UPSC CURRENT AFFAIRS – 6 July 2024

UPSC CURRENT AFFAIRS – 6 July 2024 covers important current affairs of the day, their backward linkages, their relevance for Prelims exam and MCQs on main articles

InstaLinks :  Insta Links help you think beyond the  current affairs issue and help you think multidimensionally to develop depth in your understanding of these issues. These linkages provided in this ‘hint’ format help you frame possible questions in your mind that might arise(or an examiner might imagine) from each current event. InstaLinks also connect every issue to their static or theoretical background.

Table of Contents 

GS Paper 2: (UPSC CURRENT AFFAIRS – 6 July 2024)

1. Demand of restoring ‘Education’ to the State list

2. India-Myanmar Relations Amidst Evolving Situation in Myanmar

GS Paper 3:

1. National policy on Farmer Producer Organisations (FPOs) proposed

Facts for Prelims (FFP)

1. Producer Price Index

2. Stablecoins

3. Global Conclave on Plastic Recycling and Sustainability (GCPRS)

4. 3D hologram technology

5. Money Mule

UPSC CURRENT AFFAIRS – 06 July 2024

GS Paper 2:

Demand of restoring ‘Education’ to the State list

Syllabus: Indian Constitution/ Issues between Centre and States

 Source: TH

 Context: The article discusses whether should education be brought back to the State list.

What is a State List? 

The State List is a category under the 7th Schedule of the Constitution of India that enumerates subjects on which individual State Governments have the exclusive power to legislate. These subjects include areas such as police, public health, agriculture, and local governance. This division of powers ensures that states can manage and address local issues effectively without interference from the central government. Currently, Education is under the concurrent List.

Background on Education Listing:

1. Pre-Independence: Under the Government of India Act, 1935, education was under the Provincial Legislative List.
2. Post-Independence: Initially, education was on the State List of the Seventh Schedule.
3. 1976 Change: The 42nd Constitutional Amendment, following the Swaran Singh Committee’s recommendation, moved education to the Concurrent List without explicit reasons.
4. The 44th Constitutional Amendment attempted to revert some of these changes but was not fully implemented.

Education Should Be on the State List

1. Original Design: Initially in the constitution, education was a state matter, as local governments are better suited to address educational needs.
2. Will Restore Federal Balance: The 42nd Amendment shifted education to the Concurrent List, undermining federalism. Returning it to the State List would restore the intended balance of power.
3. State-Specific Policies: States can tailor education to their unique cultural and socio-economic contexts, improving literacy and educational outcomes.
4. Resource Allocation: States fund 85% of education expenses and should control their investments.
5. Merit Determination: Centralized exams like NEET do not reflect diverse student potential. States need flexibility in admission criteria.
6. Accountability: State control ensures better accountability for educational quality.
7. Policy Conflicts: Central policies often clash with state policies, causing inefficiencies. State control would reduce these conflicts.

Education should remain on the Concurrent List:

International Practices:

The way forward and Conclusion: 

Focus on “Collaborative Federalism” as suggested by the Kothari Commission (1964-66) to ensure national standards with state flexibility. Implement outcome-based funding as recommended by NITI Aayog. Promote decentralized school management per the Right to Education Act (RTE) 2009. Reform teacher training and transfer policies based on the TSR Subramanian Committee Report (2009). Develop standardized national assessments with state-specific benchmarks.

Insta Links:

1. Issues related to Education Sector

Mains links:

1. Discuss the main objectives of Population Education and point out the measures to achieve them in India in detail. (UPSC 2021)
2.  How have digital initiatives in India contributed to the functioning of the education system in the country? Elaborate on your answer. (UPSC 2020)

Prelims Links:

India-Myanmar Relations Amidst Evolving Situation in Myanmar

Syllabus: International Relations

Source: TH

Context: The conflict between ethnic armed organisations (EAOs) and the military junta in Myanmar has created a serious humanitarian crisis, which the United Nations Security Council took up for discussion on July 3.

Background of the crisis: 

The crisis in Myanmar originated primarily from the military’s seizure of power in a coup on February 1, 2021. The military, known as the Tatmadaw, detained civilian leaders including Aung San Suu Kyi and declared a state of emergency. This action reversed a tentative transition towards democracy that had begun in 2011. The coup sparked widespread protests across Myanmar, met with severe military crackdowns resulting in significant civilian casualties. Ethnic armed groups, long in conflict with the military, intensified resistance efforts, leading to a complex humanitarian crisis with implications for regional stability and international relations.

