11 Mar 2021: UPSC Exam Comprehensive News Analysis

E. Editorials

Category: ECONOMY

1. A case for a revamped, need-based PDS

Context:

• The recent Economic Survey has flagged the issue of the growing food subsidy bill in India. As per the government’s own admission the food subsidy bill is increasingly becoming unmanageably large.

Background:

National Food Security Act:

• The National Food Security Act (NFSA) came into force in July 2013.
• It extended entitlements of food grains to almost two-thirds of the country’s population.
• The law requires the authorities to provide to each beneficiary 5 kg of rice or wheat per month.

Details:

• The withdrawal of food grains by States from the central pool under various schemes has increased over the years.
• During the last three years, the quantity of food grains annually drawn by States has hovered around 60 million tonnes to 66 million tonnes. However, by December 2020, the Centre set apart 94.35 million tonnes to the States under different schemes including the NFSA and additional allocation, meant for distribution among the poor free of cost.

Concerns:

Rising food subsidy:

• Food subsidy has been on a perpetual growth trajectory.
  • During 2016-17 to 2019-20, the subsidy amount, clubbed with loans taken by the Food Corporation of India (FCI) under the National Small Savings Fund (NSSF) towards food subsidy, was in the range of Rs. 1.65-lakh crore to Rs. 2.2-lakh crore. In future, the annual subsidy bill of the Centre is expected to be about Rs. 2.5-lakh crore.
  • The COVID-19 pandemic has further expanded this with the revised estimate of the food subsidy pegged at about ₹23-lakh crore, excluding the extra-budgetary resource allocation of ₹84,636 crore.

Issue prices:

• Though the NFSA in 2013, envisaged a price revision after three years, the Central Issue Price (CIP) has remained at Rs. 2 per kg for wheat and Rs. 3 per kg for rice for years now.

Political compulsions:

• It would be extremely difficult to reduce the economic cost of food management in view of rising commitment towards food security and the government’s reluctance to not disturb the NFSA norms or increase the prices owing to political compulsions.

Financial viability:

• The insistence of keeping the retail prices of food grains at fair price shops at the present low levels, even after the passage of nearly 50 years and achieving substantial poverty reduction in the country goes against the financial sustainability of the system.
  • As per the Rangarajan group’s estimate in 2014, the share of people living below the poverty line (BPL) in the 2011 population was 29.5% (about 36 crore).
• The mere increase in the CIPs of rice and wheat without a corresponding rise in the issue prices by the State governments would only increase the burden of States, which are already reeling under financial stress.

Way forward:

• PDS is a useful tool to counter the challenge of extreme poverty and hunger and hence the dismantling of it is not a solution.
• Also, given the fact that the PDS system helps support the farmers through government procurement of their produce, it might not be advisable to replace the in-kind provision of food subsidy of the PDS system with Direct Benefit Transfer (DBT).
• The Centre should have a relook at the overall food subsidy system.

Revising NFSA coverage:

• The centre should revisit NFSA norms and coverage. The government could look at decreasing the quantum of coverage under the law, from the present 67% to around 40%.
• For all ration cardholders drawing food grains, a “give-up” option, as done in the case of cooking gas cylinders, can be made available.
• Though the States have been allowed to frame criteria for the identification of PHH cardholders, the Centre can play a critical role in nudging the states into pruning the number of beneficiaries under the NFSA system.

Relook at the pricing mechanism:

• With respect to the pricing mechanism, the existing arrangement of flat rates should be replaced with a slab system. Leaving the poor and needy sections, other beneficiaries can be made to pay a little more for a higher quantum of food grains.

Conclusion:

• A revamped, need-based PDS is required not just for cutting down the subsidy bill but also for reducing the scope for leakages. There should be a political will to take the necessary steps.

Additional information:

• Diversion of food grains and subsidy leakage is another serious cause of concern.
• Reforms implemented in the PDS through various steps, including end-to-end computerisation of operations, digitisation of data of ration cardholders, seeding of Aadhaar, and automation of fair price shops have helped address this concern to an extent.

For related information refer to:

CNA dated Oct 19, 2020.

