Daily Current Affairs 04th June 2020 iasshiksha.com/daily-current-affair/daily-current-affairs-04th-june-2020/
Today’s Important Topic’s For UPSC Preparation 1. AMMENDMENT TO ESSENTIAL COMMODITIES ACT. 2. ONE INDIA, ONE AGRICULTURE MARKET. 3. CONTACT FARMING. 4. INFRASTRUCTURAL DEVELOPMENT ALONG BORDER WITH CHINA.
AMMENDMENT TO ESSENTIAL COMMODITIES ACT CONTEXT The Union Cabinet has approved an amendment to the 65-year-old Essential Commodities Act, removing cereals, pulses, oilseeds, edible oils, onion and potatoes from the list of essential commodities.
ESSENTIAL COMMODITY ACT 1955 Under the EC Act, powers of the Central Government have already been delegated to the States by way of orders during 1972 to 1978. The States/UTs, therefore may take action against the offenders.
What is Essential Commodities Act? The ECA was enacted way back in 1955. It has since been used by the Government to regulate the production, supply and distribution of a whole host of commodities it declares ‘essential’ in order to make them available to consumers at fair prices. The list of items under the Act include drugs, fertilisers, pulses and edible oils, and petroleum and petroleum products. The Centre can include new commodities as and when the need arises, and take them off the list once the situation improves. Under the Act, the government can also fix the maximum retail price (MRP) of any packaged product that it declares an “essential commodity”.
How it works? If the Centre finds that a certain commodity is in short supply and its price is spiking, it can notify stockholding limits on it for a specified period. The States act on this notification to specify limits and take steps to ensure that these are adhered to. Anybody trading or dealing in a commodity , be it wholesalers, retailers or even importers are prevented from stockpiling it beyond a certain quantity.
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A State can, however, choose not to impose any restrictions. But once it does, traders have to immediately sell into the market any stocks held beyond the mandated quantity.
NEED FOR AMMENDMENT While India has become surplus in most Agri-commodities, farmers have been unable to get better prices due to lack of investment in cold storage, warehouses, processing and export as the entrepreneurial spirit gets dampened due to hanging sword of Essential Commodities Act. Farmers suffer huge losses when there are bumper harvests, especially of perishable commodities. With adequate processing facilities, much of this wastage can be reduced.
Benefits With the amendment to Essential Commodities Act, commodities like cereals, pulses, oilseeds, edible oils, onion and potatoes will be removed from list of essential commodities. This will remove fears of private investors of excessive regulatory interference in their business operations. The freedom to produce, hold, move, distribute and supply will lead to harnessing of economies of scale and attract private sector/foreign direct investment into agriculture sector. It will help drive up investment in cold storages and modernization of food supply chain. It will create competitive market environment and also prevent wastage of Agri-produce that happens due to lack of storage facilities.
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Safeguarding interest of consumers The Government, while liberalizing the regulatory environment, has also ensured that interests of consumers are safeguarded. It has been provided in the Amendment, that in situations such as war, famine, extraordinary price rise and natural calamity, such agricultural foodstuff can be regulated. However, the installed capacity of a value chain participant and the export demand of an exporter will remain exempted from such stock limit imposition so as to ensure that investments in agriculture are not discouraged.
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ONE INDIA, INE AGRICULTURE MARKET CONTEXT Cabinet approved ‘The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020’.
Background Farmers in India today suffer from various restrictions in marketing their produce. There are restrictions for farmers in selling Agri-produce outside the notified APMC market yards. The farmers are also restricted to sell the produce only to registered licensees of the State Governments. Further, Barriers exist in free flow of agriculture produce between various States owing to the prevalence of various APMC legislations enacted by the State Governments.
Benefits The Ordinance will create an ecosystem where the farmers and traders will enjoy freedom of choice of sale and purchase of Agri-produce. It will also promote barrier-free inter-state and intra-state trade and commerce outside the physical premises of markets notified under State Agricultural Produce Marketing legislations. This is a historic-step in unlocking the vastly regulated agriculture markets in the country. It will open more choices for the farmer, reduce marketing costs for the farmers and help them in getting better prices. It will also help farmers of regions with surplus produce to get better prices and consumers of regions with shortages, lower prices. The ordinance also proposes an electronic trading in transaction platform for ensuring a seamless trade electronically. The farmers will not be charged any cess or levy for sale of their produce under this Act. Further there will be a separate dispute resolution mechanism for the farmers.