Fig: Myanmar: Arrow shows Refugees escaping from Myanmar

India- Myanmar relationship:

Issues between the two countries: 

1. India suspended Free Movement Regime (FMR) with Myanmar: India’s suspension of the Free Movement regime (FMR) was prompted by security concerns such as insurgent activities, trafficking, and mass immigration from Myanmar, which posed risks to national security. This measure restricts the movement of refugees seeking safety and asylum in India.
2. Internal Security Threats: The India-Myanmar border is porous and poorly guarded, situated in a remote, insurgency-prone area close to opium-producing regions. This vulnerability has been exploited by terrorist and insurgent groups from India’s northeastern states, who have established camps in Myanmar.
3. China’s Influence: China’s substantial economic influence in Myanmar poses a challenge for India, impacting bilateral relations.
4. Delays in joint infrastructure projects and the Rohingya crisis further strain ties, reflecting broader security and humanitarian concerns.

Conclusion:

Amidst challenges like regional security threats and China’s influence, India must pursue strategic diplomacy, accelerate joint infrastructure projects, and enhance security cooperation to mitigate tensions and promote stability in the region.

Also, there are compelling reasons to reconsider this suspension. Reinstating FMR could provide immediate humanitarian relief to affected communities and enhance India’s reputation as a responsible regional power committed to humanitarian principles.

Insta Links: 

1. India-Myanmar relations

Mains Links: 

1. Analyze internal security threats and transborder crimes along Myanmar, Bangladesh and Pakistan borders including Line of Control (LoC). Also, discuss the role played by various security forces in this regard. (UPSC 2020)

Prelims Links:

UPSC CURRENT AFFAIRS – 6 July 2024 GS Paper 3:

National policy on Farmer Producer Organisations (FPOs) proposed

Syllabus: Agriculture

Source: Department of Agriculture & Farmers Welfare

 Context: The draft National Policy on Farmer Producer Organisations (FPOs)  has been put for public comment by the Ministry of Agriculture and Farmers Welfare

Who are Farmer Producer Organisations (FPOs)?

Farmer Producer Organisations (FPOs) are voluntary collective entities formed by farmers to enhance their bargaining power and access to inputs, markets, and technology. They enable small and marginal farmers to pool resources, share risks, and collectively undertake farming and marketing activities. Currently, 5000 FPOs have been registered on the Open Network for Digital Commerce portal for selling the produce online.

The key objectives of the proposed policy include:

1. Promoting Formation: To consolidate existing FPOs and establish 50,000 new FPOs, benefiting 2.50 crore farmers.
2. Assessment: Assessment of all schemes, including the 2021 Central sector scheme ‘Formation and promotion of 10,000 FPOs’.
3. Capacity Building: Emulation of the AMUL model with a 3-tier structure emphasizing collective business goals, capacity building, and professional management.
4. Market Linkages: End-to-end value chain approach to boost farmers’ income from production to marketing.
5. Financial Support: Offering financial assistance and incentives to FPOs to strengthen their operational capabilities and sustainability.
6. Policy Framework: Developing a supportive policy framework at national, state, and local levels to create an enabling environment for the growth and success of FPOs.
7. Technology Adoption: Promoting the adoption of modern agricultural technologies and practices through FPOs to enhance productivity and efficiency.

Details of the Policy:

1. FPO Eligibility:
   1. Minimum 300 members (100 in North East/hilly/UTs).
   2. Registered as a legal entity under Companies Act 2013 or Cooperative Society Act.
   3. Must register with the FPO Registry Portal maintained by the Central Government.
2. Central Nodal Department (CND) Role (Department of Agriculture and Farmers’ Welfare (DA&FW)): Allocate funds for FPO development through convergence of central government schemes; Facilitate institutional loans to FPOs at subsidized interest rates.
3. Central Nodal Agency: Small Farmers’ Agribusiness Consortium, New Delhi (under DA&FW).

The potential of FPOs to transform Indian agriculture.

