and at the level of Special Representatives between India and China after Galwan clash. On the ground, the first step in the de-escalation process is of disengagement – i.e., to break the ‘eyeball-to-eyeball’ contact between the opposing troops on the forward line by pulling back to create a buffer zone. The next step is the pulling back of the troops in the immediate depth, followed by reserve formations in the rear.

Other Important Articles Covering the same topic:

📍Explained: China-India state of play

Previous year UPSC Prelims Question Covering similar theme:
1. “Belt and Road Initiative” is sometimes mentioned in the news in the context of the affairs of : (UPSC CSE 2016)
(a) African Union
(b) Brazil
(c) European Union
(d) China
Previous year UPSC Mains Question Covering similar theme:
📍‘China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’, In the light of this statement, discuss its impact on India as her neighbour. (UPSC CSE GS2, 2017)
📍With respect to the South China sea, maritime territorial disputes and rising tension affirm the need for safeguarding maritime security to ensure freedom of navigation and over flight throughout the region. In this context, discuss the bilateral issues between India and China. (UPSC CSE GS2, 2014)

Adani Green solar project: Govt waived transmission cost, sweetened deal

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies IV: Corporate Governance, challenges of corruption.

What’s the ongoing story: Within 24 hours of the Union power ministry waiving transmission charges for states buying electricity from Adani Green and Azure Power, the YSRCP-led Andhra Pradesh government signed a deal with Central utility Solar Energy Corporation of India (SECI), which had awarded a total of 12 giga watt (GW) projects to these two companies.

Key Points to Ponder:

• What is Inter State Transmission System (ISTS)?

• What is Central Transmission Utility (CTU) & State Transmission Utility (STU)?

• Discuss the significance of waiving Inter State Transmission System (ISTS) charges for renewable energy projects in India. How does it impact state DISCOMs, project developers, and the overall goal of renewable energy adoption?

• The Power Sale Agreement (PSA) signed by Andhra Pradesh with SECI has been scrutinized for its financial and ethical implications. Critically analyze the challenges associated with such agreements, considering the allegations of corruption and delays in project execution.

• Explain the role of Solar Energy Corporation of India (SECI) in promoting renewable energy in India. How do policy interventions like ISTS charge waivers and Renewable Power Obligations (RPOs) contribute to achieving the country’s renewable energy targets?

• Evaluate the challenges faced by renewable energy developers, such as Adani Green, in the context of power evacuation infrastructure and delayed project timelines. How can these challenges be addressed to ensure the timely completion of renewable energy projects?

• The recent ISTS waiver by the Power Ministry is estimated to save significant costs for the Andhra Pradesh government. Examine the economic and environmental implications of such waivers for long-term renewable energy policies in India.

Key Takeaways:

• This waiver of ISTS (interstate transmission system) charges is estimated to have resulted in savings of 80 paise per unit (Rs 1,360 crore a year), in a way incentivising the state to buy power from the two projects.

—ISTS charges are levied when power is wheeled from one state to another using the national grid.

• The Power Ministry’s order on November 30, 2021, essentially eased two conditions stipulated in an earlier order issued just a week ago on November 23. These two conditions were:
—that the project be commissioned before June 30, 2025, and
—that the power from the project be within the renewable power obligation (RPO) of the state. RPO requires states to buy a certain percentage of its total power from renewable sources.

• The first 1,000 MW of Adani Green power is expected to be commissioned only in April 2025, with the balance beyond June 2025, said an Andhra government source.

• Adani Group Chairperson Gautam Adani, his nephew Sagar Adani and six others were indicted by the US Department of Justice for paying or offering to pay $250 million bribes to bag lucrative power contracts from the state.

• A day after the Power Ministry’s November 30, 2021, order, Andhra Pradesh signed a Power Sale Agreement (PSA) with SECI, the nodal agency in the country for renewable power, on December 1, 2021.

• The new government headed by TDP’s N Chandrababu Naidu is currently scrutinising the PSA signed during the previous government under YSR Congress Party. This comes after the US court indictment of Gautam Adani, Sagar Adani and six others.

Do You Know:

• Adani Group Chairman Gautam Adani, his nephew Sagar Adani and six others were indicted by US prosecutors in New York on November 20 this year, in an alleged Rs 2,029 crore bribery case.
The bribes were allegedly offered to Indian government officials for securing “lucrative solar energy supply contracts” with state electricity distribution companies.

