Gist of EPW October Week 5, 2022

The Economic and Political Weekly (EPW) is an important source of study material for IAS, especially for the current affairs segment. In this section, we give you the gist of the EPW magazine every week. The important topics covered in the weekly are analyzed and explained in a simple language, all from a UPSC perspective.

TABLE OF CONTENTS

1. The Farm Panel: Concerns on Its Nature and Mandate
2. The Competition Commission Takes on Google
3. Challenges of Persons with Severity of Disabilities

1. The Farm Panel: Concerns on Its Nature and Mandate

Context

This article critically examines the nature, mandate and concerns associated with the 29-member committee set up by the government to recommend various reforms to the agricultural sector.

Background

• Due to the protests which lasted for about one-and-half-years by the farmers against the three controversial farm laws, the union government repealed the three laws through the Farm Laws Repeal Bill in November 2021.
• The protesting farmers also deman­ded the legal guarantee of procurement of crops at minimum support price (MSP) for the entire country along with the repeal of the laws.
• In July 2022, the Union Ministry of Agriculture and Farmers’ Welfare (MoAFW) set up a 29-member Committee entrusted with the mandate of promoting zero-budget natural farming (ZBNF), ensuring crop diversification, and making the MSP more effective and transparent. 

Composition of the Committee

• The Committee consists of a chairperson, a member secretary and 27 other members.
• Other members include one member from NITI Aayog, two economists, nine farmers, two from the cooperatives/groups and one from the Commission for Agricultural Costs and Prices (CACP).
• Further, the Committee also includes three members from the Agricultural Universities of Hyderabad, Jammu, and Jabalpur in addition to five secretaries of agriculture-related departments of the GoI and the representatives of four state governments, namely Karnataka, Andhra Pradesh, Sikkim, and Odisha.

Concerns associated with the Committee

• This Committee set up by the government is opposed due to its structure, nature and its mandate.
• It was expected that the nature of the Committee would be with adequate representation of farmers. However, the Committee at present consists of a large number of government representatives along with six pro-government far­mer members as six out of the nine farmer representatives are from the government and three are from Samyukta Kisan Morcha (SKM).
  • Only three members from the farmer community amount to gross under-representation.
• Further, most of the members of the Committee including the chairperson are known to have directly supported the three farm laws in the past.
• The key objective of the committee was expected to be legalising the MSP for farm produce but this objective finds no direct mention in the mandate of the Committee. 
• The exclusion of the agriculturally advanced states such as Punjab and Haryana from the Committee has also been criticised.
  • There have been proposals about replacing the existing “open-ended procure­ment system” with the “target procurement system”,   reduction in the chemical fertiliser subsidy and over­all sub­sidies in order to promote natural farming. 
  • These efforts would impede agrarian states such as Punjab and Haryana and therefore the Punjab government has opposed the Committee and deman­ded for its reconstitution.

Recommendations by Previous Committees

• The Swaminathan report (2006) which is also called the National Farmers’ Commission recommended that MSP must be fixed at comprehensive cost (C2) plus 50% as the margin.
  • These recommendations have still not been implemented despite the demand from the farmers. 
• The Ramesh Chand Committee report (2015) recommended the fixation of MSP but even these are not implemented.
• The reports of the Supreme Court constituted Committee regarding the three farm laws are still not officially public and its observations and recommendations are also keenly awaited.

Importance of guaranteeing MSP

• The MSP and public procurement service (PPS) have been playing a crucial role in improving farmers’ livelihood, rural income, natio­nal food security, and agricultural growth. 
  • However, the MSP and PPS are not effective for all the farmers and crops as only 6% of the value of agricultural produce across the country is procured at MSP. 
  • The cultivators of other crops still are facing stiff price competition and are accorded little remuneration. 
• Indian agriculture is affected by the policies of the Agreement on Agriculture (AoA) of the World Trade Organization (WTO) to a large extent as it forbids subsidising agriculture. 
  • India and other agrarian developing countries were forced to limit their agricultural subsidies to the de minimis (10%) of the total value of production of agriculture by 2004. 
  • With the government reducing its farm subsidies, the real income of Indian farmers is declining which has increased the instances of farm debt, de-pea­santisation, and farmer suicides. 
  • Extending and legalising the MSP can play a small but important step in easing the agrarian crisis.

Way forward

• The world is at a critical juncture with a huge food shortage and prevailing food insecurity. In this context, the buffer stocks of India are also continuously declining. Therefore special attention must be accorded to farming and farmers. 
• India should make a note of the food crisis caused due to a radical shift towards organic farming in Sri Lanka which further led to economic and political turmoil in the country. Hence there is a need for providing adequate safeguards for the farmers.
• With the Union Government reducing the share of agriculture and the amount for the purchase of crops in its 2022–23 Budget, experts feel that the procurement of crops at MSP would be inadequate and ineffective.
• By increasing the representation of the farmers in the Committee and including representatives from agrarian states, the Farm Panel can be made more effective and desired outcomes can be achieved.
• The Committee should also include representatives from livestock and horticulture sectors as they also contribute significantly to the GDP of the country but face price volatility.
• The committee has no time-bound nature and there is an immediate need to fix the time limit of the committee to achieve desired results in a specific time-bound manner.

