[Mission 2024] INSIGHTS DAILY CURRENT AFFAIRS + PIB SUMMARY 09 December 2023

GS Paper 3

 Syllabus: Agriculture Credit

Source: PIB

 Context: The Ministry of Cooperation has introduced Model Bye-Laws to revitalize Primary Agricultural Credit Societies (PACS).

What are Model Bye-Laws?

The Model Bye-Laws empower PACS to diversify by engaging in over 25 business activities, including dairy, fishery, godowns, credit services, and more. Provisions ensure inclusive membership with adequate representation for women and Scheduled Castes/Scheduled Tribes. These guidelines aim to govern the grassroots functioning of PACS, outlining their structure and operations. The purpose is to enhance economic viability and expand their role in rural areas.

Status of PACS in India:

• With approximately 13 crore farmers as members, PACS are integral to the country’s three-tier Short-term cooperative credit system.

About PACS:

• Established in 1904, PACS contribute significantly to financial inclusion with minimal paperwork, facilitating timely access to capital for farmers.

Role of Primary Agricultural Credit Societies (PACS) for Rural and Agricultural Development in India:

Issues with PACS:

• Inadequate Coverage: Coverage is low in some areas, especially in the north-east. Only 50% of rural households are covered as members.
• Inadequate Resources: PACS resources are insufficient for the short- and medium-term credit needs of the rural economy.
• Overdue and NPAs: RBI reports lending of Rs 1,43,044 crore and NPAs of Rs 72,550 crore.
  • Overdue hamper the circulation of loanable funds, diminish borrowing and lending power and tarnish the image of societies.

Initiatives taken to strengthen the functioning and effectiveness of PACS in India:

• Computerisation: The budget 2023 has announced Rs 2,516 crore for Computerisation of 63,000 Primary Agricultural Credit Societies (PACS) over the next five years, with the aim of bringing greater transparency and accountability in their operations and enabling them to diversify their business and undertaking more activities.
• Credit Linkage with NABARD: PACS are linked to the National Bank for Agriculture and Rural Development (NABARD), enabling them to access financial resources and expertise for better functioning.
• Making PACS multidimensional: The model bylaws, prepared by the Ministry of Cooperation after consultation with all stakeholders, will enable PACS to diversify its business by undertaking more than 25 different economic activities, including, dairy, fisheries, godowns, custom hiring centres, fair price shops, LPG/diesel/petrol distributorship, etc.
• Multistate Cooperative Societies have been formed for seeds, marketing of organic farming and export of farmers’ produce.
• Common Service Centres (CSCs): Delivery of CSC services through PACS is a big step towards strengthening them, which will allow PACS to provide facilities like Common Service Centres in the country and its benefits will reach crores of people living in rural areas in the country.

Conclusion

PACS form the bedrock of India’s cooperative movement, and continuous efforts are essential to enhance their viability and contribute to sustainable rural and agricultural development.

Mains Links

Q.“In the villages itself no form of credit organization will be suitable except the cooperative society.” – All India Rural Credit Survey. Discuss this statement in the background of agricultural fi nance in India. What constraints and challenges do financial institutions supplying agricultural fi nance face? How can technology be used to better reach and serve rural clients? (UPSC 2014)

Q2. With reference to ‘Urban Cooperative Banks’ in India, consider the following statements: (UPSC 2021)

They are supervised and regulated by local boards set up by the State Governments.

They can issue equity shares and preference shares.

They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.

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

Ans: B

Facts for Prelims (FFP)

Source: TOI

 Context: Meghalaya’s Lakadong turmeric, along with Garo dakmanda (traditional dress), Larnai pottery, and Garo chubitchi (alcoholic beverage), has been granted the Geographical Indication (GI) tag.

Facts for Prelims (FFP)

Source: ET

 Context: The government has temporarily banned the use of sugarcane juice and sugar syrup for ethanol production due to uncertainties in cane output for the current season as per the Sugar (Control) Order 1966.

Why the temporary ban?

Government intends to maintain adequate domestic sugar availability and price stability, due to an estimated fall in sugar production in the current season. Sugar mills find it more profitable to sell sugarcane and syrup to Oil marketing companies for ethanol blending. However, this may create a shortage of sugar in the Indian market.

Will it impact the Government’s goal of Ethanol blending?

The government says the ban would not impact India’s goal of achieving its 20% ethanol blending target by 2025-26. The government plans to promote ethanol production using alternative feedstocks such as B and C-heavy molasses, damaged rice, and maize. The government is also exploring the use of maize as a feedstock for ethanol production, with plans to procure maize directly from farmers at a minimum support price.

 In the 2022-23 ethanol supply year, the government achieved a 12% blending of ethanol with petrol, and the target for the current year is 15%.

