14 Jun 2022: UPSC Exam Comprehensive News Analysis

1. Tackling the crisis of rising global food prices

Syllabus: GS:3: Issues of buffer stocks and food security.

Mains: Critically analyze the recent spike in food prices.

Context:

The article discusses the history, background, causes, and consequences of the food price crises and also discussed the measures to tackle them.

Background:

• Global food prices are subject to year-to-year volatility and periodic sharp hikes. Countries manage year-to-year volatility by changing their trade and domestic policies, but the sharp and steep price hike leads to a severe crisis. 
• The periodic sharp spikes can arise in the following ways:

• Food shortage, 
• Trade disruptions, 
• a rise and spread in hunger and poverty levels,
• a depletion of foreign exchange reserves for net food-importing countries, 
• a strain on a nation’s fiscal resources due to an increase in spending on the food safety nets, and 
• a threat to peace, and even social unrest in some places.
• Understanding the real causes behind these shocks and implementing appropriate measures to tackle them is necessary.

History of these food price shocks:

• The data of some agencies such as the Food and Agriculture Organization of the United Nations, the World Bank, the International Monetary Fund, etc. imply that the world has witnessed third food crisis since the Green Revolution in the early 1960s.
• The first shock appeared during 1973-76 due to a rise in the food price index in nominal terms as compared to the real terms. This led to an increase in the nominal prices of commodities.
• After that period, the food prices in real terms followed a declining trend and were at the lowest in 2002. 
• After 2002, the nominal and real prices of food started increasing and culminated in the food crisis of 2008 due to the global economic crisis. 
• After 2014, the global prices started coming back on track but the food prices did not move back to their previous levels.
• The prices remained settled during 2015-19 but, food prices again witnessed an upward trend by the third quarter of 2020. These rising food prices led the food price index to the highest level.
• Hence, the three food price crises that occurred in 1973-76, 2007-12, and 2020 show common characteristics. They are: 
• All three crises did not happen due to any shortfall in agricultural produce but, they were led by factors outside agriculture.
• The time interval between the consecutive crises is reduced while the severity of shock is increased.

The recent food crisis:

There are certain factors that led to the recent food crisis. They are:

• Disruptions caused by the Covid-19 Pandemic.
• Russia-Ukraine War.
• The other important factors of the crisis are related to the trade patterns and usage of food commodities:

• Vegetable oil and cereals:

• The current rise in prices started with vegetable oils and then spread to cereals. 
• The data reveals that 38% of the vegetable oils are traded, and 25% of wheat is traded to meet the global demand. 
• Similarly, other cereals are also globally traded. Hence, trade disruptions are higher for globally traded commodities.

• Biofuel needs:

• Another factor that led to a hike in food prices is the diversion of food for biofuel needs. It has increased from 1% in 2003 to 11% in 2011 and to 15% in 2021. 
• When crude oil becomes expensive, it becomes economical to use oil seeds and grains.
• Food crops are also used to produce biofuels because it is mandatory to increase the share of renewable energy sources.

Implications for India:

• The share of agriculture in export and import was 13% in 2020-21. Therefore, the impact of any changes in global prices becomes visible in domestic prices as well.
• India has been moderating the effects of transmission of global prices to domestic prices with the help of trade policies and other instruments.
• When international prices rise, India looks for cheaper imports and when the international prices are low, India liberalizes imports and keeps a check on exports.
• India is also maintaining a buffer stock of food staples that have been proved to be very useful in maintaining the stability of food prices.
• The importance of agriculture exports has been increasing and India will be required to export 15% of its domestic food output by 2030. This will help in maintaining the position of India as a credible and reliable exporter in the international market.

Ban on Wheat exports:

• India has recently banned the exports of wheat. Some experts view this move as a setback because India has been a reliable exporter and this will hamper its image. While some experts believe that India’s contribution to the export of wheat was not very significant hence, it is not going to make any big difference.
• Due to Russia-Ukraine Crisis, there is a global demand for around 50 million tonnes of wheat exports because Russia and Ukraine are the biggest exporters. 
• If India had not banned the export of wheat, it would have resulted in a food shortage within the country.