2. The Competition Commission Takes on Google

Context

The Competition Commission of India (CCI) recently passed two orders against the anti-competitive practices of Google. 

Details

• CCI had imposed a financial penalty of ₹1,338 crores on Google for abusing its dominant position and violating competitive practices in various categories related to the Android mobile device ecosystem in India.
• CCI in the second round of penal action imposed a penalty of ₹936 crores on Google for abusing its dominant position in selling products through its digital distribution service named Google Play Store.
• These penal actions by CCI have come at a time when the emergence and growth of big-tech firms such as Google, Facebook, and Amazon have polarised opinions across the world with one group lauding their innovative products and services while the other group criticising their anticompetitive practices.

The core issue

• In recent years, Google has enjoyed a significant influence on the Indian as well as the global digital ecosystem, especially among Android operating system users.
• Google’s strategy involves the provision of simultaneous licenses to a variety of mobile applications such as Play Store, Google Search, Google Chrome, YouTube, etc. to mobile phone manufacturers. 
• The transactions for these Google services are enforced through agreements such as the Mobile Application Distribution Agreement (MADA), Anti-Fragmentation Agreement (AFA), Android Compatibility Commitment Agreement (ACCA), and the Revenue Sharing Agreement (RSA).
  • Mobile Application Distribution Agreement (MADA): MADA is a license requirement for access to any of Google’s Android apps and ensures that Google applications are pre-installed on most of the mobile Android devices, thereby providing Google significant market access and a competitive edge over other firms.
  • Anti-Fragmentation Agreement (AFA) and Android Compatibility Commitment Agreement (ACCA): These have ensured that distribution channels for the competing search services are eliminated by prohibiting manufacturers from offering devices based on Android forks.
  • Revenue Sharing Agreement (RSA): Google pays a share of its advertisement revenue to mobile phone manufacturers in exchange for the exclusive installation of its services on their mobile devices. RSAs have also facilitated Google to secure exclusivity for its search services against its competitors. 
• These agreements of Google have not only promoted anti-competitive practices but have also eliminated user choices. 

CCI’s actions against Google

• The CCI investigated complaints against these agreements and practices of Google and held that the MADA had compelled the pre-installation of the entire Google mobile suite and is said to be unfair to mobile manufacturers as well as competitors as it eliminated market access to competing apps. 
• The CCI pointed out that Google’s dominant position in the app store market also violated various provisions of the Competition Act, 2002 and thus cease-and-desist orders were issued against Google to stop anti-competitive practices.
• Further, CCI while imposing a provisional fine of ₹1,338 crores on Google mandated that Play Store licensing must not be used to compel the manufacturers to pre-install Google apps, the interoperability of apps must be ensured and app developers should be facilitated to easily port their apps to Android forks.
• In the second order, the CCI imposed a second penalty of ₹936 crores on Google for using its dominant position to influence Play Store policies.
• The second set of penal actions was imposed as Google had made it mandatory to use the Google Play Billing System (GPBS) for the transaction of the products of Play Store. 
  • Apps were listed in Play Store only if they used GPBS due to which the apps using Unified Payment Interface (UPI) were placed in a disadvantaged position. 
  • The CCI directed Google not to discriminate against apps using UPI in preference to its own Google Pay as such actions discourage technical development and innovations.

Way forward

• The regulatory interventions by the CCI are said to be in line with actions undertaken by the European Union on Google in recent years.
• These actions and interventions by CCI play a key role in ensuring a level playing field and competition in the Android ecosystem. 
• However, there are still several challenges in the digital ecosystem as the monopoly of the dominant players is more concentrated in the digital ecosystem than in any other market.
• Therefore, it is crucial for regulators across the world to address the challenges in the digital ecosystem and make sure that there exists a level playing field for the new entrants in order to promote and encourage newer techno­logies and innovations.