The government programme for ethanol blending:

1. National Policy on Biofuels (2018);
2. Ethanol blending Program (target of 20 per cent ethanol blending in petrol by 2025);
3. PM JI-VAN YOJANA for providing financial support for setting up second-generation (2G) ethanol projects;
4. E100 Pilot project;
5. Repurpose Used Cooking Oil (RUCO)

Facts for Prelims (FFP)

Source: BS

 Context: The Indian Pharmacopoeia Commission (IPC) has issued a drug safety alert regarding the painkiller Meftal, cautioning about potential adverse reactions associated with mefenamic acid, including the risk of Drug Rash with Eosinophilia and Systemic Symptoms (DRESS) syndrome.

What is DRESS syndrome?

It is a severe and potentially life-threatening idiosyncratic reaction to certain medications. It is characterized by a delayed onset of symptoms, including fever, skin rash, lymphadenopathy, eosinophilia (an increase in a type of white blood cells), and various systemic manifestations.

What is Meftal?

Meftal is commonly prescribed for conditions such as rheumatoid arthritis, osteoarthritis, dysmenorrhoea, mild to moderate pain, inflammation, fever, dental pain, muscle and joint pain, period pain, sore throats, nerve pain, and muscle aches.

Prolonged use of Meftal and similar drugs may increase the risk of stomach ulcers, bleeding, and adverse effects on the cardiovascular system.

Facts for Prelims (FFP)

Source: HT

 Context: China has launched the world’s first commercial operations of a fourth-generation gas-cooled nuclear reactor power plant, the Shidao Bay plant in eastern Shandong province.

Unlike conventional reactors, this plant utilizes small modular reactors (SMRs), which are high-temperature reactors cooled by gas instead of pressurized water. SMRs are considered more efficient and cost-effective and can be employed for various applications such as heating, desalination, or steam for industrial purposes.

What are SMRs?

They are advanced nuclear reactors with a capacity of up to 300 MW per unit, offering advantages such as simplicity, safety, and cost-effectiveness.

• SMRs can be factory-made and transported to a site for installation.
• SMRs are economical and time-efficient, and unlike traditional reactors that require refuelling every 1-2 years, SMRs only need refuelling every 3-7 years.

The Indian Government is considering offering incentives, similar to a production-linked incentive (PLI) scheme, to encourage the manufacturing of small modular reactors (SMRs) with the goal of increasing nuclear power’s share in India’s energy production.

 India has 22 operating reactors, with an installed capacity of 7480 MWe. India is currently in the second stage of its three-stage nuclear programme

Facts for Prelims (FFP)

Source: UN

 Context:  The Global Cooling Watch 2023 report by UNEP highlights pathways to achieve near-zero emissions from cooling.

About the Report

It focuses on three key measures: passive cooling, higher-energy efficiency standards, and a faster phase-down of climate-warming refrigerants. Aligned with the Global Cooling Pledge, the report aims to reduce cooling-related emissions and promote sustainable cooling. It recommends incorporating these measures into building codes and utilizing financial instruments to drive demand for higher-efficiency products.

A report from the Cool Coalition, released during COP28 climate talks, suggests that implementing the above-given measures could reduce predicted 2050 emissions from cooling by at least 60%. If combined with rapid power grid decarbonization, these measures could result in up to a 96% reduction in emissions from the cooling sector. Previously, the United Nations Environment Programme’s Cool Coalition and COP28 host the United Arab Emirates introduced a Global cooling pledge (India had declined to sign the pledge)

In 2016, over 150 countries signed the Kigali Amendment (including India) to the Montreal Protocol, agreeing to reduce HFC consumption by 80% by 2047.

India Cooling Action Plan (launched in 2019)

It seeks to Reduce cooling demand across sectors by 20% to 25% by 2037-38, and refrigerant demand by 25% to 30% by 2037-38.

Facts for Prelims (FFP)

Source: PIB

 Context: PM approves the first urban flood mitigation project for the ‘Integrated Urban Flood Management Activities for Chennai Basin Project (IUFM)‘ This initiative, under the National Disaster Mitigation Fund (NDMF), includes Central assistance of Rs. 500 crore and aims to make Chennai flood-resilient.

What is IUFM?

It is a holistic approach that stresses the interrelationship between socioeconomic development, environmental sustainability, and flood-risk management.

Other Initiatives for Flood Mitigation in Indian Cities:

• Integrated flood warning system – known as IFLOWS-Mumbai
• CFLOWS (in Chennai) is a complete webGIS-based decision support system that can be used both for mitigation planning operations before and after flooding5

Mapping

Source: TH

Context: Armenia and Azerbaijan have reached a significant agreement, agreeing to exchange prisoners of war and work towards signing a peace treaty, a move praised by the European Union as a major step towards peace in the historically troubled region.

Both countries are fighting over the disputed Nagorno-Karabakh region, resulting in casualties and significant tensions. The region, recognized as part of Azerbaijan but controlled by ethnic Armenians, has been a source of conflict for decades, with recent escalations in 2020 and 2023.

The Nagorno-Karabakh conflict is an ethnic and territorial dispute between Armenia and Azerbaijan. It centres on the Nagorno-Karabakh region, predominantly Armenian-populated but within Azerbaijan’s borders. A ceasefire mediated by Russia in 1994 left the region under Armenian control, though it’s still recognized as part of Azerbaijan.