02 August
India-Sri Lanka Fishermen Issue: An Unending Woes
SC to Examine Use of Money Bills in Legislation
Broadcasting Regulation Bill 2024
Purchasing Manager's Index (PMI)
Cloudbursts: An Overview
Food Corporation of India (FCI) and its Role
1. India-Sri Lanka Fishermen Issue: An Unending Woes
Why in News:
• The article discusses the frequent arrests of Tamil Nadu and Puducherry fishermen by the Sri Lankan Navy. These fishermen are accused of illegally entering Sri Lankan waters, affecting local livelihoods, and using harmful fishing methods.
Reasons for the Arrest of Indian Fishermen by Sri Lanka:
1. Crossing Borders:
o Indian fishermen often enter Sri Lankan waters, leading to their arrest.
o Example: 69 fishermen have been arrested this year for such violations.
2. Destructive Fishing Practices:
o They are accused of using bottom trawling, which is banned in Sri Lanka since July 2017.
o This method is harmful to marine life and the livelihood of Sri Lankan fishermen.
3. Geographical Constraints:
o Under the Tamil Nadu Marine Fishing Regulation Act 1983, Indian fishermen can operate only beyond three nautical miles from their coast.
o The proximity of the International Maritime Boundary Line, just nine nautical miles away, leads to frequent unintentional crossings.
Implications of the Arrest of Indian Fishermen by Sri Lanka:
1. Increased Tensions:
o The arrests contribute to ongoing tensions between India and Sri Lanka, affecting diplomatic relations.
2. Humanitarian Concerns:
o Fishermen face long detentions, with some remaining in custody for months, raising humanitarian issues.
3. Financial Losses:
o The confiscation of expensive fishing equipment, like nets and boats, leads to significant financial hardships.
o Example: In 2024, 10 boats were seized.
4. Impact on Diplomatic Relations:
o Despite high-level diplomatic interventions, including agreements for periodic meetings and working groups, the issue remains unresolved, indicating strained relations between India and Sri Lanka.
What Should Be Done in This Situation?
1. Promote Alternative Fishing Methods:
o India has promised to end bottom trawling and incentivize deep-sea fishing under the Blue Revolution Scheme. More efforts are needed to ensure this transition.
2. Respect Maritime Boundaries:
o Educate and equip fishermen to avoid crossing into Sri Lankan waters, considering the close proximity of the International Maritime Boundary Line.
3. Regularize Diplomatic Talks:
o Implement the agreed-upon bi-annual meetings between the Ministers of Fisheries and ensure the Joint Working Group on Fisheries meets every three months as planned.
4. Address Humanitarian Concerns:
o As emphasized by India’s Prime Minister, treat the issue as a humanitarian concern, focusing on the well-being of the fishermen and their families.
Prelims Question:
Question: With reference to the India-Sri Lanka fishermen issue, consider the following statements:
1. Bottom trawling is banned in Sri Lanka since 2017.
2. The Tamil Nadu Marine Fishing Regulation Act 1983 allows fishermen to operate within three nautical miles of the coast.
3. The International Maritime Boundary Line between India and Sri Lanka is just nine nautical miles away from Tamil Nadu's coast.
Which of the statements given above is/are correct?
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:
Q: Examine the reasons for the frequent arrests of Indian fishermen by the Sri Lankan Navy and the implications of these arrests on bilateral relations and local communities. Suggest measures to resolve this issue effectively. (15 Marks, 250 Words)
2. SC to Examine Use of Money Bills in Legislation
Context:
• Chief Justice of India (CJI) has agreed to list petitions challenging the government's use of the Money Bill route to pass contentious amendments in Parliament.
• This issue is crucial as it concerns the circumvention of the Rajya Sabha and potential violations of Article 110 of the Constitution.
Concerns Regarding the Money Bill:
1. Circumventing the Rajya Sabha:
• Undermining Bicameralism: Passing contentious amendments as a Money Bill allows the government to circumvent the Rajya Sabha, undermining the bicameral nature of Parliament.
• Limited Power: The classification of a bill as a money bill limits the Rajya Sabha to only recommending changes, without the power to amend or reject the bill.