• Apart from Gautam Adani and Sagar Adani (the 30-year-old son of his brother Rajesh Adani, and Executive Director of Adani Green Energy Ltd), the other defendants named are: i) Vneet Jaain, CEO of Adani Green Energy Ltd, ii) Ranjit Gupta, CEO of Azure Power Global Ltd between 2019 and 2022, iii) Rupesh Agarwal, who worked with Azure Power between 2022 and 2023; iv, v, vi) Cyril Cabanes, a citizen of Australia and France, and Saurabh Agarwal and Deepak Malhotra, all three of whom worked with a Canadian institutional investor.

• According to the US prosecutors, the “Indian Energy Company” and a “US Issuer” won awards to supply 8 gigawatts and 4 gigawatts of solar power at a fixed rate to state-owned Solar Energy Corporation of India (SCI).

• SECI was supposed to sell the power to state electricity companies. But since SECI could not find buyers, it could not enter into corresponding power purchase agreements with Adani Group and Azure Power.

• It was after this that the defendants came up with a plan to bribe state government officials in India to buy the power from SECI. A press release by the Attorney’s Office of the Eastern District of New York says, “…between approximately 2020 and 2024, the defendants agreed to pay more than $250 million in bribes to Indian government officials to obtain lucrative solar energy supply contracts with the Indian government, which were projected to generate more than $2 billion in profits after tax over an approximately 20-year period (the Bribery Scheme). On several occasions, Gautam S Adani personally met with an Indian government official to advance the Bribery Scheme…”

• The US Securities and Exchange Commission also charged Gautam Adani, Sagar Adani, and Cabanes.

Other Important Articles Covering the same topic:

📍Why Gautam Adani has been indicted in the US for ‘plans to bribe Indian officials’

Amid key victories in fight against TB, states face one battle: Shortage of drugs

Syllabus:

Preliminary Examination: Economic and Social Development

Main Examination: General Studies II: Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.

What’s the ongoing story: Last month, the World Health Organisation highlighted two significant milestones in India’s fight against TB: an 18% dip in cases over the past 10 years, more than double the global rate; and a 24% reduction in deaths in the same period, higher than the global average of 23%.

Key Points to Ponder:

• Tuberculosis (TB) and India-Impact

• India has made tremendous progress in its fight against TB-What measures India adopted?

• “Despite this, elimination by 2025 doesn’t seem to be happening”-Why so?

• Know the term-BCG (Bacillus Calmette-Guerin)

• National Strategic Plan 2017-2025 for TB Elimination in India-Issues and Challenges

• The Government of India aims to eliminate Tuberculosis (TB) by 2025. Evaluate the progress made so far, and discuss the challenges faced in achieving this target, with specific reference to drug shortages and logistical issues.

• “Drug-resistant TB poses a significant threat to India’s public health system.” Discuss the causes of drug resistance in TB and suggest measures to address the issue in the context of the National TB Elimination Programme.

• Examine the role of the Centre and states in TB drug procurement under the National TB Elimination Programme (NTEP). How can the coordination between these stakeholders be improved to ensure uninterrupted drug supply?

• Highlight the significance of maintaining buffer stocks of TB drugs in addressing the challenges posed by delayed procurement. Suggest measures to strengthen supply chain management in India’s TB elimination strategy.

• Despite achieving a reduction in TB cases and deaths, India still accounts for a significant share of the global burden. Analyze the socio-economic and healthcare factors that contribute to this trend and propose a multi-sectoral approach to combat TB effectively.

Key Takeaways:

• India’s TB treatment schedule has two stages: a two-three month Intensive Phase (IP) marked by a combination tablet of four antibiotics, and Continuation Phase (CP), where a patient gets another combination medicine with three antibiotics for four to seven months.

• These are called fixed-dose combination (FDC) drugs. Data for 2022, 2023 and 2024 shows a progressive dip in the supply of FDC drugs from the Centre. For 2023, data shows a 56.5 per cent decline in the supply of drugs for the first phase (IP) compared to 2022; and a 23 per cent drop for the second (CP) across the same period.