Way Forward:

• India should follow a policy of strategic liberalization as done in the past to keep a balance between the interests of the producers and the consumers.
• The new green revolution technology is required to keep the real prices of food commodities under control.
• There is a need to strengthen the global agricultural research and development hence, more spending on global research and development is required.
• Biofuel protocols contribute to the occurrence of food price shocks hence, it should be considered by the agencies how to manage the diversion of food crops for biofuels.
• Climate change factors are going to impact the global supply and will lead to supply shocks. Hence, there is a need to ensure reasonable stability in food prices and supply.

2. Upholding the right to repair

Syllabus: GS: 2: Effect of policies of developed countries on India’s interests.

Mains: Critically analyze the Consumer Protect Act of India.

Context:

Recently, the U.S has introduced the fair to repair act. The article will discuss this act in detail with respect to India as well.

Background:

• The U.S has passed a law named the Fair Repair Act to guarantee consumers and small businesses a right to repair their own products by requiring manufacturers to make diagnostic repair information, parts, and tools readily available.
• The Fair Repair Act will require OEMs to make diagnostic and repair information, parts, and tools available to third-party repairers and owners in a timely manner and on fair and reasonable terms 
• This will help consumers and repair shops to avoid unnecessary and costly delays while also reducing waste. 

Concerned issues:

• The Fair Repair Act has certain benefits for the consumers but it has certain concerns related to quality, privacy, and violation of the Intellectual Property Rights of manufacturers as well. These are elaborated below:
• Complex machinery:
• The modern types of machinery are more complex and technical and most of the repair workers deny to work on the machinery due to a lack of tools, knowledge, and skills. 
• Further, lack of certification and licensing is seen as a lack of skill among workers. Hence, a license or certification should be provided to the repair workers who quality certain criteria so that their livelihood does not get hampered.

Quality of the product:

• Manufacturers claim that the quality of the product is compromised when it is repaired by a third party and it is not baseless. Hence, necessary clauses to maintain the quality of the product should be included in the warranty clauses.
• Repair manuals should be made available so that the consumer’s, as well as the manufacturers’ rights, should be protected.

Intellectual property rights:

• There should be a non-disclosure agreement between the manufacturers and the certified repairers/businesses to protect the IP.

Adequacy of Consumer Protection Act:

• Consumers are exploited sometimes by the manufacturers for the sake of quality, durability, and repurchasing the same product.
• This happens because consumers are not aware of the product specifications such as its quality, procurement at reasonable prices, etc.
• In the Consumer Protect Act, 2019, section 2(9) contains the provision of fair to repair but this faces a disregard.
• Hence, the insertion of a fair-to-repair clause is necessary to protect the rights of consumers.

• Benefits of fair to repair clause:

• This would make consumers more aware, provide tooth to an already implicit right, 
• Will aid in advancing repair-related liability on various stakeholders, including policy recommendations, pertinent amendments, and even a specific law incorporating the right to repair to better implement it.

Conclusion:

The right to repair act should be recognized either through amendment or an act.

Nut Graf

The U. S has introduced a law named ‘fair to repair’ to protect the rights of the consumers. It has certain benefits but it also brings certain concerns as well. The concerns should be addressed and India’s Consumer Protect Act needs to be revised accordingly.