• Reduced Scrutiny: The Rajya Sabha, as the Upper House, provides additional scrutiny to legislation. Bypassing it reduces the opportunity for comprehensive debate and oversight.
2. Violation of Article 110:
• Definition of Money Bill: Article 110 specifies what constitutes a Money Bill. There are concerns that certain amendments labeled as Money Bills do not strictly adhere to these provisions.
3. Speaker's Certification:
• Authority of the Speaker: The Speaker of the Lok Sabha has the authority to certify a bill as a Money Bill under Article 110 of the Constitution, a decision that is not subject to judicial review.
• Potential Misuse: This raises concerns about the potential misuse of this power, allowing for circumvention of legislative processes.
Specific Cases Highlighting Concerns:
1. Aadhaar Act:
• Classification Controversy: The Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits, and Services) Act, 2016, was classified as a Money Bill under Article 110(1), leading to widespread controversy.
• Supreme Court Ruling: In 2018, the Supreme Court upheld the constitutionality of the Aadhaar law, with the majority ruling that the Act's main aim was to provide subsidies and benefits, involving expenditure from the Consolidated Fund, and therefore qualified it as a Money Bill.
• Dissenting Opinion: However, Justice D.Y. Chandrachud dissented, observing that the use of the Money Bill route in this case was an "abuse of the constitutional process."
2. Finance Act, 2017:
• Amendments Included: The Finance Act, 2017, included amendments to a number of Acts, including empowering the government to notify rules regarding the service conditions of members of Tribunals.
• Legal Challenge: Petitioners argued that the Finance Act, 2017, must be struck down as it contained provisions that had no connection with the subjects listed in Article 110.
• Referral to Larger Bench: In 2019, in the case Rojer Mathew vs. South Indian Bank Ltd, a five-judge Bench referred the Money Bill aspect to a larger seven-judge Bench.
3. Prevention of Money Laundering Act (PMLA) Amendments:
• Amendments via Money Bills: Amendments to the PMLA, passed as Money Bills from 2015 onwards, gave the Enforcement Directorate extensive powers, including arrest and raids.
• Supreme Court Verdict: Although the Supreme Court upheld the legality of these amendments, it left the question of whether they should have been passed as Money Bills to the seven-judge Bench.
• Concerns Raised: The broad powers granted through these amendments raised concerns about potential misuse and the bypassing of legislative scrutiny.
Developments Following the 2019 Ruling:
• Pending Clarification: The seven-judge Bench has yet to address key questions about what constitutes a valid Money Bill, impacting subsequent legislation.
• Avoidance of Resolution: The court has avoided resolving the Money Bill question in cases related to the Enforcement Directorate's powers and electoral laws, awaiting
the larger Bench’s decision.
Consequences of Misclassifying Money Bills:
1. Legal Challenges:
• Prolonged Litigation: Misclassifying bills as money bills can lead to prolonged legal battles, adding uncertainty to the legislative process.
2. Legislative Precedents:
• Potential Misuse: If upheld by the judiciary, the use of money bills inappropriately could set a precedent for future governments to bypass the Rajya Sabha.
3. Public Trust:
• Erosion of Trust: Controversies surrounding money bills can erode public trust in the legislative process and the integrity of parliamentary procedures.
Broader Implications for Indian Democracy:
• Balance of Power: The ongoing debates and judicial reviews surrounding money bills underscore the importance of maintaining a balance of power between the Lok Sabha and the Rajya Sabha.
• Legislative Transparency: Ensuring that the passage of significant legislation involves adequate scrutiny and debate is crucial for legislative transparency and accountability.
• Constitutional Integrity: Upholding constitutional provisions and preventing their misuse is essential for the integrity of India's democratic processes.
Money Bill:
About:
• Definition: Article 110 of the Constitution of India outlines the definition of a Money Bill, stating that a bill is considered a Money Bill if it contains only provisions dealing with specific financial matters.
Provisions Include:
• Taxation Matters: Imposition, abolition, remission, alteration, or regulation of any tax.
• Borrowing Regulation: Regulation of the borrowing of money by the Union government.
• Custody of Funds: Management of the Consolidated Fund of India or the contingency fund.
• Appropriation of Funds: Appropriation of money out of the Consolidated Fund.