• Supplies have improved in fits and starts but this year, data available until June shows, there was a 23.04 per cent dip in supply for the first phase, compared to the first six months of 2023, and a 28.8 per cent dip in supply for the second phase across the same period.

• While treatment is free in government facilities, patients opting for the private sector may end up shelling out around Rs 10,000 for six months of IP and CP and Rs 20,000-30,000 per month for drug-resistant cases.

• Under the National TB Elimination Programme, the Centre is responsible for the procurement and supply of TB drugs, while states receive limited funds to make emergency purchases as a temporary measure.

• Ideally, stocks for three months are maintained at the district, state and national levels and for two months at the block level. Experts say buffer stocks are crucial because those who miss scheduled doses risk contributing to the growing threat of drug-resistant TB, which primarily results from an incomplete course of treatment.

• Among the states topping the charts in reported TB cases are: UP (6.3 lakh), Maharashtra (2.27 lakh), Bihar (1.86 lakh), Madhya Pradesh (1.84 lakh), and Rajasthan (1.65 lakh). Overall, India accounts for 26 per cent of global TB cases and 29 per cent of TB deaths.

• Records show that another key hurdle for the availability of drugs was the cancellation of at least nine tenders issued by the Central Medical Services Society (CMSS) — the agency that procured drugs for Government health programmes — between January 2023 and August 2024 due to “administrative reasons.”

Do You Know:

• India’s contribution to the global burden is 27%, which is down one percentage point from the previous year’s 28%. What is more important is that there has been an increase in reporting of TB cases. The estimated number of cases in a country is based on a mathematical model, and there is a gap between that and the number of people who actually get diagnosed and put on treatment in a country.

• The Global TB report 2023 shows that reporting of cases has improved in India, going beyond the pre-pandemic levels. This is despite the fact that India, along with Indonesia and the Philippines, accounted for 67 per cent decline in reporting of TB cases globally during the pandemic. India reported 24.2 lakh cases in 2022 similar to the 24.04 lakh cases reported during 2019.
The report also noted that India was the only country to have completed a National TB prevalence survey since 2019. “The survey was started in 2019, interrupted for several months in 2020 and then completed in 2021. Results from this survey were a key input to the estimates of TB incidence in India published in this report,” the WHO report said. India has set a target of 2025 for eliminating TB in the country. The national strategic plan 2017-2025 sets the target of no more than 44 new TB cases per lakh population by 2025. The 2023 report pegs this number at 199 cases per lakh. Achieving this target is a big task as the plan had envisaged an incidence of only 77 cases per lakh population by 2023.

• It was during the “End TB Summit” in New Delhi in March 2018 that the Government announced a deadline of 2025 for elimination of the disease. According to the latest WHO data, India was estimated to have had 27 lakh TB cases in 2023, of which 25.1 lakh patients (85 per cent) were receiving medication — a significant achievement since more than 50 per cent of those in this category succumb to the infection without treatment.

• The treatment of Drug-Susceptible TB (DSTB) — mainly for newly diagnosed patients — involves six-nine months of antibiotics.

• The drugs involved are Rifampicin, Isoniazid, Pyrazinamide and Ethambutol in a single daily tablet for Intensive Phase; and Rifampicin, Isoniazid and Ethambutol in a single daily tablet for Continuation Phase. The duration and dosage of these tablets can vary, depending on age, infection level and treatment history.

Other Important Articles Covering the same topic:

📍India TB Report-2024: Missing cases shrinking, 95% got treatment in 2023

Previous year UPSC Prelims Question Covering similar theme:
2. ‘Mission Indradhanush’ launched by the Government of India pertains to (2016)
(a) immunization of children and pregnant women
(b) construction of smart cities across the country
(c) India’s own search for the Earth-like planets in outer space
(d) New Educational Policy

EXPRESS NETWORK

ISRO’s PSLV places two satellites of European Space Agency into orbit

Syllabus:

Preliminary Examination: Current events of national and international importance.

Main Examination: General Studies III: Awareness in the fields of IT, Space, Computers, robotics, nano-technology, biotechnology and issues relating to intellectual property rights.

What’s the ongoing story: The European Space Agency (ESA) launched Proba-3, an advanced Sun-observing mission, aboard the Indian Space Research Organisation’s (ISRO) flagship rocket on Thursday, promoting global efforts to assess the economic and technological risks of space weather.

