Category: Strategy Sessions

6th January 2021| Daily Answer Writing Enhancement

Important Announcement: Topics to be covered on 7th January

GS-1 Modern Indian history from about the middle of the eighteenth century until the present- significant events, personalities, issues.

GS-4 Ethics and Human Interface.

Question 1)

Describe the concept of Role and Role Conflict. Discuss the nature and extent of role conflict among working women in India. 10 marks

Question 2)

As India looks for a productive tenure at the UNSC, five objectives present themselves. Examine the objectives that India should pursue to achieve in its stint as the UNSC member. 10 marks

Question 3)

What India needs is low-input, high-output agriculture. This cannot be achieved without science and technology. In light of this, explore the areas in which India needs to focus on to exploit the technology to make its agriculture productive. 10 marks

Question 4)

Discuss Kautilya’s philosophical basis of governance. 10 marks

Reviews will be provided in a week. (In the order of submission- First come first serve basis). In case the answer is submitted late the review period may get extended to two weeks.

*In case your answer is not reviewed in a week, reply to your answer saying *NOT CHECKED*. If Parth Sir’s tag is available then tag him.

For the philosophy of AWE and payment, check here: Click2Join

January 6, 2021
5th January 2021| Daily Answer Writing Enhancement

Important Announcement: Topics to be covered on 6th January

GS-1 Role of women and women’s organization.

GS-4 Contributions of moral thinkers and philosophers from India and world.

Question 1)

Elucidate the main aspects of the policy of Dhamma as propounded by Ashoka and to what extent are they relevant to present-day India. 10 marks

Question 2)

Changing geopolitical realities will change the U.S.’s approach to India which offers both the countries an opportunity for cooperation in dealing with common concerns and furthering their trade and strategic ties. Comment. 10 marks

Question 3)

What is the significance of disclosure about the use of patent by licensee/patentee in India. How changes in rules about the disclosure could affect compulsory licensing regime in India? 10 marks

Question 4)

What do you understand by Aptitude? How is it different from Intelligence? Explain. 10 marks

Reviews will be provided in a week. (In the order of submission- First come first serve basis). In case the answer is submitted late the review period may get extended to two weeks.

*In case your answer is not reviewed in a week, reply to your answer saying *NOT CHECKED*. If Parth Sir’s tag is available then tag him.

For the philosophy of AWE and payment, check here: Click2Join

January 5, 2021
UPSC CSE 2019 Reserve List released | Check your name here

Dear students

UPSC has just now released the Consolidated Reserve list containing names of 89 candidates who had appeared for UPSC CSE 2019.

Click here to download and view the list

The Reserve List of Civil Services Examination, 2019 is subject to changes, if any, that may be necessitated by the orders pending before courts.

How to prepare for 2021 Prelims: Fill Samanvaya form

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Fill up the following details in Samanvaya form given below to schedule a free one-on-one mentorship session with senior mentors from Civilsdaily. We’ll call you within 24 hours.

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January 4, 2021
4th January 2021| Daily Answer Writing Enhancement

Important Announcement: Topics to be covered on 5th January

GS-1 Salient aspects of Art and Culture.

GS-4 Aptitude.

Question 1)

Discuss the contributions of social reformers of 19th century in the making of modern India. 10 marks

Question 2)

What are the challenges in the regulation of higher education in the country? How National Education Policy 2020 seeks to deal with the issue? 10 marks

Question 3)

Examine the implications of creation of Theatre Commands. What are the challenges in its creation. 10 marks

Question 4)

What factors affect the formation of a person’s attitude towards social problems? In our society, contrasting attitudes are prevalent in many social problems. What contrasting attitudes do you notice about the caste system in our society? How do you explain the existence of these contrasting attitudes. 10 marks

Reviews will be provided in a week. (In the order of submission- First come first serve basis). In case the answer is submitted late the review period may get extended to two weeks.

*In case your answer is not reviewed in a week, reply to your answer saying *NOT CHECKED*. If Parth Sir’s tag is available then tag him.

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January 4, 2021
How to crack IAS 2021?| Also, things you need sorted before starting preparation for IAS 2022 | Fill Samanvaya-1 on 1 session with senior mentors
A well-informed start is always a good start.

Talk to senior mentors from Civilsdaily: Click here and fill Samanvaya form for IAS 2021 and IAS 2022. (also provided at the bottom of this post).

What is the best strategy for IAS 2021 and 2022 exams? How to start preparation? What does UPSC expect? How to cover the syllabus? How to connect current affairs with static? When to start answer writing? How to plan a daily schedule and then follow it..

There are a number of similar questions that you must be facing. IAS preparation is not just about memorizing and information gathering. Before you start you need to get answers to these questions. (Read below about our three-tiered mentoring)

More than 10.5 lakh applied, but only 796 are going to clear IAS 2020. It is going to be much more challenging in 2021 and 2022.

We’ve had a discussion with 1800 aspirants who failed in Prelims 2020. Many had taken multiple attempts before that.

Lack of direction, no guidance, inability to make required necessary changes in their preparation, and an absence of a well-defined strategy were issues common to all. (What issues are you facing? tell us)

Prelims 2020 in many ways was a watershed moment for IAS aspirants. It has highlighted the changing nature of UPSC and to be successful you need to adapt to the expectations of UPSC and adopt a new approach.

For 2021 aspirants, your preparation should be highly outcome-oriented (enabling you to fetch more marks). Every action of yours must be very objectively defined, every step as a part of your strategy. Whatever you are learning must be utilizable in the exam (both pre and mains). Your preparation should have an element of measurability.

Moreover, you need to balance both Prelims and Mains on one hand and current-static-optional on the other. Fill Samanvaya form to know how it should be done.

It’s about how ‘you’ should be doing it instead of how someone else did it. That is the ‘elephant in the room’.

All this stands true for 2022 aspirants as well. This is the right time to start preparation.

Fill Samanvaya form given at the bottom of this post.

Broadly, six factors determine your success in cracking this prestigious IAS exam and the most important being understanding the expectations of UPSC and according to that planning and strategizing; other being, Learning – Knowledge and information; Analyzing – making linkages, connections, etc.; Executing and utilizing information; and Constant course correction – because mistakes are inevitable, need to rectify them asap. Get these in order before you start for IAS 2021/22.

But how to do that? Read below how our three-tiered mentoring will help.

Talk to senior mentors from Civilsdaily: Click here and fill Samanvaya form for IAS 2021/22

Integrate them in your preparation. We’ll tell you how to do it.

Talk to senior mentors from Civilsdaily: Click here and fill Samanvaya form for IAS 2021-22

This is where our 3 tier mentoring comes in:

1. First step starts with this Samanvaya call: Once you fill in the form, our senior mentors will have a 1-to-1 detailed discussion (on-call) with you to understand your prep level, working/ study constraints, current strategies, and create a step by step plan for next week, next month and so on.

2. You are given access to our invite-only chat platform, Habitat where you can connect with mentors, ask your daily doubts, discuss your test-prep questions and have real-time live sessions on news and op-eds, and find your optional groups.

Daily target monitoring.

3. The third and the most personalized tier is the dedicated 1 on 1 mentor allotment who stays with you through the course of your UPSC preparation – always-on chat and on scheduled calls to help you assess, evaluate, and chart the next milestone of your IAS 2021/2022 journey.

Let’s talk. Fill this Samanvaya form (click here)

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Who are you?
1. Working Junta? If you are preparing for IAS 2021/2022 and working simultaneously, we can help you strategize and decipher the IAS exam and design a timetable that fits right in your hectic schedule.
2. First-time prep? If you are in the last year of college or thinking of dropping a year and preparing for IAS 2021/2022 full time, we’ll help you pick the right books and craft a practical & personal strategy.
3. Have appeared before? and weren’t successful. We’ll help you identify your mistakes, rectify them for the necessary course correction. Let this be your final and successful attempt.
You just have to take 5 minutes out and fill this form: Samanvaya For IAS 2021/2022

Once done, we will call you within 24 hours or so.

Abhishek has benefited from Civilsdaily’s approach.

Talk to senior mentors from Civilsdaily: Click here and fill Samanvaya form for IAS 2021-22

Daily target monitoring

These are some of the images from Habitat, our learning platform. It is one of the ways we monitor your progress.

Talk to senior mentors from Civilsdaily: Click here and fill Samanvaya form for IAS 2021-22

Our rankers in 2019

Civilsdaily’s Hall of Fame.

Fill up the following details in Samanvaya form given below to schedule a free one-on-one mentorship session with senior mentors from Civilsdaily. We’ll call you within 24 hours.

