Economy

All (4004)Current Affairs (3994)Mains Practice (126)Mains PYQs by Subjects (40)

Stubble Burning in Punjab – A Persistent Challenge

Context (TH, 2025): With the paddy harvesting season underway in Punjab, stubble burning has re-emerged as a significant environmental and public health concern. Despite a visible decline in the number of recorded fire incidents, the total burnt area remains largely unchanged, reflecting the deep-rooted structural and economic issues behind the practice.

Why Do Farmers Continue to Burn Stubble?

  1. Short Cropping Window:
    Farmers have only 20–25 days between paddy harvest (late October) and wheat sowing (mid-November). This limited time forces them to resort to burning for rapid field clearing. (Punjab Agricultural University, 2024)
  2. Labour Shortage:
    Mechanisation and rural migration have reduced the agricultural workforce by ~45% over the past decade. (NITI Aayog, 2023)
  3. High Machinery Cost:
    Machines like the Happy Seeder and Super Straw Management System (SMS) cost between ₹1.5–2 lakh, which remains unaffordable for smallholders even after 50–80% subsidy.
  4. Fragmented Landholdings:
    Small and fragmented farms (average size 1.9 ha in Punjab, 1.4 ha in Haryana) make residue management uneconomical. (Agricultural Census, 2021)
  5. Weak Enforcement:
    While penalties are prescribed under the Air (Prevention and Control of Pollution) Act, 1981, enforcement is lax due to socio-political sensitivities at the local level.

Environmental and Health Impacts

  • Stubble burning contributes up to 35–45% of Delhi-NCR’s winter PM2.5 levels.
  • Releases CO₂, CH₄, and N₂O, aggravating climate change.
  • Causes smog, respiratory illness, and soil nutrient depletion.

Way Forward

In-situ Management:
Promote Happy Seeder and Super SMS through Custom Hiring Centres (CHCs) under ICAR’s Crop Residue Management Scheme.

Ex-situ Utilisation:
Divert paddy straw to biogas, paper, and biomass power plants. Under the SATAT Scheme, India aims to set up 5000 Compressed Biogas plants.

Direct Incentives:
Provide ₹2000–₹3000 per acre to farmers avoiding residue burning. Pilot programs in Sangrur and Patiala reduced fire incidents by 60%.

Behavioural Change:
Campaigns like “No Burn November” and school-based awareness drives are essential to shift community behaviour.

Digital Monitoring:
Integrate MODIS, VIIRS, and Sentinel-2 satellite data with on-ground verification for real-time fire mapping. (PGIMER Chandigarh, 2025)

Conclusion:

While policy interventions have made progress, long-term sustainability requires a blend of economic incentives, decentralised residue utilisation, and behavioural change, making stubble management a collective environmental responsibility.

Makhana: Bihar’s Superfood Economy and the Push for Value Addition

Context: Bihar, which produces nearly 90% of India’s makhana (foxnut), has recently become central to the government’s agricultural and rural development strategy. With rising global demand and growing recognition of makhana as a superfood, the crop holds unique economic and cultural significance, especially in the Mithilanchal region of Bihar.

Economic Significance

Makhana (botanical name: Euryale ferox) is primarily cultivated in the districts of Darbhanga, Madhubani, Purnea, and Katihar, which together contribute around 80% of Bihar’s production. Traditionally consumed during fasting and Ayurvedic diets, makhana has now gained mainstream popularity due to its high protein, low fat, and antioxidant-rich profile.

The global makhana market, valued at USD 43.56 million in 2023, is projected to double to USD 100 million by 2033, driven by rising health-consciousness and snack industry diversification. This positions makhana as a high-value export crop that can generate employment and entrepreneurship in rural Bihar.