Key Points to Ponder:

• What is Proba-3?

• What will Proba-3 study?

• Why is Proba-3 unique?

• How might India benefit from Proba-3?

• Discuss the significance of the Proba-3 mission in advancing solar research and its potential impact on understanding space weather. How does the mission demonstrate technological innovation in satellite formation flying?

• Evaluate the role of ISRO in enabling international collaborations in space missions, with special reference to the launch of ESA’s Proba-3 mission. How do such collaborations benefit India’s space program?

• The Proba-3 mission uses a unique twin-satellite configuration to study the Sun’s corona. Analyse the scientific and technological importance of this configuration, and compare it with traditional methods of observing solar phenomena.

• The Proba-3 mission is expected to generate “solar eclipses on demand” to study the Sun’s corona. Discuss the relevance of this capability in understanding the Sun’s outer atmosphere and its implications for predicting space weather.

• International space missions often involve multiple agencies working together. Critically assess the role of commercial arms like New Space India Ltd. in fostering international collaborations in the global space economy.

Key Takeaways:

• The Bengaluru-headquartered space agency had initially scheduled the launch of ESA’s Proba-3 aboard PSLV-C59 for 4:08 pm on Wednesday. However, minutes before liftoff, the launch was rescheduled to December 5 at 4:04 pm due to an anomaly detected in the satellite’s propulsion system, news agency PTI reported.

• ISRO Chief S. Somanath said that the PSLV-C59/PROBA-3 mission was successfully completed. He explained that the spacecraft is now positioned in its intended orbit, which is highly elliptical.

• Project for Onboard Autonomy or the Proba-3 mission consists of a twin satellite in which two spacecraft (placed inside the satellites) would fly together as one, maintaining a precise formation down to a single millimeter to study the Sun’s outer atmosphere.

• NewSpace India Ltd, the commercial arm of ISRO, has secured the contract from ESA for this technology demonstration mission. The mission aims to demonstrate “precise formation flying,” with two spacecraft—Coronagraph (310 kg) and Occulter (240 kg)—launched together in a stacked configuration once the desired orbit is achieved.

Do You Know:

• Developed at an estimated cost of 200 million euros, Proba-3 has an expected mission life of two years. It will be launched into a highly elliptical orbit measuring around 600 x 60,530 km and have an orbital period of 19.7 hours.

• The mission is designed with two satellites that will be launched together, separate from each other and then fly in tandem. They will then form a solar coronagraph, an instrument that helps block out the bright light emitted by the Sun to reveal the objects and atmosphere around it.

• Due to the corona’s temperature, going up to 2 million degrees Fahrenheit, it is difficult for any instrument to observe it closely. However, it is important for scientific study, as all space weather and its associated turbulences — solar storms, solar winds, etc. — originate from the corona.

• These phenomena influence space weather and can potentially interfere with the smooth operations of all satellite-based communications, navigation, and power grids on Earth. To study these, Proba-3 will have three instruments onboard:
—The Association of Spacecraft for Polarimetric and Imaging Investigation of the Corona of the Sun (ASPIICS) or the coronagraph. Its field of view is between the Sun’s outer and inner corona, a circular belt normally observable during solar eclipse events. The instrument has a 1.4-metre diameter occulting disk mounted on it, to block the Sun’s light and facilitate a close-up view of this belt.
—The Digital Absolute Radiometer (DARA) will maintain a continuous measurement of the Sun’s total energy output, known as the total solar irradiance.
—The 3D Energetic Electron Spectrometer (3DEES) will measure electron fluxes as it passes through Earth’s radiation belts, providing data for space weather studies.

• The two satellites — Occulter Spacecraft (weighing 200 kg) and the Coronagraph Spacecraft (weighing 340 kg) — will mimic a natural solar eclipse. They will manoeuvre precisely in Earth’s orbit so that one satellite casts a shadow onto the other.