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What is the right date and time to call you for one on one mentor-ship? *

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Yes I want Mentorship
January 2, 2021
Recap: Minimum Support Price
Minimum Support Price (MSP) is the assured price at which foodgrains are procured from farmers by the central and state governments and their agencies, for central pool of foodgrains. The central pool is used for providing foodgrains under the Public Distribution System (PDS) and other welfare schemes, and also kept as reserve in the form of buffer stock. However, in the past few months, there have been demands to extend MSP to private trade as well and guarantee MSP to farmers on all kinds of trade.

Is MSP applicable for all crops?

The central government notifies MSP for 23 crops every year before the Kharif and Rabi seasons based on the recommendations of the Commission for Agricultural Costs and Prices, an attached office of the Ministry of Agriculture and Farmers’ Welfare. These crops include foodgrains such as cereals, coarse grains, and pulses. However, public procurement is largely limited to a few foodgrains such as paddy (rice), wheat, and, to a limited extent, pulses.

Since rice and wheat are the primary foodgrains distributed under PDS and stored for food security, their procurement level is considerably high.

How does procurement vary across states?

The procurement of foodgrains is largely concentrated in a few states. Three states (Madhya Pradesh, Punjab, and Haryana) producing 46% of the wheat in the country account for 85% of its procurement. For rice, six states (Punjab, Telangana, Andhra Pradesh, Chhattisgarh, Odisha, and Haryana) with 40% of the production have 74% share in procurement.

The rice and wheat focus
- Procurement of marketed surplus of paddy (rice) and wheat at Minimum Support Price (MSP) completely insulated farmers against any price or market risks. It also ensured a reasonably stable flow of income from these two crops.
- Over time, the technological advantage of rice and wheat over other competing crops further increased as public sector agriculture research and development allocated their best resources and scientific manpower to these two crops.
- Other public and private investments in water and land and input subsidies were the other favourable factors.
- Thus, wheat in rabi and paddy in Kharif turned out to be the best in terms of productivity, income, price and yield risk and ease of cultivation among all the field crops (cereals, pulses, oilseeds).
85% wheat procurement is from three states (2019-20)

76% of the rice procured comes from six states (2019-20)

Punjab, Haryana vs. States

The region comprising Punjab, Haryana and western Uttar Pradesh, was an early adopter of Green Revolution technology. It was also a major beneficiary of various policies adopted to spread modern agriculture technology in the country.
- High productivity, assured MSP which is often above open market price, free power, and fertilizer subsidy underlie the higher income per unit area from wheat and paddy cultivation.
- Land-labour ratio is also very favourable in Punjab when compared to other States; on an average, a farmer owns and cultivates 2.14 hectares net sown area as against 1.42 hectares in Haryana and 1.17 hectares at the national level.
- An estimate of income (derived from National Accounts Statistics) shows that all agriculture activities taken together to generate an annual net income of ₹5.31 lakh per cultivator in Punjab; it is ₹3.44 lakh in Haryana while the all-India average is ₹1.7 lakh (reference year, 2017-18).
How has MSP affected the cropping pattern?

According to the central government’s procurement policy, the objective of public procurement is to ensure that farmers get remunerative prices for their produce and do not have to resort to distress sale. If farmers get a better price in comparison to MSP, they are free to sell their produce in the open market. The Economic Survey 2019-20 observed that the regular increase in MSP is seen by farmers as a signal to opt for crops which have an assured procurement system (for example, rice and wheat).

Declining Incomes
- Loss of growth momentum in the income from the agriculture sector, which has fallen to 1% in Haryana and 0.6% in Punjab after 2011-12.
- With the productivity of rice and wheat reaching a plateau, there is pressure to seek an increase in MSP to increase income. However, demand and supply do not favour an increase in MSP in real terms.
- In India, the per capita intake of rice and wheat is declining and consumers’ preference is shifting towards other foods.
- The average spending by urban consumers is more on beverage and spices than on all cereals. On the supply side, rice production is rising at the rate of 14% per year in Madhya Pradesh, 10% in Jharkhand and 7% in Bihar.
Issues related to procurement
- Limited procurement in different regions.
- MSP leading to farmer preference for the production of few crops like wheat and rice.
- The growing rice production will further increase pressure on the procurement and buffer stock of rice. Rice and wheat procurement in the country has more than doubled after 2006-07 and buffer stocks have swelled to an all-time high.
- The country does not find an easy way to dispose of such large stocks and they are creating stress on the fiscal resources of the government.
- Procurement of almost the entire market arrivals of rice and wheat at MSP for more than 50 years has affected the entrepreneurial skills of farmers to sell their produce in a competitive market where prices are determined by demand and supply and competition.
Environmental issues, unemployment
- The biggest casualty of paddy cultivation and the policy of free power for pumping out groundwater for irrigation is the depletion of groundwater resources.
- In the last decade, the water table has shown a decline in 84% observation wells in Punjab and 75% in Haryana.
- In the last couple of years, the burning of paddy stubble and straw has become another serious environmental and health hazard in the whole region.
- Another rather more serious challenge for the two States is to provide attractive employment to rural youths. Most of the farm work in these two States is undertaken by migrant labour.
Is MSP mandatory for private trade as well in some states?

MSP is not mandatory for purchase of foodgrains by private traders or companies. It acts as a reference price at which the government and its agencies procure certain foodgrains from farmers.

In September 2020, the central government enacted a new farm law which allows anyone with a PAN card to buy farmers’ produce in the ‘trade area’ outside the markets notified or run by the state Agricultural Produce Marketing Committees (APMCs). Buyers do not need to get a license from the state government or APMC, or pay any tax to them for such purchase in the ‘trade area’. These changes in regulations raised concerns regarding the kind of protections available to farmers in the ‘trade area’ outside APMC markets, particularly in terms of the price discovery and payment.

In October 2020, Punjab passed a Bill in response to the central farm law to prohibit purchase of paddy and wheat below MSP. Any person or company compelling or pressurising farmers to sell below MSP will be punished with a minimum of three-year imprisonment and a fine.

Similarly, in November 2020, Rajasthan passed a Bill to declare those contract farming agreements as invalid where the purchase is done below MSP. Any person or company compelling or pressurising farmers to enter into such an invalid contract will be punished with 3 to 7 years of imprisonment, or a fine of minimum five lakh rupees, or both. Both these Bills have not been enacted yet as they are awaiting the Governors’ assent.

Way forward
- The solution to the ecological, environmental and economic challenges facing agriculture in the traditional Green Revolution States is not in legalizing MSP but to shift from MSP crops to high-value crops and in the promotion of non-farm activities.
- Rather than focusing on a few enterprises, Punjab and Haryana should look at a large number of area-specific enterprises to avoid gluts.
- This will require a mechanism to cover price and market risks. Farmers’ groups and farmer producer organizations can play a significant role in the direct marketing of their produce.
To encourage crop diversification and thereby reduce the consumption of water, some state governments are taking measures to incentivise farmers to shift away from paddy and wheat. For example, Haryana has launched a scheme in 2020 to provide Rs 7,000 per acre to those farmers who will use more than 50% of their paddy area (as per the area sown in 2019-20) for other crops. The farmers can grow maize, bajra, pulses, or cotton in such diversified area. Further, the crop produce grown in such diversified area under the scheme will be procured by the state government at MSP.
- Both Punjab and Haryana need to promote economic activities with strong links with agriculture tailored to State specificities.
- Some options for this are: promotion of food processing in formal and informal sectors; a big push to post-harvest value addition and modern value chains; a network of agro- and agri-input industries; high-tech agriculture; and a direct link of production and producers to consumers and consumers without involving intermediaries.
- The traditional Green Revolution States of Punjab and Haryana would need to shed “business as usual” approach and embrace an innovative development strategy in agriculture and non-agriculture to secure and improve the future of farming and rural youth.
References:-

https://www.thehindu.com/opinion/lead/punjab-haryana-need-to-look-beyond-msp-crops/article33339838.ece

https://www.prsindia.org/theprsblog/examining-urban-local-governance-india-through-case-bengaluru
January 2, 2021
IAS Mains 2020: Important points for Essay paper | Playlist inside

Dear students,

IAS mains 2020 is just around the corner. Essay paper is a major differentiator the in mains exam. It is advisable to write at least two essays before your actual paper.

We are sharing with you some of the important pointers for Essay paper shared by Zeeshan sir in this four video playlist. Go through all of them quickly.

250 Most Probable Topics for IAS Mains 2020

Get your preparation for IAS Mains exam fully covered with revision of most important topics.

