07 November
Sugar Exports and India's Sugar Industry
India’s Ambitious Bid to Host the 2036 Olympic Games
Sagarmala Parikrama
Palm Oil Production
1. Sugar Exports and India's Sugar Industry
Context
According to the Indian Sugar Mills Association (ISMA), Indian sugar mills have entered into contracts to export 55 lakh tonnes of sugar. The government has permitted sugar mills to export 60 lakh tonnes until May in the 2022-23 marketing year (October-September).
Present Status of the Sugar Industry in India
• Significance:
o The sugar industry is a major agro- based industry supporting 50 million sugarcane farmers and 5 lakh workers directly employed in mills.
o In 2021-22, India became the
world’s largest producer and
consumer of sugar and the
second-largest exporter globally.
• Geographical Requirements for Sugarcane Cultivation:
o Temperature: 21-27°C with a hot and humid climate.
o Rainfall: Around 75-100 cm.
o Soil Type: Deep, rich loamy soil.
o Top Producing States: Maharashtra, Uttar Pradesh, Karnataka.
Growth Drivers for India’s Sugar Industry
• Impressive Sugar Season:
o The 2021-22 season recorded all- time highs in sugarcane production, sugar exports, cane dues paid, and ethanol production.
• High Export Volumes:
o India achieved 109.8 Lakh Metric Tonnes (LMT) in exports in 2021- 22, earning Rs. 40,000 crores in foreign currency without financial assistance.
• Supportive Government Policies:
o Initiatives over the past five years have helped the industry attain self-sufficiency by 2021-22.
• Promotion of Ethanol Production:
o The government encourages ethanol production and surplus sugar exports, strengthening mills' financial conditions.
• Ethanol Blending with Petrol (EBP) Programme:
o Under the National Policy on Biofuels 2018, India aims for 20% ethanol blending by 2025.
• Fair and Remunerative Price (FRP):
o FRP is the minimum price that mills must pay to farmers, based on Commission for Agricultural
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Costs and Prices (CACP) recommendations and consultations.
Challenges Facing India’s Sugar Industry
• Competition from Other Sweeteners:
o The industry faces competition from high fructose corn syrup, which is cheaper and has a longer shelf life.
• Outdated Technology:
o Many sugar mills lack modern technology, affecting efficiency and competitiveness.
• Environmental Impact:
o High water and pesticide usage in sugarcane cultivation and pollution from mills adversely impact the environment and communities.
• Political Interference:
o The industry is significantly influenced by government policies on pricing, production, and distribution, leading to transparency and efficiency issues.
Indian Sugar Mills Association (ISMA)
• Overview:
o ISMA is the premier organization representing private and public sugar mills in India and serves as an interface with the government.
• Objective:
o ISMA's primary goal is to safeguard the interests of sugar mills through growth-oriented policies.
Prelims Question
Consider the following statements regarding the Indian Sugar Mills Association (ISMA):
1. ISMA represents both private and public sugar mills in India.
2. ISMA promotes growth-oriented policies for the sugar industry.
Which of the statements given above is/are correct?
A) 1 only
B) 2 only
C) Both 1 and 2
D) Neither 1 nor 2 Answer: C) Both 1 and 2 Mains Question
Discuss the growth drivers and challenges associated with the sugar industry in India. How do government policies impact the industry, and what further steps could address its existing issues?
2. India’s Ambitious Bid to Host the 2036 Olympic Games
Context
The Indian Prime Minister recently announced India’s aspiration to host the Olympic Games in 2036 at the 141st International Olympic Committee (IOC) session in Mumbai. This announcement marks a significant milestone for India as it seeks to join other Asian nations like China, South Korea, and Japan that have hosted the Olympics.
Procedure for Selecting a Host City for the Olympics
• Traditional System:
o Cities would submit a letter of interest to the IOC, initiating a
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multi-year, multi-step evaluation process.
o Host cities were traditionally selected seven years in advance.
o This process often led to overspending, debt, corruption, and controversies.
• New Approach: Olympic Agenda 2020
o Introduced by IOC President Thomas Bach in 2013 and adopted in 2014, the Olympic Agenda 2020 emphasizes a more flexible, sustainable, and cost-effective selection process.
o Replaced the seven-year advance rule with a more adaptive selection timeline.
o Two-Stage Process:
Continuous Dialogue: Cities can present flexible plans without strict deadlines.
