What’s in today’s article?

• Why in News?
• MSP Regime in India
• Issues Faced by the MSP Regime in India
• News Summary Regarding MSP Hike for Rabi Crops

Why in News?

The Union government has declared minimum support prices (MSP) for six rabi crops for the 2025-26 marketing season, notably increasing the MSP for wheat by ₹150 per quintal to ₹2,425, marking a 6.59% rise from the previous MSP.

Minimum Support Price (MSP) Regime in India:

• About MSP: MSP is a form of market intervention (a policy decision not enforceable by law) by the Government of India to insure agricultural producers against any sharp fall in farm prices during bumper production years.
• Announced by: These are announced by the Cabinet Committee on Economic Affairs (Chaired by the PM of India) on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP) at the beginning of the sowing season for certain crops.
• Objectives:
  • MSPs are a guarantee price for farmer’s produce from the Government to prevent the farmers from distress sales and to procure food grains for public distribution.
  • For example, if the market price for a commodity falls below the specified minimum price due to market surplus, government agencies will buy the entire quantity supplied by farmers at the announced minimum price.
  • The MSP hikes are essential not only for farmers' welfare but also for stabilising agricultural markets, especially as India aims to enhance domestic pulse production amid rising imports.
• Background:
  • India's agriculture was devastated under British rule and the farmers were impoverished.
  • The Food-Grain Enquiry Committee, established by the Jawaharlal Nehru administration in 1957, was the first attempt to address the agricultural earning issue.
  • In 1964, Lal Bahadur Shastri formed the Food Grain Price Committee (under LK Jha), to push for a MSP regime.
  • The first MSP announcement was made in 1967 by the then Agriculture Minister Jagjivan Ram.
  • Thus, the MSP regime came into existence as a policy decision (to be applicable uniformly across India) and the government set up the Agricultural Prices Commission (renamed as the CACP in 1985) for fixing MSP for crops.
• Crops covered:
  • Government announces MSPs for 22 mandated crops and fair and remunerative price (FRP) for sugarcane (total 23).
  • The mandated crops are 14 crops of the kharif season, 6 rabi crops (Wheat, Barley, Gram, Masur [Lentil], Rapeseed & Mustard, Safflower) and two other commercial crops.

Issues Faced by the MSP Regime in India:

• Limited coverage: MSP is only applicable to certain crops, primarily those included in the government procurement system. Many farmers grow crops not covered by MSP, leaving them vulnerable to price fluctuations.
• Regional disparities: The implementation of MSP varies across states. Some regions benefit more due to better procurement infrastructure, while others face challenges in accessing MSP, leading to uneven support for farmers.
• Discourage diversification: Farmers may become overly reliant on MSP, which can discourage diversification and lead to overproduction of specific crops, causing market imbalances.
• Procurement challenges: While MSP aims to ensure fair pricing, actual procurement processes can be inefficient. Issues like delays in payments, inadequate storage facilities, and corruption can hinder farmers from benefiting fully.
• Market distortions: MSP can distort market signals by encouraging farmers to produce crops primarily for government support rather than responding to market demand, potentially leading to surpluses and wastage.
• Neglect of non-cereal crops: The MSP regime has historically focused on staple crops like wheat and rice, often neglecting pulses, oilseeds, and other essential crops. This can impact nutritional diversity and food security.
• Inflationary pressure: Increasing MSP without corresponding productivity improvements can contribute to inflation in food prices, affecting consumers and the overall economy.
• Sustainability concerns: The emphasis on certain crops may lead to unsustainable farming practices, such as excessive water use and soil degradation, affecting long-term agricultural viability.
• Under utilisation of available support: Many farmers are not fully aware of the MSP policies or how to access them, leading to under utilisation of available support.
• Political interference: MSP decisions can be influenced by political considerations, leading to inconsistencies in pricing and procurement policies that do not necessarily align with economic realities.

News Summary Regarding MSP Hike for Rabi Crops:

• Details of MSP adjustments:

• Government’s justification:
  • Despite upcoming elections in states like Maharashtra and Jharkhand, the government denied any political motives behind the timing of these announcements.
  • According to the Union Agriculture Minister, these hikes will ensure fair prices to farmers and encourage crop diversification.
  • The decision to increase the MSP for mandated Rabi Crops for the Marketing Season 2025-26 aligns with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times of the All-India weighted average cost of production.
  • The anticipated margin over the All-India weighted average cost of production varies among crops, with wheat leading at 105%, followed by rapeseed & mustard at 98%, lentil at 89%, gram and barley both at 60%, and safflower at 50%.
• Significance of wheat crop:
  • Wheat is India’s 2nd-largest crop, with a production estimate of 113.92 million tonnes for 2023-24.
  • UP, MP, and Punjab are the leading wheat-producing states.
  • In the current marketing season, the government has procured 26.6 million tonnes of wheat, benefiting approximately 22 lakh farmers.

