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2023 04 25

Table of Contents:

GS Paper 2:

  1. Rule of Law

GS Paper 3:

  1. Markets in Crypto Assets (MiCA)
  2. Farmer producer companies (FPC)
  3. Reducing urea Consumption in India

Content for Mains Enrichment (CME)

  1. Goldman Environmental Prize
  2. Pollution Curbing Trees

Facts for Prelims (FFP)

  1. Tamil Nadu’s Manamadurai Pottery
  2. Oil hypocrisy
  3. Farming: Carbon credit market
  4. Malaria 
  5. Calcium Carbide
  6. Exobiology Extant Life Surveyor (EELS)
  7. Gandhi Sagar Wildlife Sanctuary
  8. Operation Kaveri

Rule of Law

GS Paper 2

Syllabus: Governance

Source: IE

Context: Given the recent incidents in Uttar Pradesh, this article tries to understand the concept of ‘Rule of Law’.

What is the Rule of Law?

It states that ‘the Law is supreme and no human being has authority over it’. In India, the Rule of Law is guaranteed by the Constitution (Article 14), which means that all authorities must strictly adhere to it.

Three principles of RoL as defined by A.V. Dicey:
Principle Description Example
Supremacy of Law All individuals, including government officials, are subject to the law and no one is above the law. If a leader (even President or Prime Minister) is found guilty of corruption, they can be prosecuted and punished according to the law, just like any other citizen.
Equality Before the Law All individuals are equal under the law and are entitled to the same legal rights and protections, regardless of their social status or wealth. An example of this principle is the requirement for a fair trial, where every accused person is entitled to the same legal rights, such as the right to legal representation, the right to remain silent, and the right to a speedy trial.
Individual Rights The Rule of Law protects individual rights and freedoms, including property rights, freedom of speech, and personal liberty. The Constitution guarantees fundamental rights, such as the right to freedom of expression, the right to own property, etc.

What are the exceptions to the Rule of Law?
Principle Description
Non-answerability The President/Governor is not answerable to any court for the exercise of their powers and duties.
Immunity from Criminal Proceedings No criminal case can be initiated against the President/Governor during their tenure.
Notice Period for Civil Proceedings A two-month notice period must be served before initiating a civil proceeding against the President/Governor.

Rule of Law Vs Rule by Law:

“Rule of Law” ensures that the law applies equally to everyone, including the government, while “Rule by Law” uses the law as a tool of oppression and allows the government to create laws that may not be just or fair.

Role of Indian Judiciary in Establishing Rule of Law in India:
Role of Judiciary Example
Assumption of Rule of Law Bachhan Singh v. State of Punjab states that the Rule of Law is based on three fundamental assumptions: Legislation should be made by a democratically elected legislature, legislative power should be limited, and an independent judiciary is required to protect citizens from abuses of executive and legislative power.
Protection of Fundamental Rights E.g., in Kesavananda Bharati v. State of Kerala (1973), the Supreme Court held that the Constitution of India has a basic structure which cannot be amended by the Parliament.
Judicial Review Maneka Gandhi v. Union of India (1978) established that before a person’s life and liberty are taken away, the law must be valid, there must be a just, reasonable, and fair procedure in the law, and the law must meet the requirements of Articles 14 and 19 of the Constitution.
Interpretation of Laws In Vishakha v. State of Rajasthan (1997), the Supreme Court laid down guidelines for preventing sexual harassment in the workplace until the Parliament enacts a law on the subject.

About Rule of Law Index:
Information
As per the Rule of Law Index 2022, India has been ranked 77 out of 140 countries (2019 ranking (68 out of 126 countries))
Released by World Justice Project (WJP)
Factors considered Constraints on government powers, absence of corruption, open government, fundamental rights, order and security, regulatory enforcement, civil justice, and criminal justice
India’s global rank 94 in adherence to fundamental rights, 111 in civil justice, 89 in criminal justice, 93 in absence of corruption
Neighbouring countries Bangladesh (127), Pakistan (129), China (95), Nepal (69)
Ranking of Uttar Pradesh The WJP Index doesn’t provide sub-national ranks, but the India Justice Report 2022 ranks Uttar Pradesh (UP) as the worst-performing state among the 18 large and mid-sized states of India

Why Rule of law matters?