Challenges in the Sector

Despite its potential, several structural issues limit farmer incomes and market development:

  1. Processing and Infrastructure Gaps: Bihar lacks sufficient food processing units (FPUs), cold-chain facilities, and export-oriented packaging centres. Large quantities of raw makhana are sold to processors in Punjab and Assam, where value addition and branding occur — leaving Bihar farmers with a low share of final profits.
  2. Weak Market Organisation: Small farmers depend on middlemen due to a lack of producer cooperatives or direct market access. The demand for Minimum Support Price (MSP) remains unresolved, emerging as a critical farmer welfare concern.
  3. Labour-Intensive and Costly Cultivation: Harvesting involves manual pond diving, shelling, and hand-roasting, making the process both time-consuming and expensive.
  4. Low Productivity Levels: Traditional cultivation methods yield only 1.7–1.9 tonnes/hectare, whereas improved varieties such as Swarna Vaidehi and Sabour Makhana-1 can increase yields to 3–3.5 tonnes/hectare with scientific practices.

Read also: Foxnuts (makhana) are in demand as a ‘super snack’

National Makhana Board

On 15th September, the Prime Minister launched the National Makhana Board in Purnea, Bihar, with a budget of ₹100 crore.
The Board aims to:

  • Enhance production through scientific farming and seed improvement
  • Strengthen processing, storage, and export infrastructure
  • Facilitate training and capacity building for farmers and self-help groups
  • Improve market linkages and reduce intermediaries

A planned Food Processing Institute in the region is expected to serve as a hub for innovation, skilling, entrepreneurship, and the development of makhana-based product lines such as snacks, health mixes, and nutraceuticals.

Conclusion

Makhana represents a strategic opportunity to link traditional livelihoods with modern value chains. With institutional support, improved production technologies, and stronger processing networks, Bihar can emerge as a global hub for high-quality makhana, boosting both farmer incomes and regional economic development.

MoSPI’s New CPI Framework for Inclusive and Accurate Price Measurement

The Consumer Price Index (CPI) is one of the most important indicators for measuring inflation, influencing monetary policy decisions, welfare schemes, and cost-of-living adjustments. Recently, the Ministry of Statistics and Programme Implementation (MoSPI) has proposed a significant revision in the methodology for calculating CPI, particularly in the housing component. The aim is to make the index more representative of real living conditions across both urban and rural India.

Background

Currently, housing has a weight of 21.67% in the urban CPI and 10.07% at the all-India level. However, this component is derived primarily from urban rental data and, in several cases, uses the House Rent Allowance (HRA) of government employees as a proxy for rent levels. Economists have pointed out that this approach fails to capture actual rental movements in growing smaller towns and does not account for rural housing dynamics, where ownership and imputed rent patterns differ significantly.

Key Proposed Changes

1. Inclusion of Rural Housing Data

For the first time, the CPI housing index will incorporate rental data from rural areas. This shift is based on the Household Consumption Expenditure Survey (HCES) 2023–24, which includes both actual rent paid and imputed rent for owner-occupied homes. This is important because rural India reports high home-ownership but also experiences value changes in housing that must be reflected in inflation estimates.

2. Exclusion of Employer-Provided Accommodation

Rent data from government or employer-provided dwellings will no longer be used. In such cases, HRA depends on administrative pay scales rather than the market rental environment. Their inclusion was leading to distorted inflation signals, particularly in metropolitan centers.

3. Monthly Rent Data Collection

The present methodology collects rental data only once in six months, leading to delayed or smoothed inflation readings. Under the revised framework, rent data will be collected monthly from all selected dwellings, improving the timeliness and sensitivity of the housing index.

4. Expanded Sampling and Global Best Practices

The revised framework draws on technical guidance from IMF experts, emphasizing panel-based rent tracking to maintain month-to-month comparability. This will reduce volatility and ensure a more stable and representative inflation measure.

Significance of the Reform

  • Enhances accuracy and responsiveness of CPI to real housing market changes
  • Improves representation of small towns and rural households
  • Strengthens economic planning and monetary policy calibration
  • Aligns India’s inflation measurement approach with global statistical standards

Conclusion

MoSPI’s revision to the CPI housing framework marks a major step toward inclusive and evidence-based inflation measurement.

By reflecting actual housing costs across diverse regions, the new methodology is expected to improve policy outcomes, welfare targeting, and the credibility of India’s inflation statistics.