Category: ENVIRONMENT AND ECOLOGY

1. Regulation redux

Context:

• The Supreme Court’s notice to the Centre on a public interest plea to set up a national environmental regulator under the Environment (Protection) Act, 1986.

Concerns:

Government’s reluctance to set up a national environmental regulator:

• Successive governments have preferred to ignore the Supreme Court’s observations on the need for a national environmental regulator.
• In 2011 and 2014, the Centre had rebuffed the apex court on the question of forming an independent regulator, contending that its orders in the Lafarge mining case were only in the nature of a suggestion.

Ease of doing business over environmental conservation:

• The current official policy seems to privilege ease of doing business over environmental conservation.
  • The environmental clearances under forest, wildlife, air and water quality laws seem to be heavily weighted in favour of promoters.
  • Prominent environmentalists have pointed out major concerns with respect to the draft Environmental Impact Assessment (EIA) Notification 2020.
    • The 2020 notification reduces civil society’s role in the EIA process. It does not encourage the public to voice its views and report violations. The EIA seems to overlook the views of communities that would be displaced, and are ill-equipped to assess the loss of biodiversity and ecosystem services such as clean air, water and farm productivity.
    • The EIA process even as per the 2006 notification has been critiqued for neglecting the inherent conflict of interest in its provisions given that the proponent of a project is itself responsible for producing the EIA report.
    • There are serious questions being raised over the credibility of the EIA process, given the increasing instances of the EIA report being produced with the help of dubious expertise and manipulated data.

Concerns with respect to regulations:

• The laggardly pace at which the multiple departments process project proposals have not only resulted in the raising of transaction costs but also created a sense of uncertainty among the investors. This has aided in the clamour to dispense with regulation.

Conclusion:

• The government must recognise the limits to extractive growth and work towards preserving the integrity of the environment. India cannot afford to degrade its forests, rivers, wetlands and air, whose health is vital for its large population.
• The Centre and States must acknowledge the conflict between the need for economic growth and environmental conservation.
• Administrative reforms can aid in sustainable environment management and the setting up of a neutral national environmental regulator could be the first step in this direction.

Category: HEALTH

1. Diagnosing gestational diabetes

Context:

• The article discusses the concerns associated with gestational diabetes and makes relevant recommendations in this direction.

Gestational diabetes:

• Pregnancy is a diabetogenic stress and as a consequence, some women develop a transitory form of diabetes during pregnancy called gestational diabetes.
• Women of Indian (South Asian) origin are considered to be at the highest risk of gestational diabetes.
  • The International Diabetes Federation (IDF) estimates that up to 25% of pregnancies in South Asia may be affected by hyperglycemia in pregnancy. In India, it varies from about 10% in rural areas to about 30% in urban areas. About 27 lakh to 30 lakh women develop gestational diabetes each year.

Concerns:

Impact on health of mother and child:

• Gestational diabetes is associated with a significantly increased risk of complications during pregnancy such as preeclampsia (fits during pregnancy), postpartum haemorrhage and sepsis, stillbirths, premature delivery, increased risk of neonatal deaths due to respiratory distress, neonatal hypoglycaemia and birth injuries.
• All these conditions contribute to high maternal and newborn morbidity and mortality.
• Children born to women with gestational diabetes are also at very high risk of obesity, Type 2 diabetes, and cardiovascular diseases.

Impact on health of women post-pregnancy:

• If a woman gets gestational diabetes, it increases the risk of diabetes and cardiovascular diseases in such women.
• Almost half the women with gestational diabetes go on to develop Type 2 diabetes within 10 years without preventive care.
  • Diabetes is a major public health problem in India with an estimated 7 crore adults with diabetes. Diabetes has a detrimental impact on our health system, economic productivity and the individual’s life and family.

Lack of awareness:

• Despite the significant health threat posed by gestational diabetes, there is a lack of public awareness about gestational diabetes as well as low awareness and capacity within the health systems for testing and providing care.
  • Around 3.5 crore adults in India suffer from prediabetes and remain undiagnosed till late complications set in.