Research (including those done by the World Bank) has shown that stricter adherence to it is positively correlated to:

  • Higher economic growth
  • Better educational attainment
  • Improved health outcomes
  • Greater peace and stability

Conclusion:

The Rule of Law is now the accepted norm of all civilized societies, and everywhere it is identified with the liberty of the individual. Countries must promote it for the socio-economic as well as the overall well-being of its citizens.

Insta Links:

Demolition drives may challenge the rule of law

Mains Links:

What makes the Rule of Law different from the Rule by Law? Explain the principles that emerge as the basis of the Rule of law and the role of the judiciary in ensuring their constitutionality.

Prelims Links

Which of the following are regarded as the main features of the “Rule of Law”? (UPSC 2018)

  1. Limitation of powers
  2. Equality before law
  3. People’s Responsibility to the Government
  4. Liberty and civil rights

Select the correct answer using the code given below:

(a) 1 and 3 only

(b) 2 and 4 only

(c) 1, 2 and 4 only

(d) 1, 2, 3 and 4

Answer: C

“Rule of Law Index” is released by which of the following? (UPSC 2018)

(a) Amnesty International

(b) International Court of Justice

(c) The office of the UN Commissioner for Human Rights

(d) World Justice Project

Answer: D

April 25, 2023 /25 Apr 2023, governance, GS2, Polity, rule of law, Today's Article

Markets in Crypto Assets (MiCA)

GS Paper 3

Syllabus: Indian economy and related issues

Source: TH

Context: The European Parliament has approved the world’s first set of comprehensive rules – MiCA – to bring largely unregulated cryptocurrency markets under the ambit of government authorities.

The Markets in Crypto Assets (MiCA) legislation:

Need:

  • 22% of the global crypto industry was concentrated in Europe, which received $1.3 trillion worth of crypto assets.
  • 2022 saw bankruptcies and fraud scandals in the crypto industry (collapse of the crypto exchange FTX, etc).

The new rules:

  • MiCA will impose compliance on the issuers of crypto assets (legal person who offers to the public any type of crypto-assets).
  • It will apply to crypto-asset service providers (CASPs) providing services like the custody, administration, and exchange of crypto assets.
    • A CASP can get authorised in any one member country and will be allowed to conduct their services across the 27 countries.
  • It requires crypto companies to send information about senders and recipients of crypto assets to their local anti-money laundering authority.

What kind of assets will MiCA cover?

  • It will apply to ‘crypto assets’, including not only traditional cryptocurrencies like Bitcoin and Ethereum but also to newer ones like stablecoins.
    • Stablecoins are digital tokens that aim to stay pegged in value with a more stable asset like the U.S. dollar or other stable cryptocurrencies.
  • The MiCA’s scope will exclude central bank digital currencies, non-fungible tokens (NFTs) and other crypto assets already under existing regulation.

Significance:

  • A comprehensive framework for 27 countries in Europe not only harmonises the crypto industry but also gives the EU a competitive edge in its growth.
  • It will protect consumers against deception and fraud.
  • Information sharing provisions will prevent laundering and terror financing activities.

What has been the reaction?

  • The new rules will come into force after formal approval by (27) member states.
  • A broader view is that it is better to have a regulatory framework than to have no rules at all.
  • However, the rule is already behind in terms of addressing more recent weaknesses (as it is under development for 3 years) in the cryptocurrency market.
    • For instance, it does not cover practices like crypto staking and lending.

How is crypto regulated in India?

  • India is yet to have a comprehensive regulatory framework for crypto assets and the legality of cryptocurrencies in the country is still a grey area.
  • However, the Indian government has taken certain steps to bring cryptocurrencies under the ambit of specific authorities and taxation. For example,
    • In the Union Budget 2022, the Finance Ministry imposed a 30% tax on income from the “transfer of any virtual digital asset.”
    • The government placed all transactions involving virtual digital assets under the purview of the Prevention of Money Laundering Act (PMLA).
  • India is now calling for consensus in the G20 grouping, to have a globally coordinated policy response on crypto assets.

