DAILY NEWS ANALYSIS

Sugar Production in India

• India surpasses other nations to take the top spots in the world for sugar production, consumption, and exports.

Major Points

• Production: During the sugar season, which ran from October to September (2021–2022), a record amount of sugarcane—more than 5000 LMT—was produced in the country. Of that amount, 3574 LMT were crushed by sugar mills to create 394 LMT of sugar (Sucrose).
• 35 LMT of this sugar was diverted to the production of ethanol, leaving 359 LMT for sugar mills to produce.
• Exports: Exports brought in foreign cash worth Rs. 40,000 crores.
• Another success of the season was the highest exports of 109.8 LMT, which were made without any financial assistance and sustained through 2020–21.
• It was made feasible because Favorable global prices and Indian government policy enabled the Indian sugar industry to attain this success.
• Employment and Jobs: The sugar business is a key agro-based sector and has a substantial impact on the rural livelihoods of the approximately 5 lakh directly employed people in sugar mills and the 50 million sugarcane growers.
• A multitude of ancillary industries connected to transportation, machine repair, and the supply of agricultural supplies also result in the creation of jobs.

Producing sectors:

• The Indian sugar industry currently produces around Rs. 80,000 crores per year. The nation had 732 installed sugar factories as of July 31, 2017, with enough crushing capacity to produce about 339 lakh MT of sugar.
• The units in the cooperative and commercial sectors share the capacity approximately evenly.

No need for financial aid at this time:

• During the Sugar Season (SS) 2021–2022, sugar mills purchased sugarcane worth more than 1.18 lakh crore and released payments totaling more than 1.12 lakh crore without receiving any financial assistance (subsidy) from the government.
• Therefore, the fact that the cane debt is less than 6,000 crore at the conclusion of the sugar season shows that 95% of the cane debt has already been paid.
• Additionally notable is the fact that more than 99.9% of the cane dues for SS 2020–21 have been paid.

Income from the sale of ethanol:

• The sugar industry has benefited significantly from the expansion of ethanol as a biofuel over the past five years.
• Sugar mills are now in a stronger financial position as a result of the conversion of sugar to ethanol because payments are made more quickly; working capital requirements are reduced; and there is less money blockage because there is less surplus sugar at the mills.
• In 2021–2022, ethanol sales brought in around 18,000 crores for sugar mills/distilleries, which contributed to the early payment of farmers' cane debts.

Extension anticipated:

• In the upcoming season, it is anticipated that sugar diversion to ethanol will increase from 35 LMT to 50 LMT, bringing in about 25,000 crores in revenue for sugar mills.
• To help sugar mills pay cane dues to farmers on time and operate in better financial conditions, the government has been encouraging them to divert sugar to ethanol and export excess sugar.
• Pricing policy: With the modification of the Sugarcane (Control) Order, 1966 in 2009, the idea of the "Statutory Minimum Price" (SMP) of sugarcane was replaced with the "Fair and Remunerative Price" (FRP) of sugarcane for the 2009–10 and following sugar seasons.
• Farmers are not obligated to wait until the end of the season or for any government or sugar mill declaration of profits under the FRP system.
• The new method guarantees farmers margins on account of profit and risk, regardless of whether sugar mills are profitable or not, and is not reliant on the operation of any specific sugar mill.
• After consulting with state governments and other stakeholders, the FRP was established based on the Commission for Agricultural Costs and Prices' recommendations.
• Sugar Subsidy: Sugar was distributed through the Targeted Public Distribution System (TPDS) by the participating State Governments/UT Administrations at subsidised prices for which the Central Government was reimbursing @ 18.50 per kg of sugar distributed.

India's Sugar Industry's Location:

• The production of sugar is mostly split between Maharashtra, Karnataka, Tamil Nadu, and Andhra Pradesh in the south and Uttar Pradesh, Bihar, Haryana, and Punjab in the north.
• In comparison to the north of India, South India has a tropical environment that is suited for crops with a greater sucrose content and better yields per unit area.

India's sugar industry faces challenges.

• Dependence on the Monsoon: Sugarcane is primarily farmed in rain-fed regions of central and southern India, with the exception of the northern states that have irrigation systems. A good monsoon hence becomes crucial.
• Obstacle to Exporting Surplus Sugar: Since the worldwide sugar prices are so low compared to the domestic raw sugar prices in India, exporting surplus sugar is not highly encouraged. Farmers do not receive adequate compensation for their output due to insufficient exports.
• Low Productivity Although sugarcane is grown over the greatest area in the world—in India—the yield per hectare is incredibly low, and it is even lower in North India than it is in South India.
• Government Pricing Strategy: The government's dual-price policy deters entrepreneurs from investing in additional growth and development.
• Short smashing season: The production of sugar is a seasonal industry, with a season that lasts only 4 to 7 months out of the year. It results in financial hardship, sporadic employment for labourers, and insufficient utilisation of sugar plants.