Click here for 250 Most Probable Topics with Questions for IAS Mains 2020

This compilation contains issues and topics that have a high probability of being asked in Mains 2020 and beyond.

We’ve covered these issues in a holistic manner so that you would be fully covered to answer any question from these topics. There are probable questions from the topics covered as well. We’ll be discussing these and other questions in Habitat sessions.

For any query reach out to us at +91 89299 87787 or hello@civilsdaily.com

December 31, 2020

Recap: New Labour laws

Another important topic for mains is the reforms in the labour laws. Revise this topic again with this piece of article.

The Parliament has passed new versions of three labour codes — Industrial Relations Code Bill, 2020, Code on Social Security Bill, 2020 and Occupational Safety, Health and Working Conditions Code Bill, 2020.
The Code on Social Security 2020, which received the Presidential Assent on 28 September 2020, subsumes major regulations relating to social security, retirement and employee benefits.

What is Social Security?

Social security is “any government system that provides monetary assistance to people with an inadequate or no income”.
It refers to the action programs of an organization intended:
to promote the welfare of the population through assistance measures guaranteeing access to sufficient resources for food and shelter and
to promote health and well-being for the population at large and potentially vulnerable segments such as children, the elderly, the sick and the unemployed

Why need Social Security?

India has a very basic social security system catering to a fairly small percentage of the country’s workforce.
Traditionally, Indians relied on their extended families for support in the event of illness or other misfortunes.
However, due to migration, urbanization, and higher social mobility, family bonds are less tight and family units much smaller than they used to be.

Social Security System in India

India’s social security system is composed of a number of schemes and programs spread throughout a variety of laws and regulations.
Keeping in mind, however, that the government-controlled social security system in India applies to only a small portion of the population.
Furthermore, the social security system in India includes not just an insurance payment of premiums into government funds (like in China), but also lump sum employer obligations.

Generally, India’s social security schemes cover the following types of social insurances:

Pension
Health Insurance and Medical Benefit
Disability Benefit
Maternity Benefit
Gratuity

While a great deal of the Indian population is in the unorganized sector and may not have an opportunity to participate in each of these schemes, Indian citizens in the organized sector (which include those employed by foreign investors) and their employers are entitled to coverage under the above schemes.

Code on Social Security 2020

The 3 bills which were passed are

Industrial Relations Code, 2020
Code on Occupational Safety, Health & Working Conditions Code, 2020 &
Social Security Code, 2020

All the labour laws (29 in number) being amalgamated into 4 labour codes are :

Name of the Code	Amalgamated laws
Wage Code	4 laws – The Payment of Wages Act, 1936 The Minimum Wages Act, 1948 The Payment of Bonus Act, 1965 The Equal Remuneration Act, 1976
IR Code	3 laws – The Trade Unions Act, 1926 The Industrial Employment (Standing orders) Act, 1946 The Industrial Disputes Act, 1947
OS Code	13 laws – The Factories Act, 1948 The Plantations Labour Act, 1951 The Mines Act, 1952 The Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 The Working Journalists (Fixation of Rates of Wages) Act, 1958 The Motor Transport Workers Act, 1961 The Beedi and Cigar Workers (Conditions of Employment) Act, 1966 The Contract Labour (Regulation and Abolition) Act, 1970 The Sales Promotion Employees (Conditions of Service) Act, 1976 The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 The Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981 The Dock Workers (Safety, Health and Welfare) Act, 1986 The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
Social Security Code	9 laws – The Employees’ Compensation Act, 1923 The Employees’ State Insurance Act, 1948 The Employees Provident Fund and Miscellaneous Provisions Act, 1952 The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 The Maternity Benefit Act, 1961 The Payment of Gratuity Act, 1972 The Cine Workers Welfare Fund Act, 1981 The Building and Other Construction Workers Welfare Cess Act, 1996 The Unorganised Workers’ Social Security Act, 2008

Here are the key features of these bills:

(A) Social Security Code, 2020

The facility of ESIC would now be provided in all 740 districts. At present, this facility is being given in 566 districts only.
EPFO’s coverage would be applicable to all establishments having 20 workers. At present, it was applicable only on establishments included in the Schedule.
Provision has been made to formulate various schemes for providing comprehensive social security to workers in the unorganised sector.
A “Social Security Fund” will be created on the financial side in order to implement these schemes.
Work to bring newer forms of employment created with the changing technology like “platform worker or gig worker” into the ambit of social security has been done in the Social Security Code.
Provision for Gratuity has been made for Fixed Term Employee and there would not be any condition for minimum service period for this.
With the aim of making a national database for unorganised sector workers, registration of all these workers would be done on an online portal and this registration would be done on the basis of Self Certification through a simple procedure.

(B) Occupational Safety, Health & Working Conditions Code, 2020

Free health checkup once a year by the employer for workers which are more than a certain age.
A legal right for getting Appointment Letter given to workers for the first time.
Cine Workers have been designated as Audio Visual Worker so that more and more workers get covered under the OSH code. Earlier, this security was being given to artists working in films only.

(C) Industrial Relations Code, 2020

Efforts made by the Government for quickly resolving disputes of the workers include:

Compulsory facility for Helpline for redressal of problems of migrant workers.
Making a national database of migrant workers.
Provision for the accumulation of one day leave for every 20 days worked when work has been done for 180 days instead of 240 days.
Equality for women in every sphere: Women have to be permitted to work in every sector at night, but it has to be ensured that provision for their security is made by the employer and consent of women is taken before they work at night.
In the event of the death of a worker or injury to a worker due to an accident at his workplace, atleast 50 % share of the penalty would be given. This amount would be in addition to Employees Compensation.
Provision of “Social Security Fund” for 40 Crore unorganized workers alongwith GIG and platform workers and will help Universal Social Security coverage
Occupational Safety & Health Code to also can now over cover workers from IT and Service Sector.
14 days notice for Strike so that in this period amicable solution comes out.

Now let’s look up at the various loopholes of these Bills one by one:

A. The Code on Social Security, 2020

No robust entitlements:

To begin, the Code does not emphasise social security as a right, nor does it make reference to its provision as stipulated by the Constitution.
In addition, it does not stipulate a clear date for enforcement, which will leave millions of workers vulnerable without clear social protections.

2. No universalization

A model scheme covering the issues such as education, health, social security, pensions and other benefits which can assure a dignified life for workers.
It is essential that social security protections be made universal for the entire Indian workforce, i.e. that such protections be universal.
Instead of this, the Code makes arbitrary categorizations that will leave millions of working poor out of its protections. While the Code defines multiple categories, most definitions are ambiguous.

3. Migrant workers find NO special mention

Interstate migrant workers should have been mentioned as a separate category with the establishment of a sizable Welfare Fund with contributions by sending and receiving states and employers.
Given the particular distress faced by such workers in the last few months, there are no provisions established for migrant workers who face very specific vulnerabilities.
There is not even a provision for the portability of social security which takes into account their continuous movement within the country.
There is no consideration for unemployment protection for unorganised workers, which is particularly important at times of great recession and crisis.

4. Pro-employer

Finally, the Code makes it easier for employers to flout legally required social protection for workers.
For instance, there is no stringent penalty for non-contribution of Provident Fund dues by employer/contractor.
As an effective deterrent and policy tool to ensure timely payment of dues, penal provisions should be incorporated for large employers who have the capacity to pay regular Provident Fund contributions.

B. The Occupational Safety, Health and Working Conditions Code, 2020

Ignores key economic activities

The Code excludes many branches of economic activities, most notably, the agriculture sector which employs more than 50% of total working population of India.
Further, the employees in other unorganised sectors such as small mines, hotels & eating places, machinery repairs, construction, brick kilns, etc find no mention.
Also those employed as informal workers in organized sectors, including new and emerging sectors such as IT and IT enabled services, digital platforms, e-commerce, have also not found coverage under the Code.

2. Ambiguous occupational safety

It is appalling that the Code has got away by not fixing any responsibility on employers with respect to safety and health.
It does not specify even minimum standards for Occupation Safety and Health, or daily and weekly working hours and everything has been delegated to the Central government to be stipulated through notification.
A minimum Occupation Safety and Health standard should have been specified in the Code itself.

3. Issue of fair treatment

The Code does not contain any provisions for equal treatment for contract labour that perform work of a similar nature as that of permanent workers in the same establishment.
Contract labour that is engaged in similar work in the same establishment should have been treated on par with permanent workers in the matter of wages and other conditions of employment.