• Expenditure Declaration: Declaration of any expenditure charged on the Consolidated Fund.
• Receipt of Money: Receipt of money related to the Consolidated Fund or public accounts.
• Other Matters: Any matters incidental to the above provisions.
Speaker's Certification:
• Authority: The decision on whether a bill is a Money Bill rests with the Speaker of the Lok Sabha. This decision is final and cannot be questioned in any court or by either House of Parliament, nor can it be contested by the President.
• Certification Process: Upon certification, the Speaker endorses the bill as a Money Bill when it is transmitted to the Rajya Sabha for recommendations.
Legislative Procedure:
• Introduction: Money Bills can only be introduced in the Lok Sabha and must be recommended by the President. They are treated as government bills and can only be introduced by a minister.
• Rajya Sabha's Role: After passing in the Lok Sabha, the bill is sent to the Rajya Sabha, which has limited powers: It cannot reject or amend a Money Bill, it can only make recommendations and must return the bill within 14 days.
• Final Decision: The Lok Sabha can accept or reject the Rajya Sabha's recommendations. If the Lok Sabha accepts any recommendations, the bill is deemed passed in the modified form; if it rejects them, it passes in its original form.
Presidential Assent:
• Approval: Once a Money Bill is presented to the President, he can either give assent or withhold it but cannot return it for reconsideration.
• Assent Practice: Generally, the President gives assent to Money Bills as they are introduced with his prior permission.
Some Improved Repetitive Points:
• Power to Decide Money Bill: The speaker of the Lok Sabha decides if a bill is a money bill or not (Art 110 (3)) and his decision in this regard is final.
Power of Rajya Sabha w.r.t Money Bill:
• No Introduction: Under Article 109 (1), a Money Bill cannot be introduced in Rajya Sabha.
• Limited Powers: Once passed by Lok Sabha, it is sent to Rajya Sabha — along with the Speaker’s certificate that it is a Money Bill — for its recommendations. Rajya Sabha can neither reject nor amend the Bill and must return it within 14 days.
• Deemed Passage: If Rajya Sabha fails to return the Bill to Lok Sabha within 14 days, it is deemed to have been passed anyway.
What is Finance Bill:
Definition:
• General Meaning: In a general sense, any Bill that relates to revenue or expenditure is a financial Bill.
• Money Bill Classification: A money Bill is a specific type of financial Bill that must deal only with matters specified in Article 110 (1) (a) to (g).
Categories:
• Fiscal Matters: Financial bills are responsible for fiscal matters such as government spending or revenue.
• Budget Specification: It specifies the amount of money to be spent by the government and the way it is to be spent.
• Article 117: Article 117 of the Constitution deals with the special provisions relating to financial Bills.
• Classification: Finance Bills are divided into three categories: the Money Bill, Finance Bill Category I, and Finance Bill Category II.
What is the difference between money Bills and financial Bills:
Classification Distinction:
• Money Bills: Encompass tax-related provisions, while Financial Bills cover various subjects, including taxation and expenditure.
• Finance Bill: Solely dealing with tax proposals, qualifies as a Money Bill. For example, the Compensatory Afforestation Fund Bill, 2015, which establishes funds and covers other issues, was introduced as a Financial Bill.
Procedure for Passage:
• Money Bill: The Rajya Sabha cannot amend or reject Money Bills. It offers non- binding recommendations within 14 days, but if the Lok Sabha declines them, the Bill passes as is.
• Financial Bill: It must be approved by both houses.
Origination and President’s Recommendation:
• Money Bill: Must be introduced only in the Lok Sabha, and only the Presidential recommendation.
• Financial Bill: An ordinary bill can originate in either house, and the President’s recommendation is not required for tax-related amendments.
Prelims Question:
Question: With reference to Money Bills in the Indian Constitution, consider the following statements:
1. The Speaker of the Lok Sabha has the final authority to decide whether a bill is a Money Bill.
2. The Rajya Sabha can amend a Money Bill.
3. Money Bills can only be introduced in the Rajya Sabha with the President's recommendation.
4. The President can return a Money Bill for reconsideration.
Which of the statements given above is/are correct?
