UPSC CURRENT AFFAIRS – 17 May 2024

InstaLinks : Insta Links help you think beyond the issue but relevant to the issue from UPSC prelims and Mains exam point of view. 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. This helps you study a topic holistically and add new dimensions to every current event to help you think analytically.

InstaLinks : Insta Links help you think beyond the issue but relevant to the issue from UPSC prelims and Mains exam point of view. 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. This helps you study a topic holistically and add new dimensions to every current event to help you think analytically.

Table of Contents:

GS Paper 3:

• Issue of Food Inflation in India

Content for Mains Enrichment (CME)

• Soil Nailing

Facts for Prelims (FFP)

• SC order on UAPA

• Services under the Consumer Protection Act

• Countering America’s Adversaries Through Sanctions Act (CAATSA)

• Reports in News

• Dengue Vaccine (TAK-003)

• BHISHM portable hospital cubes

Mapping

• Kanwar Lake (Bihar)

Issue of Food Inflation in India

#### GS Paper 3

Syllabus: Indian Economy

Source: Th

Context: April’s retail inflation data showed a slight slowdown in overall price gains to an 11-month low of 4.83% according to the Consumer Price Index (CPI). However, food price inflation accelerated, reaching a four-month high of 8.7%.

Recent Trends in Overall Inflation and Food Prices:

• Food Price gains were 8.75%for rural consumers, 19 basis points higher than for urban consumers.

• Rural CPI stood at 5.43%, significantly higher than the urban rate of 4.11%.

• Cereals, the heaviest category in food, increased to 8.63%.

• A significant year-on-year increase in the average prices of rice and wheat.

• Vegetables remained in double-digit inflation for the sixth consecutive month, reaching 27.8%due to soaring temperatures.

• Pulses also saw prolonged double-digit inflation, extending to the eleventh month.

• In 2023, while world food prices experienced a significant decline from their 2022 highs, India saw persistently high food inflation, reaching 9.5% in December 2023. This contrasts sharply with global deflation of -10.1%during the same period.

About Inflation in India:

| Description

About | Inflation refers to the overall increase in the prices of goods and services, coupled with a decrease in people’s purchasing power.

Causes of Inflation

1.Demand-Pull Inflation | It occurs when the demand for goods and services surpasses the supply. When there is high overall demand in the economy, consumers are willing to pay more for available goods and services, causing a general increase in prices.
2.Cost-Push Inflation | Cost-push inflation is fueled by a rise in the production costs of goods and services, this can result from factors such as increased incomes, elevated costs of raw materials, or disruptions in the supply chain.
3.Wage-Price Inflation | This form of inflation is often characterized as a feedback loop between wages and prices, when workers demand higher wages, businesses may raise prices to offset the increased labour costs and consequently, workers seek higher wages in response, perpetuating the cycle.

Different Indices for Measuring Food Inflation in India

1.Consumer Price Index (CPI) | CPI for Industrial Workers (IW), CPI for Agricultural Labourer (AL), CPI for Rural Labourer (RL), and CPI for Urban Non-Manual Employees (UNME).
2.Consumer Food Price Inflation (CFPI) | CFPI is a component of the broader Consumer Price Index (CPI), where the Reserve Bank of India (RBI) utilizes the CPI-Combined (CPI-C) for this purpose. It monitors the price fluctuations of a particular selection of food items commonly consumed by households.
3.Wholesale Price Index (WPI) | The WPI tracks changes in the prices of goods sold and traded in bulk by wholesale businesses to other businesses. It specifically focuses on goods, and services are not part of it. It is utilized to monitor supply and demand dynamics in industries, manufacturing, and construction sectors.

Components: Primary articles (Food Articles, Non-Food Articles) and other categories like Fuel and Power and manufactured Products.

Food Articles in WPI: Cereals, Paddy, Wheat, Pulses, Vegetables, Fruits, Milk, Eggs, Meat, Fish, Oil Seeds.

Non-Food Articles in WPI: Oil Seeds, Minerals, Crude Petroleum.

Food inflation in India is primarily calculated using the Consumer Price Index (CPI) for Food and Beverages, a key measure tracking price changes of a typical consumer basket. Food carries a weight of 45.9% in the CPI, but its contribution to overall inflation has risen from 48% in April 2022 to 67% in November 2023.

