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DAILY NEWS ANALYSIS

Monthly DNA

02 Aug, 2022

57 Min Read

JUTE SECTOR IN INDIA

GS-I : Indian Geography Agro based industries

JUTE SECTOR IN INDIA

  • The jute sector in India has been faltering while Bangladesh’s is flourishing and depleting.
  • According to the third advance estimate released by the Union Ministry of Agriculture and Farmers Welfare, it has mainly fallen by over 13 per cent in the past decade about 1.77 million tonnes in 2021-22, from 2.03 million tonnes in 2011-12.
  • The average area under the jute in the country was 0.82 million hectares between 2000-01 and 2009-10, according to a 2021 report by the Commission for Agricultural Costs and Prices (CACP). This declined to 0.73 million ha between 2010-11 and 2019-20.

Source - Down to earth

Comparison with Bangladesh

Production:

  • While India’s production and acreage have declined on the other side Bangladesh’s production and area under jute have increased over the years.

Cultivation:

  • India is still one of the largest producers of jute but in terms of acreage, Bangladesh is the largest cultivator as it also accounts for nearly 75 per cent of the global jute exports, while India’s share is just 7 per cent.

Imports:

  • Even India imports jute products that as yarn, floor coverings and jute hessian from Bangladesh. In 2020- 21, India imported products worth Rs 1,123 crore from Bangladesh.
  • Imports from Bangladesh had adversely affected the domestic industry, given that the landed price of jute and its products from the neighbouring country was much cheaper than the domestic rate.

Cost:

  • Bangladesh has traditionally enjoyed a comparative advantage in the export of jute products because of its low cost of production which is also driven by the lower wages, favourable power tariffs, cash subsidy for export and even better fibre quality.

Infrastructure:

  • It has been a sore point in India’s jute cultivation. Jute in India is marred by poor infrastructural facilities for retting, a process done after harvesting the crop.

Bangladesh Model: A Success

  • Subsidy: It does well in exports because it has three to four different kinds of subsidies. For example, it gives a 9-10 per cent export subsidy for food-grade packing bags, which is much higher than India’s 1.5-3 per cent subsidy.
  • Diversified Products: It’s capturing the diversified jute products market, for which there is a huge international demand. India’s major jute exports, in contrast, are sacking and hessian bags.
  • High Exports: High-end fashion brands are also coming out with more jute products such as sandals. Around 85 per cent of India’s jute is consumed domestically, while only 15 per cent is exported. The situation is much reversed for Bangladesh.

The issue in the jute sector of India

  • High rate of procurement by mills: The mill is procuring raw jute at price higher than what they are selling them at after processing. Even the mill owner is not purchasing directly from the farmer as the farmers are far-off from the mill’s location.
  • Low yield per acre: India produces a very low quantity of jute per unit of land, in fact among the producing country India’s production is one of the lowest. In Bangladesh, the average yield per hectare is 1.62 compared to India’s 1.3 tonnes per hectare.
  • Declining Production: Ten years ago, the production was very high, but gradually reduced and since 2011 most farmers have stopped cultivating the crop, mainly shifting to horticulture crops.
  • Price fall: The jute price kept falling from Rs 30,000-40,000 per tonne in the late 2000s, and it reduced to Rs 25,000 in 2010-11. This was just enough to recover the input cost.
  • Poor Quality: Under retting, jute bundles are kept under water at a depth of about 30 cm. This process gives the fibre its shine, colour, and strength. It should ideally be done in slow-moving, clean water bodies like rivers. But Indian farmers do not have the access to such resources.
  • Lack of Government intervention: When the prices fell, the Jute Corporation of India (JCI) Ltd, a Government of India enterprise for procurement of raw jute from the growers at the minimum support price, barely intervened.
  • Problems of jute mills in India: Jute mills mainly faced the challenges like
  • Machinery modernisation,
  • Mismanagement,
  • Labour shortage and
  • Unrest and dependence on the government.

Amongst the functioning mills, only 8-10 are in good financial health and the rest can survive seasonal losses. The business of another 20 mills is just average. The rest of the mills are financially unsound.

