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Pradhan Mantri Jan Dhan Yojana (PMJDY)

Context: According to the data presented by the Finance Ministry, over 13 crore Jan Dhan Accounts, i.e., 23% of the total 56 crore opened till July 31, 2025 are inoperative. The amount parked in these accounts stands at over ₹2.64 lakh crore.
Under Reserve Bank of India norms, a savings account is classified as inoperative/dormant if no transactions are recorded for over two years.

Relevance of the topic:

Prelims: Key facts about Pradhan Mantri Jan Dhan Yojana.

Mains: Govt. initiatives towards financial inclusion.

What is financial inclusion?

Financial Inclusion refers to universal access to a wide range of financial services at an affordable cost. These include not only banking products (basic savings, deposit accounts, remittance and credit) but also other financial services such as insurance, pension and equity products.

What are the benefits of financial inclusion?

Efficient Mobilization of Resources: When more people come under the banking sector, it leads to increased deposits, allowing for easier mobilization of resources for investment and productive purposes.
Poverty Alleviation: Access to formal credit and financial services enables poor households to access cheaper credit, which can help in their economic empowerment. It also prevents them from falling into debt traps, which are often associated with informal or exploitative lending practices.
Formalization of the Economy: Financial inclusion helps bring more individuals and businesses into the formal financial sector. This can lead to better regulation and tax compliance.

As per census 2011, only 58% of households are availing banking services in the country.

PM Jan-Dhan Yojana

Pradhan Mantri Jan-Dhan Yojana (PMJDY) was launched to improve financial inclusion. Under the scheme, a basic savings bank deposit account can be opened in any bank branch or Business Correspondent (Bank Mitra) outlet, by persons not having any other account.

Benefits under PMJDY

One basic savings bank account is opened for unbanked person.
There is no requirement to maintain any minimum balance in PMJDY accounts.
Interest is earned on the deposit in PMJDY accounts.
Rupay Debit card is provided to PMJDY account holder.
Accident Insurance Cover of Rs.2 lakh is available.
An overdraft (OD) facility up to Rs. 10,000 to eligible account holders is available.
PMJDY accounts are eligible for all the Direct Benefit Transfer (DBT) schemes MUDRA scheme.

Impact of PMJDY

The Pradhan Mantri Jan Dhan Yojana (PMJDY) has been widely regarded as a successful and transformative financial inclusion program in India. Here's an assessment of the key achievements and impact of the PMJDY:

Expansion of Banking Access: The scheme significantly increased the number of bank account holders, especially in the unbanked and underbanked segments of the population. As on July 31, 2024, there are 52.99 crore total beneficiaries (account-holders) with total account balance of more than ₹2 lakh crore.
Direct Benefit Transfers: The PMJDY has enabled the direct transfer of government benefits, subsidies, and welfare payments directly into the beneficiaries' bank accounts. This has improved the targeting and delivery of government schemes, reducing leakages and improving transparency.
Women's Financial Inclusion: The PMJDY has a specific focus on promoting women's financial inclusion, with over 55% of the Jan Dhan accounts being held by women.
Financial Literacy and Awareness: The PMJDY has incorporated financial literacy and awareness campaigns to educate the beneficiaries on the use of their bank accounts and various financial services.

India's first Sustainable Aviation Fuel Plant

Context: Indian Oil's Panipat refinery has received ICAO ISCC CORSIA certification for producing sustainable aviation fuel (SAF) from used cooking oil. became the first company in India

Relevance of the topic:

Prelims: India’s indicative blending Target for SAF; CORSIA framework.

Mains: Sustainable Aviation Fuel: Advantages & Challenges.

India's first Sustainable Aviation Fuel Plant

IOC will have the capacity to produce 35,000 tonnes per year of SAF from used cooking oil by the end of 2025.
Feedstock: The used cooking oil will be sourced by engaging aggregators from large hotel chains, restaurants, and sweets and snacks majors, which is otherwise discarded after use.
The capacity (35,000 tonnes per year) will be sufficient to meet the country’s 1% SAF blending requirement (for international flights) by 2027.

IOC has become the first company in India to receive the ISCC CORSIA certification for SAF production at its Panipat refinery in Haryana.

ISCC CORSIA Certification System:

ISCC CORSIA is a certification system for compliance with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) criteria for SAF. It is a prerequisite for commercial SAF production.
The certification sets a benchmark for other domestic refiners and industry players to scale up SAF production.

About Sustainable Aviation Fuel (SAF)

SAF is a biofuel that is produced from sustainable feedstocks. SAF has chemistry and properties similar to conventional aviation turbine fuel (ATF) or jet fuel (derived from crude oil) but with a smaller carbon footprint.
It can be blended at different levels with limits between 10% and 50%, depending on the feedstock and how the fuel is produced.
Sources of SAF:
- Oil seeds, other fats, oils, and greases
- Agricultural residues, Forestry residues, Wood mill waste
- Municipal solid waste streams, Wet wastes (manures, wastewater treatment sludge)
- It can also be produced synthetically via a process that captures carbon directly from the air.

Advantages of SAF:

Engine compatibility: Existing aircraft engines can easily use the SAF-ATF blend (up to 50% blend) without modification.
Fewer greenhouse gas emissions: It is estimated that SAF alone is likely to account for over 60% of the global aviation industry’s decarbonisation efforts.
Sustainable: Raw feedstock does not compete with food crops or water supplies, or is responsible for forest degradation.
More flexibility: SAF is a replacement for conventional jet fuel, allowing for multiple products from various feedstocks and production technologies.