Insta Links:

Digital rupee pilot project launching: what is it and how will it work?

April 25, 2023 /25 Apr 2023, 25 April CA, Cryptocurrency, EU, GS 3, MiCA, Prevention of Money Laundering Act (PMLA), Today's Article, Today’s article

Farmer producer companies (FPC)

GS Paper 3

Syllabus: Agriculture and related issues

Source: DTE

Context: ITC Limited has helped form 78 farmer-producer companies (FPC) between November 2022 and February 2023.

FPC:

  • It is a hybrid between cooperative societies and private limited companies, registered under the Companies Act 2013, owned and operated by farmers.
  • It is a type of farmer producer organisation (FPO) that –
    • Deals in aggregated produce of a large number of member-owner farmers,
    • Helping them achieve economies of scale,
    • Increase their farm-level efficiency as well as the ability to negotiate prices in the market.
  • Creating an FPC is a long-drawn process (usually it takes months to start an FPC), involving mobilisation and training of farmers to run a company.

How did ITC achieve the feat?

  • By reaching out to farmers already registered on its e-Choupal website for selling produce.
  • ITC acted as a Cluster-Based Business Organisation (CBBO).

How CBBO helped in the formation of FPCs?

  • CBBO is a concept introduced in the Union Budget 2019-20 under Formation and Promotion of 10,000 FPOs – a Central scheme to provide hand-holding to FPCs and to create 10,000 FPOs by 2024.
  • Any legal entity registered in India can be a CBBO, and receives Rs 25 lakh over a period of five years for every FPC it helps create or run.
  • With the announcement of CBBOs, the formation of FPCs has seen a huge rise (5,000 in 2018 to over 16,000 in 2023 as per the Union Ministry of Corporate Affairs).

This increase has come at a cost:

  • Most big organisations (have no local stakes.) are able to qualify for the role of a CBBO.
    • This is because of the flawed criteria – such an organisation needs to meet a minimum annual turnover of Rs 2/1 crore in the plains/hilly
    • FPCs lack the bargaining power against big companies.
  • FPCs are often unable to act independently in decision-making or be farmer-centric.
    • For example, ITC’s FPCs are likely to sell their produce, even if they are offered a higher price elsewhere → squeezing the margin of FPCs.
  • FPCs were organised just to meet the target and there was no owner-member involvement in their functioning.
  • Financing woes: Just 1-5% of FPCs have received funds under Central schemes introduced to promote them in the last seven years.
  • Less survival prospects: 79% of the FPCs registered in 2020-2021 had a paid-up capital of Rs 1 lakh or less, which is far too little to survive in the long run.

Steps taken by the govt:

  • The government has introduced two schemes to fund FPOs – Equity Grant Scheme and Credit Guarantee Scheme.
  • Under the Equity Grant Scheme, Small Farmers’ Agribusiness Consortium (SFAC) offers equity grants up to a maximum of Rs 15 lakh within a period of three years.
  • The Credit Guarantee Scheme provides risk cover to banks that advance collateral-free loans up to Rs 1 crore.

Way ahead:

  • CBBOs should train FPC members, the CEO and the board of directors and impart business knowledge.
  • For an FPC to succeed it should
    • Be designed according to local, community-owned food system perspective (as opposed to commodity orientation),
    • Provide free ecosystem services (for example, soil formation, pollination, predation) and
    • Be independent of corporations for the procurement of seeds and synthetic inputs.
  • Civil society organisations which are community-based, must be given priority to form FPCs.

Insta Links:

Farmer Producer Organizations

Mains Links:

“In the villages itself, no form of credit organization will be suitable except the cooperative society.” – All Indian rural credit survey. Discuss this statement in the background of agriculture finance in India. What constraints and challenges do financial institutions supply agricultural finances? How can technology be used to better reach and serve rural clients? (UPSC 2014)

April 25, 2023 /000 FPOs, 25 Apr 2023, 25 April CA, Cluster-Based Business Organisation (CBBO), Credit Guarantee Scheme, Equity Grant Scheme, Farmer producer companies (FPC), Formation and Promotion of 10, FPOs, GS 3, Small Farmers' Agribusiness Consortium (SFAC), The Companies Act 2013, Today's Article, Today’s article

Reducing urea Consumption in India

GS Paper 3

Syllabus: Issues related to Direct and Indirect Farm Subsidies

Source: IE

Context: None of the government measures has succeeded in reducing urea consumption in India.