Q.1. What is the Commission for Agricultural Costs and Prices (CACP)?

The CACP is an attached office under the Union Ministry of Agriculture & Farmers Welfare, that recommends Minimum Support Prices (MSP) for select crops. It was established in 1965 as the Agricultural Prices Commission, and was given its present name in 1985.

Q.2. What is the Indian government doing for crop diversification?

The Indian government is implementing the Crop Diversification Programme (CDP) in the Original Green Revolution States viz; Haryana, Punjab & Western UP since 2013-14 to divert the area of water intensive paddy crop to alternative crops like pulses, oilseeds, coarse cereals, nutri cereals, cotton etc.

Source: Centre approves MSP for 6 Rabi crops for marketing season 2025-26; wheat now Rs 2,425 per quintal | TH

What’s in today’s article?

• Why in News?
• Shanghai Cooperation Organisation (SCO)
• Key Highlights of the EAM’s Address at SCO
• India-Pakistan Foreign Ministers Hold First Talks in 9 Years

Why in News?

The 23rd Meeting of the Shanghai Cooperation Organisation (SCO) Council of Heads of Government (CHG) was held on October 16, 2024, in Islamabad, Pakistan. The summit concentrated on the bloc’s trade and economic agenda.

External Affairs Minister S. Jaishankar led the Indian delegation at the summit. Jaishankar's visit marks the first by an Indian foreign minister to Pakistan in nine years, highlighting the significance of India's participation in the SCO despite ongoing bilateral tensions.

Shanghai Cooperation Organisation (SCO)

• About
  • SCO is a permanent intergovernmental international organisation, created in June 2001 in Shanghai (China).
  • Founding members included Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan. 
    • The five countries had come together to work on regional security, reduction of border troops, and terrorism in the post-Soviet era in 1996.
  • In 2001, the Shanghai Five inducted Uzbekistan into the group and named it the SCO outlining its principles in a charter that promoted what was called the Shanghai spirit of cooperation.
  • This organization, prior to the inclusion of Iran, represented approximately 42% of the world’s population, 22% of its land area and 20% of its GDP.
• Official working languages
  • Chinese, Russian
• SCO Secretariat
  • Beijing, China
• Members & Observers 
  • 10 member states– China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Uzbekistan, India, Pakistan, Iran and Belarus.
    • India and Pakistan became full members at the Heads of State Council meet in Astana in 2017.
    • Iran became the 9th member of the SCO in 2023 under the chairmanship of India.
    • Belarus officially joined the SCO in July 2024, and became its 10th member state.
• 2 Observer members – Afghanistan, Mongolia
• Organisational Structure of SCO
  • The Heads of State Council (HSC) is the supreme decision-making body in the SCO. It meets once a year and decide upon all the important issues of the Organization. 
  • The Council of Heads of Government (Prime Ministers) (CHG) is the second highest body of the organization.
    • It meets once a year to discuss the strategy of multilateral cooperation and priority areas within the Organization, determine fundamental and topical issues in economic and other spheres, and approve the budget of the SCO.
  • In addition to the meetings of the CHS and the CHG, there are also mechanisms for meetings on foreign affairs, national defense, security, economy and trade etc.
  • The Organization has 2 standing bodies — the Secretariat in Beijing and the Executive Committee of the Regional Anti-Terrorist Structure (RATS) in Tashkent.