India’s Maritime Vision: Strengthening Sea Connectivity and Global Competitiveness

India’s maritime sector plays a pivotal role in its economic and strategic landscape. With 12 major ports and over 200 non-major ports along a 7,500 km coastline, the sector handles nearly 95% of India’s trade by volume and 70% by value. Recognizing this significance, the government has launched two landmark roadmaps — Maritime India Vision (MIV) 2030 and Maritime Amrit Kaal Vision 2047 — aimed at transforming India into a global maritime power.

image 1

Maritime India Vision (MIV) 2030

Launched in 2021, MIV 2030 is a comprehensive national strategy to position India among the world’s top 10 maritime nations by 2030. It outlines 150+ initiatives requiring investments of around ₹3–3.5 lakh crore across port modernization, coastal shipping, shipbuilding, and inland waterways.

The vision is guided by six key principles: challenge analysis, innovation, time-bound implementation, global benchmarking, human capital development, and Waste-to-Wealth recycling of maritime scrap and resources.

MIV 2030 builds upon existing initiatives such as Sagarmala, ensuring continuity in infrastructure, connectivity, and logistics reforms. The Maritime Development Fund (MDF) ensures long-term project financing, while the Financial Assistance Scheme encourages domestic shipbuilding. Digitization is being enhanced through platforms like the Sagarmanthan portal and the National Logistics Portal (Marine).

Key Focus Areas

The policy framework identifies ten thematic areas including shipbuilding, port governance, cruise tourism, inland waterways, and maritime safety.

Notably, 23 National Waterways have been prioritized to promote low-cost and eco-friendly cargo movement. Additionally, the National Maritime Heritage Complex (NMHC) at Lothal, Gujarat, aims to showcase India’s ancient maritime culture and trade networks.

Maritime Amrit Kaal Vision 2047

Launched in 2023 at the Global Maritime India Summit, this long-term roadmap seeks to make India a global maritime leader by 2047, aligning with the centenary of independence.
It proposes 300+ initiatives with investments of ~₹80 lakh crore.

Key targets include:

  • Increasing port capacity to 10,000 MTPA
  • Positioning India among the top five shipbuilding nations
  • Creating over 1.5 crore employment opportunities
  • Building strong maritime skill and research clusters

The strategy rests on four pillars: Port-led Development, Shipping & Shipbuilding, Seamless Logistics, and Maritime Skill Development.

Growth Trends (2014–2025)

  • Inland Waterway cargo grew from 18 MMT to 146 MMT (710% rise)
  • Operational waterways increased from 3 to 29
  • Port capacity nearly doubled to 2,762 MMTPA
  • Vessel turnaround time reduced from 93 hours to 48 hours
  • Indian seafarers now form 12% of the global workforce

Conclusion

India’s maritime transformation is not only an economic strategy but also a strategic imperative. With sustained investment, skill development, and digital integration, India is steadily moving toward global maritime competitiveness and regional leadership.

RBI Cautions States on Fiscal Discipline

Context: The Reserve Bank of India (RBI) has warned states against fiscal slippages, rising borrowing, and pre-election populist spending, highlighting risks to long-term financial stability. Pre-election populist spending refers to the increase in subsidies and welfare outlays mainly to attract voter support, rather than to promote sustained economic growth.

Key Concerns Highlighted by RBI

  1. Rising Borrowing Costs:
    Yields on State Development Loans (SDLs) have risen sharply. Higher yields mean states must pay more interest, increasing the overall debt burden.
  2. Increasing Market Borrowing:
    States have borrowed ₹5.23 trillion till October 2025, which is 62% of their FY26 borrowing plan, compared to ₹4.37 trillion in the same period last year. This indicates faster-than-expected fiscal stress.
  3. Fiscal Deficit Pressure:
    The combined fiscal deficit for states is expected to be 3.2% of GDP. However, analysts caution that pre-election expenditure could push this above the recommended limits, threatening fiscal stability.
  4. Pre-Election Populist Spending:
    During eight state elections (2023–25), states spent nearly ₹68,000 crore on short-term welfare schemes.
  • For example, Bihar allocated 32.48% of its tax revenues to such schemes, reducing funds available for infrastructure and long-term development.