Challenges Associated with SAF:

SAF is about three-four times more expensive than the price of regular jet fuel.
SAF success will require using a greater diversity of feedstock and production methods.

Moreover, collection of SAF would be a challenge. While it is easy to collect from large hotel chains, a solution needs to be found for collection from small users, including households.

Key Facts:

International Civil Aviation Organisation's (ICAO) is dedicated to reducing carbon emissions from international civil aviation.
To mitigate the environmental impact of aviation, ICAO has set several aspirational goals:
1. Two Percent Annual Fuel Efficiency Improvement: Targeted through 2050.
2. Carbon Neutral Growth: Striving for no net increase in carbon dioxide (CO2) emissions from international aviation.
3. Net Zero CO2 Emissions from aviation by 2050.
These goals are encompassed under two major initiatives: Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and the Long-Term Aspirational Goals (LTAG).

CORSIA Implementation Phases:

CORSIA will be implemented in three phases:

Pilot Phase (2021-2023): Voluntary participation by States.
First Phase (2024-2026): Also voluntary, but with expanded participation.
Second Phase (2027 onwards): Mandatory for all ICAO member states, including India.

India’s indicative blending Target for SAF:

In line with the CORSIA framework, India’s National Biofuel Coordination Committee (NBCC) has set the initial indicative targets for blending of SAF with jet fuel 2027 onwards, starting with international flights. The indicative targets are:
- 1% SAF indicative blending target in 2027 (Initially for International flights)
- 2% SAF blending target in 2028 (Initially for International flights)
- 5% by 2030.

The success of SAF will require using a greater diversity of feedstock and production methods. This includes areas such as investing in carbon offset programmes and the diversification of SAF feedstocks.

IOC is also working to set up units based on the alcohol-to-jet pathway, which involves using ethanol as a feedstock to make SAF.

India’s Fisheries Sector on the Rise

Context: As per the latest government data, India’s fisheries sector has experienced a significant growth and contributes approximately 8% to global fish production.

Relevance of the Topic:Mains: Fisheries Sector in India: Present status; Challenges; Govt. schemes.

Fisheries Sector in India

With a vast coastline and an Exclusive Economic Zone (EEZ) of 2.02 million square kilometres, India boasts of rich marine resources. India is the second largest fish producing country with around 8% share in global fish production.

Present status: In the five year period between 2019-20 to 2023-24:
- India’s fisheries sector has achieved record production of over 184 lakh tonnes (lt) in FY24 from 141 lt in FY20 (nearly a 30% growth).
- Fisheries exports from India increased to ₹60,500 crore in FY24.
- Increase in per capita fish consumption from 5-6 kg to 12-13 kg in FY24.
- Aquaculture productivity increased from 3 tonnes per hectare to 4.7 tonnes per hectare.
Increased investment: In the last 10 years, the government has made a cumulative investment in the fisheries and aquaculture sector of over ₹38,500 crores through various programmes and initiatives.

Constraints in the growth of Fisheries Sector

Overexploitation of fish stocks due to increased demand for seafood. Additionally, seasonal nature of fishing operations, depleted stocks in natural waters, use of obsolete technology for harvesting coupled with low capital infusion threatens the livelihoods of fishing communities and overall health of marine ecosystems.
Illegal, Unreported, and Unregulated (IUU) Fishing: IUU fishing practices contribute to overfishing and undermine efforts to manage fisheries sustainably. Lack of effective monitoring and enforcement mechanisms exacerbates this issue.
Inadequate infrastructure including lack of proper storage, transportation, and processing facilities, hinders the efficiency of the supply chain. This can lead to post-harvest losses and affect the quality of seafood products.
Pollution including industrial runoff, untreated sewage, and plastic waste, poses a threat to aquatic ecosystems.
Changing climate patterns impact fish habitats, migration routes, and breeding grounds. This affects fish populations and can result in shifts in the distribution of species, impacting the traditional fishing patterns of communities.
Limited access to modern fishing technologies and practices hampers the efficiency and productivity of the fishing industry. The adoption of sustainable and technologically advanced methods is crucial for long-term viability.
Ineffective fisheries management, including poorly enforced regulations and a lack of participatory approaches involving local communities, contributes to overfishing and resource degradation.
Social and Economic challenges faced by fishing communities such as poverty, lack of education, and limited access to healthcare.

Government Schemes for supporting the growth of Fisheries Sector:

Blue Revolution Scheme: Launched in FY16 with a central outlay of Rs 3000 crores for 5 years. It focused mainly on increasing fisheries production and productivity from aquaculture and fisheries resources, both inland and marine.
National Policy on Marine Fisheries 2017: The policy guides the conservation and management of India’s marine fishery resources. It places strong emphasis on sustainability as the core principle for all marine fisheries actions.
Pradhan Mantri Matsya Sampada Yojana (PMMSY): Approved with a total estimated investment of Rs. 20,050 crores for 5 years from FY 2020-25. Extended till FY26. It aims to address critical gaps in the fisheries value chain from fish production, productivity and quality to technology, post-harvest infrastructure and marketing.
Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana: Central Sector Sub-scheme under PMMSY for 4 years from FY 2024-27. It intends to address inherent weaknesses and bring in institutional reforms to the sector through identified financial and technological interventions.
Technological Interventions:
- GIS-Based Resource Mapping: Implementation of Geographic Information System (GIS) technology for mapping marine fish landing centers and fishing grounds, aiding in effective resource management.
- Satellite Technology Integration: National Rollout Plan for Vessel Communication and Support System, application of Oceansat, Potential Fishing Zones (PFZ) etc., undertaken by the Department of Fisheries.