Background:

  • In 2015, the Centre made it mandatory to coat all indigenously manufactured and imported urea with neem oil.
  • This was followed by replacing 50-kg bags with 45 kg ones in 2018, and the launch of the liquid ‘Nano Urea’ by the Indian Farmers’ Fertiliser Cooperative (IFFCO) in 2021.
  • The above measures aimed at checking illegal diversion for non-agricultural use, and increasing nitrogen use efficiency, have failed in reducing urea consumption.

Sales of urea in India:

  • After neem-coating was fully implemented, consumption did decline for the first two years, but that trend reversed from 2018-19.

NBS:

  • Fertilisers are essentially food for crops, which need nutrients (for plant growth and grain yield) –
    • Primary (N, P, K),
    • Secondary (S, calcium, magnesium) and
    • Micro (iron, zinc, copper, manganese, boron, molybdenum).
  • With this in mind, the nutrient-based subsidy (NBS) regime was launched in India in 2010.
  • Under NBS, the government fixed a per-kg subsidy for each fertiliser nutrient: Nitrogen (N), phosphorus (P), potash (K) and sulphur (S).

Purpose of NBS:

  • This (unlike the earlier product-specific subsidy regime) was intended to promote balanced fertilisation by discouraging farmers from applying too much –
    • Urea,
    • Di-ammonium phosphate (DAP) and
    • Muriate of potash (MOP).
    • These are fertilisers with high content of a single nutrient: Urea (46% N), DAP (46% P plus 18% N) and MOP (60% K).
  • It was expected to induce product innovation, besides more use of complex fertilisers (having lower concentrations of N, P, K and S in different proportions) and single super phosphate – SSP (containing only 16% P but also 11% S).

Failure of NBS: Worsening of nutrient imbalance, with urea consumption rising by over a third since 2009-10.

Reasons behind rising urea and DAP consumption:

  • Its maximum retail price (MRP) went up by a mere 16.5% from Rs 4,830 to Rs 5,628 per tonne post the introduction of NBS.
    • The current per-tonne MRP – Rs 5,628 for urea, Rs 27,000 for DAP and Rs 34,000 for MOP – are nowhere compatible with a 4:2:1 NPK use ratio generally considered ideal for Indian soils.
  • Price controls on DAP, with companies not allowed to charge more than Rs 27,000 per tonne.

The cost of disproportionate application of N by farmers:

  • During the Green Revolution, higher doses of fertiliser application produce more grain.
  • Over time, crop yield response to fertiliser use has more than halved: 1 kg of NPK nutrients yielded 12.1 kg of cereal grains during the 1960s, and 5 kg during the 2010s.
  • The decline in nitrogen use efficiency (NUE has fallen from 48.2% in 1962-63 to 34.7% in 2018), which refers to the proportion of N applied mainly through urea that is actually utilised by crops to produce harvested yields.

The solutions:

  • Reduce the consumption of N and promote products containing other nutrients in desired (crop- and soil-specific) combinations.
    • The government should make the incorporation of urease and nitrification inhibitors (a chemical that makes more N available to the crops) compulsory in urea.
  • There are two approaches to cutting urea consumption – raising prices and improving NUE.
    • Nano Urea is primarily aimed at boosting NUE.
    • The ultra-small size of its particles (20-50 nanometers) is said to allow easier penetration through the stomatal pores of leaves.
    • If the government wants to promote Nano Urea (for foliar application directly to the leaves), it may have to subsidise the cost of spraying.