A) 1 only
B) 1 and 3 only
C) 2 and 4 only
D) 3 and 4 only Answer: A) 1 only Mains Question:
Q: Examine the implications of using the Money Bill route to pass contentious amendments in the Indian Parliament. Discuss the potential impact on the bicameral legislative process and suggest measures to ensure constitutional compliance. (15 Marks, 250 Words)
3. Broadcasting Regulation Bill 2024
Context:
• Concerns Raised: Several digital creators have expressed concerns against the
Broadcasting Regulation Bill 2024.
• Objective: The draft Bill aims to regulate the broadcast of news and current affairs programs (excluding print news).
• Compliance Required: Programs must comply with the prescribed program code and advertisement code.
• Survey Findings: According to the CSDS Lok-Niti survey, 29% of respondents consume political material every day on digital platforms.
• Criticism: Critics warn that the Bill may lead to digital authoritarianism by controlling online narratives.
Key Points of the Broadcasting Regulation Bill 2024:
1. Regulating Mechanism:
• Types of Broadcasters: The regulation will depend on the type of broadcaster. Television broadcasting networks must register with the central government, while OTT platforms must provide an intimation after meeting a certain threshold of subscribers.
2. Unified Regulatory Framework for Broadcasting:
• Replacement of Previous Act: The Bill aims to replace the Cable Television Networks Act of 1995. It extends the regulatory purview to cover the broadcasting of over-the- top (OTT) content and digital news and current affairs, currently regulated through the IT Act, 2000.
3. Programme Code and Advertisement Code:
• Compliance Requirement: The Bill seeks to regulate the broadcast of news and current affairs programs. Such programs must comply with the prescribed program code and advertisement code.
4. Self-Regulation:
• Self-Regulatory Structure: The Bill provides for a self-regulatory structure to ensure compliance with the program and advertisement codes. This includes:
o Self-Regulation
o Constituting Self-Regulatory Organizations
o Establishing a Broadcast Advisory Council
5. Content Evaluation Committee (CEC):
• Internal Certification: Each broadcaster must set up an internal Content Evaluation Committee (CEC). All broadcast content must be certified by the CEC.
6. Accessibility for Persons with Disabilities:
1. Promoting Accessibility: The Bill promotes the use of subtitles, audio descriptors, and sign language for persons with disabilities.
2. Disability Grievance Officer: The Bill provides for the appointment of a Disability Grievance Officer.
7. Penalties:
1. Advisory and Warnings: The Bill prescribes penalties such as advisory, warning, censure, or monetary penalties for operators and broadcasters.
2. Severe Offenses: Imprisonment and/or fines are reserved for severe offenses, like obtaining registration with a false affidavit.
8. Infrastructure Sharing Provisions:
• Infrastructure Sharing: The Bill introduces provisions for infrastructure sharing among broadcasting network operators.
9. Dispute Resolution:
• Dispute Resolution Mechanism: The Bill establishes a structured dispute resolution mechanism.
Significance of the Broadcasting Regulation Bill 2024:
1. Consolidation and Modernisation:
• Outdated Acts Replaced: The Bill replaces the outdated Cable Television Networks Act, 1995. It adopts a unified, future-focused approach by adapting to the dynamic world of OTT, Digital Media, DTH, and IPTV.
2. Promotes ‘Ease of Doing Business’:
• Dispute Resolution: The Bill seeks to promote ‘ease of doing business’ by incorporating provisions for a dispute resolution mechanism in the broadcasting domain.
3. Further Push to ‘Digital India’:
• Technological Advancement: The Bill promotes technological advancement and service evolution in the broadcasting domain, which aligns with the ‘Digital India’ initiative.
4. Provides for ‘Right of Way’:
• Ease of Permissions: The Bill provides for ‘Right of Way,’ enabling cable operators to easily obtain permissions from various local agencies to roll out their network in a new city.
5. Promotes Infrastructure Sharing:
• Broadcasting Benefits: Broadcasters benefit from infrastructure sharing, similar to how telecom operators benefit from sharing cellular towers and spectrum.
6. Empowers Broadcasters:
• Self-Regulation Mechanisms: The Bill provides provisions for the establishment of Content Evaluation Committees, empowering broadcasters with autonomy in obtaining certification.