Also Read: PMMSY: bridging gaps in the fisheries sector

Strategies to be adopted to boost Blue Revolution:

Horizontal Expansion in untapped areas like Brackish aquaculture, cold water fisheries, Pond aquaculture, Reservoirs, canals, ornamental fisheries, Recreational fisheries.
Vertical Expansion through diversification of culture species; Integrated farming system; rice-cum-fish culture system; wastewater aquaculture system, Organic aquaculture.
Restoration of natural productivity and conservation of indigenous fisheries resources through ecosystem restoration to boost riverine fisheries.
Address stagnation in Marine fisheries through deep sea fishing, Mariculture, open-sea cage farming etc.
Upgradation of fishing fleet. Organise fishermen into FPOs and fishing village communities into VPOs to reap economies of scale and promote value-addition
Address problems of seed, feed and health.
Enhancing extension through Sagar Mitras.
Address technical and managerial gaps in shrimp farming through Foreign Direct Investment.
Development of fisheries post-harvest infrastructure especially modern markets, cold storages, processing plants etc. through Public Private Partnership.
E-markets and e-trading of fish and fish products will be encouraged and promoted.
Ecological certification of fisheries to boost exports.

Cabinet gives approval to four new Semiconductor Plants

Context: The Union Cabinet has approved four new projects under the India Semiconductor Mission (ISM). Two of the projects will be in Bhubaneswar in Odisha, and one each will be in Punjab and Andhra Pradesh.

Relevance of the Topic: Prelims: India’s efforts towards semiconductor self-reliance.

Four new Semiconductor Plants

The cumulative value of the new projects is ₹4,594 crore. This brings the total number of projects under the India Semiconductor Mission to 10.

Key details about the four new projects:

1. Silicon Carbide integrated facility in Bhubaneswar, Odisha:

SicSem Pvt Ltd will establish an integrated facility of Silicon Carbide (SiC) based Compound Semiconductors. This will be the 1st commercial compound fab in the country.
The project proposes to manufacture Silicon Carbide devices. This compound semiconductor fab will have an annual capacity of 60,000 wafers and packaging capacity of 96 million units.
The proposed products will have applications in Missiles, Defence equipment, Electric Vehicles (EVs), Railway, Fast Chargers, Data Centre racks, Consumer Appliances, and Solar Power Inverters.

Silicon Carbide:

Silicon carbide (also known as SiC) is a semiconductor base material that consists of pure silicon and pure carbon.
SiC can be doped with nitrogen or phosphorus to form an n-type semiconductor or can be doped with beryllium, boron, aluminum, or gallium to form a p-type semiconductor.
SiC devices offer advantages such as higher power density, reduced cooling requirements and lower overall system cost.

2. Vertically integrated advanced packaging and embedded glass substrate unit in Bhubaneshwar, Odisha:

3D Glass Solutions Inc. will bring world’s most advanced packaging technology to India.
Planned capacity of this unit will be approximately 69,600 glass panel substrates, 50 million assembled units, and 13,200 3D Heterogeneous Integration (3DHI) modules per annum.
The products will have significant applications in defence, high-performance computing, artificial intelligence, RF and automotive, photonics and co-packaged optics etc.

3. Semiconductor manufacturing unit in Andhra Pradesh:

Advanced System in Package (ASIP) Technologies will set up a semiconductor manufacturing unit with an annual capacity of 96 Million units.
The products will find applications in mobile phones, set-top boxes, automobile applications, and other electronic products.

4. Semiconductor manufacturing facility at Mohali, Punjab:

Continental Device India Pvt Limited will expand its discrete semiconductor manufacturing facility.
The proposed facility will manufacture high-power discrete semiconductor devices such as MOSFETs, IGBTs, Schottky Bypass Diodes, and transistors, both in Silicon and Silicon Carbide.

About India Semiconductor Mission

ISM is a strategic initiative to establish a robust semiconductor and display ecosystem in the country. It seeks to position India as a global hub for electronics manufacturing and chip design.
Launched: 2021
Budget outlay: ₹76,000 crores
Implemented by: Ministry of Electronics and Information Technology (MeitY)
Incentives: Financial incentives up to 50% of the project cost are provided to companies involved in Semiconductor Fabs, Display Fabs, Assembly, Testing, Marking, and Packaging (ATMP/OSAT) units, Semiconductor Design.

Previous Projects approved under India Semiconductor Mission:

Earlier, six major projects have been approved under the India Semiconductor Mission. Already five semiconductor units are in advanced stages of construction.
Advanced 7 nm (nanometre), 5 nm and 3 nm chips are being designed in India.
The first chip from one of the previous six units is expected to be rolled out by the end of 2025.

Company / Joint Venture	Location
Micron	Sanand, Gujarat
Tata Electronics + PSMC (Taiwan)	Dholera, Gujarat
Tata Semiconductor Assembly & Test (TSAT)	Morigaon, Assam
CG Power + Renesas (Japan) + Stars Microelectronics (Thailand)	Sanand, Gujarat
Suchi Semicon	Surat, Gujarat
HCL + Foxconn (Taiwan)	Jewar, Uttar Pradesh

Also Read: India’s push for Semiconductor Chip Production amid Rising Imports

India’s Retail Inflation hits 8-year low of 1.55%

Context: India's retail inflation rate has dropped to 1.55% in July 2025, its lowest rate since June 2017 (lowest level in eight years), driven by a drop in food prices.

Relevance of the Topic:Prelims: Key facts about Retail Inflation; Consumer Price Index

Retail Inflation

Retail inflation reflects the cost of everyday goods and services bought for consumption purposes by households. It is measured by the Consumer Price Index (CPI).
Under the inflation-targeting regime (2016), the Reserve Bank of India is mandated to keep inflation within a 2%-6% band, and must explain to the government if it breaches either end for three consecutive quarters.