Recent data from the government’s Household Consumption Survey indicates a decline in food’s share of the consumption basket, dropping below 50% for rural consumers and 39% for urban consumers.

Factors contributing to the drop in global food prices include:

• An abundant supply of key crops: Bumper harvests in 2023, particularly of wheat, resulted in a surplus in the global market, contrasting with concerns over supply disruptions in 2022.

• Improved supply from Russia and Ukraine: Despite disruptions, both countries maintained wheat exports, easing supply anxieties.

• Lower demand for vegetable oils: Increased vegetable oil supplies and reduced use for biofuel production led to an approx. 32% drop in the UN’s Vegetable Price Index.

• Slowing demand: High inflation and economic recession fears reduced consumer demand, particularly in major food-importing regions, decreasing import demand and lowering global prices.

India’s high food inflation amid falling global food prices can be attributed to several factors:

• Limited transmission of global prices: While world food prices decreased, India’s remained elevated due to limited transmission of international prices to domestic markets, except for edible oils and pulses.

• Export bans and import duties: The Indian government imposed bans on certain food exports and provided import duty waivers, reducing global market influences on domestic prices.

• Domestic production challenges: Weather conditions affecting crop yields, particularly for cereals, pulses, and sugar, contributed to supply shortages and higher prices domestically.

• Low stock levels: Low stock levels for commodities like wheat and sugar exacerbated price pressures.

Other Factors Contributing to India’s Elevated Food Inflation:

Factors | Examples

Temperature and Weather Challenges | Adverse weather conditions, such as weak monsoon predictions and heatwaves affecting crop yields, particularly for cereals, pulses, and sugar, contribute to supply shortages and higher prices domestically.

For example, cereal and pulse inflation showed double-digit inflation in April 2024.

Changing preferences | Increasing demand for proteins, processed & packaged foods facing structural shortages. Per capita milk consumption up from 307 grams in 2013 to 427 grams in 2020.

Fuel Prices | The increase in fuel prices, a key input in agriculture, has led to higher production costs.

For instance, a 1% increase in fuel inflation results in a 0.13% rise in food inflation, with the effect declining gradually over the next 12 months.

Supply Chain Disruptions | Disruptions in the supply chain, including transportation constraints, labour shortages, and logistical challenges, decrease the availability of food products, causing prices to rise.

For example, vegetables continued to experience double-digit inflation due to inefficient storage facilities leading to perishable item wastage.

Global Effect | Despite global food price decreases, India’s food prices remain high due to limited transmission of international prices to domestic markets.

The Russia-Ukraine war has acted as a deterrent, and while India heavily depends on imports for edible oils and pulses, it is a net exporter of commodities like cereals, sugar, dairy, fruits, and vegetables.

What makes controlling food inflation challenging in India?

• Multi-dimensional factors requiring coordinated policy response across fiscal, monetary, and trade – food inflation is influenced by global commodities, domestic supply constraints, changing preferences etc.

• The slow pace of structural reforms in agriculture marketing, storage and transport – APMC Act modernization across states still a work in progress. Food Corporation of India suffers infrastructure deficiencies.

• External headwinds like energy costs beyond India’s control – 50% rise in global crude prices in 2021 transmitted to domestic inflation.

• Increasing climate risks makes agricultural output unpredictable – Deficient rains in 2014-15 and 2015-16 affected production,

• Considerations around impact on vulnerable groups like farmers, urban poor – Requires balancing inflation control with protecting incomes and consumption. For example – Farm loan waivers provided despite inflation concerns.

• For example – Farm loan waivers provided despite inflation concerns.

Impact on the vulnerable population

• Poor households spend over 50% of income on food, hence highly vulnerable to food inflation. Bottom 20% income group faces food inflation of ~6% currently.

• Can push more households into poverty– Declining real incomes and loss of purchasing power as food dominates expenditure.

• Shift towards lower quality and quantity food consumption resulting in worsening nutritional outcomes. Rise in anemia, stunting indicators likely.

• Rural landless laborers and marginal farmers heavily affected due to dip in rural wage growth and crop realization prices. Loss of livelihoods.

• Urban poor impacted as social security nets are inadequate. May cut essential spending on health and education.

Government steps to curb inflation:

• Subsidized Commodities: Government increases distribution of subsidized vegetables like onions and tomatoes, releases stocks of wheat and sugar to stabilize prices.