What are SDLs?

State Development Loans (SDLs) are bonds issued by state governments to raise funds for development expenses and fiscal deficit management. These are auctioned by the RBI and carry interest, contributing to long-term debt liabilities of states.

RBI Recommendations

RecommendationPurpose
Productive SpendingShift funds from temporary subsidies toward capital expenditure (roads, power, irrigation) that builds future growth.
Fiscal PrudenceAdhere to FRBM Act targets to maintain balanced budgets and macroeconomic stability.
Borrowing StrategySpread borrowings across maturities and maintain transparent communication to lower interest costs.
Fiscal TransparencyClearly report contingent liabilities and off-budget borrowings to avoid hidden debt risks.

Why This Matters

  • States account for nearly 60% of public sector capital expenditure in India.
  • Excessive populist spending reduces funds for development, slowing growth and worsening debt sustainability.
  • Maintaining fiscal discipline strengthens investor confidence, supports stable interest rates, and ensures inter-generational equity.

Conclusion

RBI’s caution underscores the importance of sustainable fiscal management. While welfare spending remains essential, states must prioritize long-term developmental spending and maintain transparent and prudent financial practices to safeguard economic stability.

India’s Forex Reserves Reach Record High

Context: India’s foreign exchange (forex) reserves have surged by USD 4.496 billion, touching a new all-time high of USD 702.28 billion, according to the Reserve Bank of India (RBI). With this, India remains among the top five reserve-holding nations globally, after China, Japan, Switzerland, and Russia.

Latest Composition of India’s Forex Reserves

ComponentLatest ValueChange
Foreign Currency Assets (FCA)USD 570.41 bn▼ USD 1.692 bn
Gold ReservesUSD 108.55 bn▲ USD 6.181 bn
Special Drawing Rights (SDRs)USD 18.72 bn▲ USD 38 mn
IMF Reserve PositionUSD 4.60 bn▼ USD 30 mn

About Forex Reserves

Forex reserves are external financial assets held by the RBI in foreign currencies, gold, and IMF-related positions. They are maintained to:

  • Ensure exchange rate stability of the Rupee,
  • Provide liquidity for external trade and debt payments, and
  • Strengthen investor and global market confidence in India’s economic stability.

Components of Forex Reserves:

  1. Foreign Currency Assets (FCA): Securities and deposits in global currencies such as USD, Euro, Yen, etc.
  2. Gold Reserves: Physical gold and gold deposits valued at international prices.
  3. Special Drawing Rights (SDRs): Reserve assets allocated by the IMF to support global liquidity.
  4. Reserve Tranche Position: India’s withdrawable contribution with the IMF for balance-of-payments needs.

Significance for India

  • Exchange Rate Stability: Enables RBI to intervene in forex markets to curb sharp rupee fluctuations.
  • Import Cover: Current reserves can finance over 10 months of imports, enhancing economic security.
  • Crisis Buffer: Helps India withstand global economic shocks, trade imbalances, or capital outflows.
  • Investor Confidence: High reserves encourage greater foreign investment and reduce perceived economic risk.
  • Portfolio Diversification: Rising gold reserves act as a hedge against fluctuations in the US dollar.

Challenges

  • Heavy RBI intervention can sometimes reduce export competitiveness by influencing rupee value.
  • Large reserves need careful management to avoid low-return accumulation costs.

Conclusion

India’s record forex reserves reflect strong macroeconomic fundamentals, resilient external sector performance, and proactive monetary management by the RBI. Sustaining export growth, attracting stable capital inflows, and prudent reserve diversification remain key for long-term stability.