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One India, One Agriculture Market The ordinance basically aims at creating additional trading opportunities outside the APMC market yards to help farmers get remunerative prices due to additional competition. This will supplement the existing MSP procurement system which is providing stable income to farmers. It will certainly pave the way for creating One India, One Agriculture Market and will lay the foundation for ensuring golden harvests for our hard-working farmers.
CONTRACT FARMING CONTEXT
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Cabinet approved ‘The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020’.
HOW THE PRODUCE REACH CONSUMERS?
NEED FOR ORDINANCE Indian Agriculture is characterized by fragmentation due to small holding sizes and has certain weaknesses such as weather dependence, production uncertainties and market unpredictability. This makes agriculture risky and inefficient in respect of both input & output management.
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Benefits The ordinance will empower farmers for engaging with processors, wholesalers, aggregators, wholesalers, large retailers, exporters etc., on a level playing field without any fear of exploitation. It will transfer the risk of market unpredictability from the farmer to the sponsor and also enable the farmer to access modern technology and better inputs. It will reduce cost of marketing and improve income of farmers. This Ordinance will act as a catalyst to attract private sector investment for building supply chains for supply of Indian farm produce to global markets. Farmers will get access to technology and advice for high value agriculture and get ready market for such produce. Farmers will engage in direct marketing thereby eliminating intermediaries resulting in full realization of price. Farmers have been provided adequate protection. Sale, lease or mortgage of farmers’ land is totally prohibited and farmers’ land is also protected against any recovery. Effective dispute resolution mechanism has been provided for with clear time lines for redressal.
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INFRASTRUCTURAL DEVELOPMENT ALONG BORDER WITH CHINA CONTEXT To ramp up infrastructure along the china border, the Ministry of Home Affairs (MHA) has decided to spend 10% funds of a Centrally sponsored scheme only on border projects in Ladakh, Arunachal Pradesh, Himachal Pradesh, Uttarkhand and Sikkim.
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According to the new guidelines approved by Union Home Minister Amit Shah effective April 1, the projects for developing strategically important villages and towns in border areas that have been identified by the border guarding forces, will be given priority The new BADP guidelines said, “10% of the total allocated funds will be additionally allocated to the States/UTs abutting Indo-China border [Arunachal Pradesh, Himachal Pradesh, Ladakh, Sikkim and Uttarakhand] for taking up works/projects in the districts abutting Indo-China border. Construction of roads, bridges, culverts, primary schools, health infrastructure, playfields, irrigation works, mini-stadiums, indoor courts for basketball, badminton and table tennis can be undertaken within 10 km of the border from the BADP funds. The creation of infrastructure “would help integrate these areas with the hinterland, create a positive perception of care by the country and encourage people to stay on in the border areas leading to safe and secure borders.
WHY IS IT IMPORTANT? Recent incursions by chinese army are more severe than the past as the stand off is at multiple points. China has the advantage of superior infrastructure along the border which is a point of concern for india and also china increased activity along pakistan occupied kashmir under the project china pakistan economic corridor. Connection of border areas to hinter lands increase their economic and social stability.
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1. The rapprochement between the two countries in 1976 enabled India and China to initiate High Level border talks in 1981 to find a solution to the vexed problem. After eight rounds, the talks broke down in 1987. 2. In 1988, following Prime Minister Rajiv Gandhi’s visit to China, the Joint Working Group (JWG) was set up to look into the border problem. 3. In 1993, the Agreement on the Maintenance of Peace and Tranquility along the Line of Actual Control (LAC) was signed and the India-China Expert Group of Diplomatic and Military Officers was set up to assist the JWG. 4. In 1996, the Agreement on Confidence Building Measures (CBMs) in the Military Field along the LAC was signed. 5. In 2003, two special representatives (one each from India and China) were appointed to find a political solution to the border dispute. 6. Till 2009, these two special representatives had held 17 rounds of talks, but it seems they have not made much headway.
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