Sweet nothing [The Hindu Editorial] A little over a month after the Centre proposed a special cess under the GST to help alleviate distress among sugarcane farmers, the Cabinet Committee on Economic Affairs approved a 7,000- crore package for the sugar sector last week This package, with a mix of assured minimum pricing and special incentives for increasing molasses and ethanol production to gainfully mop up the glut of sugar in the country, is independent of the cess proposal that was expected to raise 6,700 crore. To put this in perspective, sugar mills, dues to farmers stand at 22,000 crore. Under the proposed bailout scheme, the government will procure sugar from mills at a fixed minimum price to help them clear dues to farmers, and also offer them other financial assistance. O Only about 1,175 crore, however, will be used towards procurement of refined sugar from mills to create a buffer stock of 30 lakh tonnes. This is a fraction of the 63.5 million tonnes output expected in the two sugar seasons from October 2017 to September 2019 With the record output, sugar prices have dropped from an average of 37 a kg in the previous season to 26 in the current season. OThe bailout plan promises to pay f29 a kg. Sugar mills say this is below their production cost of R35 a kg, though it may dissipate their immediate liquidity problems to an extent.
Rating agency Crisil reckons that the fixed price for sugar at mill gates and the buffer stock will at best help mitigate about 40% of the outstanding arrears to sugarcane farmers o And as production will rise again in the coming season, so will the extent of arrears. o The rest of the package will take time to materialise, with 4,440 crore of loans and 1,332 crore of interest subsidies for greenfield and brownfield distillery capacities. o Over time, this could help to use excess sugar for the manufacture of alcohol or ethanol, but it will not be soon enough to address the present crisis. All said and done, the Centre's sweetener for the sector does little to address structural problems and sticks to old-style pricing and stock-holding interventions instead of signalling a shift to market-driven cropping decisions. o The political compulsions driving the bailout are obvious, given that the sugarcane crisis was a rallying cry in the by-election in Kairana in Uttar Pradesh, which the BJP lost. o But that is no excuse for not thinking the package through. o Perpetuating the complex web of state controls in a politically-sensitive sector is no solution. The best way to address the problem of excess supply in the long run is to ensure some linkage between the price paid for sugarcane and the end-products it is used for, and encouraging the feedback from market prices to inform farmers' future cropping decisions. The current sops-driven solution could distort the agriculture sector further. A spate of lynchings [The Hindu Article] DIY Temple and state [The Hindu Article] DIY
Western disturbance to the rescue Weather likely to improve in north India over the next 24 hours with fresh thundershowers Page 2 What do you understand by western disturbances? Explain their origins, causes of increased frequencies and their effect on India. (250 Words) Definition: Western Disturbances are low-pressure areas embedded in the Westerlies, the planetary winds that blow from west to east between 30 and 60 latitude. Origin: They originate in the Mediterranean region, travel westward and enter India loaded with moisture, where the Himalayas obstruct them, causing rain and snow over northern India OThe moisture in these storms usually originates over the Mediterranean sea and Atlantic Ocean. WDs are important to the development of the Rabi crop in the northern subcontinent.
Causes of increased frequency: OThe frequency of western disturbance amplified because of presence of easterlies from Bay of Bengal. Also due to pronounced warming over the Tibetan plateau in recent decades which can be attributed to climatic warming, favours enhancement of meridional temperature gradients. The warming in recent decades over west central Asia led to an increase in instability of the western winds thereby increasing WDs leading to a higher intensity for heavy precipitation. Effects: Such disturbances can damage crops resulting into economic as well as agricultural loss for the people and farmers OFarm output is affected when crops that are ready to be harvested or about to ripen, get soaked in excessive rainfall. OThis is a concern in states like Madhya Pradesh, Gujarat, Maharashtra and Rajasthan, Punjab and Haryana
Probe exposes huge hawala welb Naresh Jain and his associates used over 100 shell companies for forex dealings DEVESH K. PANDEY NEW DELH others in 2007. He later got volving about 1,204 crore. bail and escaped to India via That notice is pending adju Nepal in May 2009. dication. Mr. Jain, against whom The ED had earlier regis- more than 210,000 crore as part of a probe into an inter- national "hawala" syndicate allegedly run by Naresh Jain and his associates through shell companies and travel firms. is currently conducting a case against Mr. Jain and oth probe under the Foreign Ex ers, based on an FIR lodged change Management Act by the Narcotics Control Bu (FEMA), is suspected to have reau (NCB) in 2009. The NCB used over 100 shell compa arrested him in December nies and about 40 tour-and 2009. The ED arrested him Page 11 GS3: Money Laundering Hawala: Hawala is an alternative remittance channel that exists outside of traditional banking systems. Transactions between hawala brokers are made without promissory notes because the system is heavily based on trust and the balancing of hawala brokers' books.
THE HINDU SATURDAY, JUNE 16, 2018 China to impose equal tariff ' on US. goods Beijing terms Trumps action outdated and backward
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