Kerala’s Extreme Poverty Eradication Programme: A Model of Inclusive Governance

Context: On November 1, 2025, Kerala will be officially declared free from extreme poverty, becoming the first Indian state to achieve this distinction.
The milestone marks the culmination of the Extreme Poverty Eradication Programme (2021–2025) — a four-year, data-driven initiative combining welfare convergence, local governance, and digital innovation.

image 51

About Extreme Poverty

  • Definition: According to the World Bank, extreme poverty refers to living on less than $2.15 per day, representing a state where individuals cannot meet basic needs like food, shelter, and healthcare.
  • Updated Benchmark (2025): The World Bank has revised this threshold to $3 per day (PPP 2021) for low-income nations, accounting for inflation and changing consumption patterns.
  • Measurement: The poverty line is determined using Purchasing Power Parity (PPP) and Household Consumption Expenditure Survey (HCES) data, ensuring comparability across regions.

Extreme Poverty Eradication Programme (2021–2025)

Launched in 2021, the programme aimed to eradicate extreme poverty through a multidimensional approach focusing on nutrition, health, housing, education, and livelihoods.

  • Implementation Agency:
    Led by Kudumbashree – Kerala State Poverty Eradication Mission, in collaboration with local governments.
  • Beneficiary Identification:
    • 64,006 extremely poor families identified through door-to-door surveys.
    • 59,277 families uplifted by 2025.
  • Infrastructure Support:
    • 3,913 houses constructed.
    • 1,338 families provided land ownership.
    • 21,263 individuals received essential IDs (ration, Aadhaar, pension).
  • Technology Use:
    Every household was geo-tagged, and micro-plans were prepared to ensure sustainable rehabilitation.

How Kerala Achieved Poverty-Free Status

  1. Data-Driven Targeting:
    The Smart Panchayat Project and Kudumbashree database enabled accurate beneficiary identification using community validation and GIS mapping.
  2. Convergence of Schemes:
    Integrated State and Central welfare schemes under a unified action plan:
    • Life Mission: Housing for landless families.
    • Aardram Mission: Primary healthcare access.
    • Ashraya Project: Welfare for destitute and elderly.
  3. Decentralised Governance:
    Kerala’s People’s Plan Campaign (Janakeeya Aasuthranam) empowered local bodies with decision-making and fiscal autonomy under the Nava Kerala Mission.
  4. Digital Governance:
    The Kerala State IT Mission created GIS-based dashboards and the e-Sevanam portal for tracking benefits, asset mapping, and real-time monitoring.
  5. Political and Institutional Alignment:
    Cross-party support and Mission Mode Governance ensured coherence between state policies and local implementation, supported by KILA training for officials.

Significance

Kerala’s success underscores the potential of decentralisation, data integration, and community participation in addressing poverty.

It sets a replicable model for other Indian states to adopt evidence-based social welfare and multidimensional poverty reduction strategies.

Central Bank Digital Currencies (CBDCs): Global Push Over Stablecoins

Context: At the IMF–World Bank Annual Meeting (October 2025), RBI Governor Sanjay Malhotra emphasized the need for central banks to promote Central Bank Digital Currencies (CBDCs) over stablecoins for cross-border transactions.

What are CBDCs and Stablecoins?

A CBDC is a sovereign, digital form of fiat money issued and regulated by a central bank. It represents legal tender in electronic format.
In contrast, stablecoins are private cryptocurrencies pegged to fiat assets (like the US dollar) to maintain price stability but lack sovereign backing.

Significance of Promoting CBDCs Over Stablecoins

  1. Monetary Sovereignty:
    CBDCs preserve domestic monetary control. The RBI’s 2024 report warns that US-dollar stablecoins could trigger “rupee dollarisation” if left unchecked.
  2. Cross-Border Efficiency:
    According to BIS (2025), CBDC-based cross-border payments could cut remittance costs by nearly 50% compared to traditional SWIFT networks.
  3. Regulatory Transparency:
    CBDCs ensure KYC/AML compliance, backed by sovereign guarantees — unlike the $285 billion stablecoin market, which often operates in unregulated zones.
  4. Technological Edge:
    Tokenised CBDCs combine blockchain programmability with state-backed trust, offering instant, programmable, and traceable transactions.