• Reduction in Import Duty: Incentivizing pulse cultivation among farmers, reducing import duties on certain pulses to boost local availability.

• Export Bans: Bans on wheat exports since May 2022 and on broken rice exports since September 2022 to maintain ample domestic supply and lower prices.

• Ban on Stockpiling: Regulations limit wheat stocks to 3,000 tonnes for traders, millers, wholesalers, and retail chains, and 10 tonnes for smaller retailers and shops to prevent excessive stockpiling.

• Operation Greens: Aims to stabilize Tomato, Onion, and Potato (TOP) crop supplies throughout the year across the country to minimize price fluctuations.

• Floor Prices: Imposing a minimum export price (MEP) of $800 per tonne (₹67 per kg) on onion exports from October 29 to December 31, 2023, amid rising onion prices due to delayed kharif onion arrivals.

Recommendations by the ICRIER paper for containing food Inflation: Click Here

Conclusion

Tackling food inflation needs a calibrated monetary response, investments in agriculture, stable trade policies and expanded social safety nets to protect the vulnerable like urban poor and landless rural households. Global cooperation on supplies and trade will also strengthen long-term price stability.

Insta links:

• India’s High Food Inflation

Mains Link:

Q.There is also a point of view that Agricultural Produce Market Committees (APMCs) set up under the State Acts have not only impeded the development of agriculture but also have been the cause of food inﬂation in India. Critically examine. (UPSC 2014)

Prelims Links

Q.1 Consider the following statements: (UPSC 2020)

• The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).

• The WPI does not capture changes in the prices of services, which CPI does.

• The Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.

Which of the statements given above is/are correct?

(a) 1 and 2 only (b) 2 only (c) 3 only (d) 1, 2 and 3

Ans: (a)

Q 2. If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do? (UPSC 2020)

• Cut and optimize the Statutory Liquidity Ratio

• Increase the Marginal Standing Facility Rate

• Cut the Bank Rate and Repo Rate

Select the correct answer using the code given below:

• 1 and 2 only

• 1 and 3 only

• 1, 2 and 3

Ans: B

Soil Nailing

#### Content for Mains Enrichment (CME)

Source: TH

Context: The State highways department in the Nilgiris is implementing a ‘green’ solution to prevent landslips by stabilizing slopes along major roads. Using the ‘slope stabilisation using soil nailing and Hydroseeding method,’ they’re working in Ketti, Kattabettu, Perar, Kudah, and Udhagamandalam, areas prone to landslips.

Soil nailing is a geotechnical engineering technique involving the insertion of reinforcing elements, typically steel tendons, into the soil to strengthen it. Methods include drilled and grouted, driven, drilling, jet grouted, and launched soil nailing. It is commonly used for stabilizing slopes and landslides, supporting excavations, and repairing retaining walls.

Hydroseeding:

Hydroseeding is a process of applying a mixture of seeds, fertilizer, organic materials, and water onto the soil to facilitate the growth of grass and plant-life. This helps hold the topsoil together and prevent erosion.

SC order on UAPA

#### Facts for Prelims (FFP)

Source: TH

Context: The Supreme Court declared that investigating agencies must provide written grounds of arrest to individuals detained under the Unlawful Activities Prevention Act (UAPA), affirming the right to life and personal liberty as sacrosanct.

About the case:

In the Prabir Purkayastha v. State (NCT of Delhi) case, the Supreme Court invalidated Newsclick founder Prabir Purkayastha’s arrest under the Unlawful Activities (Prevention) Act (UAPA) due to the Delhi Police’s failure to inform him of the grounds of arrest before taking him into custody. The court emphasized that the mandate was established in the Pankaj Bansal v. Union of India & Ors. judgment, which requires providing written grounds of arrest, applies to UAPA cases as well. This requirement is rooted in Articles 22(1) and 22(5) of the Indian Constitution, which protects the rights of arrested individuals to be informed of the reasons for their arrest and to make representations against detention.

The court emphasized the importance of informing the arrested person to facilitate legal consultation, oppose custody remand, and seek bail. It found no significant difference in the language of Section 19(1) of the PMLA and Section 43B(1) of the UAPA, stating that both require written communication of arrest grounds.