Key Highlights of the EAM’s Address at SCO

• Lack of Trust and Cooperation: Veiled Reference to Pakistan and China
  • EAM highlighted the importance of trust, cooperation, and good neighborly relations, subtly referencing challenges with Pakistan and China. 
  • He stressed the need for introspection where friendship and cooperation have fallen short, pointing to issues like cross-border terrorism and the China-Pakistan Economic Corridor, which India believes violates its territorial integrity.
• Key Challenges: Terrorism, Separatism, and Extremism
  • Jaishankar underscored the three key challenges that the SCO was established to address: terrorism, separatism, and extremism. 
  • He reiterated that activities across borders marked by these issues hinder trade, connectivity, and regional development, emphasizing the need for peace and stability to foster economic growth.
• Call for Multilateralism and Reform
  • The minister advocated for reformed multilateralism, especially regarding the United Nations Security Council, where India seeks permanent membership. 
  • He stressed the importance of ensuring developing countries' representation in global institutions to make them more inclusive, effective, and democratic.
• Regional Cooperation and Connectivity
  • Jaishankar highlighted India's support for regional cooperation through initiatives like the International Solar Alliance, Mission LiFE, and digital public infrastructure. 
  • He also emphasized the potential for expanded trade, energy flows, and connectivity within the SCO region if countries cooperate genuinely, calling for partnerships based on mutual respect and sovereignty.
• Pakistan’s SCO Presidency and Call for Unity
  • Jaishankar congratulated Pakistan on its SCO presidency and urged for unity in addressing global challenges, including economic disruptions, climate change, and health crises. 
  • He emphasized that collaboration in areas like industry, MSMEs, and environmental protection could unlock significant opportunities for regional prosperity.

India-Pakistan Foreign Ministers Hold First Talks in 9 Years

• Jaishankar and Dar Engage in Talks at SCO Meeting
  • For the first time since 2015, EAM S. Jaishankar and his Pakistanis counterpart Muhammad Ishaq Dar engaged in direct talks. 
  • These conversations occurred on the sidelines of the SCO Council of Heads of Government meeting in Islamabad, marking a significant diplomatic moment.
• Preliminary Discussions on Resuming Cricket Ties
  • The discussions explored the possibility of resuming cricketing ties between India and Pakistan, with a focus on India potentially participating in the Champions Trophy hosted by Pakistan in February 2025. 
  • While these talks were still in their early stages, the conversations opened a potential pathway for improving bilateral relations through sports diplomacy.
    • India's participation in the Champions Trophy in Pakistan would mark the Indian cricket team's first visit across the border in 17 years. 

Q.1. What were the key topics discussed by India at the SCO Summit 2024?

India focused on challenges like terrorism, separatism, and extremism, while also advocating for multilateral reforms and stronger regional cooperation in areas like trade, connectivity, and energy.

Q.2. What is the significance of Jaishankar's conversation with Pakistan's Foreign Minister at SCO 2024?

It marked the first direct dialogue between India and Pakistan's foreign ministers since 2015, with preliminary discussions on resuming cricket ties, signaling potential diplomatic thawing.

Source: Territorial integrity to terror, Jaishankar takes swipe at China, PakistanSCO | MEA | Indian Express

What’s in today’s article?

• Why in News?
• What is Airwaves/Spectrum?
• What is Satellite spectrum?
• Auction vs administrative allocation of spectrum
• Satellite spectrum to be allocated administratively in India
• Spectrum allocation controversies in India

Why in News?

Speaking on the sidelines of the India Mobile Congress, Telecom minister Jyotiraditya Scindia said that satcom spectrum will be allocated administratively but will come at a cost.

As per the announcement, the cost of spectrum and the formula of allocation will be decided by the Telecom Regulatory Authority of India (TRAI).

What is Airwaves/Spectrum?

• Airwaves are radio frequencies within the electromagnetic spectrum that can carry information wirelessly for a range of services including telecommunications. 
• The government manages and allocates airwaves to companies or sectors for their use.
• The government auctions a fixed amount of spectrum within specified band/s to be utilised by operators for providing communication services to consumers.

What is Satellite spectrum?

• About
  • Satellite spectrum refers to the range of radio frequencies used by satellites to communicate with ground stations, other satellites, and various devices on Earth. 
  • These frequencies are part of the electromagnetic spectrum, specifically the radio waves, and are allocated for different satellite services, such as communication, broadcasting, navigation, and Earth observation.
• Regulation
  • The use of satellite spectrum is regulated by international bodies like the International Telecommunication Union (ITU).
  • ITU coordinates and allocates frequencies to prevent interference between different satellite systems and other forms of communication.
• Satellite Frequency Bands
  • L-band (1-2 GHz): Used for GPS and mobile satellite services.
  • S-band (2-4 GHz): Used for weather radar, air traffic control, and mobile satellite services.
  • C-band (4-8 GHz): Commonly used for satellite TV broadcasting and data communications.
  • X-band (8-12 GHz): Used primarily by the military for radar and communication.
  • Ku-band (12-18 GHz) and Ka-band (26-40 GHz): Used for satellite television, internet, and high-throughput data transmission.