Challenges in Replacing Stablecoins

  • Limited Global Adoption: Only 19 central banks have pilot-stage CBDCs (IMF Tracker 2025), lacking standardised interoperability.
  • Cybersecurity Risks: Over 60% of central banks cite cyberattacks and surveillance concerns as top risks (BIS 2025).
  • Dominant Stablecoin Market: Private coins like Tether (USDT) and USDC control 90% of global stablecoin circulation (IMF, 2025).

Way Forward for India

Global CBDC Corridors: India should join the BIS mBridge project (UAE–China–Thailand–Hong Kong) to enable real-time, low-cost, and secure CBDC settlements.

Tech–Policy Convergence: Adoption of the IMF’s XC platform will support interoperability across jurisdictions.

Cyber Resilience: Implement the FSB 2025 Cyber Resilience Framework and deploy AI-driven security tools to detect fraud.

Awareness & Trust: Expand the RBI Digital Rupee Mission, focusing on public literacy — only 26% of Indians currently understand CBDCs (FIS Survey 2024).

Conclusion

CBDCs represent the next frontier of monetary innovation — combining digital efficiency with sovereign trust. For India, leading in CBDC adoption aligns with its Digital Public Infrastructure (DPI) vision and enhances global financial stability.

Authorized Economic Operator (AEO) Programme: Boosting India’s Global Trade Confidence

Context: The World Trade Organization (WTO) recently commended India’s liberalised Authorized Economic Operator (AEO) programme for significantly enhancing the participation of micro, small, and medium enterprises (MSMEs) in international trade. This recognition highlights India’s growing emphasis on trade facilitation, supply chain security, and ease of doing business.

About the AEO Programme

The Authorized Economic Operator (AEO) programme operates under the World Customs Organization (WCO) SAFE Framework of Standards (FoS) — a global initiative adopted in June 2005 to secure and facilitate international trade.

India’s AEO scheme, implemented by the Central Board of Indirect Taxes and Customs (CBIC), is based on these global standards and aims to strengthen trust-based partnerships between Customs authorities and trade stakeholders.

Launched: As a pilot in 2011 and expanded in 2016, the AEO programme merges India’s earlier Accredited Client Programme (ACP) to create a unified framework.

Objectives of AEO

  • Enhance supply chain security and ensure faster movement of goods.
  • Promote compliance culture among traders and logistics operators.
  • Facilitate trade simplification while focusing enforcement on high-risk entities.
  • Improve international recognition of Indian exporters through Mutual Recognition Agreements (MRAs) with other countries.

Structure and Implementation

The programme is voluntary and open to entities engaged in international trade — including importers, exporters, customs brokers, logistics providers, custodians, and warehouse operators.

The Directorate of International Customs (CBIC) manages the programme and grants AEO certification after a detailed compliance audit.

Benefits of AEO Status

  • Faster customs clearance through priority processing and fewer inspections.
  • Deferred duty payments and simplified documentation.
  • Direct port delivery and reduced dwell time for exports/imports.
  • Mutual Recognition Agreements (MRAs): Indian AEOs gain reciprocal benefits in countries that recognise India’s AEO certification (e.g., Japan, South Korea).
  • Builds international credibility as a “trusted trader.”

This allows Customs to focus more on non-compliant or high-risk operators, improving resource efficiency and trade transparency.

Recent Developments and Impact

The liberalised AEO norms have made it easier for MSMEs to qualify by easing documentation and compliance requirements.
As per CBIC data, India has witnessed a 30% rise in AEO-certified MSMEs in the last two years.

The WTO’s recognition underscores India’s role in setting a global example of secure, efficient, and inclusive trade facilitation.

Way Forward

  • Expanding MRAs with major trade partners.
  • Digitalising AEO certification processes.
  • Integrating the AEO system with National Logistics Policy (NLP) and PM Gati Shakti for seamless supply chain coordination.

Conclusion

India’s AEO programme demonstrates a successful model of balancing trade facilitation with national security, reinforcing trust between businesses and Customs — a key driver of India’s ambition to become a global logistics hub.