Evolution of provisions of bail under UAPA by SC:

• 2008: The UAPA Amendment Act introduced Section 43D(5), shifting the burden onto the accused to prove accusations not prima facie true.

• 2016: Angela Harish Sontakke v State of Maharashtra granted bail despite stringent provisions, considering extended custody and the need for balance.

• 2019: National Investigation Agency v Zahoor Amhad Shah Watali narrowed interpretation, making bail harder after charges by NIA.

• 2021: Union of India v K.A. Najeeb highlighted the possibility of bail for prolonged incarceration violating Article 21 rights.

• State of NCT of Delhi v Devangana Kalita separated evidence from NIA inferences, leading to bail based on NIA’s failure to establish a prima facie case.

• 2023: Vernon Gonsalves v State of Maharashtra diverged from Watali, emphasizing evidence analysis.

About UAPA:

The Unlawful Activities (Prevention) Act (UAPA), 1967, aims to prevent certain unlawful activities by individuals and associations, particularly those related to terrorism. Section 43B(1) of the UAPA mandates that any officer arresting a person under this act must inform the accused of the grounds for such arrest.

Services under the Consumer Protection Act

#### Facts for Prelims (FFP)

Source: IE

Context: The Supreme Court ruled that lawyers cannot be sued under the Consumer Protection Act for providing faulty service.

The Supreme Court overturned the National Consumer Disputes Redressal Commission’s 2007 judgment, stating that services provided by lawyers are not covered under the Consumer Protection Act (CPA) 1986 (re-enacted in 2019)

Justices Bela M Trivedi and Pankaj Mithal held that lawyers’ services must be treated differently as they involve factors beyond their control and impact the entire justice delivery system. The court concluded that lawyer services do not fall under the purview of the Consumer Protection Act.

Additionally, the court suggested a review of VP Shantna’s (1995) judgment, which held doctors and medical professionals liable under the CPA.

About CPA:

• Enacted in 1986 to protect consumer interests and establish consumer protection councils for dispute resolution.

• Replaced by the CPA 2019, which strengthened consumer protection provisions

Key Features of CPA 2019:

• Expanded the definition of ‘consumer’ to include online or electronic purchases.

• Established the Central Consumer Protection Authority to promote and enforce consumer rights.

• Enhanced dispute resolution mechanisms, including mediation and e-filing of complaints.

• Introduced product liability action against manufacturers and service providers.

• Implemented measures to prevent unfair trade practices in e-commerce and direct selling sectors.

Countering America’s Adversaries Through Sanctions Act (CAATSA)

#### Facts for Prelims (FFP)

Source: HT

Context: India and Iran signed a 10-year contract on Chabahar Port, but the US State Department warned against business deals with Iran due to potential sanctions risk under CAATSA.

About CAATSA

It, enacted in 2017, is a US law targeting countries engaged with Russia, North Korea, and Iran through economic sanctions. It imposes penalties on nations conducting significant transactions with Russian intelligence and military entities. In 2018, the US House of Representatives passed an amendment exempting India from CAATSA sanctions for purchasing the S-400 missile defence system from Russia.

Reports in News

#### Facts for Prelims (FFP)

Reports/Study | Description

Global Report on Internal Displacement 2024 | The report was released by the Internal Displacement Monitoring Centre (IDMC)

A report by the Internal Displacement Monitoring Centre (IDMC) reveals that about 76 million people were internally displaced (IDPs) globally by the end of 2023, up from over 71 million in 2022. Of these, over 68 million were displaced due to conflict and violence, with Sudan, Syria, the Democratic Republic of the Congo, Colombia, and Yemen hosting nearly half.

In South Asia, Manipur is a significant contributor.

The Internal Displacement Monitoring Centre or IDMC is an international non-governmental organization established in 1998 by the Norwegian Refugee Council in Geneva. It is focused on monitoring and providing information and analysis on the world’s internally displaced persons

A report, titled ‘Land Squeeze’, released by the International Panel of Experts on Sustainable Food Systems (IPES-Food) | The report “Land Squeeze” by IPES-Food highlights unprecedented pressures on global farmland.

In India, over 70% of arable land faces degradation and desertification. Additionally, the top 10% of landowners control 45% of the farmland, and the average agricultural holding is just 1.08 hectares (2015-16).