Other Important Articles Covering the same topic:

📍Significance of European solar mission, which ISRO will launch

Previous year UPSC Prelims Question Covering similar theme:
3. Consider the following statements: (2016)
The Mangalyaan launched by ISRO
1. is also called the Mars Orbiter Mission
2. made India the second country to have a spacecraft orbit the Mars after USA
3. made India the only country to be successful in making its spacecraft orbit the Mars in its very first attempt
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
Previous year UPSC Mains Question Covering similar theme:
📍Discuss India’s achievements in the field of Space Science and Technology. How the application of this technology has helped India in its socio-economic development? (2016)

EXPLAINED

Hot potato in Odisha: why tuber’s high price has hit the state hard

Syllabus:

Preliminary Examination:Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.

Mains Examination: General Studies III: Public Distribution System- objectives, functioning, limitations, revamping; issues of buffer stocks and food security

What’s the ongoing story: Odisha food supplies and consumer welfare minister KC Patra on Thursday accused the West Bengal government of creating an artificial scarcity of potatoes to “tarnish the reputation” of the state’s BJP government.

Key Points to Ponder:

• How much potato does India produce?

• Is the price rise especially bad in Odisha?

• Why are potato prices up?

• Discuss the factors leading to the recent spike in potato prices in India. Highlight the socio-economic implications of such price volatility on consumers and businesses.

• Analyse the role of Uttar Pradesh and West Bengal in India’s potato economy. How does a decline in potato production in these states impact other regions, particularly non-producing states like Odisha?

• “Volatility in potato prices significantly affects inflation and the common man.” In the context of rising potato prices in 2024, critically evaluate the role of government policies and interventions in stabilizing food prices.

• Odisha depends heavily on potato imports from neighbouring states such as West Bengal. Examine the challenges faced by non-producing states in ensuring stable potato supply and suggest strategies to mitigate such dependency.

• Assess the long-term measures required to address the challenges of potato price inflation in India, with specific reference to cold storage infrastructure, supply chain management, and inter-state trade policies.

Key Takeaways:

• Both the top producers—Uttar Pradesh and West Bengal—saw a decline in potato production during 2023-24 from the previous year. In Uttar Pradesh, potato production fell from 201.3 lakh tonnes to 191.7 lakh tonnes. However, the decline was sharper in West Bengal, where production declined by 15 lakh tonnes to 130 lakh tonnes during 2023-24 from 145 lakh tonnes in 2022-23.

• According to Dilip Pratihar, former secretary of West Bengal Potato Merchants’ Association, Bengal has seen a 20 per cent dip in potato production this year, compared to the previous year, due to unseasonal rain in December-January (when the potato crop is sown). But the WB government’s move has kept retail prices of the tuber at Rs 25-28/kg.

• Crucially, West Bengal is among the largest producers of potatoes in India, producing 23.51 per cent of the country’s total share in 2021-22, according to the Government of India’s Agri Exchange trading platform. This is second only to Uttar Pradesh (29.65 per cent). The potato is largely cultivated in the districts of Medinipur, Hooghly, Bankura, and Bardhaman in north Bengal.

• Potato production in Odisha is much lower, despite the tuber being a staple in the state like in much of eastern India. According to market sources, potato demand in the state stands at over 13 lakh metric tons (mt) annually. Odisha’s own production is only around 3 lakh mt, limited to small pockets in the Kandhamal, Koraput and Kalahandi regions. Odisha is thus forced to service 90% of its potato demand with the help of other states.

• This is not the first time Odisha has faced such a supply crunch. In April 2015, the state launched a mission to make Odisha a potato-surplus state. This was to be done by increasing potato production, primarily using a system of incentives, and by strengthening the state’s storage and distribution system.

Do You Know:

• India is the second largest producer of potato in the world, after China. The area, production and yield of potato has seen a steady rise in the country. Between 1991-92 and 2020-21, potato area has doubled from 11 to 22 lakh hectares, and production tripled— from 181.95 to 561.72 lakh metric tonnes. Productivity increased by over 50 per cent—from 16 to 25 metric tonnes per hectare.

• In India, potatoes are grown during the rabi (winter-spring) season, mainly in Uttar Pradesh, West Bengal, Bihar, Gujarat, Madhya Pradesh, Punjab, Haryana, Assam, Jharkhand and Chhattisgarh. A small quantity of potato is also grown during the kharif (monsoon) season in Uttarakhand, Karnataka, Himachal Pradesh, Tamil Nadu and Maharashtra.

