24 April 2023

 DAILY CURRENT AFFAIRS ANALYSIS

 1 – NSO: GS II – Government Policies and Interventions

About:

• The government has created the NSO, a governing body, by fusing the National Sample Survey Office (NSSO), Computer Center, and Central Statistical Office (CSO).
• NSO was originally intended by Rangarajan Commission to carry out and uphold statistical standards and coordinate the statistical activities of Central and State agencies as stipulated by the National Statistical Commission (NSC).
• The Secretary would be the NSO’s director (Statistics and Programme Implementation).
• The CSO creates statistical guidelines and coordinates all national statistics programmes.
• The NSSO is in charge of conducting extensive sample surveys at the national level in a number of different industries.
• Child Ministry: The statistical section of the ministry of statistics and programme implementation (MoSPI).

The national statistical office’s main responsibilities are:

• develops and supports norms and standards for the area of statistics, including concepts and terminology, data collection methods, data processing, and results distribution. It serves as the focal point for the country’s planned growth of the statistical system.
• in addition to generating national accounts, produces annual estimates of the national GDP, government and private consumer expenditure, capital formation, savings, estimates of the capital stock, and consumption of fixed capital
• keeps in touch with international statistical organisations like the United Nations Statistical Division (UNSD), the Economic and Social Commission for Asia and the Pacific (ESCAP), the Statistical Institute for Asia and the Pacific (SIAP), etc.
• executes the Annual Survey of Industries and creates and publishes monthly “quick estimates” of the Index of Industrial Production (IIP) (ASI)
• organises and conducts annual business surveys and economic censuses across all of India. Go to https://www.adda247.com/upsc-exam/national-statistical-office-nso/ for more information. for additional details.

Source The  Hindu

2 – MSP: GS II – Indian Agriculture

About MSP:

• The rate at which the government buys crops from farmers is known as the MSP, and it is calculated as being at least 1.5 times the farmers’ production expenses.
• Any crop the government determines to be profitable for farmers and hence deserving of “assistance” has a “minimum price” (MSP) established for it.
• According to the Commission for Agricultural Costs & Prices, sugarcane is one of 22 required crops and one of the MSP-recommended crops (CACP).
• CACP is the name of a division within the Ministry of Agriculture and Farmers Welfare.
• The list of necessary crops consists of 14 crops for the kharif season, 6 crops for the rabi season, and 2 more commercial crops.
• Additionally, the MSPs for de-husked coconut and toria are established using the MSPs for copra and rapeseed/mustard, respectively.
• Conditions for Proposing the MSP When determining the MSP for a product, the CACP considers a number of criteria, including the cost of cultivation.
• The dynamics of supply and demand for the commodity, price trends on both the domestic and global markets, parity with respect to other crops, consumer effects (inflation), environmental effects (soil and water consumption), and trade agreements between the agricultural and non-agricultural sectors are all taken into account.
• There are three various production cost types: For each crop, the CACP calculates three different types of average production costs at both the state and national levels for India.
• ‘A2’: Covers all of the farmer’s direct costs, including fuel, irrigation, hired labour, leased land, pesticides, fertiliser, and seeds.
• “A2+FL” stands for A2 plus an imputed value for unpaid family labour.
• “C2”: This cost is more thorough and includes fixed capital assets, interest forgone on owned land, and rentals in addition to A2+FL.
• CACP considers both A2+FL and C2 costs when advising MSP.
• The return cost is simply estimated by CACP as A2+FL.
• However, C2 costs are primarily used by CACP as benchmark reference costs (opportunity costs) to assess whether the MSPs they recommend at least cover these costs in some of the major producing States.
• The Cabinet Committee on Economic Affairs (CCEA) of the Union government makes the ultimate decision on the MSP level and other recommendations made by CACP.

Why is MSP necessary?