Government intervention

  • Golden Fibre Revolution and Technology Mission on Jute and Mesta are the government initiatives to mainly boost jute production in India. Due to its high cost, it is losing the market to synthetic fibres and packing materials and particularly nylon.
  • Jute Packaging Materials Act, 1987:
  • Through the Jute Packaging Materials (JPM) Act, the Government is protecting the interests of about 4 lakh workers and mainly 40 lakh farm families.
  • The Act provides for the compulsory use of jute packaging material in the supply and the distribution of certain commodities in the interests of production of raw jute and jute packaging material, and of persons engaged in the production thereof, and for matters connected therewith.
  • Jute Geo-Textiles (JGT):
  • The Cabinet Committee on Economic Affairs (CCEA) has approved a Technical Textiles Mission which includes Jute Geo-Textiles.
  • It is one of the most important diversified jute products. It can be applied in many fields like civil engineering, soil erosion control, road pavement construction and even the protection of river banks.
  • Jute SMART:
  • It is an e-government initiative which was launched in December 2016 to promote transparency in the jute sector.
  • It provides an integrated platform for procurement of sacking by Government agencies.
  • Jute-ICARE (Improved Cultivation and Advanced Retting Exercise) programme for increasing the productivity and even the quality of jute.
  • Incentive Scheme for Acquisition of Plants and Machinery (ISAPM) for focusing on modernization and up-gradation of technology in existing/ new jute mills and JDP units.
  • Jute Integrated Development (JID) Scheme to provide basic, advanced and design training and training cum production centres.
  • Jute Raw Material Bank (JRMB) Scheme to supply jute raw materials to MSME units and artisans engaged in the production of jute diversified products at mill gate price.

Way forward

The focus must be on strengthening the jute mill for which the government have to purchase 70 per cent of the mills’ total production to give the sector a boost.

The domestic sector has also to be made competitive mainly in the price and the quality of the product.

About Jute

Temperature: A means the maximum and minimum temperature of 34oC and 15oC and a mean relative humidity of 65% are required.

Rainfall required: Around 150-250 cm

Soil Type:

Jute can be raised on all kinds of soils from clay to sandy loam, but loamy alluvial soils are best suited.

The new grey alluvial soils of good depth, receiving silt from the annual floods are the best for jute cultivation

Read also - ELECTORAL BOND

Source: Down To Earth

ELECTORAL BOND: EXPLAINED

GS-II : Governance Electoral reforms

ELECTORAL BOND: EXPLAINED

The total amount collected by parties through the Electoral Bond Scheme has gone up to Rs 10,246 crore from various anonymous donors since its introduction in 2018 as per the SBI report.

Electoral bond scheme

  • It was introduced with the Finance Bill, 2017 and for the first time, the EB Scheme was notified on January 29, 2018.
  • These bonds are issued in the multiple of RS 1000, RS 10,000 RS 1 lakh, RS 10 lakh, and RS 1 crore without any maximum limit.
  • An electoral bond is an instrument through which anyone can donate money to political parties.
  • It is like a promissory note that can be bought by any Indian citizen or company incorporated in India with no limit.
  • The State bank of India is authorized to issue and encash these bonds, which are valid for fifteen days from the date of issuance.
  • Only the political parties registered under Section 29A of the Representation of the People Act, 1951 and have secured not less than 1% of the votes polled in the last general election to the House of the People or even the Legislative Assembly, are only eligible to receive electoral bonds.

Procedure

  • One can purchase these electoral bonds only digitally or through cheques.
  • These bonds are available for purchase by any citizen of India for a period of ten days each in January, April, July, and October as may be specified by the Central government.
  • A person being an individual can buy bonds, either singly or jointly with the other individual.
  • The donor’s name is not mentioned on the bond.
  • There is no limit on the number of bonds an individual or company can buy.

Individuals, groups of individuals, NGOs, religions, and other trusts are permitted to donate via electoral bonds without disclosing their details.