7. Promotes ‘Ease of Living’:
• Enhanced Accessibility: The Bill enhances the accessibility of broadcasting services for persons with disabilities by promoting the use of subtitles, audio descriptors, and sign language.
Concerns with the Broadcasting Regulations Bill 2024:
1. Threat of Digital Dictatorship:
• Classification Issues: The Bill expands the scope to classify individual commentators as ‘Digital News Broadcasters’ and content creators as ‘OTT Broadcasters.’
• Government Control: The Ministry of Information and Broadcasting can prescribe and change thresholds for subscribers or users, increasing the Union Government’s control over digital media.
2. Additional Compliances for Online Platforms:
• Safe Harbor Regime: The Bill establishes a new safe harbor regime independent of the Information Technology Act, 2000.
• Platform Demands: The government can demand registration, enforce censorship, and require platforms like YouTube to frame special compliances for both news channels and creators.
3. Issues with the Content Evaluation Committees (CEC):
a. Independence Concerns: The government prescribes the criteria for the constitution of CEC, raising questions about its independence.
b. Privacy Issues: The requirement to disclose personal details of CEC members contradicts the Right to Privacy and the Digital Personal Data Protection legislation.
c. Harassment Risks: Disclosure of personal details puts members at risk of physical or online harassment for approving content that may offend an individual or a group.
4. Issues with the Broadcast Advisory Council (BAC):
• Government Influence: All members of the proposed BAC will be nominated by the Centre, raising concerns about potential government influence over content censorship.
5. Selective Targeting of Journalists:
• Misuse of Authority: Critics fear that the Bill may be misused to selectively target journalists, similar to the misuse of IT Rules 2021 to arrest media personnel.
Conclusion and Way Forward:
We must explore these ways for addressing the challenges of the Bill and for better media regulation:
1. Stakeholder Consultation:
• Extensive Consultations: Engage in consultations with industry experts, content creators, broadcasters, and the public to gather feedback on the Bill.
2. Promotion of Media Literacy:
• Investment in Programs: Invest in media literacy programs to educate the public about responsible media consumption, as seen in countries like Singapore and Australia.
3. Responsible Media:
• Journalistic Ethics: Ensure that the media upholds its duty as the fourth pillar of Indian democracy and does not compromise journalistic ethics.
4. Ensuring Independence of the CEC and BAC:
• Nomination from Civil Society: Nominate members from the broadcast industry and civil society to keep the CEC and BAC independent and impartial.
Prelims Question:
Question: With reference to the Broadcasting Regulation Bill 2024, consider the following statements:
1. The Bill seeks to regulate the broadcast of news and current affairs programs, excluding print news.
2. The Bill establishes a new safe harbor regime independent of the Information Technology Act, 2000.
3. The Bill mandates the inclusion of subtitles and sign language for broadcasting programs.
4. The Content Evaluation Committees (CEC) are entirely independent and free from government oversight.
Which of the statements given above is/are correct?
A) 1 and 2 only
B) 1, 2, and 3 only
C) 2 and 4 only
D) 1, 3, and 4 only Answer: B) 1, 2, and 3 only Mains Question:
Q: Critically analyze the implications of the Broadcasting Regulation Bill 2024 on digital media and free speech in India. Discuss the potential challenges and suggest measures to balance regulation with freedom of expression. (15 Marks, 250 Words)
4. Purchasing Manager's Index (PMI)
What is the PMI?
• Definition: The Purchasing Manager's Index (PMI) is a survey-based measure that assesses changes in business conditions as perceived by purchasing managers. It indicates the prevailing direction of economic trends in the manufacturing and services sectors.
• Purpose: The PMI aims to provide insights into current and future business conditions for company decision-makers, analysts, and investors.
• Sectors Measured: The PMI is calculated separately for the manufacturing and services sectors, and a composite index is also constructed to give an overall view.
• Scale: The PMI ranges from 0 to 100.
o A score above 50 indicates expansion.
o A score below 50 indicates contraction.
o A score of 50 indicates no change.
• Monthly Indicator: The PMI is usually released at the start of each month, making it a valuable leading indicator of economic activity.
• Compilation: PMI is compiled by IHS Markit for over 40 economies worldwide. IHS Markit is part of S&P Global and is a leader in information, analytics, and solutions for major industries and markets.