C. The Industrial Relations Code, 2020

Restrictions on ‘Freedom of Association’

The definition of strike has been broadened to include “the concerted casual leave on a given day by fifty percent or more workers employed in an industry”.
This constrains workers’ ability to participate in collective bargaining processes and demonstrations.
Beside this, there are several restrictions made on right to strike – workers will be subject to penal sanctions for the mere fact of organizing or participating in a peaceful strike.
Imposing such sanctions on strikes that are justified amounts to a grave violation of the principles of freedom of association.

2. Definitional issues

The definition of “industry” includes terms like “charitable”, “philanthropic”, “social”, etc. which are undefined and can be misused.
A manufacturer of sanitary pads or toilet paper, for instance, may claim to be a social activity and therefore not an industry.
The change in the definition of “wage” is either the result of muddled thinking or made with malicious intent.
It will have the effect of reducing retrenchment compensation, subsistence allowance etc., which is deplorable.

3. Fixed-term contracts

There is an institutionalization of “fixed term contracts” as tenure of employment.
Workers employed on a fixed term basis may be terminated on the completion of their contract, even while there is an actual need for their services.
In other words, they may be terminated from service without any just and reasonable cause. This will further create instability and massive labour market unrest.
The fixed term employment does not guarantee the right to receive notice or wages in lieu of notice prior to the termination of services.

Conclusion

The government needs to work more to recognise that focusing on economic growth without redistribution of wealth leads to jobless growth and socially unaccountable prosperity.
Every law has to aim to maintain the best possible balance between competing interests and should try to give as much comfort to the weaker of the two sides, as much possible in the larger interest of our nation.
Ultimately these laws will be as good as their implementation, mere letters of law have no meaning.
The government has to ensure that they are implemented with honesty and integrity, then only the country will be able to achieve the desired goal of speeding up economic growth and unleashing the untapped potential of thousands and thousands of our industries, businesses and entrepreneurs to take the nation to new heights.

References

https://www.prsindia.org/billtrack/code-social-security-2020

https://www.financialexpress.com/money/the-code-on-social-security-2020-how-will-this-new-labour-code-benefit-employees-workers/2098269/

https://scroll.in/article/973877/why-the-new-labour-codes-leave-workers-even-more-precariously-poised-than-before

December 31, 2020

Recap: Fiscal stimulus and COVID

“In an economy that is overleveraged to historic proportions, economic stimuli may not do the trick.”
– Kenneth Eade

Another topic to look into this mains season is the effect of covid on various other systems like financial, health, and social. Recap one of the relationship of covid with economics.

What is a Fiscal Stimulus?

A ‘stimulus’ is an attempt by policymakers to kick-start a sluggish economy through a package of measures. A monetary stimulus will see the central bank expanding money supply or reducing the cost of money (interest rates), to spur consumer spending. A fiscal stimulus entails the Government spending more from its own coffers or slashing tax rates to put more money in the hands of consumers.

Need for a fiscal stimulus

With monetary policy, both conventional and unconventional, having reached the limits of its effectiveness in most of the advanced industrial countries, the only instrument left for boosting demand is fiscal policy. There are calls for a government stimulus package to revitalize the economy.

(1) Powering the Demand

When demand in an economy stays weak for long, businesses stop investing in new projects, unemployment rises, income shrinks and consumer confidence wanes. This prompts consumers to retreat further.
A stimulus could shot to consumer spending; it revives business confidence, restarts projects, creates jobs and sets off a virtuous cycle of feel-good, demand and growth.

(2) Boosting the Employment

Many people have lost their jobs or seen their incomes cut due to the coronavirus crisis.
Unemployment rates have increased across major economies as a result.

(3) Risking away the recession

The IMF says that the global economy will shrink by 3% this year. It described the decline as the worst since the Great Depression of the 1930s.
If the economy has to grow, it generally means more wealth and more new jobs and more spending, which is difficult without a stimulus package.

(4) Business resumption

The COVID-19 pandemic came as a major blow to almost every sector of our economy and has created a credit-crunch. With most business permanently shut, others are crippled and reluctant to resume their business.
Almost all manufacturing industries were affected by the crisis. Pharma was actually identified as one of the very few “winners”, while motor vehicles were (and continues to be) one of the biggest “losers”.

Precautions necessary before ANY stimulus decision

Today’s stimulus measures have understandably been rolled out in haste — almost in a panic — to contain the economic fallout from the pandemic. Bad policies can contribute to inequality, sow instability, and undermine political support for the government precisely when it is needed to prevent the economy from falling.

(1) Fear of liquidity trap

During periods of deep uncertainty, precautionary savings typically rise as households and businesses hold on to cash for fear of what lies ahead.
A liquidity trap is a situation in which, “after the rate of interest has fallen to a certain level, liquidity preference may become virtually absolute in the sense that almost everyone prefers holding cash.
Without a massive injection of emergency liquidity, there probably would have been widespread bankruptcies, losses of organisational capital, and an even steeper path to recovery.

(2) Inflationary outcomes

The fiscal response is driven by the need to arrest a major slowdown in economic growth. However, there could be medium-term risks to the future inflation path, in the absence of timely fiscal consolidation.
A sudden spike in demand is highly inflationary in nature.

(3) Strain on the exchequer

Fiscal stimulus is warranted especially expenditures on health, food and income support for vulnerable households, and support for businesses.
This is likely to have a considerable impact on the government exchequer and the overall expenditure of the government on key sectors.

(4) Deterioration of public finances

India’s fiscal deficit in 2019-20 stood at around Rs 7.7 lakh crore, i.e. 3.8% of GDP. Hence, India’s fiscal room to opt for a massive stimulus appears much more limited.
Any aggressive stimulus spending will not only result in a surge in India’s gross public debt but will also negatively impact its credit ratings, highlighting the country’s fiscal conundrum.

India’s response to pandemic

The COVID-19 pandemic has laid bare our pre-existing fault lines and exposed the country to an unprecedented crisis. This situation has led to bold policy measures by governments at all tiers.

The Indian fiscal response is thus much weaker than what has been seen in advanced economies, but it is broadly in line with the average for emerging markets.

FISCAL	MONETARY
Economic Relief Package under Pradhan Mantri Garib Kalyan Yojana worth Rs 1.75 lakh crore (roughly 0.8% of the GDP).	Repo rate and Reverse Repo rate reduced to 4.4% and 4% respectively on March 27 in an effort to boost liquidity into the system.
Direct food, cooking gas and cash transfers to selected sections of the lower-income households.	Liquidity measures worth Rs 3.7 trillion via Long Term Repo Operations (LTRO) and a reduction of 100bps in Cash Reserve Ratio (CRR).
Insurance coverage for workers in the healthcare sector and wage support to low wage workers in terms of benefits for those currently working, as well as those who might lose their jobs.	Provided relief to customers and lenders by granting a 3-month moratorium on loan repayments. SEBI has also relaxed its norms related to debt default on rated instruments.
Additional Rs 150 billion (roughly 0.1% of GDP) to be devoted to health infrastructure. Several measures to ease tax burden, including postponing compliance deadlines.	Second round of measures which include Rs 50,000 crore liquidity for NBFCs and MFIs via TLTRO 2.0, Reverse Repo rate reduced to 3.75% to kickstart investments, WMA limit for state governments increased.

PM also announced Rs. 20 lakh crore packages for farmers, cottage industry, MSMEs, labourers, middle class etc., titled the Atmanirbhar Bharat Abhiyan in various tranches. These measures contain both fiscal and monetary measures combined into a single package.

International experience with the stimulus

India has surpassed almost all others in the stringency of its containment measures. However in terms of expenditure, India’s response isn’t that promising.

India’s fiscal stimulus to date, estimated at ₹1.7 trillion, is less than 1% of the country’s GDP, which is paltry compared to the magnitude of stimulus injections undertaken by many East Asian countries such as Japan (20%), Malaysia (16.2%) and Singapore (12.2%).
Even, Vietnam, Indonesia, Pakistan, and Egypt, all while averaging less stringent measures than those in India, have announced stimulus measures that are as large or more substantial, as a share of GDP.
Countries have also significantly expanded coverage of their cash transfer programmes from pre-COVID-19 levels; Bangladesh and Indonesia have increased the number of beneficiaries by 163% and 111%, respectively. Indonesia’s cash schemes now cover more than 158 million people (or 60% of the population).
Developing countries are resorting to drastic means to finance COVID-19 responses. Actions so far include the amendment of legal budget limits and the enhanced issuance of bonds — including a ‘pandemic bond’ by Indonesia.
Many developing countries have a dual strategy of providing immediate aid to workers who have been laid off and feeding poor families, while also trying to keep firms afloat. Indonesia, Vietnam, Bangladesh and China have all announced tax relief — in the form of deferments or reductions — for small and medium-sized enterprises (SMEs) in hard-hit regions.
Brazil has also created a $10 billion (₹760 bn) programme to allow businesses affected by COVID-19 to reduce workers’ salaries and hours by up to 70%, with the government partially compensating workers for up to three months.
One important omission from the Indian response is such direct wage support for micro, small, and medium enterprises, which account for the bulk of employment.