Targeted Dialogue: Lasts up to 12 months for more focused discussions, guarantees, and reports.
• Climate Commitment:
o Starting from 2030, all Olympic host cities must comply with the IOC’s climate-positive commitment.
The Olympics: A Global Sporting Event
• About the Olympics:
o An international multi-sport event held every four years, aimed at promoting global unity and peace through sports.
o Events include the Summer Games, Winter Games, and Youth Olympic Games.
• Historical Background:
o Originated around 3,000 years ago
in Ancient Greece.
o The first modern Olympics, inspired by Pierre de Coubertin, were held in Athens, Greece, in 1896.
• Olympic Rings Symbol:
o The five interlocking rings (blue, yellow, black, green, and red) represent the unity of five continents through sports.
Upcoming Olympic Events
• Winter Olympics 2026: Milan-Cortina
d’Ampezzo, Italy
• Summer Olympics 2028: Los Angeles, USA
• Summer Olympics 2032: Brisbane, Australia
International Multi-Sporting Events Hosted by India
India has previously hosted several prestigious multi-sport events, showcasing its potential as a host country:
• Asian Games: 1951, 1982
• Commonwealth Games: 2010
• South Asian Games: 1987, 1995, 2016
Prelims Question
Which of the following correctly describes the Olympic Agenda 2020?
1. It replaced the traditional seven-year host selection timeline with more flexibility.
2. It mandates climate-positive commitments for all Olympic host cities starting from 2028.
3. It includes continuous and targeted dialogues as part of the selection process.
Select the correct answer using the code below:
A) 1 and 2 only
B) 1 and 3 only
C) 2 and 3 only
D) 1, 2, and 3
Answer: B) 1 and 3 only
Mains Question
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Discuss the significance of India hosting the 2036 Olympics. What are the potential benefits and challenges India might face in organizing an event of this scale?
3. Sagarmala Parikrama
Context
The Defence Minister recently flagged off the Sagarmala Parikrama, marking a pivotal development in India's naval innovation. This 1,500-km autonomous voyage from Mumbai to Tuticorin showcases India's emerging capabilities in maritime autonomous technology.
More on the Sagarmala Parikrama
• Autonomous Vessel Voyage
o This voyage features an advanced autonomous surface vessel developed by Sagar Defence Engineering.
o The vessel is designed to display India’s growing competencies in maritime autonomous systems, paving the way for future autonomous surface and underwater vessels.
• Strategic Implications
o The initiative underscores a significant leap in technological capabilities aimed at enhancing maritime security and operational reach for the Indian Navy.
o The vessel was officially unveiled during Swavlamban 2024.
Swavlamban 2024 and Related Initiatives
• Swavlamban Event
o This annual event, organized by the Naval Innovation and Indigenisation Organisation (NIIO), focuses on self-reliance in defense by promoting indigenous technological advancements.
• ADITI 3.0 and DISC 13
o Alongside Sagarmala Parikrama, the Defence Minister launched ADITI 3.0 and DISC 13, which are designed to drive innovation in critical defense technologies.
o ADITI 3.0: Introduces a challenge to develop a high-power microwave weapon system.
o DISC 13: Features challenges across AI, military communication, and autonomous systems, with active participation from the Army, Navy, and Air Force.
• Aatmanirbhar Bharat Goals
o Navy Chief Admiral Dinesh K. Tripathi highlighted the Indian Navy’s vision to achieve complete self-reliance by 2047.
o The Navy’s innovation efforts have led to 2,000 proposals being transformed into solutions, with 171 contracts worth ₹700 crore and additional initiatives
exceeding ₹2,000 crore.
SPRINT Initiative
• About: SPRINT (Supporting Pole-Vaulting in R&D through Innovations for Defence Excellence) is a collaboration of iDEX, NIIO, and the Technology Development Acceleration Cell (TDAC).
• Launch: The Prime Minister introduced the SPRINT initiative in July 2022.
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• Objective: To support niche defense technologies developed by Indian companies.