• With a production of 161 lakh tonnes, Uttar Pradesh was the biggest producer of potato in the country in 2021-22. It was followed by West Bengal, which recorded a production of 124 lakh metric tonnes. These two states accounted for almost half of the country’s total potato production of 533 lakh metric tonnes during 2021-22.

• Odisha, though a major consumer, does not produce much of the crop. Potato is a temperate climate crop, requiring low temperatures from 15°C to 25°C, and Odisha’s agro-climatic conditions are not conducive for potato cultivation. Thus, the state is dependent on supply from other states, particularly from West Bengal, to meet its demand.

• Potato carries a weight of 0.98404 in the Consumer Price Index (CPI) and 0.27737 in the Wholesale Price Index (WPI), the headline inflation indicators. Being a staple, volatility in potato prices affects the common man, as well as the commercial HoReCa (Hotel, Restaurant, and Catering) sectors.

• According to data available with the Ministry of Statistics and Programme and Implementation, the present spell of rising potato prices began earlier this year. After remaining in negative territory for a year (February 2023-January 2024), potato prices started rising from February.

• One of the reasons is a drop in the potato production during crop year 2023-24 (July-June), which fell by 5.6 per cent to 567 lakh metric tonnes from 601 lakh metric tonnes in 2022-23. This drop is attributed to a slight decrease in area — 23.22 lakh hectares in 2023-24 from 23.32 lakh hectares in 2022-23.
Potato prices in the year before had been low, which could be a reason why farmers cultivated the crop on a smaller area.

Other Important Articles Covering the same topic:

📍Why Odisha is facing a potato crisis, with prices as high as Rs 60 per kg

Prospects for the Rabi crop

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies III: Major crops-cropping patterns in various parts of the country,

What’s the ongoing story: High October temperatures, along with shortages of di-ammonium phosphate (DAP) fertiliser, resulted in a slow start of plantings of wheat, mustard, chana (chickpea), masoor (red lentil) and other rabi (winter-spring) season crops.

Key Points to Ponder:

• Discuss the challenges faced by farmers during the 2024-25 Rabi season and analyse how these factors might affect food inflation.

• Evaluate the role of global factors, such as La Niña and international trade policies, in shaping India’s agricultural production and food security.

• The shortage of di-ammonium phosphate (DAP) fertiliser has led to delayed sowing of key Rabi crops in India. Discuss the reasons behind this shortage and suggest measures to ensure timely availability of critical inputs for agriculture.

• Examine the impact of rising food inflation, especially in staples like wheat, pulses, and edible oils, on India’s economy and social structure. What policy measures can the government undertake to address these issues?

• Analyse the implications of the Modi government potentially reducing import duties on wheat and edible oils in the context of domestic production, food inflation, and global trade dynamics.

Key Takeaways:

• The rabi crop prospects, in general, seem optimistic, thanks to a good monsoon that has helped fill up major reservoir dams and recharge groundwater tables, and also the possibility of an extended winter from a developing La Niña.

• Farmers had sown 41.30 lakh hectares (lh) area under wheat as on November 8, down from 48.87 lh for the same period of last year.

• The October consumer price index numbers were a shocker, with food inflation at 10.9% year-on-year and 42.2% for vegetables.

• The main commodities of concern are wheat and edible oils. The government’s wheat stocks were at 222.64 lakh tonnes (lt) on November 1. At an average monthly depletion of 25-30 lt, the opening stocks on April 1 would be 72-98 lt, just around the normative minimum requirement of 74.6 lt.

Do You Know:

• Rabi plantings generally take off with potato, mustard, chana, masoor, garlic, jeera (cumin), saunf (fennel) and coriander from October to mid-November, followed by wheat in November-December and onion in December-January.

• The most important of them is soil moisture and water availability. Surplus monsoon rains have boosted water levels in the country’s major reservoirs – to 86.7% of their full storage capacity on November 1, as against 70.5% a year ago and the 75.5 % ten-year-average for this date. Abundant water, in dams and aquifers alike, is an incentive for farmers to sow aggressively.

• The US National Oceanic and Atmospheric Administration expects a La Niña event to develop by this month and persist through January-March. La Niña – an abnormal cooling of the central and eastern equatorial Pacific Ocean waters off the coasts of Ecuador and Peru – usually brings copious rains and also colder-than-normal winters to India.