1. Reducing the cost and increasing the income – FPOs can help farmers reduce costs through bulk purchases of inputs, marketing of their farm products, Aggregation of produce, and bulk transport.
2. Modernization of agriculture – 86% of Indian farmers are small and marginal farmers who don’t have enough money to access modern equipment. Since FPOs collectively use modern farm equipment, they will promote the modernization of agriculture.
3. Collective farming – Present Average land holding size is 1.08 hectares in 2015-16, FPOs can engage farmers in collective farming and address productivity issues emanating from small farm sizes.
4. Compete with large enterprises – It has the potential of enhancing the farmers’ bargaining power and income levels so they can compete with large corporate enterprises.
5. Access to technology – Access to modern technologies, credit, facilitation of capacity building, extension and training on production technologies, and ensuring traceability of agricultural produce.
6. Easy access to credit – Easy access to funds and other support services by the government/donors/service providers.
7. Eliminating intermediaries – In agricultural marketing, the presence of a large number of intermediaries who work non-transparently leads to lower incomes for farmers. FPOs are going to eliminate these intermediaries.
8. Value addition – Post-harvest losses will be minimized through value addition and efficient management of value chain facilities provided by FPOs.
9. Collective strength – FPOs help in the collectivization of such small, marginal, and landless farmers to give them the collective strength to deal with issues like crop failure, and access to the market.
10. Price fluctuation can be managed; if there are practices like contract farming, agreements, etc.
11. Easy in communication for dissemination of information about price, volume, and other farming-related advisories.

Issues facing FPOs.

1. Lack of/ Inadequate Professional Management – Trained manpower is presently not available in the rural space to manage and supervise FPO business professionally.
2. Weak Financials – FPOs are mostly represented by Small and marginal farmers with poor resource bases hence, initially they are not financially strong enough to deliver vibrant products and services.
3. Lack of Risk Mitigation Mechanism – Presently, while the risks related to production at the farmers’ level are partly covered under the existing crop/livestock / other insurance schemes, there is no provision to cover the business risks of FPOs.
4. Inadequate Access to Market – Lack of linkage with Industry/ other market players, and large retailers by the FPOs.
5. Inadequate Access to Infrastructure – Like transport facilities, storage, value addition (cleaning, grading, sorting, etc.) and processing, brand building, and marketing.
6. Lack of technical Skills/ Awareness – Inadequate awareness among the farmers about the potential benefits of collectivization & non-availability of competent agencies for providing handholding support.

Government steps to address these issues.

1. Equity Grant Fund Scheme for Enhancing viability, sustainability of FPOs and Increasing credit worthiness of FPCs.
2. Credit Guarantee Fund Scheme to provide collateral-free credit to FPOs.
3. Scheme for the Creation of Backward and Forward Linkages to bridge the gaps in the supply chain in terms of the availability of raw materials and linkages with the market.
4. Operation Greens (TOP to TOTAL) will promote FPOs, agri-logistics, processing facilities, and professional management.
5. 100% tax deduction for FPOs with an annual turnover of up to Rs. 100 crores. 

Success Stories of Farmer Producer Organisations (FPOs):

1. Oriental FPO: Developed cold chain infrastructure and launched a branded product called ‘Safe N Fresh’ in Jammu and Kashmir UTs.
2. Prayag Raj Farmer Producer Company Limited: Established input retail outlets benefiting farmers and consumers in Uttar Pradesh.
3. Rameshwar Farmer Producer Company Limited: Established wholesale counters for vegetable sales, providing more remunerative channels for farmers in Uttar Pradesh.
4. Rampur FPO: Collaborated with the district administration for the “Aahaar Se Upchar Tak” campaign, supplying nutrition-rich products to Anganwadi Kendra and improving nutritive outcomes in Uttar Pradesh.

Way forward:

To further scale up and strengthen FPOs, there is a need for suitable amendments in the APMC Act, the creation of farm-level infrastructure at the FPO level, procurement of agricultural commodities directly through FPOs under the MSP scheme, promotion of private investors to strengthen the financials of FPOs, extending Equity Grant & Credit Guarantee Fund schemes of SFAC to all forms of FPOs, appropriate flexible policy by states and GOI to scale up FPO promotion and strengthen them, and mass awareness building among rural farmers.

Conclusion:

FPOs have the potential to change the face of Indian agriculture by empowering farmers, increasing productivity, reducing costs, and improving access to markets, infrastructure, and technology. The government and other stakeholders must work together to further.

Insta Links:

1. Farmer Producer Organizations

Mains Links: 

1. “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)

Prelims links:

UPSC CURRENT AFFAIRS – 5 July 2024 Facts for Prelims (FFP)

Producer Price Index

 Source: IE

 Context: The DPIIT is finalizing a new model of the Producer Price Index (PPI) to better capture input prices in the economy.