Retail Inflation in India

India's retail inflation rate has dropped to 1.55% in July 2025, its lowest rate since June 2017.
Inflation is well below the Reserve Bank of India's tolerance band of 2%-6% for the first time since January 2019.
Food prices have been the main driver for the drastic fall in inflation for the last eight months.
Concerns: A drop below 2% signals weak demand and can hurt farm incomes and rural spending. However, it is unlikely to trigger an immediate rate cut as policymakers may view the decline as temporary and driven by volatile food prices.

Key government interventions to help lower Retail Inflation:

The government’s strategic interventions have been pivotal in achieving this outcome. Key measures include:

Bolstering buffer stocks of essential food items, and releasing them periodically in open markets.
Subsidised retail sales of staples like rice, wheat flour, pulses, and onions.
Simplified import duties on critical food items.
Stricter stock limits to prevent hoarding.
Reduced GST rates on essentials have further eased price pressures.
Targeted subsidies, such as LPG support under Pradhan Mantri Ujjwala Yojana and the Pradhan Mantri Garib Kalyan Anna Yojana.

What is the Consumer Price Index (CPI)?

CPI is an economic indicator that measures inflation at retail level (changes in the level of retail prices over time).
It reflects how much households need to spend on a fixed basket of goods and services they typically consume, such as food, clothing, housing, and fuel.
Compiled by: National Statistical Office (NSO), under the Ministry of Statistics and Programme Implementation.
Calculated using: base year 2012
CPI is a key benchmark for targeting inflation, monitoring price stability, and guiding monetary policy decisions by the Reserve Bank of India. It also serves as a deflator in the National Accounts to measure real economic growth.

With inflation now at its lowest since 2017, India has reinforced macroeconomic stability and created an enabling environment for sustainable growth. However, the steep fall in food prices can lower farmer incomes and directly impact rural consumption demand.

ICICI Bank’s Minimum Average Balance Hike

Context: ICICI Bank has sharply increased the Minimum Monthly Average Balance (MAB) for new savings accounts. This has triggered debate over financial inclusion as Public Sector Banks (PSBs) move towards zero-MAB policies.

Relevance of the Topic: Prelims: About RBI's stand on Minimum Monthly Average Balance (MAB) Policy.

ICICI Bank’s Minimum Average Balance Hike

ICICI Bank, India’s second-largest private lender, has sharply increased the Minimum Monthly Average Balance (MAB) requirement for new savings account customers effective 1 August 2025.
New MAB levels:
- Metro & Urban: ₹50,000 (earlier ₹10,000) → 5× hike
- Semi-Urban: ₹25,000 (earlier ₹5,000)
- Rural: ₹10,000 (earlier ₹2,500)
Exemptions:
- Basic Savings Bank Deposit Accounts
- Pensioners’ accounts
- Salary accounts
- Customers who maintain savings plus fixed deposit amount of up to ₹2 lakh with the bank.

If a customer fails to maintain the required MAB, the bank will levy a penalty equal to 6% of the shortfall amount or ₹500, whichever is lower.

RBI’s Position on Minimum Average Balance Policy:

The Governor of Reserve Bank of India (RBI) has clarified that Minimum Average Balance (MAB) requirements do not fall under RBI regulation. Banks are free to set their own MAB thresholds, with no regulatory cap on the amount.

Why did ICICI Bank do this?

Few customers have less than ₹50,000 MAB: Low-balance customers are not the bank’s core segment. High MAB customers are more likely to keep money parked long-term, providing a cheap source of funds.
Low-balance accounts = high cost and low returns: These accounts still use customer service, tech infrastructure, and compliance resources but generate less revenue.
Fraud risk: Lower-balance accounts see more mule account misuse (used for illegal fund transfers).
Free up resources: Better service for premium customers, tech upgrades, and more fee-based product launches.

Impact on ICICI Bank:

Limited business impact: Very few current customers fall below the new threshold.
Applies only to new accounts; existing customers are unaffected.

Why the Backlash?

Seen as anti-financial inclusion: Many urban customers do not even earn ₹50,000/month. Demanding they keep almost an entire month’s income idle in a low-interest savings account feels exclusionary.
Contrast with PSBs: The hike comes while public sector banks (PSBs) are removing MAB requirements to promote financial inclusion. E.g., Multiple PSBs (PNB, BoB, Indian Bank, etc.) recently waived MAB penalties entirely.

E20 Blend Fuel: Benefits and Concerns

Context: India has mandated E20 petrol (20% ethanol, 80% petrol) and aims for E27 in the future, achieving the E20 milestone five years ahead of the original 2030 target.

However, concerns are emerging over mileage loss, engine damage, and lack of consumer choice, especially for vehicles manufactured before 2023.

Relevance of the topic:

Prelims: About E20, Flex fuel vehicles.

Mains: E20 Fuel in India: Challenges, Concerns & Lessons from Brazil

Ethanol Blending

Ethanol Blending refers to the process of mixing ethanol, a biofuel derived from plant-based sources, with petrol to create a more sustainable and cleaner fuel.
Ethanol is often produced from renewable sources such as corn, sugarcane, or other biomass.

India's Ethanol Blending Programme

The Government of India launched the Ethanol Blended Petrol Programme in 2003 to promote ethanol use in transportation fuel.