• An extended winter, even from a predicted “weak” La Niña, should neutralise the impact of late sowing on crop yields. These worries especially apply to wheat, where timely sowing by mid-November allows the crop to escape the risk of March temperature surges while in the final grain-filling stage. An extended winter, courtesy of La Niña, should enable a bumper rabi harvest – as it did in 2021.

Other Important Articles Covering the same topic:

📍DAP shortage dampens rabi crop prospects

Previous year UPSC Prelims Question Covering similar theme:
4. With reference to the cultivation of Kharif crops in India in the last five years, consider the following statements: (2019)
1. Area under rice cultivation is the highest.
2. Area under the cultivation of jowar is more than that of oilseeds.
3. Area of cotton cultivation is more than that of sugarcane.
4. Area under sugarcane cultivation has steadily decreased.
Which of the statements given above are correct?
(a) 1 and 3 only
(b) 2, 3 and 4 only
(c) 2 and 4 only
(d) 1, 2, 3 and 4

ECONOMY

Deregulation to be a big theme in upcoming Economic Survey: CEA

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

What’s the ongoing story: Deregulation, or the process of letting go of regulations in some spheres, would be a big theme for the upcoming Economic Survey for 2024-25, which would be presented alongside the Budget for FY26 in February, Chief Economic Advisor V Anantha Nageswaran said on Thursday.

Key Points to Ponder:

• “Deregulation can play a transformative role in India’s economic growth.” Critically evaluate the opportunities and challenges of deregulation in addressing gender disparities, job creation, and MSME development.

• Discuss the implications of “creeping informalisation” in the Indian workforce post-COVID-19. How can the government and corporate sector address the challenges associated with this trend?

• Examine the importance of wage growth in driving consumption-led economic growth. What policy measures can India adopt to balance corporate profitability and income growth for employees?

• The Economic Survey emphasizes the need to increase the manufacturing sector’s share in India’s GDP to 25%. Analyze the role of MSMEs in achieving this goal and suggest strategies to encourage small enterprises to scale up.

• The Chief Economic Advisor has projected a 6.5-7% GDP growth for FY25 despite a slowdown in the second quarter. Discuss the short-term and long-term measures required to sustain this growth momentum, considering domestic and global challenges.

• Discuss the significance of deregulation in promoting economic growth and addressing structural challenges in India. Highlight its potential impact on MSMEs, labour force participation, and gender equality.

• Deregulation has been identified as a tool to bridge the gender divide in the workforce. Critically examine the regulatory barriers to women’s employment in India and suggest strategies to enhance female labour force participation.

Key Takeaways:

• Citing wage growth data from a report by Quess Corp and Ficci, the CEA said the “annual average wage growth for contract employees in different sectors has not kept up with inflation”.

• This, he said, stands out in the context that profitability of companies has grown by 4X in the last four years in absolute terms and has hit a 15-year high as a share of GDP (Gross Domestic Product). He said if the country has to have a “secular growth in consumption”, then work has to be done to turn small and medium enterprises into medium and large enterprises; cost of capital has to become lower; and ensuring employment income growth and thus spending for growth. “Otherwise, it will become a mutually self-destructive cycle,” he said.

• A “viable and vibrant” small and medium enterprises sector, human capital infrastructure and deregulation will be explored in the upcoming Economic Survey, he said. There is a necessity for the private sector to find the “right balance” between capital intensive and labour intensive growth, he said.

• Nageswaran further said that for bridging both gender divide and job creation, policy can do more in terms of deregulation. “For example, the number of occupations that are restricted for women in different states, if you add them up, it comes to 118 restrictions. These occupations are deemed risky for women to participate, at a time when women are being fighter pilots and they are participating in defence, flying commercial airlines”

• On the overall economic growth front, Nageswaran said economic activity in some sectors has picked up pace during the first two months of the third quarter of October-December and the GDP growth of 6.5-7 per cent, as forecasted in the Economic Survey 2023-24, for the current financial year is feasible.

Do You Know:

• According to the Investopedia, the term deregulation refers to the reduction or elimination of government power in a particular industry. Deregulation is usually enacted by government bodies to create more competition within an industry. The struggle between proponents of regulation and those of government nonintervention has shifted market conditions. Some of the industries that have been deregulated in the United States include trucking, railroad, airline, and finance.