What is PPI?

Producer Price Index measures the average change in prices received by producers for goods and services sold in the domestic market or exported. It includes two types: Output PPI for goods and services leaving production sites, and Input PPI for goods and services entering production processes.

What is the need for a new Model of PPI?

The new model of PPI aims to replace WPI due to biases in double counting of products, exclusion of exports/imports, and overlooking the service sector (55% of GDP). It has been shared with the IMF, and consultations are underway to transition from WPI to PPI, aligning with most G20 economies.

The government is also considering changing the base year of the Wholesale Price Index (WPI) from 2011-12, with discussions ongoing with MoSPI and the National Statistical Commission.

Stablecoins

 Source: WEF

 Context: Recent volatility in the stablecoin market, such as the collapse of TerraUSD, has drawn attention to the challenges facing these digital assets.

What are Stablecoins? 

Stablecoins are digital cryptocurrencies designed to maintain a stable value by pegging their worth to assets like fiat currencies (e.g., USD, EUR), commodities (e.g., gold), or other cryptocurrencies. They aim to minimize price volatility, making them suitable for transactions and as a store of value within the volatile cryptocurrency market.

Stablecoins come in several types:

1. Fiat-collateralized: Backed 1:1 by fiat currencies like USD or EUR (e.g., Tether, Gemini Dollar).
2. Asset-backed: Supported by a basket of assets like commodities or precious metals, which can affect their value (e.g., Digix Gold).
3. Crypto-collateralized: Decentralized and backed by cryptocurrencies, often over-collateralized to mitigate price volatility (e.g., Dai).
4. Non-collateralized: Decentralized and algorithmically governed, without specific backing (e.g., Basis).

Concerns:

Concerns include risks related to short-term debt, asset stability, contagion risks, financial stability, lack of transparency, and regulatory challenges. Cooperation between the stablecoin industry and regulators is crucial for effective regulation without stifling innovation.

Global Conclave on Plastic Recycling and Sustainability (GCPRS)

 Source: PIB

 Context: The Global Conclave on Plastic Recycling and Sustainability (GCPRS) began yesterday at Bharat Mandapam, Pragati Maidan, addressing issues of plastic waste management, recycling, and sustainability to promote circularity.

About GCPRS: 

The Global Conclave on Plastics Recycling and Sustainability (GCPRS), organized by the AIPMA (All-India Plastics Manufacturers’ Association (AIPMA), gathers industry stakeholders to address critical issues in plastic use and recycling, showcasing innovative technologies and fostering collaboration for sustainable practices across sectors.

3D hologram technology

 Source: TH

Context: Japan has introduced new yen banknotes equipped with 3D hologram technology to combat counterfeiting.

1. The existing currency remains valid, with new bills gradually entering circulation through banks and ATMs to accommodate Japan’s cash-centric transactions.

What is 3D hologram technology? 

3D hologram technology creates three-dimensional images that appear to have depth and motion without the need for special glasses. It uses principles of interference and diffraction. It uses lasers to record light patterns reflected from an object, producing a realistic holographic image that changes perspective as the viewer moves. These holograms are used for security in currency, authentication of products, and immersive displays in entertainment and education.

Money Mule

 Source: ET

 Context: Banks are intensifying scrutiny on new sole proprietorship and individual current accounts to combat ‘money mule’ activities, aiming to deter money laundering and digital frauds.

What is a Money Mule?

A money mule is a person who allows their bank account to be used by criminals to transfer illegally obtained money. Banks have observed a rise in mule accounts, particularly among new accounts less than a year old, prompting cautious approvals and transaction limits.

Modus Operandi:

Criminals recruit money mules to launder money from online scams, frauds, and crimes like human trafficking and drug trafficking. They use mules to create distance between victims and themselves, making it harder for law enforcement to trace the funds. Methods include bank transfers, checks, virtual currency, prepaid cards, and more. Mules are often recruited through fake job ads or social media promising easy money. Some know they’re aiding crime; others may not realize. They’re compensated or deceived into believing they’re helping a friend. When caught, they face legal consequences for facilitating money laundering, even if unknowingly.

What measures are being taken by banks?

Measures include verification visits, latitude data checks, and washout logic analysis. The Reserve Bank of India is addressing these concerns with banks amid ongoing discussions on enhancing safeguards against financial fraud.

UPSC CURRENT AFFAIRS – 6 July 2024 [PDF]

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