2003: EBP launched in 9 States & 4 UTs with 5% ethanol blend (E5).
2013: National Policy on Biofuels notified.
2018: National Policy on Biofuels revised — target of 20% blending by 2030.
2021: The target of 20% blending advanced to 2025-26.
2023: E20 fuel introduced in select cities.
2025-26: Pan-India rollout of E20 planned.

Objectives:

Reduce Crude Oil Import Bill: India imports >85% of crude oil needs. Blending ethanol with petrol helps reduce dependence on non-renewable fossil fuels.
Enhance Energy Security: Diversify fuel sources.
Lower Carbon Emissions: Ethanol contains oxygen which can improve the combustion of fuel. This aids the complete burning of fuel and lowers emissions of certain pollutants like Carbon dioxide and carbon monoxide.
Waste Utilisation: Use damaged grains, surplus rice and stubble will reduce waste.
Boost Farmer Income: Assured procurement of surplus crops and farm residue will boost farmers' income.

What is E20 Fuel?

E20 is a fuel blend that comprises 20% ethanol produced from plant products such as sugarcane, rice, and maize, and 80 % gasoline.

Challenges and Concerns with E20 in India:

Engine Compatibility Issues:
- The majority of vehicles manufactured before 2023 are designed for E10 fuel only.
- Ethanol’s higher water content can corrode metals and damage non-ethanol-rated rubber seals, valves, and pistons.
- Cold-start problems in winter due to ethanol’s higher ignition temperature.

Performance and Mileage Loss: Ethanol has a lower energy density (around 33% lower calorific value) than petrol and may cause a marginal decrease in mileage (fuel economy).
Lack of Consumer Choice: Petrol pumps rarely disclose the blending percentage. No option for customers to buy pure petrol or lower blends like E10.
No Price Incentive: Unlike Brazil, where ethanol is 25-35% cheaper, E20 in India is priced at parity with petrol, reducing consumer motivation.
Warranty and Liability Risks: Car manuals of popular models (Hyundai i20, Mahindra Thar, etc.) explicitly warn against using >10% ethanol; damage may void warranties.
Rapid Policy Transition: Moving from E10 to E20 in a short time frame has created adjustment challenges for both manufacturers and consumers.
Infrastructure and Awareness Gaps: Limited roll-out of flex-fuel compatible vehicles and inadequate readiness of service and repair networks to address ethanol-related issues.
Feedstock and Environmental Concerns: High dependence on water-intensive crops like sugarcane for ethanol production may exacerbate water scarcity and raise food-versus-fuel debates.

Case Study: Brazil’s Ethanol Blending Success

Brazil is a global leader in ethanol fuel adoption, offering a valuable model for India’s E20 programme. It launched its Ethanol blending scheme (EBS) in 1975 in response to the global oil crisis.

The scheme leveraged Brazil’s abundant sugarcane resources to create a sustainable alternative to petroleum fuels. Key points of Brazil’s EBS:

Phased Rollout: Gradual progression from E10 to E27, alongside introduction of E100 (pure ethanol), avoiding sudden stress on existing vehicle stock.
Flex-Fuel Technology: Cars capable of running on any blend of petrol and ethanol; by the late 1980s 90% of new cars were ethanol-compatible.
Transparent Consumer Choice: Fuel pumps display ethanol content; consumers select blends based on price and preference.
Economic Incentives: Ethanol priced 25-35% lower than petrol at the pump.
Public Engagement: Strong awareness campaigns highlighting both environmental and performance benefits.

Way Forward

Phased Rollout: Introduce E15 as an intermediate step for older fleets before full E20 coverage.
Mandate Flex-Fuel Engines: All new vehicles should be compatible with higher ethanol blends.
Transparent Labelling: Display blending levels at every pump.
Introduce Price Incentives: Ensure ethanol blends are cheaper to encourage voluntary adoption.

Consumer Awareness Campaigns: Address myths, highlight benefits, and explain precautions.
Independent long-term studies on E20’s impact on older engines.

India’s ethanol push is a strategic step towards energy self-reliance and climate goals, but its success will depend on harmonising policy ambition with market readiness.

Also Read: Impact of Ethanol Production on Environment

The Rise of Herbicides

Context: India’s crop protection chemical industry is undergoing a significant transformation, marked by the rapid growth of the herbicide segment.

Relevance of the Topic: Prelims: Crop protection chemicals (insecticides, fungicides, herbicides), Agricultural labour trends.

Crop Protection Chemicals

Crop protection chemicals, commonly known as pesticides are substances used to protect crops from:
- Insects (insecticides) E.g., White-backed plant hopper in paddy.
- Fungal diseases (fungicides) E.g., Blast and sheath blight in rice.
- Weeds (herbicides) Unwanted plants that compete with crops for resources.
These chemicals ensure improved crop health, higher productivity, and reduced input losses.

Current Market Snapshot

Total Organised Market Size : ₹24,500 crore (approx.)
Segment-wise Breakdown :
- Insecticides ₹10,700 crore
- Herbicides ₹8,200 crore
- Fungicides ₹5,600 crore
Herbicides are the fastest-growing segment, with over 10% annual growth, driven by labour shortages and evolving agricultural practices.
The market is heavily dominated by multinational corporations, with limited domestic presence: Bayer (15%, Germany), Syngenta and ADAMA, both owned by China’s Sinochem, Corteva (USA) etc.
However, the herbicide segment has Indian players too, such as Dhanuka Agritech (estimated 6% share) and Crystal Crop Protection Ltd.

Why is the usage of Herbicides booming?