• Deregulation involves removing regulations and restrictions within an industry. It reduces a lot of the bureaucracy involved, which makes it cumbersome and overbearing for companies to do business. This is normally done at the executive level, which means legislation must be passed and signed into law by a country’s leader.

Other Important Articles Covering the same topic:

📍Deregulation: Definition, History, Effects, and Purpose

Expedite NOCs for steel consignments, significant challenges being faced: EEPC

Syllabus:

Preliminary Examination: Economic and Social Development

Mains Examination: General Studies III: Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

What’s the ongoing story: The Engineering Export Promotion Council (EEPC) on Thursday expressed concerns over restrictions on steel shipments at Indian ports and urged the government to expedite the issuance of No Objection Certificates (NOCs) for steel consignments, alongside implementing other measures to support Micro, Small & Medium Enterprises (MSMEs) in the steel sector.

Key Points to Ponder:

• Map Work-Locate Steel Industries in India

• Engineering exports contribute significantly to India’s economy. Examine the challenges faced by MSMEs in the engineering sector due to the current policies in the steel industry. Suggest measures to address these issues.

• “Steel constitutes approximately 60% of the production cost for most engineering products.” Discuss the implications of steel price fluctuations on India’s engineering exports. How can the government create a balanced policy to promote the interests of both large steel producers and MSMEs?

• Critically analyze the role of antidumping and safeguard duties in India’s steel trade policy. How do selective enforcement and exemptions impact SMEs and overall economic growth?

• The Global Trade Research Initiative (GTRI) has pointed out that India’s steel policies disproportionately benefit large firms, stifling SMEs and threatening job creation. Discuss the need for a balanced approach in steel sector policies to foster equitable growth and global competitiveness.

• The delay in obtaining No Objection Certificates (NOCs) has emerged as a significant bottleneck for engineering exports. Evaluate the impact of bureaucratic inefficiencies on India’s trade competitiveness and suggest strategies to address these administrative challenges.

Key Takeaways:

• EEPC members have pointed out that Quality Control Committee meetings are not being held as frequently as required, leading to delays in the issuance of NOCs for steel consignments and these delays are causing substantial disruptions to business operations, EEPC said, adding that Ministry of Commerce and Industry could intervene to help resolve this issue.

• Engineering exporters have also voiced significant concerns regarding the proposed safeguard duty on steel imports, warning that such a measure could drive up steel prices in the domestic market and make engineering exports uncompetitive in global markets.

• The Global Trade Research Initiative (GTRI) noted that India’s steel industry largely focuses on low-margin products while relying on imports for specialised applications. The report highlighted the need for a balanced approach that addresses the needs of both large producers and smaller steel-using industries.

Do You Know:

• As per the steel ministry’s Joint Plant Committee, India has registered a 38 per cent surge in imports of finished steel to 8.319 million tonnes (MnT) over 6.022 MnT imported during the preceding 2022-23 fiscal.

• Restricting steel imports from China and other countries could severely impact Indian engineering goods manufacturers and exporters, especially Micro, Small, and Medium Enterprises (MSMEs), as they rely on competitive steel prices to maintain their operational viability, Arun Kumar Garodia, Chairman of the Engineering Export Promotion Council of India (EEPC) has said.

Other Important Articles Covering the same topic:

📍80% of Indian steel producers have labelled ‘Made-in-India’ on products

Previous year UPSC Prelims Question Covering similar theme:
5. Which of the following are some important pollutants released by steel industry in India? (2014)
1. Oxides of sulphur
2. Oxides of nitrogen
3. Carbon monoxide
4. Carbon dioxide
Select the correct answer using the code given below:
(a) 1, 3 and 4 only
(b) 2 and 3 only
(c) 1 and 4 only
(d) 1, 2, 3 and 4

 

PRELIMS ANSWER KEY

1. (d)  2. (a) 3. (c) 4. (a) 5. (d)

For any queries and feedback, contact priya.shukla@indianexpress.com

Subscribe to our UPSC newsletter. Stay updated with the latest UPSC articles by joining our Telegram channel – IndianExpress UPSC Hub, and follow us on Instagram and X.