3. Challenges of Persons with Severity of Disabilities

Details:

• Sustainable Development Goal 8 promotes “decent work for all” for sustainable and inclusive growth.
• Employment/Work is particularly important for persons with disabilities (PwDs) as it provides a sense of accomplishment and a source of income. Other benefits include:
  • Improves the quality of life both socially and economically
  • Incorporates them into mainstream
  • Ensures integrity and respect in the family and community
• Issues of PwD:
  • Usually denied ordinary life
  • They are stereotyped and usually considered marginalized and vulnerable
  • Unable to access economic opportunities like employment, sustainable wages, etc.
• Article 27 of the United Nations Convention on the Rights of Persons with Disabilities (CRPD) recognizes “the right of persons with disabilities to work, on an equal basis with others; this includes the opportunity to gain a living by work freely chosen or accepted in a labour market and work environment that is open, inclusive and accessible to persons with disabilities”.
• According to a study by WHO in 2011, PwD constitutes 15% of the world population. India has approximately 2.68 crores PwDs with 1.5 crore males and 1.18 crore females (as per MoSPI).
• WHO stated that PwD has lower job opportunities and higher unemployment rates in both developed and developing countries. The higher unemployment rate is the result of various factors like:
  • Disability-related work limitations
  • Inadequate levels of education and experience
  • Discrimination in hiring or accommodation facilities
  • Difficulty in sustaining employment after the onset of a disability
  • Inadequate support services/infrastructure
• It should be noted that lower labour force participation rate leads to poverty.
• A study suggests that in 2006, labour market participation of the disabled population was around 38.8%, whereas it was 64% among the non-disabled population.

For more information on Persons with Disability, read here: Persons With Disability – Types and Act of Government

Exclusion of People with disabilities:

• People with ‘multiple’ disabilities are most vulnerable to unemployment. And Persons with mental disabilities are disproportionately out of the labour force when compared to persons with other types of disabilities.
• Findings of various studies:
  • In rural areas, employment likelihood is increased for females having movement or sight disabilities, as compared to other disabilities.
  • In urban areas, having sight, mental, or movement impairment (compared to other disabilities) increased the chances of employment.

Status of Persons with Disabilities in India:

• According to the 2011 census approximately 26.8 million people were living with a disability in India. The share of the type of disabilities among the population is given in Figure 1.

Figure 1: Disabled population by type of disability in India (Census 2011)

Source: Persons with Disabilities in India- A statistical profile 2021(By NSO)

• The study highlights that the cases of multiple disabilities are increasing in various states like Andhra Pradesh, Assam, Jharkhand, Kerala, Odisha, Punjab, Uttarakhand, Uttar Pradesh, and West Bengal. 
• It is also observed that the severity of the disability is higher among males in comparison to females.
• In the context of social groups, the Scheduled Castes (SCs) and Scheduled Tribes (STs) have higher cases of disabilities than the other categories.

Challenges in the employment of PwD:

• It was identified in the study that factors like the nature of employment, earnings, and compromised low educational attainment have a strong bearing on labour market participation of PwD.
• The major challenges in the growth and empowerment of PwD are:
  • Lack of education
  • Poor infrastructure
  • Limited Financial resources
  • Lack of skill development programmes
  • Discrimination, stereotypes, social stigma, and prejudices 
  • Lack of encouragement for their performance
• Other challenges include:
  • Lower self-esteem and confidence
  • Poor Knowledge of English and basic skills
  • Over-protective parents
  • Lack of assistive tools in Indian workplaces
• The situation with women suffering with disabilities are even worse, as they have to face physical, emotional, and sexual assault in their workplaces.
• It has been observed that the majority of organizations/institutions do abide by the rules and regulations prescribed in various acts. 

Legislations for PwD:

• The Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995: Its objective is to empower PwDs by creating job opportunities and protecting their rights without any discrimination. 
• The Mental Health Act, 1987: Its intent is to make changes in the laws that are restricting the treatment and care of mentally ill people. 
• The National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation, and Multiple Disabilities Act, 1999: Its objective is to provide care to people with mental illnesses and cerebral palsy with the assistance bequeathed to the trust. 
• Rights of Persons with Disabilities Act (RPWD), 2016: It replaced the PWD Act, 1995 to comply with the United Nations Convention on the Rights of Persons with Disabilities (UNCRPD). 

For more information on the Rights of persons with disabilities, read here: Rights of Persons with Disabilities Act, 2016

Way Forward:

• A holistic and multidimensional approach is required to address economic, social, medical, and legal aspects of barriers to participation in the labour market. 
• An inclusive and accessible work environment should be created. 
• Awareness among PwDs about available provisions should be increased. 
• Both the central and state governments should establish accessible infrastructure in accordance with disability policies and international commitments. 
• Using technological tools can assist in performing a wide range of work in more productive and creative ways.
• Special provisions like easy access to credit should be provided at lower rates of interest. 
• Self-help groups (SHGs) should also be encouraged to assimilate more PwDs without discrimination.
• Various stakeholders like employers, non-governmental organizations (NGOs), etc need to be sensitized.
• The vacant positions in the public sector should be filled and the private sector should also take some affirmative actions.
• An audit system should be devised to look into the status as well as the need of the PwDs (Divyangjan).
• They must be entitled to jobs under the Mahatma Gandhi National Rural Employment Guarantee Act and should be ensured social insurance coverage.
• Unemployment allowance can also be provided in extreme cases.

Read previous EPW articles in the link.

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