Auction vs administrative allocation of spectrum

• Auction
  • Auctions involve competitive bidding, where spectrum licenses are sold to the highest bidder, promoting efficient resource allocation and generating revenue for the government. 
  • This method ensures transparency, reducing the chances of favoritism or corruption, and is commonly used in commercial telecommunications for optimal spectrum usage. 
  • Auctions are preferred in competitive markets where multiple entities compete for access.
• Administrative allocation
  • Administrative allocation involves the government directly assigning spectrum licenses without a bidding process, often for a nominal fee covering administrative costs. 
  • This method is used when auctions are impractical, offering flexibility for sectors like national security, public services, or emerging industries like satellite communications. 
  • It is suitable for areas with low competition or where frequency sharing among users is feasible, ensuring easier access to resources for specialized or government-related services.
• Key differences between auction and administrative allocation
  • The auction method is competitive, market-driven, and generates significant revenue, ensuring transparency by allocating spectrum to the highest bidder, making it ideal for commercial markets. 
  • In contrast, administrative allocation is a direct government assignment with lower fees, offering flexibility but less transparency, suited for government services or specialized sectors. 
  • Both methods are essential in spectrum management, with the choice depending on regulatory goals and market needs.

Satellite spectrum to be allocated administratively in India

• About the news
  • The government has chosen to allocate satellite communication (satcom) spectrum through administrative means, rejecting the auction route.
  • This development underscores the growing competition for satellite services in the Indian market, which is projected to grow at 36 per cent annually and reach $1.9 billion by 2030.
  • Starlink, Musk’s company, advocates for direct licensing, aligning with global practices and arguing that spectrum, as a natural resource, should be shared. 
  • On the other hand, Reliance, led by Ambani, believes that an auction is necessary to ensure fair competition.
• Rationale behind India’s stand
  • Unlike terrestrial spectrum which is used for mobile communications, satellite spectrum has no national territorial limits and is international in character. 
    • Satellite spectrum is shared spectrum. If the spectrum is shared, then it cannot be priced individually.
  • As a result, satellite spectrum across the world is allocated administratively. 
  • India, being a signatory of ITU, decided to follow the global practice of allocating satellite spectrum administratively. 
  • The Telecommunications Act, 2023, had also added spectrum for satellite communication in the list of administrative allocation.

Spectrum allocation controversies in India

• India’s spectrum allocation has been controversial, especially due to the shift from auctions to administrative assignments, highlighted by the 2G spectrum scam. 
• The scam involved allocating licenses on a first-come, first-served basis, resulting in significant financial losses, with alleged damages of Rs 30,984 crore and a presumptive loss of Rs 1.76 trillion. 
• Following this, the Supreme Court mandated auctions for spectrum allocation in 2012. 
• Despite this, the Telecommunications Act 2023 introduced a non-auction route for allocating satellite spectrum, marking a shift in the regulatory approach.

Q.1. Why is India choosing administrative allocation for satellite spectrum?

India opted for administrative allocation because satellite spectrum, shared globally and regulated by the ITU, cannot be auctioned like terrestrial spectrum. This approach aligns with global practices for satellite communication.

Q.2. What are the key differences between auction and administrative allocation of spectrum?

Auctions involve competitive bidding and revenue generation, while administrative allocation assigns spectrum directly for specialized sectors, offering flexibility and lower fees, but less transparency.

Source: India’s position on assigning satcom spectrum sets up an Elon Musk-Mukesh Ambani face-off | European Space Agency | Down to Earth | Business Standard

What’s in today’s article?

• Background
• About Food and Agriculture Organization
• Key Highlights of the Report
• NITI Aayog’s Response

Background

• A recent report from the Food and Agriculture Organization (FAO) highlights how climate change disproportionately affects poorer farmers in India.
• Titled “The Unjust Climate: Measuring the Impacts of Climate Change on Rural Poor, Women, and Youth,” the report reveals the vulnerabilities faced by marginalized farming communities due to climate-induced stresses such as heat stress, floods, and droughts.