While we might not be able to match these advanced economies in terms of financial resources, we can implement policies on a similar scale.

“It is important that we note the weaknesses in our financial system, and work toward implementing solutions before the next crisis roars.”

Analysis of India’s response

The whole world is commending India’s efforts and bold initiatives that have prioritized “life over livelihood”. Based on the figures, it is safe to say that India has spent a lot less, especially on the fiscal front in terms of stimulus packages introduced by governments, as compared to other countries.

One might argue that these responses cannot be compared to each other due to two main reasons.

First, the number of cases as well as the rate at which they are increasing is much less in India due to the early implementation of lockdown.
And second, India’s economy is much more different than the ones whose data has been mentioned above, so it is not at all necessary for the same measures to be effective for our country as well.

However, the economic crises faced by all these countries do share some common ground. Here’s what we can derive from this data:

1) Sectors like small businesses and MSMEs have been adversely affected by this crisis in all countries irrespective of how developed they are. India is yet to address their issues directly; hence, a strong assumption is that we will soon see measures from the government’s side to provide them with some relief.

2) India’s healthcare system is hardly as developed and advanced as in the above-mentioned countries. And yet, the amount these countries have allocated to this sector is much higher.

3) Unemployment is on the rise everywhere. A report by the ILO said that more than 40 crore Indian workers in the unorganised sector are expected to lose their jobs. Hence, printing more money in order to give it directly to people in these times as income, something which is already being done in countries like the US and UK, is worth considering for India as well.

4) Special focus has been given to worst affected industries like airlines, travel and e-commerce in these countries. We are yet to see something similar in India.

Moving ahead: India needs to spend more

Under the ambit of fiscal policy, first, the government should front-load its $250 billion spending plan under the National Infrastructure Pipeline.
Second, it should announce a sizeable package to compensate, at least partially, the irrecoverable loss of income suffered by the Indian industry, be it big, small, or medium.
Third, this is an opportunity for India to position itself as the next global manufacturing hub in sectors such as textiles, food processing, pharma, and metals (particularly steel). Trade, tax and investment policies should be calibrated accordingly to achieve this.

Under the ambit of monetary policy, following steps can amplify the impact of fiscal measures.

First, banks must extend term loans and working capital to Indian industry with a government backstop for the first loss up to 25%. The government needs to provide credit protection to the banking system.
Second, banks should have discretion and flexibility to undertake loan restructuring aimed at ensuring the stability of operations across several sectors.
Third, a sharp reduction in lending rates is imperative. While the policy rate has fallen by 210 basis points, transmission to industry has been less than 60 basis points.
Fourth, banks must defer loan and interest payments by at least one year, as industry needs time to generate free cash flows.

Three T’s for optimum impact

To have the greatest impact with the least long-run cost, the stimulus should be timely, temporary, and targeted.

Timely, so that its effects are felt while economic activity is still below potential; when the economy has recovered, the stimulus becomes counterproductive
Temporary, to avoid raising inflation and to minimize the adverse long-term effects of a larger budget deficit, and
Well-targeted, to provide resources to the people who most need them and will spend them: for fiscal stimulus to work, it is essential that the funds be spent, not saved.

We can hope that the above steps are taken expeditiously and translated into action on the ground to reboot the Indian economy at the earliest.

Conclusion

In conclusion, the ongoing debate might be a misleading factor to judge our response to this crisis. And it definitely doesn’t mean what we’re doing is enough. This crisis happens to be an uncertain and unprecedented one; holding back on spending clearly doesn’t seem to be an option for the Indian government right now.

Maintaining the overall fiscal discipline, the government must not worry about the fiscal deficit, as reviving the economy is the need of the hour, even if it comes at the cost of high inflation, though such an outcome is unlikely.

References

https://www.livemint.com/opinion/columns/opinion-stimulus-is-the-need-of-the-hour-for-a-reboot-of-economic-activity-11587924077595.html

https://www.business-standard.com/article/opinion/which-economic-stimulus-works-120060901820_1.html

https://www.cbgaindia.org/study-report/numbers-edge-assessing-indias-fiscal-response-covid-19/

https://thewire.in/economy/liquiduty-fiscal-stimulus-covid-19-relief

https://bfsi.economictimes.indiatimes.com/news/policy/india-v/s-the-world-response-to-the-coronavirus-economic-crisis/75284378

https://www.thehindu.com/opinion/op-ed/the-covid-19-fiscal-response-and-indias-standing/article32154153.ece

December 30, 2020

[Burning Issue] India- Bangladesh: The economic comparison
India, the fastest-growing major economy, is seen as the powerhouse of South Asia, but this may soon change. Having already stolen a march over India on key social indices, small neighbour Bangladesh is now on the verge of establishing a lead on the economic front too.
- The recent debate in India-Bangladesh relations has erupted since the GDP projections by the International Monetary Fund this year.
- It has suddenly dawned upon the critics; media and expert commentators that Bangladesh has managed to build a thriving economy primarily dependent on export markets.
- Their economic success is being contrasted with the economic contraction in India due to the pandemic and lockdowns.
Centrestage of the debate: The economic comparison
- According to the IMF’s medium-term forecasts, Bangladesh’s per capita GDP is expected to overtake India’s this year.
- Over the five-year period ending in 2025, Bangladesh’s per capita GDP is expected to grow at a slightly higher pace.
- It implies that in 2025, it’s per capita income would be $2,756, marginally higher than that of India’s at $2,729.
Why it matters?
- Typically, countries are compared on the basis of GDP growth rate, or on absolute GDP.
- For the most part since Independence, on both these counts, India’s economy has been better than Bangladesh’s.
- However, per capita income also involves another variable — the overall population — and is arrived at by dividing the total GDP by the total population.
Why does India lag behind?

There are three reasons why India’s per capita income has fallen below Bangladesh this year:
1. The first thing to note is that Bangladesh’s economy has been clocking rapid GDP growth rates since 2004.
2. Secondly, over the same 15-year period, India’s population grew faster (around 21%) than Bangladesh’s population (just under 18%).
3. Lastly, the most immediate factor was the relative impact of Covid-19 on the two economies in 2020.
This is not the first time that Bangladesh plunged ahead of India. In 1991, when India was undergoing a severe crisis and grew by just above 1%, Bangladesh’s per capita GDP surged ahead of India’s. Since then, India again took the lead.

How has Bangladesh managed to grow so fast and so robustly?

Formed from the poorest regions of Pakistan, Bangladesh has come a long way since its independence in 1971. However, moving away from Pakistan also gave the country a chance to start afresh on its economic and political identity.

(1) Low wages
- With wages in China rising, it has vacated about $140 billion in exports of unskilled labour-intensive sectors, including apparel, clothing, leather and footwear.
- Bangladesh being the low on wages successfully managed to harness the situation.
(2) Garment industry
- A key driver of growth was the garment industry where women workers gave Bangladesh the edge to corner the global export markets from which China retreated.
- It also helps its economy such that its GDP is led by the industrial sector, followed by the services sector. Both of these sectors create a lot of jobs and are more remunerative than agriculture.
(3) Diversification of labour
- Its labour laws were not as stringent and its economy increasingly involved women in its labour force.
- This can be seen in higher female participation in the labour force.
(4) Focus on developmental metrics
- Beyond economics, a big reason for Bangladesh’s progressively faster growth rate is that especially over the past two decades it improved on several social and political metrics.
- It included parameters such as health, sanitation, financial inclusion, and women’s political representation.
(5) Inclusive growth
- On financial inclusion, according to the World Bank’s Global Findex database, while a smaller proportion of its population has bank accounts, the proportion of dormant bank accounts is quite small when compared to India.
- This is the same reflected by the per capita GDP comparison which has triggered this BI.
(6) Gendered development
- Bangladesh is also far ahead of India in the latest gender parity rankings. This measures differences in the political and economic opportunities as well as the educational attainment and health of men and women.
- Out of 154 countries mapped for it, Bangladesh is in the top 50 while India languishes at 112.
Growing Bangladesh: An uneasy journey

The past 15 years have witnessed a tremendous turnaround in Bangladesh’s standing in the world. It has left Pakistan far behind and extricated itself from the tricky initial years to establish a democratic system. But its progress is still iffy.
- Poverty: Its level of poverty is still much higher than India’s. Moreover, it still trails India in basic education parameters and that is what explains its lower rank in the Human Development Index.
- Work hazards: But Bangladesh’s biggest worry is not on the economic front. Its loosely regulated garment industry is known to cut corners on labour safety and the onerous work conditions.
- Political turmoil: The bigger threat to its prospects emerges from its everyday politics. The leading political parties are routinely engaged in violent oppression of each other.
- High corruption: In the 2019 edition of Transparency International’s rankings, Bangladesh ranks a low 146 out of 198 countries (India is at 80th rank; a lower rank is worse off).
- Rise in Radicalism: Add to this a massive surge of radical Islam, which has resulted in several bloggers being killed for speaking out unpopular views.
These developments have the ability not just to arrest Bangladesh’s progressive social reforms that have empowered women but also to derail its economic miracle.