• Comparison with Official Data: Since official data on industrial output, manufacturing, and Gross Domestic Product (GDP) growth are released later, the PMI helps make informed decisions earlier.
• Difference from IIP: Unlike the Index of Industrial Production (IIP), which gauges the level of activity in the broader industrial sector, the PMI is more dynamic and responsive to immediate changes in business conditions.
Significance of PMI
1. Provides a Reliable Expectation of the Economy:
• Global Tracking: The PMI is increasingly becoming one of the most tracked indicators of business activity worldwide.
• Economic Insight: It provides a reliable expectation of the overall economy and manufacturing sector's health.
2. Indicator of Economic Activity:
• Boom-and-Bust Cycles: The PMI is a good gauge of economic cycles and is closely watched by investors, businesses, traders, and financial professionals.
• Leading Indicator: As a leading indicator, it comes before official data on industrial output, core sector manufacturing, and GDP growth, offering an early glimpse into economic conditions.
3. Helps in Decision Making:
• Interest Rate Decisions: The PMI is used by central banks to set interest rates, providing crucial insights into economic conditions that influence monetary policy.
Prelims Question:
Question: With reference to the Purchasing Manager's Index (PMI), consider the following statements:
1. The PMI is a survey-based measure that evaluates changes in business conditions in the manufacturing and services sectors.
2. A PMI score above 50 indicates contraction in the economy.
3. The PMI is compiled by IHS Markit and is part of S&P Global.
4. The PMI provides insights before the release of official industrial output and GDP growth data.
Which of the statements given above is/are correct?
A) 1 and 2 only
B) 1, 3, and 4 only
C) 2 and 4 only
D) 1, 2, 3, and 4
Answer: B) 1, 3, and 4 only
Mains Question:
Q: Discuss the significance of the Purchasing Manager's Index (PMI) as a leading economic indicator. How does it compare with the Index of Industrial Production (IIP) in providing insights into economic activity? (15 Marks, 250 Words)
5. Cloudbursts: An Overview
About Cloudbursts:
• Definition: Cloudbursts are short-duration, intense rainfall events occurring over a small geographic area.
• Characteristics:
o Intensity: Unexpected precipitation exceeds 100 mm/h over a region of approximately 20-30 square kilometers.
o Precipitation Rate: Cloudbursts bring 75 millimeters or more of rain per hour, particularly in hilly regions like the Himalayas.
• Geographic Occurrence:
o Indian Subcontinent: Typically occur when a monsoon cloud drifts northwards from the Bay of Bengal or the Arabian Sea across the plains and into the Himalayas.
Occurrence:
• Temperature and Moisture:
o Increased Temperatures: As temperatures rise, the atmosphere holds more moisture.
o Resulting Rainfall: This moisture can lead to short, intense rainfall events lasting from half an hour to an hour.
• Effects on Geography:
o Flash Floods: Cloudbursts often result in flash floods in mountainous areas.
o Urban Floods: They can also cause urban floods in cities due to inadequate drainage systems.
Difference Between Cloudbursts and Rainfall:
• Rainfall:
o Description: Condensed water falling from a cloud.
o Intensity: Regular rainfall is less intense than cloudbursts.
• Cloudbursts:
o Sudden Heavy Rainstorm: Characterized by abrupt, heavy precipitation.
o Intensity Threshold: Rainfall exceeding 100 mm per hour is categorized as a cloudburst.
o Nature: Cloudbursts are natural phenomena but occur unexpectedly and are often drenching.
Consequences of Cloudbursts:
• Flash Floods: Sudden influx of water in rivers and streams leads to flash floods, especially in hilly terrains.
• Landslides: Intense rainfall can trigger landslides, causing damage to infrastructure and loss of life.
• Soil Erosion: The rapid flow of water can cause significant soil erosion, affecting agriculture and natural landscapes.
Prelims Question:
Question: With reference to cloudbursts, consider the following statements:
1. Cloudbursts are defined as short-duration rainfall events with precipitation exceeding 50 mm/h.
2. They typically occur when monsoon clouds drift from the Bay of Bengal to the Himalayas.
3. Cloudbursts can result in flash floods and landslides.
Which of the statements given above is/are correct?