About Food and Agriculture Organization

• The Food and Agriculture Organization (FAO) is a specialized agency of the United Nations that leads international efforts to defeat hunger, improve nutrition, and ensure food security.
• Its primary mission is to raise levels of nutrition, improve agricultural productivity, and better the lives of rural populations by promoting sustainable agricultural practices.
• Established in 1945, FAO's headquarters is located in Rome, Italy.
• Key Objectives of FAO:
  • Eradicating Hunger and Food Insecurity:
    • FAO works towards achieving a world free of hunger, ensuring that everyone has access to safe and nutritious food.
  • Sustainable Agriculture:
    • The organization promotes the adoption of sustainable agricultural methods to increase productivity while preserving natural resources like soil, water, and biodiversity.
  • Improving Rural Livelihoods:
    • FAO supports smallholder farmers, rural communities, and women by providing tools, knowledge, and access to markets to improve their economic opportunities.
  • Tackling Climate Change:
    • The FAO is actively involved in addressing the impacts of climate change on food systems and advocating for climate-resilient farming practices.

Key Highlights of the Report

• The FAO, recently, presented the report “The unjust climate. Measuring the impacts of climate change on rural poor, women, and youth” at an event in New Delhi. Key Findings of the Report:
  • Income Disparities:
    • The report finds that poor households globally lose 5% of their income annually due to heat stress and 4.4% due to floods, compared to wealthier households.
    • In India, rural poor households are particularly vulnerable because their income sources are more reliant on climate-sensitive agriculture.
  • Structural Inequalities:
    • According to the report, the vulnerability of poor farmers is deeply rooted in structural inequalities.
    • Households exposed to climate stressors experience a more significant reduction in total income compared to those unaffected.
    • Poor farmers dedicate more resources to sustaining agricultural production during adverse events, leading to reduced opportunities for off-farm employment.
  • Impact of Heat Stress and Floods:
    • The report states that climate change widens the income gap between poor and non-poor households globally.
    • Floods increase this gap by approximately $21 billion per year, while heat stress contributes to a gap of over $20 billion.
    • In India, rising temperatures increase the dependency of poor households on farming, while off-farm incomes decrease by 33%.
  • Policy Recommendations:
    • The FAO report suggests expanding social security nets for vulnerable communities.
    • Anticipatory social protection programs, which provide livelihood support ahead of extreme weather events, can help reduce poverty and reliance on harmful coping strategies.
    • The report also recommends addressing gendered barriers in employment, promoting workforce diversification, and providing mentorship programs to help rural communities participate in the modern workforce.
    • The report emphasizes the need to empower women and youth in rural areas to help combat the effects of climate change.
    • Gender-transformative approaches are necessary to challenge discriminatory social norms and enable women to make economic decisions that directly affect their lives.
    • The report suggests mentorship programs and initiatives to strengthen socio-emotional skills, allowing women and youth to better participate in the workforce and adapt to modern employment needs.

NITI Aayog’s Response

• Responding to the report, Ramesh Chand, a member of NITI Aayog, said that India has been actively addressing the challenges posed by climate change. Key initiatives include:
• National Innovations on Climate Resilient Agriculture (NICRA):
  • This project was implemented to help Indian farmers adapt to extreme weather conditions.
  • NICRA offers solutions for various crops, ensuring that farmers are equipped to handle adverse climatic events.
• Employment Guarantee Schemes and Social Safety Nets:
  • India was the first country to implement an employment guarantee scheme (Mahatma Gandhi National Rural Employment Guarantee Scheme) to provide economic security to its population.
  • During the COVID-19 pandemic, the government distributed free food grains (Pradhan Mantri Garib Kalyan Anna Yojana) to two-thirds of the population, demonstrating its commitment to addressing both climate-related and economic challenges.
• Increasing Women’s Participation:
  • Recent data from the Periodic Labour Force Surveys (PLFS) shows a significant increase in women’s participation in the workforce, indicating progress toward gender equality in employment opportunities.

Q1. How does nitrogen fixation occur in plants?

Nitrogen is fixed, or combined, in nature as nitric oxide by lightning and ultraviolet rays, but more significant amounts of nitrogen are fixed as ammonia, nitrites, and nitrates by soil microorganisms. More than 90 percent of all nitrogen fixation is affected by them.

Q2. Which is the powerhouse of plants?

Chloroplasts are the powerhouses of plants. They are the site of photosynthesis, the process that uses sunlight and carbon dioxide to produce the energy that powers life on Earth. The protein PRXQ seems to bridge two systems that keep chloroplasts, and by extension, plants, healthy.

Source: Climate change impact harsher on poorer farmers in India: FAO report