FSSAI Bans Misuse of ‘ORS’ Label

Context: The Food Safety and Standards Authority of India (FSSAI) has issued a directive prohibiting the use of the term ‘Oral Rehydration Salts (ORS)’ on any food or beverage product that does not meet the World Health Organization (WHO)-approved formulation.

This move aims to curb misleading marketing practices where some beverage companies label sugary drinks as “ORS,” deceiving consumers and posing potential health risks.

About the Directive

  • Legal Basis: Issued under the Food Safety and Standards Act, 2006, which empowers FSSAI to regulate and enforce food labelling and safety standards.
  • Misbranding Clause: Products using the term “ORS” without approval will be treated as misbranded or misleading advertisements, punishable under the Act.
  • Objective: To ensure that only clinically validated and WHO-compliant formulations are sold as ORS in India.
image 44

About FSSAI

  • Established: 2008, under the Food Safety and Standards Act, 2006.
  • Nodal Ministry: Ministry of Health and Family Welfare.
  • Mandate: To lay down science-based standards for food articles and regulate their manufacture, storage, distribution, and sale to ensure food safety.

About Oral Rehydration Salts (ORS)

  • Purpose: ORS is a scientifically formulated solution used to treat dehydration resulting from diarrhoea, vomiting, or heat stress.
  • WHO-Approved Composition:
    Sodium chloride, glucose, potassium chloride, and trisodium citrate — in precise proportions to optimize absorption.
  • Mechanism: The glucose–sodium co-transport mechanism in the intestines facilitates the absorption of electrolytes and water, restoring hydration efficiently.
  • Health Significance:
    • Recognized as one of the most important medical advances for preventing child mortality due to diarrhoea.
    • Must not be confused with general energy or electrolyte drinks, which often contain excessive sugar and inadequate electrolyte balance.

Significance of the Ban

  • Consumer Protection: Prevents the sale of unscientific and misleading products claiming medical properties.
  • Public Health Safety: Safeguards vulnerable populations, especially children, from consuming high-sugar products mislabelled as ORS.
  • Regulatory Strengthening: Reinforces India’s compliance with WHO and UNICEF standards for rehydration therapy.

Conclusion

The FSSAI’s regulation marks a vital step in ensuring evidence-based labelling and consumer protection. By limiting the ‘ORS’ tag to scientifically verified formulations, India upholds both medical integrity and public health priorities.

PM Dhan-Dhaanya Krishi Yojana (PMDDKY): Boosting Agricultural Self-Reliance

Context: The Government of India has announced 100 Aspirational Agriculture Districts under the PM Dhan-Dhaanya Krishi Yojana (PMDDKY), covering 29 States and Union Territories. The initiative aims to enhance farm productivity, sustainability, and rural prosperity, aligning with the government’s vision of “Viksit Bharat @2047”.

About the Scheme

The PMDDKY is an umbrella initiative of the Ministry of Agriculture and Farmers’ Welfare (MoAFW). It seeks to transform low-performing agricultural districts through integrated planning, data-driven governance, and convergence of schemes.

Objectives

  • Enhance productivity of major crops through modern, sustainable farming practices.
  • Promote self-reliance in agricultural resources and inputs.
  • Encourage diversification into high-value crops, allied sectors, and climate-resilient farming.
  • Ensure inclusive development by focusing on lagging districts with untapped potential.
image 15

Selection Criteria

The 100 Aspirational Agriculture Districts were identified based on:

  1. Low crop productivity compared to the state average.
  2. Moderate or low crop intensity.
  3. Limited access to institutional credit and agri-infrastructure.
  4. Socio-economic vulnerabilities affecting farmer incomes.

This data-driven identification mirrors the approach of NITI Aayog’s Aspirational Districts Programme (ADP), focusing on measurable improvement through a real-time monitoring framework.