Labour Shortage and Rising Wages:
- Manual weeding is time-intensive (8-10 hours/acre).
- Labour costs have risen from ₹326.2 (2019) to ₹447.6 (2024).
- Availability of rural labour for strenuous manual work is declining.
Limitations of Mechanical Weeders: Power weeders are not effective in densely planted or deep-rooted weed areas.
Herbicides as Labour-saving Technology: Like tractors and harvesters, herbicides are seen as substitutes for manual labour.
Cost Comparison: Manual weeding (₹2,000+ per acre) is comparatively more expensive than using chemical herbicide (E.g., Sikosa): ₹850-900 per acre.
Changing Patterns in Herbicide Usage
- Traditional Practice: Post-emergent application – applied after weeds appear.
- New Trend: Pre-emergent herbicides - Prevent weeds from sprouting.
- Early post-emergent: Target weeds at early crop growth stage.
- Pre-emergent herbicides account for ₹550 crore in ₹1,500 crore paddy herbicide market and 20% of ₹1,000 crore wheat herbicide market

This preventive approach marks a shift from reactive farming to strategic input use.

Challenges & Concerns:

Multinational Monopoly: Unlike seeds and fertilisers (where Indian public/private players exist), the pesticide industry remains largely foreign-dominated. Sinochem Holdings Corporation (China) owns Syngenta & ADAMA; India lacks a comparable domestic giant.
Dependence on Imports: Heavy reliance on imported active ingredients and technologies. Need to strengthen indigenous R&D in crop chemistry.
Ecological Risks: Misuse of herbicides can harm non-target species, contaminate soil and water.Growing concerns about Paraquat toxicity and herbicide-resistant weeds.

Way Forward

Encourage indigenous innovation in agri-chemicals.
Incentivise public-private partnerships for research in biopesticides and sustainable crop protection.
Promote judicious use of herbicides with farmer education and regulation.

India’s pesticide market is shifting towards herbicides due to labour shortages and cost efficiency. While MNCs dominate, Indian firms are gaining ground through innovation. Strengthening local R&D and ensuring environmental safety are key to sustainable growth.

National Cooperative Policy 2025

Context: The Central Government has unveiled the National Cooperative Policy 2025. The government has urged States to announce their own cooperative policies by January 31, 2026, in alignment with the National Cooperative Policy.

Relevance of the Topic:Mains: National Cooperative Policy 2025; Cooperatives: Benefits and Challenges.

What are Cooperatives?

A cooperative is a voluntary association of individuals with common economic, social, and cultural needs and aspirations, who come together to pool resources for mutual benefit. It functions on democratic principles and emphasises collective ownership, shared profits, and participatory decision-making.
The 97th Constitutional Amendment (2011) gave constitutional recognition to cooperatives, adding Part IXB to the Constitution and inserting the term "Cooperatives" in Article 19(1)(c).
Types of Cooperatives: Primary Agricultural Credit Societies (PACS); Dairy cooperatives, Fisheries cooperatives, Urban Cooperative Banks, etc.
There are over 8.6 lakh registered cooperative societies in India covering 30 crore members, covering 99% of villages and 71% of rural households.

Benefits of Cooperatives:

Economic Inclusion: Help small farmers, artisans, and rural entrepreneurs access markets and finance.
Job Creation and Democratic Empowerment: Ensure grassroots participation in economic activities. With over 30 crore members, cooperatives remain a key socio-economic driver, especially in rural India.
Rural Development: Cooperatives enable rural credit, dairy, storage, and agro-processing.

Challenges (As per Shivaji Rao Patil Committee):

Lack of participatory character: Free rider problem where inactive members benefit without contribution. Dominated by elite members and politicians.
Restricted Coverage and Role:
- Equity infusion by the government enables the government to appoint board of directors leading to poor autonomy.
- State Cooperative Acts allow postponing elections and superseding boards.
Regional Skew: Cooperatives are successful only in a few states like Karnataka, Gujarat, Maharashtra. Limited to single-purpose societies like PACs, reducing viability.
Governance related issues: Poor regulation by Registrar of Cooperative Societies. Prevalence of Financial fraud, corruption etc.
Lack of adequate capital as cooperatives cannot raise money from capital markets. Poor use of technology and lack of professional management.

Government Initiatives for Cooperative Sector:

Creation of Ministry of Cooperation (2021) to streamline cooperative growth, policymaking, and digitisation.
Computerisation of PACs.
Income tax relief: Reduction in MAT from 18% to 15% in Union Budget 2023-24.
National Cooperative Database launched to create a real-time, unified registry of all cooperative societies.
Banking Regulation (Amendment) Act, 2020 to strengthen regulation of urban cooperative banks.
Cooperatives as buyers on GeM portal (Government e-Marketplace).

National Cooperative Policy 2025:

Vision: To contribute to India’s collective ambition of becoming ‘Viksit' by 2047 through sustainable cooperative development.
Mission:
- To create an enabling legal, economic, and institutional framework that will strengthen and deepen cooperative movement at grassroots level.
- To facilitate transformation of cooperative enterprises into professionally managed, transparent, technology-enabled, vibrant, and responsive economic entities.
Need for a New Policy: The last cooperative policy was framed in 2002 which was outdated due to the radical shifts brought on by globalisation, digitisation, and socio-economic transformation.

Key Highlights of National Cooperative Policy 2025:

Legislative and Institutional Reforms

Encourage States to amend cooperative laws (Cooperative Societies Acts and Rules) to enhance transparency, autonomy and ease of doing business.
Promote digitalisation of registrar offices and real-time cooperative databases.
Revive sick cooperatives with institutional mechanisms.