Instructive comparison: A way forward
- In part, Bangladesh’s recent economic performance, and differences between the two countries can be traced to the former’s stellar export performance, especially in garments and apparel.
- In comparison, India’s exports have remained sluggish, as export pessimism has taken hold.
- In the current context, with three of the four drivers of growth struggling, exports could provide the much-needed fillip to India’s economy.
- However, this would require India to reverse its recent stance on trade — lower rather than raise tariffs, embrace free trade agreements, and seek greater integration with global supply chains.
- This will provide India yet another opportunity. However, this will require the government to pivot away from protectionism.
We must look inwards
- Such comparisons are fundamentally flawed and if we were to undertake such comparisons then we must also seek accountability for how India’s per capita income fell drastically.
- There are two compelling issues here that need to be adequately discussed.
- First pertains to the comparisons being made, and the second with regards to our sudden realization of the fact that we need to catch up.
- Bangladesh will at some point have a higher per-capita income than India because India has a higher population.
- So even though we have a higher GDP in absolute levels, the per capita figure could be smaller in future years.
Bangladesh is doing well on the economic front must be appreciated as its augurs well for the global economy – and for the global fight against poverty. It must be viewed as a lesson, a reinforced lesson that our failure to embrace reforms would systematically result in us lagging.

Conclusion

Although the leaders of Bangladesh and India have similar goals, the difference in the country’s development models is making for an interesting experiment.
- Bangladesh has seen both structural transformation and the rise of sectors capable of generating decent foreign exchange earnings, which has helped policymakers sustain comfortable macroeconomic fundamentals.
- To sustain such economic progress in India, there is a need to improve core governance challenges — weak tax mobilization capacity, an over-burdened commodity basket, inadequate capacity — that have plagued almost all South Asian countries.
With many parts of the world quickly losing faith in the doctrine of free trade, and larger trading blocs increasingly veering towards protectionism, India needs to thoroughly examine its self-reliance policy in context within which it competes.

References

https://swarajyamag.com/economy/india-bangladesh-per-capita-gdp-comparison-wasted-decades-cannot-be-compensated-for-in-months

https://theprint.in/economy/bangladesh-is-better-off-than-india-not-a-poor-backward-neighbour-anymore/132363/

https://indianexpress.com/article/explained/india-gdp-bangladesh-gdp-indian-economy-6748867/

https://indianexpress.com/article/opinion/editorials/world-economy-covid-19-recession-imf-report-6745957/
December 29, 2020
Recap: Agricultural Reform Bills 2020
As the farmers of Punjab and Haryana are protesting on the Delhi border against 3 farmer bills by the Centre, the topic becomes important for upcoming mains. So, let us recap the burning issues article related to these 3 bills.

What are these ordinances?
1. The Farmers Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020;
2. The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020; and
3. The Essential Commodities (Amendment) Ordinance, 2020 (It is the Bill replacing the third that has been passed in Lok Sabha)
Let us study their key features:

(1) The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020
- Trade of farmers’ produce: The Ordinance allows intra-state and inter-state trade of farmers’ produce outside: (i) the physical premises of market yards run by market committees formed under the state APMC Acts and (ii) other markets notified under the state APMC Acts. Such trade can be conducted in an ‘outside trade area’, i.e., any place of production, collection, and aggregation of farmers’ produce including (i) farm gates, (ii) factory premises, (iii) warehouses, (iv) silos, and (v) cold storages.
- Electronic trading: The Ordinance permits the electronic trading of scheduled farmers’ produce (agricultural produce regulated under any state APMC Act) in the specified trade area. The following entities may establish and operate such platforms: (i) companies, partnership firms, or registered societies, having permanent account number under the Income Tax Act, 1961 or any other document notified by the central government, and (ii) a farmer producer organisation or agricultural cooperative society.
- Market fee abolished: The Ordinance prohibits state governments from levying any market fee, cess or levy on farmers, traders, and electronic trading platforms for the trade of farmers’ produce conducted in an ‘outside trade area’.
(2) The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020
- Farming agreement: The Ordinance provides for a farming agreement between a farmer and a buyer prior to the production or rearing of any farm produce. The minimum period of an agreement will be one crop season, or one production cycle of livestock. The maximum period is five years, unless the production cycle is more than five years.
- Pricing of farming produce: The price of farming produce should be mentioned in the agreement. For prices subjected to variation, a guaranteed price for the produce and a clear reference for any additional amount above the guaranteed price must be specified in the agreement. Further, the process of price determination must be mentioned in the agreement.
- Dispute Settlement: A farming agreement must provide for a conciliation Board as well as a conciliation process for settlement of disputes. If the dispute remains unresolved by the Board after thirty days, parties may approach the Sub-divisional Magistrate for resolution. Parties will have a right to appeal to an Appellate Authority (presided by collector or additional collector) against decisions of the Magistrate. Both the Magistrate and Appellate Authority will be required to dispose of a dispute within thirty days from the receipt of application. They may impose certain penalties on the party contravening the agreement.
(3) The Essential Commodities (Amendment) Ordinance, 2020
- Regulation of food items: The Essential Commodities Act, 1955 empowers the central government to designate certain commodities (such as food items, fertilizers, and petroleum products) as essential commodities. The Ordinance provides that the central government may regulate the supply of certain food items including cereals, pulses, potatoes, onions, edible oilseeds, and oils, only under extraordinary circumstances. These include (i) war, (ii) famine, (iii) extraordinary price rise and (iv) natural calamity of grave nature.
- Stock limit: The Ordinance requires that the imposition of any stock limit on agricultural produce must be based on price rise. A stock limit may be imposed only if there is: (i) a 100% increase in the retail price of horticultural produce; and (ii) a 50% increase in the retail price of non-perishable agricultural food items.
A Backgrounder: Long awaited APMC reforms
- Agricultural markets in India are mainly regulated by state Agriculture Produce Marketing Committee (APMC) laws. APMCs were set up with the objective of ensuring fair trade between buyers and sellers for effective price discovery of farmers’ produce.
- APMCs can:
- regulate the trade of farmers’ produce by providing licenses to buyers, commission agents, and private markets,
- levy market fees or any other charges on such trade, and
- provide necessary infrastructure within their markets to facilitate the trade
Issues with the APMCs
- The Standing Committee on Agriculture (2018-19) identified some issues includes: (i) most APMCs have a limited number of traders operating, which leads to cartelization and reduces competition, and (ii) undue deductions in the form of commission charges and market fees.
- Traders, commission agents, and other functionaries organise themselves into associations, which do not allow easy entry of new persons into market yards, stifling competition.
- The Acts are highly restrictive in promotion of multiple channels of marketing (such as more buyers, private markets, direct sale to businesses and retail consumers, and online transactions) and competition in the system.
- During 2017-18, the central government released the model APMC and contract farming Acts to allow restriction-free trade of farmers’ produce, promote competition through multiple marketing channels, and promote farming under pre-agreed contracts.
Why were the ordinances promulgated?
- The Ordinances collectively seek to-
- facilitate barrier-free trade of farmers’ produce outside the markets notified under the various state APMC laws
- define a framework for contract farming and
- impose stock limits on agricultural produce only if there is a sharp increase in retail prices
- The three Ordinances together aim to increase opportunities for farmers to enter long term sale contracts, increase the availability of buyers, and permits buyers to purchase farm produce in bulk.
Causes of nationwide dissent