Scheme Integration and Implementation

  • Integration: The PMDDKY brings together 36 central schemes from 11 departments, enabling convergence of resources and simplified delivery. These include schemes from the Ministries of Rural Development, Food Processing, Water Resources, and Renewable Energy.
  • District Plans: Each selected district will prepare a District Agriculture Development Plan (DADP) outlining priorities such as irrigation, seed quality, soil health, and market linkages.
  • Monitoring: The progress will be tracked by 100 Central Nodal Officers using digital dashboards and key performance indicators (KPIs).
  • Local Committees: Headed by the District Collector, they will coordinate between panchayats, agri-universities, and farmers’ producer organizations (FPOs) to ensure ground-level execution.

Significance

  • Holistic Growth: Moves from fragmented schemes to an integrated mission-mode approach.
  • Sustainability: Encourages soil health management, efficient water use, and adoption of renewable energy in farming.
  • Farmer Empowerment: Bridges the rural credit and infrastructure gap, enhancing income stability.
  • Data-Driven Governance: Builds accountability through measurable, outcome-based indicators.

Way Forward

PMDDKY has the potential to become a model for regional agricultural transformation, much like the Aspirational Districts Programme for governance. If effectively implemented, it can significantly contribute to doubling farmers’ income and achieving sustainable agricultural growth across India.

Govt Raises MSP for Six Rabi Crops

Context: The Union Cabinet has approved significant hikes in the Minimum Support Prices (MSPs) for six rabi crops for the 2026–27 marketing season, aimed at ensuring remunerative prices to farmers and promoting crop diversification.

What is MSP?

  • MSP is the minimum guaranteed price at which the government procures crops from farmers, protecting them from distress sales.
  • It currently covers 23 crops: 7 cereals, 5 pulses, 7 oilseeds, and 4 commercial crops.
  • The policy serves as a tool for ensuring food security, farmer welfare, and market stability.

Key Highlights of the Hike

  • Crops Covered: Wheat, barley, jowar, gram, lentil, and safflower.
  • Wheat: MSP increased by ₹160 per quintal to ₹2,585/quintal (6.6% rise), offering the highest gain over cost of production (109%).
  • Safflower: Witnessed the highest absolute and percentage increase (₹600 per quintal), reflecting government emphasis on oilseed cultivation and crop diversification.
  • The hikes align with the government’s aim to double farmers’ income and reduce dependence on imported edible oils.
image 13

How MSP is Determined

  • Commission for Agricultural Costs and Prices (CACP):
    • A statutory body set up in 1965 under the Ministry of Agriculture.
    • Recommends MSPs twice a year (for kharif and rabi crops).
    • Recommendations are not binding; final approval rests with the Cabinet Committee on Economic Affairs (CCEA).
  • Factors Considered:
    • Cost of cultivation (A2, A2+FL, C2).
    • Demand-supply situation.
    • Price trends and inter-crop parity.
    • Terms of trade for farmers.
    • Global prices and food security concerns.
  • Cost Concepts:
    • A2: Actual paid-out costs (seeds, fertilizers, etc.).
    • A2+FL: A2 + imputed family labour.
    • C2: Comprehensive cost (A2+FL + rental value of land + interest on capital).
  • MSPs are generally fixed at A2+FL + 50% margin, ensuring fair returns.

Significance

  • Enhances farmers’ income security and incentivizes crop production.
  • Encourages oilseed production, reducing edible oil import bills.
  • Balances inflation control with farmer welfare.
  • Strengthens food security by ensuring procurement at fair prices.

Challenges Ahead

  • Procurement is still concentrated in wheat and rice, limiting benefits for other crops.
  • Rising MSPs can strain the fiscal burden.
  • Market reforms and diversification efforts need to complement MSP to achieve sustainable outcomes.

Conclusion

The recent MSP hike reflects the government’s continued focus on farmer welfare, crop diversification, and self-reliance in agriculture. However, structural reforms in procurement, storage, and marketing remain crucial to ensure that the benefits of MSP reach all farmers equitably.

Trending now

Inequality in Public Employment: What Workforce Data Reveals
India’s Increasing Push for Free Trade Agreements
SHANTI Bill, 2025: Overhauling India’s Nuclear Energy Sector
Strengthening India’s Biosecurity Framework