DAILY SUMMARY AND ANALYSIS OF THE HINDU in Hindi 13'th June, 2017 Presented by Amit Baghel
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Loan waivers are on you, FM tells States Lan waivers are on you, FM tells Panel to study free movement along Myanmar border The States going in for farm loan waivers will have to generate funds from their own resources committee to examine methods to curb the misuse of free movement along the Myanmar border, indicating a significant shift in India's policy towards Myanmar, a friendly country, with which it shares unfenced borders of 1,643 km and unhindered movement of people across the border The Centre has its policies for the agriculture sector, under which we provide interest subvention and other support. Why it is being done ? Free movement regime is being misused by militants and trans- border criminals who smuggle weapons, contraband goods and fake Indian currency notes. Taking advantage of the free- movement regime, occasionally they enter India, commit crimes and escape to their relatively safer hideouts. f a State has its own resources and wants go ahead in that direction, it will have to find its resources. The situation where the Centre will help one State and not the others will not arise. Rina Mitra Committee, Special Secretary-Internal Security, was being constituted to examine the present rules and regulations adopted by the border States for implementation of free movement regime. On Bad loans Reserve Bank of India is at an advanced stage of preparing a list of debtors whose cases will be considered for speedy resolution through the Insolvency and Bankruptcy Code (IBC) process. Background In 2015, RN Ravi suggested the government to replicate the model prevalent in villages and areas along the Bangladesh border. The report has suggested dedicated crossing points in border villages, where policemen would be made in charge of regulating the movement of people
CPI inflation slows to lowest since 2012 il inflation in at 2.18% ve asuring it on a measuring it on a nationwide basis in 2012, driven in large part by cooling food prices. Upside risk to inflation on account of three major factors: the increase in the house rent component in CPI, the implementation of GST, and the announcement of large farm loan waivers and higher deficits of states. Expected RBl stand The RBI is expected to maintain status quo until September 2017 as the inflation for next couple of months is dependent upon turnaround of monsoon, increase in th nc Index of Industrial Production expands 3.1% in April. output slows from 3.75% pace in March. The manufacturing sector grew 2.6% in April compared with 2.7% in March, while growth in the mining sector slowed drastically to 4.2%. Electricity output grew 5.4% in April, slower than March's 6.2%. * The consumer durables segment saw a drastic contraction of 6% in April, from a growth of 13.8% in the same month of the previous year. Pharma sector- Growth in the Index of Industrial Production (IIP) was spurred by the manufacturing sector within which the tobacco and the pharmaceuticals sectors grew the fastest The performance has been mixed in April with negative growth rates in capital goods and consumer durables which are the focal points for future growth.
More to it than MSP Agricultural distress It is often viewed as a short-term phenomenon in which farmers look for support from various quarters on account of being unable to get a gainful return due to price crash, poor marketing facilities, rising credit burden, increasing cost of inputs and uent occurrence of natural calamities However, Agricultural distress has become a permanent feature due to the failure of not only elected governments to find lasting solution but also local institutions such as community or social networks which are supposedly weakening because of increasing individualisation They want a reasonable price for their produce, better marketing facilities, institutional credit, irrigation, quality seeds and fertilisers, procurement during times of market glut and a social safety net during natural calamities. These are the basic inputs and services farmers need to continue to engage in agricultural production The non-availability of remunerative prices to farmers on agricultural produce is a vexed issue and emerges as the prime issue in various research studies wherein farmers are asked to rank production constraints Will a rise in the minimum support price (MSP) solve the problem? income. Both arguments rest on the mistaken notion that the MSP is a remunerative price. It is actually an insurance price, a some critics argue that a rise in the MSP will lead to increase in food inflation, while others that it will augment farmers' floor price of sorts. Besides, a vast majority of the farming population is unaware of its existence The Government of India has an MSP for 23 crops, but official procurement at the MSP is effectively limited to rice and wheat and that too concentrated in a few States onl Awareness about the MSP is limited to States such as Punjab, Haryana and Andhra Pradesh where such procurement takes place. According to the National Sample Survey's (NSS) Situation Assessment Survey of Agricultural Households 2013, even for paddy and wheat, less than one-third of farmers were aware of the MSP: for other crops, such awareness was negligible
More to it than MSP Reality check for credit flow to farmers Since 2004, successive governments claimed to have increased institutional credit flow to the agricultural sector through increased budgetary allocation on crop loans. According to NSS data, over 40% of farmers still rely on non-institutional lenders, who mostly happen to be moneylenders-cum-traders and input dealers rs The Reserve Bank of India reveals that out of total advances to agriculture, the share of indirect finance has increased substantially over time, while that of direct finance to farmers has declined. This means that at the macro level, it would appear that there is an increase in credit flow to the agricultural sector but this has actually accrued to agro-business firms/corporations and not directly to the farmers, Consequently, marginal and small farmers continue to rely on traders and input dealers
More to it than MSP Where is government lacking? The promotion of traditional farming at this juncture of agricultural development will take the sector to where it was decades ago. Most existing modern crop varieties will not respond to these practices in the medium term: consequently, yield and income will decline. Further, facilities to produce adequate organic inputs have not been developed either. Animal husbandry has been practised as a supplementary activity since time immemorial. Livestock acts as a cushion against crop loss during times of drought. The new rules on animal markets will put poor farmers and landless labourers in a fix While other developing countries are moving towards modernisation of agriculture which would reduce dependence of labour force and enable a rise in productivity Indian agriculture is cluelessly plodding ahead. Way Forward The situation Unless the fundamental problems of crop and regional bias of MSP policy, government rocurement and access to institutional credit are addressed, mere increase in MSP will not benefit most farmers in the country There exist intervention schemes to undertake the procurement of commodities whose market prices go below the MSP, but on most occasions the marketing season of bumper crops gets over by the time a bureaucratic decision on procurement is taken. Ultimately, the farmers are left at the mercy of unscrupulous traders to sell at whatever price they offer, with resultant repercussions such as the burning of the entire crop or throwing the harvested produce on roads in protest.
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UPSC 2018 mains; Doing 'The Hindu Newspaper Analysis' since June,2017. YouTube- Gurukul Prime.