(1) No consultation with stakeholders
- The attempt to pass the Bills without proper consultation adds to the mistrust among various stakeholders including State governments.
- The ruling government could have waited for the Parliament session, held discussions with all political parties before arriving at a decision.
- Farmer organisations see these Bills as an attempt to weaken the APMCs and eventual withdrawal of the Minimum Support Prices (MSP).
(2) Issue over trade and MSP guarantee
- While farmers are protesting against all three ordinances, their objections are mostly against the provisions of the first.
- Their concerns are mainly about sections relating to “trade area”, “trader”, “dispute resolution” and “market fee” in the first ordinance.
- In effect, existing mandis established under APMC Acts have been excluded from the definition of trade area under the new legislation.
- According to the ordinance, any trader with a PAN card can buy the farmers’ produce in the trade area.
- In the present mandi system, arhatiyas (commission agents) have to get a licence to trade in a mandi.
- Critics view the dismantling of the monopoly of the APMCs as a sign of ending the assured procurement of food grains at minimum support prices (MSP). To the Centre’s ‘one nation, one market’ call, critics have sought ‘one nation, one MSP’.
(3) Legacy concerns
- The Bills gives no assurance to the poor, small and marginal farmers of India (constituting over 85 per cent of India’s farmers) of protection of their interests, their livelihoods, and their future.
- Critics argue that such legislation will let the farmers falling into the clutches of the monopolistic big corporates.
- Lofty recommendations have been made several times in the past, including by the Swaminathan Committee, which suggested the removal of the mandi tax, creation of a single market and facilitating contract farming
- However, no efforts have taken place for implementing these basic reforms over the years.
(4) Fear of food insecurity
- Punjab CM, on the easing of regulation of food items, said, it would lead to exporters, processors and traders hoarding farm produce during the harvest season, when prices are generally lower, and releasing it later when prices increase.
- This could undermine food security since the States would have no information about the availability of stocks within the State.
(5) Constitutional issues raised
- Since agriculture and markets are State subjects – entry 14 and 28 respectively in List II – the ordinances are being seen as a direct encroachment upon the functions of the States and against the spirit of cooperative federalism enshrined in the Constitution.
- The Centre, however, argued that trade and commerce in food items is part of the concurrent list, thus giving it constitutional propriety.
- The bills invite valid opposition: one, infraction of the states’ right to decide on intra-state commerce in agriculture, and two, officer-led dispute settlement outside the ambit of judicial review.
What are the promising features of these bills?
- The new legislations would create an ecosystem where farmers and traders would enjoy the freedom of choice in the sale and purchase of agri-produce.
- It would also promote barrier-free interstate or intrastate trade and commerce outside the physical premises of markets notified under the state agricultural produce marketing legislations.
- The bills would also open up more choices for farmers, reduce marketing costs and help them in getting better prices.
- At the same time, it would also help farmers of regions with surplus produce to get better prices and consumers of regions with shortages, lower prices.
- The bill has also proposed an Electronic Trading Transaction Platform to ensure seamless electronic trade and the farmers will not be charged any cess or levy for sale of their products under this Act.
- Interestingly, the bill aims for ‘One India, One Agriculture Market’ and also creates additional trading opportunities outside the APMC market yards to help farmers get remunerative prices due to the additional competition.
- The new laws are not shutting down APMC mandis, nor are they implying that MSPs will not be functional.
- This would supplement the existing Minimum Support Price (MSP) procurement system, which also provides a stable income to farmers.
Still, why are the farmers fuming?

There has been bipartisan consensus over the last two decades or so—both the UPA and the NDA governments have tried and failed to convince state governments to reform APMC Acts, notwithstanding periodic manifesto promises and model APMC Acts.

They failed with all approaches, trying to link financial support to agriculture based on reforms. The present crisis created the perfect window to usher in these transformative reforms.

People on both sides of the divide are saturated with such reformative measures and have arrived at the commonsensical benefits that would be ushered in as well as the risks.

What lies ahead
- Accelerating research and academic excellence can bring in the ‘best in class’ technologies and can multiply farmers’ incomes.
- As far as the commission agents are concerned, the governments should work on a clear roadmap to modernize them by facilitating them in providing value-added services. They could be leveraged to set-up grading and sorting, warehousing, cold chains and food processing infrastructure. This way, it is a win-win-win for the state government, farmers and the commission agents.
- Soil health improvement and water conservation measures should be the top priority for the governments to enhance farm productivity.
- Similarly, by diversifying into high-value crops such as vegetables and fruit, India could become the food- processing hub for the world. Farmers have to be made part of the entrepreneurial ecosystem (FaME—Farmers as Micro-Entrepreneurs).
Conclusion
- A lot of the success of these bills depends on trust and consensus. In the end, what will determine the results of this latest set of reforms will be their implementation.
- There is genuine uncertainty over what private procurement will mean. Will it mean greater corporate power over farmers, possibly unhealthy monopolies or duopolies? Will they be harder to negotiate with than a state monopoly?
- Leveraging the reforms and moving forward rather is the most feasible solution than to protest amid the pandemic.
- What farmers need and are asking for is legally guaranteed remunerative prices. If the Bills are perceived of good intent, then the government should not shy away from a proper parliamentary scrutiny of all its details.
- Political parties that are opposing these Bills should coordinate better keeping farmers’ interests in the forefront, and not their party politics.
References

Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

https://www.prsindia.org/billtrack/farmers-produce-trade-and-commerce-promotion-and-facilitation-bill-2020

https://www.outlookindia.com/website/story/india-news-the-farm-bills-and-quandary/360640

https://frontline.thehindu.com/cover-story/article31951413.ece

https://www.thehindu.com/news/national/explainer-why-are-the-agriculture-bills-being-opposed/article32618641.ece
December 28, 2020
25th December 2020| Daily Answer Writing Enhancement

Important Announcement: Topics to be covered on 1st January

GS-1 Indian National Movement

GS-4 Attitude.

Question 1)

Write a note on Kailasanatha Temple and Dashavatar Cave architecture of Rashtrakutas. 10 marks

Question 2)

If the proposed legislation has far-reaching consequences, it is better to refer it to the Select Committee for consideration. Farmers opposition to the farm laws underlines this fact. In light of this, delineate the importance of following parliamentary procedure for the passage of legislation and suggest the ways to deal with the situations in which there is opposition to such legislation. 10 marks

Question 3)

For India to claim its rightful position in the new world order, it is imperative that the vision of ‘Aatmanirbhar Bharat’ is globally integrated to harness the opportunities created by the emerging shifts. Suggest the strategic priorities for India to harness the opportunities. 10 marks

Question 4)

Suppose you are an officer in charge of implementing a social service scheme to provide support to old and destitute women. An old and illiterate woman comes to you to avail the benefits of the scheme. However, she has no documents to show that she fulfils the eligibility criteria. But after meeting her and listening to her you feel that she certainly needs support. Your enquiries also show that she is really destitute and living in a pitiable condition. You are in a dilemma as to what to do. Putting her under the scheme without necessary documents would clearly be violation of rules. But denying her the support would be cruel and inhuman. (2016) (a) Can you think of a rational way to resolve this dilemma? (b) Give your reasons for it. 10 marks

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December 25, 2020
We’re hiring | हिंदी कंटेंट डेवलपर | तत्काल आवश्यकता

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अभी तक हम केवल अंग्रेज़ी माध्यम में कंटेंट डेवलप कर रहे थे लेकिन संघ एवं राज्य सिविल सेवाओं के हिंदी माध्यम अभ्यर्थियों की ओर से हिंदी में भी कंटेंट उपलब्ध कराने की माँग की जा रही थी। इसलिए, हमने अब हिंदी में भी कंटेंट डेवलप करने का फ़ैसला किया है और इसके लिए हम अपनी टीम का विस्तार कर रहे हैं।

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1. परीक्षोपयोगी जानकारी एकत्रित करने, व्यवस्थित करने और लेखन का कौशल हो।

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7. UPSC की मुख्य परीक्षा दी हो।

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विस्तृत ज़िम्मेदारी के बारे में इच्छुक अभ्यर्थियों को व्यक्तिगत रूप से बताया जाएगा। इच्छुक अभ्यर्थी, नीचे दिए गए फ़ॉर्म को भर सकते हैं:

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December 24, 2020
24th December 2020| Daily Answer Writing Enhancement

Important Announcement: Topics to be covered on 25th December

GS-1 The Freedom Struggle – its various stages and
important contributors /contributions from different parts of the
country.

GS-4 Case Studies.