What is Land Squeeze?: Land Squeeze refers to the increasing and converging pressures on global farmland, leading to issues like land degradation, desertification, land concentration, and fragmentation

IPES-Food is an international non-profit association, with the goal to promote transition to sustainable food systems around the world and it was registered in Belgium in the year 2015.

World Wildlife Crime Report 2024 | Released by the United Nations Office on Drugs and Crime (UNODC)

A report covering 2015-2021 reveals that rhinoceroses and cedars were the most impacted animal and plant species, respectively. The largest number of seizures during this period involved corals, followed by crocodilians and elephants.

Animal species seizures increased from 2015 to 2019 before declining in 2020 and 2021, while plant species seizures saw a sharp rise in 2020 and 2021.

Wildlife crime, defined as the illegal taking, possession, trade, or use of wild animals and plants or their derivatives, is driven by demand for medicine, pets, bushmeat, and ornamental plants, along with the high profits from illegal trade and corruption undermining regulations.

Globally, efforts to combat wildlife crime include the UNODC’s Global Programme for Combating Wildlife and Forest Crime, launched in 2014, and the Wildlife Crime Initiative by TRAFFIC and WWF

The United Nations Office on Drugs and Crime (UNODC), established in 1997 by merging the UNDCP and the Crime Prevention and Criminal Justice Division, focuses on combating illicit drug trafficking and abuse, crime prevention, criminal justice, international terrorism, and political corruption. It adopted its current name in 2002 and is part of the United Nations Development Group

“Shrinking democracy, growing violence: internet shutdowns in 2023 published by Access Now organization | In 2023, India maintained its position with the highest number of global Internet shutdowns for the sixth consecutive year, totalling 116 incidents.

Prolonged shutdowns, lasting over five days, surged from 15% to over 41%.

Shutdowns were often imposed due to communal tensions, violence, and exams, drawing criticism domestically and internationally.

Manipur witnessed the longest shutdown, with 47 orders amid human rights violations.

BHISHM portable hospital cubes

#### Facts for Prelims (FFP)

Source: TOI

Context: The Indian Air Force conducted a test of BHISHM portable hospital cubes in Agra, marking the first such test by the IAF.

BHISHM cubes are part of “Project BHISHM” aimed at providing a rapid medical response for up to 200 casualties. Equipped with innovative tools, including AI and data analytics, the cubes are easily transportable and deployable within 12 minutes, suitable for various emergency scenarios. These cubes were strategically deployed during the Pran Pratishtha ceremony in Ayodhya earlier this year to enhance medical preparedness and response capabilities.

Dengue Vaccine (TAK-003)

#### Facts for Prelims (FFP)

Source: WHO

Context: WHO prequalified the new dengue vaccine, TAK-003. Developed by Takeda, it’s a live-attenuated vaccine containing weakened versions of the four serotypes of the dengue virus.

TAK-003, developed by Japan’s Takeda, is a live-attenuated dengue vaccine prequalified by the WHO. It’s recommended for children aged 6–16 in high-burden areas. WHO prequalification assures vaccine quality for UN procurement.

About Dengue:

It is caused by four virus serotypes (Dengue virus named DEN-1, DEN-2, DEN-3, and DEN-4.), and is transmitted by infected mosquitoes. Symptoms include high fever, headache, and muscle pain, potentially fatal. Aedes mosquitoes primarily spread it, with cases mainly in urban areas of Asia, Africa, and the Americas. Other vaccines in the prequalification list target diseases like malaria, yellow fever, and Japanese encephalitis.

Kanwar Lake (Bihar)

#### Mapping

Source: DTE

Context: Kanwar Lake in Begusarai, Bihar, is in critical condition due to encroachment and drying, severely impacting bird habitats.

About the lake:

Kanwar Lake (also known locally as Kabartal) is Asia’s largest freshwater oxbow lake, formed by the meandering Burhi Gandak River, a tributary of the Ganga. This rainfed lake fills up during the monsoon. Recognized as a wetland of international importance under the Ramsar Convention (the only one from Bihar), it was declared a protected area in 1986 and later designated as a sanctuary to prevent bird poaching.

What are Oxbow Lakes?

Oxbow lakes are U-shaped, formed when a river bend becomes isolated after the river changes course. Typically found in flat plains near a river’s mouth, they are Stillwater lakes with no inflow or outflow.