F. Prelims Facts

New norms for sentence remission

• The Union Home Ministry issued a set of guidelines to the States and the Union Territories on the grant of special remission to prisoners to commemorate the 75th year of Independence.
• As part of the Azadi Ka Amrit Mahotsav celebrations, the special remission would be granted to a certain category of prisoners, and they would be released in three phases — August 15, 2022, January 26, 2023, and August 15, 2023.
• The prisoners who would qualify for premature release under the scheme are women and transgender convicts ages 50 and above and male convicts of 60 and above who have completed 50% of their total sentence period without counting the period of general remission earned.
• Convicts with disabilities Among others eligible for remission are physically challenged or disabled convicts with 70% disability and more who have completed 50% of their total sentence period, terminally-ill convicts, convicted prisoners who have completed two-thirds (66%) of their total sentence and poor or indigent prisoners who have completed their sentence but are still in jail due to nonpayment of fine imposed on them by waiving off the fine.
• Persons who committed an offense at a young age (1821) and with no other criminal involvement or case against them and who have completed 50% of their sentence period would also be eligible for remission.
• The age of the convicts should be determined based on the matriculation or birth certificate.
• Persons convicted with death sentence or where the death sentence has been commuted to life imprisonment or persons convicted for an offense for which punishment of death has been specified as one of the punishments would not be eligible for the grant of special remission.
• Persons convicted with a sentence of life imprisonment, convicts involved in terrorist activities, or persons convicted under the Terrorist and Disruptive (Prevention) Act, 1985, Prevention of Terrorist Act, 2002, Unlawful Activities (Prevention) Act, 1967, Explosives Act, 1908, National Security Act, 1982, Official Secrets Act, 1923, and Anti-Hijacking Act, 2016, would not be eligible.

G. Tidbits

Retail inflation eases to 7.04%

• India’s retail inflation eased marginally to 7.04% in May from the nearly eight-year high of 7.79% in April, reflecting a persistent uptick of over 6% in prices paid by consumers for the fifth successive month.
• Inflation faced by rural consumers fell to 7.01% in May from 8.38% in April, but for households in urban areas, the pace of price rise was a virtually flat month on month, moving from 7.09% in April to 7.08% in May.
• Food price inflation, which had hit a 17 month high of 8.31% in April, eased a little to 7.97% in May, thanks to a decline in rural food inflation to 7.76% from 8.5%.
• The Consumer Food Price Index surged for urban India to 8.2% in May from 8.09% in April.
• The mild moderation in the retail inflation rate to base effects (May 2021 had recorded high inflation at 6.3%), as well as the lowering of excise duties on fuel products by the Center on May 21, which could be fully reflected in June’s inflation print.
• With inflation staying firmly above its tolerance threshold of 6% since January 2022, the Reserve Bank of India (RBI) has raised key interest rates by 90 basis points since April and has projected an average inflation rate of 7.5% for the first quarter of 2022-23.
• Higher food and fuel prices are likely to impact rural demand and core inflation edging up sharply is a concern. Supply-side constraints are likely to keep prices high for long despite tightening monetary policy.

H. UPSC Prelims Practice Questions

Q1. Consider the following statements with regards to Broken Rice: (Level – Easy)

1. If rice kernels are not sound, it is called broken rice.
2. China is now the top buyer of Indian broken rice, which was earlier exported mostly to African countries.
3. Broken Rice can be converted to make wine and noodles.

Choose the correct code.

(a) 1 & 2 only

(b) 2 & 3 only

(c) 1 & 3 only

(d) All of the above

Answer: d

Explanation: 

Statement 1 is correct: If rice kernels are not sound, it is called broken rice. Generally, broken rice is classified into 2 categories: big and small. 

Statement 2 is correct: China has emerged as the top byer of Indian rice during the COVID pandemic period. 

Statement 3 is correct: Trade experts say the reason for this increase in export of broken rice to China is the higher demand of rice for making noodles and wine in that country.

Q2. Consider the following statements with regards to the National Judicial Data Grid (NJDG): (Level – Medium)

1. NJDG provides information relating to judicial proceedings/decisions of all computerized district and subordinate courts of the country.
2. Case data is available on NJDG for both civil and criminal cases with the ability to perform drill-down analysis based on the age of the case as well as the State and district.
3. NJDG doesn’t mention any reasons for pendency of cases.

Choose the correct code:

(a) 1 & 2 only

(b) 2 & 3 only

(c) 1 & 3 only

(d) All of the above

Answer: a

Explanation: 

Statement 1 is correct: National Judicial Data Grid ( NJDG) provides information relating to judicial proceedings/decisions of all computerized district and subordinate courts of the country.