• Due to the twin droughts of 2014 and 2015, farmers have been forced to deal with declining commodity prices since 2014.
• The rural economy was hurt by the simultaneous shocks of demonetization and the implementation of the GST, especially the non-farm sector but also agriculture.
• Due to the epidemic, the decline in the economy after 2016–17, and other issues, the majority of farmers still live in insecure situations.
• Cost increases for fuel, energy, and fertilisers have only gotten worse.
• What Issues Concern India’s MSP Regime?
• limited scope Despite the official release of MSPs for 23 different crops, only two commodities—rice and wheat—are purchased because they are distributed through NFSA (National Food Security Act). The rest is mostly incidental and unimportant.
• Ineffectively Implemented: According to the 2015 Shanta Kumar Committee study, just 6% of the MSP could be received by farmers, meaning that 94% of farmers nationwide did not benefit from the MSP.
• More of a Purchase Price The current MSP policy has no impact on domestic market prices. It serves as a procurement price rather than an MSP because its primary function is to satisfy NFSA requirements.
• Results in Paddy and Wheat Farming’s dominant industry Farmers are prevented from producing other crops and horticulture goods because of the overproduction of rice and wheat brought on by the unbalanced MSP system, which may increase farmers’ revenue.
• Smaller farmers may find it challenging to get in touch with the middlemen, commission agents, and APMC officials who are necessary for the MSP-based procurement system.

How to Proceed:

• True MSPs demand that the government step in if market prices fall below a predetermined level, usually when there is an excess of production and supply or when external factors have caused a price collapse.
• MSP can also be a motivating price for many of the products that are desirable for nutritional security, such as coarse cereals, as well as for pulses and edible oils for which India is dependent on imports.
• Spending more money on nutrient-dense foods like fruits and vegetables, together with fisheries and animal husbandry, is the way to wisdom.
• The best way to invest is to give companies financial incentives to build valuable value chains based on cluster strategies.
• A transitional plan for agricultural pricing must be developed by the government, in which some agricultural pricing should be supported by the government and some should be decided by the market.
• One method to accomplish this would be to create a shortfall payment plan modelled after the Bhavantar Bhugtan Yojana (BBY) of Madhya Pradesh.

Source The  Hindu

3 – ILO: GS II – International Relations

About:

• The International Labour Organization has been the only triangular United Nations organisation since 1919. (ILO). It brings together governments, corporations, and workers from the 187 member States in order to establish labour standards, make rules, and develop initiatives supporting decent work for all women and men.
• The Ninth Edition of the ILO Monitor on the World of Work Report was released by the International Labour Organization (ILO) in May 2022. The number of hours worked globally decreased to 3.8% below the employment level before the Covid-19 in the first quarter of 2022, according to this data, after seeing strong growth during the fourth quarter of 2021.

What is the Organization’s History?

• It was established in 1919 by the Treaty of Versailles as a subsidiary organisation of the League of Nations.
• became the first affiliated special agency of the United Nations in 1946.
• Operational hub: Geneva, Switzerland
• The organization’s founding objective is that social fairness is essential for long-term world peace.
• promotes the employment of internationally regarded labour and human rights.
• a winner of the Nobel Peace Prize in 1969.

What is the organisational structure of the ILO?

• The ILO’s work is done by its three main groups, which are made up of representatives from governments, employers, and workers:
• Conference on International Labor: It establishes global policy for the ILO and worldwide labour standards. It holds annual meetings in Geneva. The phrase “international labour parliament” is commonly used to describe it.
• There may also be discussions on important social and labour issues.
• The governing body is the ILO executive council. Three times a year, it meets in Geneva.
• Utilizing ILO policy decisions, it constructs the programme and the budget before presenting them to the Conference for approval.
• The work of the Governing Body and the Office is supported by tripartite committees that cover the major industries.
• Expert committees on topics like management development, worker education, industrial relations, safety and health at work, as well as particular problems impacting women and young workers, are also a support to the organisation.

Source The  Hindu

4 – Green Bonds: GS II – Government Policies and Interventions

Benefits:

• Since they show an issuer’s commitment to sustainable development, green bonds enhance an issuer’s reputation.
• Capacity of parties to fulfil their commitments under climate agreements and other green undertakings.
• The Intended Nationally Determined Contribution (INDC) document outlines India’s stated objectives for its contribution to enhancing the environment and advancing on a low-carbon path.
• Raised for Cheaper: Green bonds frequently have lower interest rates than conventional bank loans.
• As more foreign investors focus on green initiatives, the cost of acquiring capital could decrease.
• Sectors of Sunrise: These green bonds have greatly contributed to India’s sustainable economic growth by increasing capital for emerging businesses like renewable energy.

Source The  Hindu