Insta Links:

First urea and now DAP: High use of subsidised fertilisers raises crop yield fears

Mains Links:

How do subsidies affect the cropping pattern, crop diversity and economy of farmers? What is the significance of crop insurance, minimum support price and food processing for small and marginal farmers? (UPSC 2017)

Prelims Links: UPSC 2020

With reference to chemical fertilisers in India, consider the following statements :

  1. At present, the retail price of chemical fertilisers is market-driven and not administered by the Government.
  2. Ammonia, which is an input of urea, is produced from natural gas.
  3. Sulphur, which is a raw material for phosphoric acid fertiliser, is a by-product of oil refineries.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 and 3 only
  3. 2 only
  4. 1, 2 und 3

Solution: 2

April 25, 2023 /25 Apr 2023, 25 April CA, Di-ammonium phosphate (DAP), GS 3, Muriate of potash (MOP), Nano Urea, Nitrogen use efficiency (NUE), NPKS, Nutrient-based subsidy (NBS) regime, Today's Article, Today’s article, Urea

Goldman Environmental Prize

Content for Mains Enrichment (CME)

Source: TH

Alessandra Korap, a Munduruku Indigenous woman from Brazil, has won the Goldman Environmental Prize for her leadership in defending her community’s lands against illegal mining, hydroelectric dams, and other environmental crimes.

Korap is part of a group of Munduruku women who have taken up the responsibility of defending their people and have overturned the traditionally all-male leadership. Munduruku is an indigenous people of Brazil living in the Amazon River basin.

About the Prize

The Goldman Environmental Prize (est. 1989; by the Goldman Environmental Foundation) is a prize awarded annually to grassroots environmental activists, one from each of the world’s six geographic regions: Africa, Asia, Europe, Islands and Island Nations, North America, and South and Central America. The award is also called the Green Nobel.

Usage: The example highlights what has been proven in previous research that Indigenous-controlled forests are the best preserved in the Brazilian Amazon. You can use this example in Environment/ Indian Society/ Sociology/ Anthropology paper

April 25, 2023 /25 Apr 2023, Goldman Environmental Prize, Today's Article

Pollution Curbing Trees

Content for Mains Enrichment (CME)

Source: DTE

Certain trees and crops that are native to India have been found to be effective in combatting air pollution, according to a new study.

The level of Ascorbic acid in plants determines their tolerance against the adverse effect of oxidising pollutants (the higher the ascorbic acid, the higher the tolerance)

Trees with high Air Pollution Tolerance Index (APTI) (a tool used to assess the tolerance capacity of tree and crop species against air pollution) value are pipal, neem, mango and crops like maise, pigeon pea and safflower.

Ascorbic acid (vitamin C) is involved in regulating photosynthesis, hormone biosynthesis, and regenerating other antioxidants.

Usage: The example of these native trees can be cited for greening Urban airspace to curb air pollution.

April 25, 2023 /25 Apr 2023, Pollution Curbing Trees, Today's Article

Tamil Nadu’s Manamadurai Pottery

Facts for Prelims (FFP)

Source: TH

Context: Recently, Manamadurai pottery was given GI tag
Aspect Information
Manamadurai Pottery recently earned a GI tag  
Location Manamadurai in Sivagangai district, Tamil Nadu, India.
Raw materials Soil, water, sand, lead, graphite, calcium lime, ash, red lead, sodium silicate, manganese, iron, and plasticizing.
Unique features Use of a unique type of clay sourced from water bodies; Pot making requires expertise as the bottom has to be perfectly round and the circumference of the pot and the neck should be proportionate; The pot is painted in different colours.

About GI tag:

April 25, 2023 /25 Apr 2023, GI tag, Tamil Nadu’s Manamadurai pottery, Today's Article

Pushkaralu festival

Facts for Prelims (FFP)

Source: TH

Context: The 12-day Pushkaralu festival of Telugu-speaking people began on April 22 in Varanasi.
Description
Pushkaram is a festival celebrated in India once every 12 years, dedicated to worshipping the 12 sacred rivers. Each river is associated with a zodiac sign, and the festival is based on the position of Jupiter at the time
Frequency Once in 12 years
Associated Rivers Ganga, Yamuna, Godavari, Krishna, Kaveri, Bhima, Tapti, Narmada, Saraswati, Tungabhadra, Sindhu, Pranhita
Festival Duration 12 days after Jupiter enters that particular zodiac sign
Purpose Ancestor worship; Bathing in the sacred river during Pushkaram is believed to cleanse the devotees of their sins
Legend After severe penance, the devotee Pushkara was blessed by Lord Shiva with the ability to live in water and purify holy rivers. On a request from Bruhaspati (Jupiter), Pushkara decided to enter one of the 12 sacred rivers