Statement 2 is correct: Case data is available on NJDG for both civil and criminal cases with the ability to perform drill-down analysis based on the age of the case as well as the State and district.

Statement 3 is incorrect: NJDG mentions reasons for pendency of cases. 

Q3. Who amongst the following is the Chancellor of the Vishva Bharati University? (Level – Easy)

(a) President of India

(b) Vice President of India

(c) Prime Minister of India

(d) Union Education Minister

Answer: c

Explanation: The Prime Minister is the chancellor of a central university- Visva Bharati.

Q4. Lake Sawa in Iraq has been seen in the news recently because (Level – Medium)

(a) Huge deposits of natural gas are found underneath it

(b) Huge deposits of crude oil are found underneath it

(c) The lake has dried up

(d) It is the country’s first private lake

Answer: c

Explanation: 

This year for the first time in its centuries long history, Iraq’s lake Sawa dried up. A combinationation of mismanagement by local investors, government neglect and climate change are causes of its drying up. 

Q5. Consider the following statements: (Level – Difficult)

1. Web 1.0 was the first generation of the Internet, made of static web pages that only allowed for passive engagement.
2. Web2.0, the Internet of today, has created a social web, allowing users to communicate with servers and other users.
3. Web3.0, the next generation, envisages a digital world built on blockchain technology and driven by artificial intelligence, where people will interact without needing an intermediary.
4. Web 5.0 is aimed at “building an extra decentralized web that puts you in control of your data and identity”. 

Choose the correct code: 

(a) 1 & 4 only

(b) 2, 3 & 4 only

(c) 1 & 3 only

(d) All of the above

Answer: d

Explanation: 

Statement 1 is correct: Web 1.0 was the first generation of the global digital communications network. It is often referred to as the “read-only” Internet made of static web-pages that only allowed for passive engagement.

Statement 2 is correct: Web 2.0 is the next stage in the evolution of the web as the “read and write” Internet. Users were now able to communicate with servers and other users leading to the creation of the social web. This is the world wide web that we use today.

Statement 3 is correct: Web 3.0 is an evolving term that is used to refer to the next generation of Internet – a “read-write-execute” web – with decentralization as its bedrock. It speaks about a digital world, built leveraging the blockchain technology, where people are able to interact with each other without the need of an intermediary. Web 3.0 will be driven by Artificial Intelligence and machine learning where machines will be able to interpret information like humans.

Statement 4 is correct: Web 5.0 is aimed at “building an extra decentralized web that puts you in control of your data and identity”. Web 5.0 is Web 2.0 plus Web 3.0 that will allow users to ‘own their identity’ on the Internet and ‘control their data’.

Q6. Under the Indian Constitution, concentration of wealth violates (Level – Easy) 

(a) The Right to Equality 

(b) The Directive Principles of State Policy 

(c) The Right to Freedom 

(d) The Concept of Welfare

Answer: b

Explanation:

Article 39 (Directive Principles of State Policy) in the Constitution Of India states, Certain principles of policy to be followed by the State: The State shall, in particular, direct its policy towards securing: 

• that the ownership and control of the material resources of the community are so distributed as best to sub-serve the common good;
• that the operation of the economic system does not result in the concentration of wealth and means of production to the common detriment; Article 39 (b) and (c) are the two most important directive principles that pledge to minimize the concentration of wealth.

CHECK ANSWERS:-

Watch the detailed explanation of the questions in the video below:

I. UPSC Mains Practice Questions

1. Global food prices have been soaring over the last two years. Examine the factors responsible and the way to tackle the crisis. (250 words; 15 marks) (GS III – Economy)

2. As the U.S. and China intensify their rivalry, other countries are faced with hard choices. Where does this leave India? Discuss. (250 words; 15 marks) (GS II – IR)

Read the previous CNA here.

CNA 14 June 2022:- Download PDF Here