The donor who contributes less than RS 20,000 to political parties through the purchase of electoral bonds need not provide their identity details such as PAN.

Taxability

The donations would be tax deductible. Hence, a donor will get a deduction and the recipient, or the political party, will get tax exemption, provided returns are filed by the political party.

Advantages of electoral bond

  • Transparency: The main idea behind the electoral bond scheme was to bring about transparency in electoral funding in India.
  • Digital economy: The government had described the scheme as an electoral reform in a country moving toward a cashless digital economy.
  • Ensures Accountability: Donations through Electoral Bonds will only be credited to the party bank account and disclosed with the ECI. Every political party shall be obliged to explain how the entire sum of money they received has been expended.
  • Income for Parties: More than half the total income of national parties and the regional parties for the financial year 2018-19 came from electoral bond donations.
  • Maintains Anonymity: The individuals, groups of individuals, NGOs, religions, and other trusts are permitted to donate via electoral bonds without disclosing their details and hence it maintains anonymity by not disclosing their identity.

Issue of electoral bond

  • Contradiction to its basic idea: the main criticism of the electoral bonds scheme is that it does the exact opposite of what it was meant to do, which is to bring transparency to election funding.
  • Distorting Democracy: The introduction of electoral bonds is “distorting democracy” in India. Only 23 political parties are eligible for redemption of electoral bonds.
  • Disclosure of the amounts: Even major political parties have not disclosed the amount they received through electoral bonds.
  • Through an amendment to the finance ACT 2017, the union government has exempted political parties from disclosing donations received through the electoral bond.
  • Even this means that voters will not know which individual, company,y or any organization has funded which party, and to what extent
  • Crony-Capitalism: It could also become a convenient channel for the businesses to round-trip their cash parked in tax havens to political parties for a favour or mainly to advantage granted in return for something.
  • Shallow Anonymity: Anonymity does not apply to the government of the day, which can always access the donor details by demanding the data from the State Bank of India (SBI).
  • Compromising right to know: the Supreme Court has said that the “right to know”, especially in the context of an election, is an integral part of the right to freedom of expression under the Constitution of India.

Way forward

  • For the continuance of the Scheme, the principle of anonymity of the bond donor enshrined in the Electoral Bond Scheme, 2018 must be done away with.
  • There is a need for bold reform to regulate political funding to break the vicious cycle of corruption and erosion of the quality of democratic polity.
  • The government should reconsider and modify certain provisions of the Electoral Bonds Scheme to ensure full disclosure and transparency. This will establish the motto “free and fair election” and lead to the strengthening of democracy.

Read also - LOKTAK LAKE AND RECENT CONTROVERSY

Source: The Indian Express

Al Najah-IV and Ex VINBAX 2022

GS-III : Internal security Security Forces & Agencies

Al Najah-IV and Ex VINBAX 2022

Recently, the Indian Army conducted separate exercises with Oman and Vietnam.

About Al Najah-IV and VINBAX 2022

  • The fourth edition of India-Oman joint military exercise ‘Al Najah-IV’ is scheduled to take place at Mahajan field firing ranges in Rajasthan.
  • Indian Army and Royal Army of Oman will conduct their joint Military Exercise AL NAJAH-IV from 1st to 13th of August 2022.
  • The main scope of the exercise includes professional interaction, mutual understanding of drills & procedures, the establishment of joint command & control structures and the elimination of terrorist threats.
  • The joint exercise would mainly focus on Counter Terrorism Operations, Regional Security Operations, and Peace Keeping Operations under the United Nations charter apart from organizing joint physical training schedules, tactical drills, techniques and procedures.
  • The 3rd edition of Vietnam-India Bilateral Army ExerciseEx VINBAX 2022” is conducted at Chandimandir, Haryana from August 1 to 20, 2022.

The theme of Ex VINBAX 2022 is the “Employment and deployment of an Engineer Company and a Medical Team as part of United Nations Contingent for Peace Keeping Operations”

India –Oman defence cooperation

  • It is a key pillar of India’s West Asia Policy with the most robust defence & security cooperation mechanisms.