• 75 Challenges: In line with the Azadi Ka Amrit Mahotsav, the Navy introduced 75 challenges under SPRINT in 2022 to promote indigenous defense solutions.
• Vision: SPRINT aims to transform the Navy from a “Buyer’s Navy” into a “Builder’s
Navy”.
iDEX (Innovations for Defence Excellence)
• Established by DIO: Launched by the Defence Innovation Organisation (DIO) under the Department of Defence
Production, iDEX aims to overhaul India’s
defense sector.
• Role in Innovation: iDEX facilitates the development of advanced defense technologies through innovative solutions from Indian start-ups and MSMEs.
• ADITI Scheme: The ADITI scheme (Acing Development of Innovative Technologies with iDEX) focuses on advancements in strategic defense sectors.
• Defense India Start-up Challenge: Since its inception, iDEX has held 11 editions of the challenge to address defense-related challenges with innovative solutions.
• Procurement Milestones: iDEX has approved the procurement of 35 defense items worth over ₹2,000 crore since 2018.
• Recognition: In 2021, iDEX received the Prime Minister’s Award for Public Policy in the Innovation Category.
• Collaboration: Engages with over 400 start-ups and MSMEs, fostering a culture of innovation in defense technology.
Prelims Question
What does the SPRINT initiative, launched by the Indian Navy, aim to achieve?
A) To procure defense technology from
international vendors
B) To enhance civil-military cooperation in maritime security
C) To promote indigenous development of defense technology
D) To increase reliance on foreign defense partnerships
Answer: C) To promote indigenous development of defense technology
Mains Question
Discuss the significance of the Sagarmala Parikrama and the role of initiatives like SPRINT and iDEX in advancing India’s defense self- reliance. How do these initiatives align with the goals of Aatmanirbhar Bharat in defense technology?
4. Palm Oil Production
Palm Oil & Its Uses
• About
o Palm oil is an edible vegetable oil extracted from the mesocarp (reddish pulp) of oil palm fruit.
o It is versatile, used as cooking oil and in numerous products, including cosmetics, processed foods, cakes, chocolates, soaps, shampoo, and cleaning products.
o Palm oil is also utilized in biofuel production, branded as ‘green diesel’ in its crude form.
• Production
o Indonesia and Malaysia are the top producers, jointly accounting for nearly 90% of global production.
o Indonesia leads with production, reaching 45 million tonnes in 2021.
Challenges in the Oil Palm Industry
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• The industry faces criticism for unsustainable practices like deforestation and exploitative labor practices.
• Despite these issues, palm oil remains popular due to its cost-effectiveness and high oil yield per hectare, compared to alternatives like soybean.
Importance of Palm Oil for Global Supply Chains
• Global Supply Chain
o Palm oil is the world’s most widely used vegetable oil, with production exceeding 73 million tonnes (MT) in 2020 and projected to reach 77 MT in 2022-23.
o Palm oil accounts for 40% of the global edible oil supply, primarily from palm, soybean, rapeseed, and sunflower oils.
o Indonesia supplies around 60% of the global demand.
India's Position in Palm Oil Imports
• India is the largest importer of palm oil, which fulfills 40% of its vegetable oil consumption needs.
• Dependence on Imports
o India meets half of its annual demand for 8.3 MT of palm oil through imports from Indonesia.
• National Mission on Edible Oils – Oil Palm (NMEO-OP)
o Launched in 2021, this mission aims to boost domestic palm oil production by expanding oil palm cultivation.
Recommendations for India’s Palm Oil Sector
• Incentivizing Farmers
o To reduce reliance on imports, Indian farmers should be incentivized to expand oil palm cultivation, which aligns well with India’s cooking oil needs.
• Diversifying Procurement
o India should also consider diversifying its supply sources and optimizing its domestic requirements to ensure sustainability and reduce import dependency.
Prelims Question
Which two countries account for nearly 90% of the world's palm oil production?
A) India and China
B) Indonesia and Malaysia
C) Brazil and Argentina
D) USA and Canada
Answer: B) Indonesia and Malaysia
Mains Question
Discuss the significance of palm oil for global supply chains and examine India’s role as a leading importer. What steps should India take to
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promote domestic palm oil production and reduce dependency on imports?