April 25, 2023 /25 Apr 2023, Arts and Culture, GS1, Pushkaralu festival, Today's Article

Oil hypocrisy

Facts for Prelims (FFP)

Source: DTE

Context: A new study by the Centre for Research on Energy and Clean Air (CREA) has found that countries that imposed crude oil sanctions on Russia used India, China, United Arab Emirates, Singapore and Turkey as ‘laundromats’ for refined products.

Key points:

  • During the last year, India has emerged as the leading exporter of refined oil products, followed by China and the United Arab Emirates.
  • Major exporting port:
    • Sikka port in Gujarat (owned by Reliance; handles import and export of petroleum from Jamnagar refinery) exported the highest amount of seaborne refined oil to the Price Cap Coalition countries
    • Vadinar port (also in Gujarat; owned by Nayara Energy Limited, of which Russian oil company Rosneft holds around 50% share)
  • India now imports about 87% of its crude oil requirement (worth over US $190 bn) while it exported petroleum products worth over $86 billion (accounting for more than 21 per cent of India’s total commodity exports)

What is Laundromat?

‘Laundromats’ is a term used to describe a type of financial fraud where large amounts of money, often obtained through illegal means, are moved through a complex web of transactions and accounts to disguise their origin and make them appear legitimate.

What is the Price Cap plan?

Price Cap Coalition comprising Australia, Canada, the European Union, Japan, the United Kingdom and the United States imposed a maximum price of $60 a barrel of oil transported by vessels owned or insured by some countries in the alliance to third-party countries, with the intention to dent Russia’s financing of the war.

About CREA

The Centre for Research on Energy and Clean Air (CREA) (est. 2019; HQ: Helsinki) is a non-profit think tank researching energy and air pollution. It aims at tracking the impacts of air pollution by providing data-backed research products.

April 25, 2023 /25 Apr 2023, Centre for Research on Energy and Clean Air, Price Cap Coalition, Today's Article

Farming: Carbon credit market

Facts for Prelims (FFP)

Source: BS

Context: The Uttar Pradesh government has launched an agroforestry project in partnership with The Energy and Resource Institute (TERI) to link farming with the global carbon credit market and generate additional rural income.

About the carbon credit market:
Information
Definition A carbon credit is a permit allowing the emission of one ton of greenhouse gases per permit. They are periodically awarded to companies contributing to pollution in order to limit their emissions while allowing them to sell the extra credits to another company that needs them.
Trading Mechanism Allowance-based: regulated entities receive a certain number of allowances (credits) for emissions; can buy and sell this o meet compliance obligations or generate revenue through excess credits
Offset-based: voluntary offsets created by emissions reductions projects (e.g., renewable energy) that are verified, registered, and sold to companies or individuals looking to reduce their carbon footprint
Market Size Global market estimated to be worth $60 billion in 2021, expected to reach $100 billion by 2030
Types of Credits Certified Emissions Reductions (CERs), Emission Reduction Units (ERUs), Verified Emission Reductions (VERs), Renewable Energy Certificates (RECs), etc.
Benefits Encourages emissions reductions and sustainable practices, generates revenue for companies, creates opportunities for investment in emissions reduction projects, contributes to global climate goals
Challenges Ensuring accuracy and reliability of emissions measurement and verification, preventing fraud and double-counting, establishing clear standards and regulations, addressing concerns around offset quality and additionality
India’s position India is among the top producers and exporters of carbon credits in the world
India’s Green Target (INDC) Reducing GHG emissions by 45%, generating 50% of its power from renewable energy sources and reaching net zero emissions by 2070.

Read about Draft Carbon Credit Trading Scheme

April 25, 2023 /25 Apr 2023, AGRICULTURE, Carbon credit market, Farming, Today's Article