There has been a regular exchange of visits by the Defence Ministers of both sides.

  • India and Oman conduct regular biennial bilateral exercises between all three services.
  • Army exercise: Al Najah
  • Air Force exercise: Eastern Bridge
  • Naval Exercise: Naseem Al Bahr

What is the Strategic Significance of Oman for India?

  • Oman is a strategic partner of India in the Gulf and an important interlocutor at the Gulf Cooperation Council (AGCC), Arab League and Indian Ocean Rim Association (IORA) fora.
  • Oman is at the gateway of the Strait of Hormuz through which India imports one-fifth of its oil imports.
  • The two countries across the Arabian Sea are linked by geography, history and culture and enjoy warm and cordial relations, which are attributed to historical maritime trade linkages.

Read also - JUTE SECTOR IN INDIA

Source: The Indian Express

American Bullfrog & Brown Tree Snake

GS-III : Biodiversity & Environment Biodiversity & Environment

American Bullfrog & Brown Tree Snake

The American bullfrog and Brown Tree Snake cost the world economy $16 billion, as per the study.

  • The invasive duo has caused ecological damage in addition to ruining farm produce and causing expensive power interruptions.
  • More than two million Brown Tree snakes populate the tiny Pacific Island, with one estimate calculating as many as 20 inhabitants per acre of Guam's jungle.
  • The Brown Tree snakes have the most significant impact on Pacific islands, and the amphibian breed of the American bullfrog multiplied uncontrollably in Europe.

About the Species

  • The brown-and-green frog known as Lithobates Catesbeianus which can weigh over 2 pounds (0.9 kilos), had the greatest impact in Europe.
  • The brown tree snake, or Boiga irregularis, has multiplied uncontrollably on Pacific islands including Guam and the Marianna Islands, where the species was introduced by U.S. troops in World War II.
  • The snakes have at times been so abundant that they caused power outages by crawling on electrical equipment.
  • This signals the need for investment in controlling the global transport of invasive species to avoid paying for mitigation after the invasions occur.

Read also - Al Najah-IV and Ex VINBAX 2022

Source: The Hindu

AFRICAN SWINE FEVER

GS-III : Economic Issues Animal Husbandry

AFRICAN SWINE FEVER

  • The disease has been confirmed on a private pig farm at Kanichar grama panchayat in Kannur.
  • This was first reported in November 2019 from the area of China bordering Arunachal Pradesh.

About

  • African swine fever is a highly contagious and fatal animal disease that infects and leads to an acute form of hemorrhagic fever in domestic and wild pigs.
  • Other symptoms of the disease include high fever, depression, anorexia, loss of appetite, haemorrhages in the skin, vomiting, and diarrhoea among others.

History

  • It was first detected in Africa in the 1920s.
  • Historically outbreaks have been reported in Africa and parts of Europe, South America, and the Caribbean.
  • Most recently since 2007, the diseases have been reported in multiple countries across Africa, Asia, and Europe, in both domestic and wild pig
  • The mortality is close to 100% and since the fever has no cure, the only way to stop its spread is by culling the animals.
  • African swine fever is not a threat to human beings since it only spreads from animals to other animals.
  • ASF is a disease listed in the World Organisation for Animal Health (OIE) Terrestrial Animal Health Code and thus, reported to the OIE.

Transmission:

  • Direct contact with the infected pigs, faeces, or body fluids.
  • Indirect contact via fomites such as equipment, vehicles, or people who work with pigs between pig farms with ineffective biosecurity.
  • Pigs eating infected pig meat or meat products.

World Organisation for Animal Health

  • It is an intergovernmental organization responsible for improving animal health worldwide.
  • It has 182 Member Countries. India is one of the member countries.
  • It develops normative documents relating to rules that Member Countries can use to protect themselves from the introduction of diseases and pathogens. One of them is the Terrestrial Animal Health Code.
  • OIE standards are recognized by the World Trade Organization as references to international sanitary rules.
  • Its headquartered in Paris, France.

Read also - American Bullfrog & Brown Tree Snake

Source: The Hindu

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