A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2, and 3
Answer: B) 2 and 3 only
Mains Question:
Q: Discuss the phenomenon of cloudbursts and their impact on the Indian subcontinent. What measures can be taken to mitigate the adverse effects of cloudbursts in vulnerable regions? (15 Marks, 250 Words)
6. Food Corporation of India (FCI) and its Role
Context:
• The Union Food Minister, Piyush Goyal, attended the 60th foundation day of the FCI.
• The Minister emphasized that the FCI's role extends beyond delivering rations to include building confidence in farmers and beneficiaries by enhancing transparency, efficiency, and accountability.
About the Food Corporation of India (FCI):
• Formation: The FCI is a statutory body established under the Food Corporation Act, 1964 by the Indian Parliament.
• Nodal Ministry: The FCI operates under the Ministry of Consumer Affairs, Food, and Public Distribution.
Objectives of FCI:
1. Price Support Operations:
o To safeguard the interests of farmers through effective price support operations.
2. Public Distribution System (PDS):
o To ensure the distribution of food grains across the country under the PDS.
3. National Food Security:
o To maintain satisfactory levels of operational and buffer stocks of food grains, ensuring national food security.
Role of FCI in Ensuring Food Security in India:
1. Procurement of Food Grains at Minimum Support Price (MSP):
• Primary Function: FCI is involved in the procurement of food grains to ensure
effective market intervention.
• Objectives of Procurement:
o Ensuring MSP to farmers.
o Providing food grains to weaker sections at affordable prices.
• Mechanism:
o MSP Announcement: The Government of India announces MSP based on the Commission of Agricultural Costs and Prices (CACP) recommendations before each harvest season (Rabi/Kharif).
o Procurement: FCI, along with state agencies, procures wheat and paddy under the Price Support Scheme.
o Coarse Grains: State Government agencies procure coarse grains (e.g., jowar, bajra) as directed by the Government of India.
o Farmer Choice: Farmers can sell elsewhere if offered a higher price, ensuring they are not compelled to sell at lower prices.
2. Storage Capacity Enhancement:
• Need for Storage: FCI must store large volumes of procured grains for planned delivery through PDS and unforeseen situations.
• Infrastructure: FCI has an extensive network of storage depots and silos at strategic locations nationwide.
3. Movement & Distribution to Deficit Regions:
• Purpose of Movement:
o Evacuating food grain stocks from surplus regions.
o Supplying to deficit regions for distribution through PDS and other schemes.
o Creating buffer stocks in deficit regions.
• Supply to:
o Defense and Paramilitary Forces
o Natural Calamities Challenges to Food Security in India:
• Undernourishment: India has 195 million undernourished people, representing a quarter of the global hunger burden.
• Child Nutrition: Nearly 47 million children (4 out of 10) suffer from chronic undernutrition or stunting.
• Gaps in Programs: Government food security and anti-poverty programs face
inclusion and exclusion errors.
• Gender Disparities: Women and girls face significant disadvantages in terms of nutrition and food security.
Emerging Challenges:
• Agricultural Growth: Slowing agricultural growth rates.
• Environmental Issues: Climate change, land degradation, and shrinking biodiversity.
• Fertilizer Use: Imbalanced use and excessive application of single fertilizers, like urea, have rendered large tracts of farmland barren.
Food Security Definition:
• According to the 1996 World Food Summit, food security exists when all people have physical and economic access to sufficient, safe, and nutritious food to meet their dietary needs and preferences for an active, healthy life.
Prelims Question:
Question: With reference to the Food Corporation of India (FCI), consider the following statements:
1. The FCI was established under the Food Corporation Act, 1964.
2. FCI's primary role is to procure food grains and distribute them through the Public Distribution System (PDS).
3. FCI operates under the Ministry of Agriculture and Farmers' Welfare.
Which of the statements given above is/are correct?
A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2, and 3
Answer: A) 1 and 2 only
Mains Question:
Q: Discuss the role of the Food Corporation of India (FCI) in ensuring food security in India. What are the challenges faced by FCI in fulfilling its mandate, and how can these challenges be addressed? (15 Marks, 250 Words)