Question 1)

Discuss in what way trade monopoly of East India Company was weakened by different Charter Acts passed by the British Parliament. 10 marks

Question 2)

The world is at an inflexion point where geopolitics has been transformed and power equations are being altered. In this context, India’s instinctive preference should be for a multipolar order as the best assurance of its security and as most conducive to its own social and economic development. Comment. 10 marks

Question 3)

Assess the steps taken by India to meets its climate commitments made under the Paris Agreement? What are the challenges India faces in fulfiling its commitments. 10 marks

Question 4)

Once Ravi goes to market with his mother for celebratory shopping. There he finds that most of the shopkeepers have employed children as attendants and are being treated harshly. Ravi gets very touched by seeing all this and argues with one of the shopkeepers on this issue. His mother tells him to stop and explains that the shopkeeper will remove the child and child may have no earning source for family. (250 words) (a) What should Ravi do in consonance with moral quality in this situation? (b) Discuss limitations of various possible actions that Ravi is supposed to take. 10 marks

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December 24, 2020
23rd December 2020| Daily Answer Writing Enhancement

Important Announcement: Topics to be covered on 24th December

GS-1 Modern Indian history from about the middle of the eighteenth century until the present.

GS-4 Case Studies.

Question 1)

What caused the rise of the Sufi movement in India? Discuss its spread and expansion in the country. 10 marks

Question 2)

A strong coalition with the European middle powers should be the indispensable element of India’s foreign policy in the face of changing geopolitical circumstances. Comment. 10 marks

Question 3)

What are the challenges in providing the Minimum Support Price legal backing? Also, discuss its impact on grain handling under the PDS. 10 marks

Question 4)

Aryaman is a brilliant Science Teacher in a private English medium school in Lucknow and gets yearly package of Rs.4 lakhs. Another school at Ghaziabad offers him package of Rs.4.5 lakhs. Aryaman makes a verbal commitment to the Ghaziabad school principle, “Sure,l’ll join your school from next month.” But when Aryaman submits his resignation to Lucknow school, its Principle Mr. Raj requests him to stay and offers new package of Rs.3.8 lakhs. Should Aryaman take back his resignation? yes/no/why? Explain. 10 marks

Reviews will be provided in a week. (In the order of submission- First come first serve basis). In case the answer is submitted late the review period may get extended to two weeks.

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December 23, 2020
22nd December 2020| Daily Answer Writing Enhancement

Important Announcement: Topics to be covered on 23rd December

GS-1 Indian culture covering the salient aspects of Art Forms, Literature, and Architecture.

GS-4 Case Studies.

Question 1)

Discuss in what way Climate change is disrupting the water cycle on Earth and thus has made water- a public resource more crucial. 10 marks

Question 2)

The combination of the private sector in health and the social insurance model has its own limits in catering to the public health in India. What we need is a robust public healthcare system in India. In light of this, discuss the challenges with the insurance model and suggest the ways to deal with it. 10 marks

Question 3)

Examine the factors determining the realisation of revenue from the auction of radio spectrum. Suggest the measures to ensure the success of the spectrum auction. 10 marks

Question 4)

A building permitted for three floors, while being extended illegally to 6 floors by a builder, collapses. As a consequence, a number of innocent labourers including women and children died. These laborers are migrants of different places. The government immediately announced cash relief to the aggrieved families and arrested the builder. Give reasons for such incidents taking place across the country. Suggest measures to prevent their occurrence. 10 marks

Reviews will be provided in a week. (In the order of submission- First come first serve basis). In case the answer is submitted late the review period may get extended to two weeks.

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December 22, 2020
21st December 2020| Daily Answer Writing Enhancement

Important Announcement: Topics to be covered on 22nd December

GS-1 Changes in critical geographical features (including water-bodies and ice-caps) and in flora and fauna and the effects of such changes.

GS-4 Case Studies.

Question 1)

“Efforts to address child marriage in India should be in consonance with the socioeconomic realities that demand investment in education, welfare, and opportunities for women.” Elaborate. 10 marks

Question 2)

“Efforts to address child marriage in India should be in consonance with the socioeconomic realities that demand investment in education, welfare, and opportunities for women.” Elaborate. 10 marks

Question 3)

Growth must not only be consumption-driven but also investment driven. It is the latter which in a developing economy can sustain growth over a long period. In light of this, suggest the policy imperatives that India should follow to make good of the decline in 2020-2021. 10 marks

Question 4)

You are a civil servant posted in a state where elections were recently held. The newly elected Chief Minister had promised to ban alcohol in several of his election campaigns as well as his election manifesto, which was widely praised and supported by women of the state. Fulfilling his electoral promise, the Chief Minister has ordered a blanket ban on the sale of alcohol in the state. Following the ban, concerns have been raised about the feasibility of the ban and whether the government should interfere in what is considered by many to be a matter of personal choice. (a) Who are the stakeholders in this case and how are they affected by the ban? (b) Is blanket ban on alcohol a feasible action? (c) Identify the issues that may arise while enforcing the ban and the steps you will take to handle them, as a civil servant. 10 marks

Reviews will be provided in a week. (In the order of submission- First come first serve basis). In case the answer is submitted late the review period may get extended to two weeks.

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December 21, 2020
How to crack IAS 2021?| Also, things you need sorted before starting preparation for IAS 2022 | Fill Samanvaya-1 on 1 session with senior mentors
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December 21, 2020
18th December 2020| Daily Answer Writing Enhancement

Important Announcement: Topics to be covered on 21st December

GS-1 Salient features of Indian Society, Diversity of India.

GS-4 Case Studies.

Question 1)

Examine the factors leading to the drying up of the Aral sea. Can you cite some other examples of water bodies being dried up? Why is this happening? Discuss. 10 marks

Question 2)

What are the challenges facing healthcare in India? How digital solutions can help in plugging the gaps in the healthcare infrastructure? 10 marks

Question 3)

Generating power from waste generated in the cities could provide a solution to multiple problems. Discuss the advantages of generating power from the waste and what are the problems in realising this. 10 marks

Question 4)

Who is your favourite contemporary moral thinker/ philosopher? How do his/ her ideas impact you? Explain. 10 marks

Reviews will be provided in a week. (In the order of submission- First come first serve basis). In case the answer is submitted late the review period may get extended to two weeks.

*In case your answer is not reviewed in a week, reply to your answer saying *NOT CHECKED*. If Parth Sir’s tag is available then tag him.

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December 18, 2020
UPSC IAS Mains exam 2020: Admit card released – Download here | Get 250 Most Probable Topics for Mains inside

Dear students

UPSC has released the admit cards for UPSC IAS 2020 Mains exams. Exams are scheduled to start from 8th Jan 2021.

Download your admit card here

It’s advised that you download and check it asap so that you can report any discrepancy to the UPSC in time. Do read the instructions carefully.

For any query regarding admit card reach out to us.

250 Most Probable Topics for IAS Mains 2020

In this last lap of your race to LBSNAA get your preparation for IAS Mains exam fully covered with revision of most important topics.

Click here for 250 Most Probable Topics with Questions for IAS Mains 2020

This compilation contains issues and topics that have a high probability of being asked in Mains 2020 and beyond.

We’ve covered these issues in a holistic manner so that you would be fully covered to answer any question from these topics. There are probable questions from the topics covered as well. We’ll be discussing these and other questions in Habitat sessions.

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December 17, 2020

Category: Strategy Sessions

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A well-informed start is always a good start.

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Fill up the following details in Samanvaya form given below to schedule a free one-on-one mentorship session with senior mentors from Civilsdaily. We’ll call you within 24 hours.

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Is MSP applicable for all crops?

How does procurement vary across states?

The rice and wheat focus

Punjab, Haryana vs. States

How has MSP affected the cropping pattern?

Declining Incomes

Issues related to procurement

Environmental issues, unemployment

Is MSP mandatory for private trade as well in some states?

Way forward

250 Most Probable Topics for IAS Mains 2020

What is Social Security?

Code on Social Security 2020

Now let’s look up at the various loopholes of these Bills one by one:

Conclusion

References

What is a Fiscal Stimulus?

Need for a fiscal stimulus

Precautions necessary before ANY stimulus decision

India’s response to pandemic

International experience with the stimulus

Analysis of India’s response

Moving ahead: India needs to spend more

Conclusion

References

Centrestage of the debate: The economic comparison

Why it matters?

Why does India lag behind?

How has Bangladesh managed to grow so fast and so robustly?

Growing Bangladesh: An uneasy journey

Instructive comparison: A way forward

We must look inwards

Conclusion

References

What are these ordinances?

A Backgrounder: Long awaited APMC reforms

Why were the ordinances promulgated?

Causes of nationwide dissent

What are the promising features of these bills?

Still, why are the farmers fuming?

What lies ahead

References

A well-informed start is always a good start.

This is where our 3 tier mentoring comes in:

Who are you?

Our rankers in 2019

Civilsdaily Samanvaya 1-On-1 Mentorship Form

250 Most Probable Topics for IAS Mains 2020