Financial Empowerment

Preserve and promote the three-tier Primary Agriculture Credit Societies (PACS) - District Central Cooperative Bank - State Cooperative Bank credit structure.
Promote cooperative banks and umbrella organisations (like National Urban Cooperative Finance & Development Corporation).
Enable cooperative banks to handle government businesses.

Business Ecosystem Development:

Model cooperative villages with multipurpose PACS as growth engines.
Encouraging States/UTs to develop at least one model cooperative village.
Develop rural economic clusters (E.g., honey, spices, tea).

Future-Readiness & Technology:

Develop a national ‘Cooperative Stack’ integrating with Agri-stack and databases.
Promote Open Network for Digital Commerce (ONDC) and Government e-marketplace (GeM) platform integration.
Encourage research and innovation through cooperative incubators and Centres of Excellence.

Inclusivity Measures:

Active participation of youth, women, SC/STs, and differently-abled in cooperatives.
Model bye-laws for gender representation and transparent governance.

Sectoral Diversification:

Promote cooperatives in new and emerging sectors such as:

Renewable energy,
Waste management,
Health and education,
Mobile-based aggregator services (E.g., for plumbers, taxi drivers),
Organic and natural farming,
Biogas and ethanol production, etc.

Implementation and Monitoring

A robust multi-tier implementation structure is proposed:

Implementation Cell within the Ministry of Cooperation with technical Project Management Unit support for effective and timely implementation of the policy.
The National Steering Committee on Cooperation Policy chaired by the Union Cooperation Minister will be constituted for overall guidance, inter-ministerial coordination, periodic policy review, etc.
Policy Implementation and Monitoring Committee headed by the Union Cooperation Secretary for coordination with States, troubleshooting implementation bottlenecks, periodic monitoring and evaluation, etc.

Bio-fortified Potatoes to hit Indian Market soon

Context: The Director-General of the International Potato Center (CIP), based in Peru, has announced that bio-fortified iron-rich potatoes will soon be available in Indian markets.

Relevance of the Topic: Prelims: About Bio-fortification; Bio-fortified Potatoes; International Potato Center.

What is Bio-fortification?

Bio-fortification is a technique of increasing the nutritional value of crops using conventional breeding or biotechnology. E.g., adding iron or vitamins to potatoes.
It helps tackle hidden hunger especially in poor and rural communities.

Why Bio-fortified Potatoes?

Potato is the third most consumed food crop in the world after rice and wheat. Potatoes are rich in carbohydrates, but naturally low in micronutrients. Iron deficiency is a major concern in India, especially among women and children.
Bio-fortified iron-rich potatoes are aimed at addressing iron deficiency and hidden hunger. E.g., Sweet potatoes fortified with Vitamin A are already being used in Karnataka, West Bengal, Assam, and Odisha.

About the International Potato Center (CIP)

CIP is a leading international research organisation focused on tubular crops, especially potatoes and sweet potatoes.
Headquarters: Peru
Collaborates with national governments, research bodies, and private stakeholders.
CIP South Asia Regional Centre to be established in Agra, Uttar Pradesh.

PM E-DRIVE scheme

Context: The PM E-DRIVE (Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement) scheme, launched in 2024 (initially for 2 years), has been extended by two years till March 2028. There will be no extra budget allocated to the extension and remaining funds out of the total outlay of ₹10,900 crore will be utilised.

Relevance of the topic: Prelims- Key provisions of PM E-DRIVE scheme.

About PM E-DRIVE scheme

The ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE)’ came into effect on October 1, 2024, and will remain in force until March 31, 2026.
Outlay: Rs 10,900 crore
Aim: To accelerate the adoption of electric vehicles (EVs), develop essential charging infrastructure, and establish a robust EV manufacturing ecosystem across the country.
Initiative of: Ministry of Heavy Industries
The scheme replaces the earlier FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) Scheme of 2015.

Key Scheme Components:

The PM E-DRIVE scheme is implemented through the following key components:

Subsidies: Demand incentives for electric vehicles such as e-2 wheelers (e-2W), e-3 wheelers (e-3W), e-ambulances, e-trucks, and other emerging categories of EVs.
Grants for creating capital assets: Funding will be provided for the acquisition of electric buses (e-buses), the establishment of a comprehensive network of charging stations, and the upgrading of the Ministry of Heavy Industries (MHI) testing facilities.
Administration of the Scheme including IEC (Information, Education & Communication) activities and fee for project management agency (PMA).

Eligible Categories:

Two Wheelers: The scheme aims to incentivize approximately 24.79 lakh electric two-wheelers (e-2Ws). Only e-2Ws equipped with advanced batteries are eligible for this incentive. Both commercially registered and privately owned e-2Ws can benefit from the scheme.
Three-wheelers: To incentivize around 3.2 lakh electric three-wheelers (e-3Ws), covering registered e-rickshaws/e-carts or L5 category vehicles. Only those e-3Ws with advanced battery technology are qualified for the demand incentive. The scheme is solely applicable to e-3Ws used for commercial purposes.
e-Ambulances:
- Allocation of Rs 500 crore to promote comfortable patient transport.
- Standards: Performance and safety standards to be formulated with MoHFW, MoRTH, and other stakeholders.
e-Buses:
- Allocation of Rs 4,391 crore for procurement of 14,028 e-buses for STUs/public transport agencies.
- Demand Aggregation: Managed by CESL in cities with populations over 40 lakh.
- Preferences: Given to cities/states replacing old STU buses through authorized scrapping centers (RVSFs).
e-Trucks: Fund of Rs. 500 crore allocated to promote the adoption of electric trucks to reduce CO2 emissions. Only those holding a scrapping certificate from MoRTH-approved vehicle scrapping centers (RVSF) are eligible for the incentives.
Public Charging Stations (EVPCS): To establish a robust network of public charging stations, including 22,100 fast chargers for e-4Ws, 1,800 for e-buses, and 48,400 for e-2Ws and e-3Ws. These charging points to be installed in key cities with high electric vehicle penetration and along select highways.
Modernisation of Testing Agencies: Allocation of Rs 780 crore to upgrade and modernize testing agencies under the Ministry of Heavy Industries (MHI) to equip them with new and emerging technologies, thereby promoting green mobility.

Other key provisions of the scheme:

Beneficiaries of the Scheme:
- The scheme primarily targets electric two-wheelers (e-2Ws) and three-wheelers (e-3Ws) registered for commercial use. Privately or corporately owned e-2Ws are also eligible.
- EVs purchased by government departments are not qualified for demand incentives, preventing the transfer of funds within government bodies.
e-Vouchers to avail incentives: The Ministry of Heavy Industries (MHI) is introducing e-Vouchers for EV customers to avail the demand incentive under the scheme.
- The scheme portal will generate an e-KYC Aadhaar FACE authenticated e-Voucher for the customer at the time of purchase.
- This e-voucher will be signed by the buyer as well as the dealer and uploaded on the PM E-DRIVE portal to claim reimbursement of demand incentives under the scheme.

Benefits:

Environmental Impact: Reduce transportation’s environmental footprint and improve air quality with sustainable transportation solutions.
Facilitate establishment of essential EV charging infrastructure.
EV Industry Growth: Promote a competitive and resilient domestic EV manufacturing sector and strengthen the EV supply chain.
Spur investment in the EV sector and create employment opportunities along the value chain.

Inter-State trade on electronic National Agriculture Market (e-NAM) declined in FY25

Context: As per the latest government data, the inter-State trade volume on the electronic-National Agriculture Market (e-NAM) saw a sharp decline of 78% during FY25.

Relevance of the topic:

Prelims: Key facts about electronic National Agriculture Market (e-NAM).

Mains: electronic National Agriculture Market (e-NAM): Implementation Challenges.

About electronic National Agriculture Market (e-NAM)

The Government of India launched the electronic National Agriculture Market (e-NAM) in 2016.
It is a pan-India electronic trading portal that integrates existing physical wholesale mandis and markets across the country to create a unified national market for agricultural commodities.
Implemented by: Small Farmers Agribusiness Consortium (SFAC), under the aegis of Ministry of Agriculture and Farmers’ Welfare.
Objectives:
- Integration of APMCs through a common online market platform to facilitate pan-India trade in agriculture commodities.
- Providing farmers better price for their produce through a transparent auction process based on quality of produce along with timely online payment.
- Removing information asymmetry between buyers and sellers and promoting real time price discovery based on actual demand and supply.

Difference between e-NAM and the existing Mandi System

e-NAM is not a parallel marketing structure but rather a device to create a national network of physical mandis which can be accessed online.
It seeks to leverage the physical infrastructure of the mandis through an online trading portal, enabling buyers situated even outside the Mandi/ State to participate in trading at the local level.
e-NAM offers a “plug-in” to any market yard existing in a State (whether regulated or private).

As of June 2025, over 1520 Mandis are onboarded on e-NAM portal. The total value of agricultural produce traded on the e-NAM portal till the date stands at ₹4.3 lakh crore.

Implementation Challenges faced by e-NAM

Low penetration: Only ~23% of the APMCs across the country are connected using e-NAM, making this facility available to only 25% of farmers in India.
State-level Licensing & APMC Laws: Agricultural marketing is a state subject; many states do not allow reciprocal licence recognition which restricts outside traders. Only a few states have amended their APMC Acts to allow inter-State trade via e‑NAM. As a result, the inter-State trade volume on e-NAM is low, and even declining.
Poor participation of farmers: Most of the small farmers are reluctant to participate in e-NAM, because:
- Small farmers still prefer to sell their produce to local intermediaries as an obligation towards the input credit provided by them.
- Digital payments made under e-NAM are a barrier to the repayment of informal loans that farmers have taken from commission agents.
- Limited awareness of the e-NAM scheme and its benefits among the farmers.
Infrastructural gaps: Inadequate infrastructure such as e-gate passes (entry and exit), quality assaying labs, and underdeveloped IT Infrastructure inhibited the efficient functioning of e-NAMs.
Resistance by Traders and Middlemen as the online system is more accountable and would bring them under the ambit of tax.

Way Forward

Creating an enabling infrastructure: The mandi should take the responsibility to arrange for logistics and transportation that would facilitate inter-mandi trading on e-NAM. This could be done by outsourcing the tasks related to logistics to a third party.
Part-cash and part-online payments to farmers: Farmers at the initial stage should get an option to receive payment partly in cash and the remaining in their bank account. E.g., Madhya Pradesh model.
Liberal licensing:
- States should take proactive steps to liberalise trading licences within their jurisdiction to boost inter-State trade, and enable provisions in APMC Acts for reciprocal recognition of mandi licenses, unified licences etc.
- The existing license of the traders should be upgraded to a unified license that lets them trade across any mandi in the country. The fees to upgrade the license should be nominal.
Ban on conventional trade and mandating the traders to shift to e-NAM.
Providing Incentives to farmers and traders like Agri-input supply coupons etc. to encourage them to participate in e-NAM.

The government plans to rollout e-NAM 2.0 to integrate logistics providers and provide last‑mile logistics. The main features of e-NAM 2.0 would be bank account validation, eKYC features using Aadhaar and onboarding of assaying, grading, logistics and other value added service providers.