Way Forward

• The government made an announcement in October 2021 to encourage sugar firms to use surplus sugar cane stock to produce ethanol, which can be combined with gasoline and used as fuel for automobiles.
• Additionally, this is a wonderful way to deal with the issue of overproduction of sugar in the nation.

Read Also: FRP and Sugar Pricing Policy in India

Poverty and Shared Prosperity in 2022

• A paper titled "Poverty and Shared Prosperity 2022: Correcting Course" was just published by the World Bank.

What are the Report's Findings?

• Global Poverty Reduction: Since 2015, the rate of global poverty reduction has been sluggish, but the cholera pandemic and the Ukraine conflict have completely turned the trend around.
• The rate of extreme poverty around the world had decreased by more than half by 2015.
• Since then, global economic growth has slowed as poverty alleviation has also slowed.
• As a result, the 2030 global objective to alleviate severe poverty would not be met.
• The number of people living below the poverty line increased by approximately 70 million in 2020 alone, the greatest one-year increase since global poverty monitoring began in 1990.
• With the majority of them living in Africa, 574 million people—nearly 7% of the world's population—will still be subsisting on less than USD 2.15 per day in 2030.
• An increase in inequality
• The costs of the pandemic were borne mostly by the most vulnerable: The poorest 40% of the income distribution saw income losses on average of 4%, which was twice as much as the richest 20%.
• As a result, global inequality increased for the first time in decades.
• The global median income fell by 4% in 2020, marking the first fall since 1990, when median income measurements first started.

What suggestions are there?

• Reforms to a national policy may help the fight against poverty get back on track.
• Additional international cooperation will be required.
• Governments should take fast action in three areas of fiscal policy:
• Stay away from general subsidies and enhance focused financial transfers:
• In low- and middle-income countries, the richest 20% of the population, who use more energy, receive 50% of all energy subsidies.
• Cash transfers are a much more effective means of assisting the underprivileged and needy.

Putting Long-Term Growth First

• The time has come to make high-return investments in infrastructure, research and development, and education.
• More effective expenditure and stronger crisis planning will be essential in a period of limited resources.
• Property taxes and carbon taxes are two ways to raise money domestically without harming the most vulnerable.
• The basis of personal and corporate income taxes might also be widened.
• If sales and excise taxes do need to be increased, governments should simultaneously deploy targeted cash transfers to counteract their effects on the most vulnerable households in order to reduce economic distortions and adverse distributional repercussions.

How bad is the poverty situation in India?

• According to a paper titled "Poverty has Declined over the Last Decade But Not As Much As Previously Thought" that the World Bank reportedly issued.
• With the poverty headcount rate falling from 22.5% in 2011 to 10.2% in 2019, with a relatively faster reduction in rural regions, extreme poverty in India was 12.3% points lower in 2019 compared to 2011.
• India's rural poverty decreased more than its urban counterpart, falling from 26.3% in 2011 to 11.6% in 2019, while urban poverty decreased from 14.2% to 6.3% over the same time period.
• Poverty Estimation: The task force of NITI Aayog determines the poverty line in India using information collected by the National Sample Survey Office, which is part of the Ministry of Statistics and Programme Implementation (MOSPI).
• In India, estimating the poverty line is based on consumption costs rather than income levels.

Recently Adopted Measures:

• Integrated Rural Development Programme (IRDP)
• Pradhan Mantri Awaas Yojana
• National Old Age Pension Scheme
• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005
• Deendayal Antyodaya Yojana - National Rural Livelihood Mission (DAY-NRLM)
• National Urban Livelihood Mission
• Pradhan Mantri Kaushal Vikas Yojana
• Pradhan Mantri Jan Dhan Yojana

Genetically Modified Mosquitoes

• Recently, scientists genetically altered mosquitoes to inhibit the growth of parasites that cause malaria, which may help to reduce the risk of the disease spreading to humans.

Regarding malaria Parasites

• Through the bites of female Anopheles mosquitoes carrying the parasites that cause malaria, people can contract this potentially fatal illness.
• In the mosquito's gut, the parasite advances to the next stage and moves to the salivary glands, where it is prepared to infect the next victim it bites.
• Nevertheless, only around 10% of mosquitoes survive long enough for the contagious parasite to emerge.

Symptoms

• Malaria patients typically experience severe illness, including a high fever and chills that shake.

Distribution

• Malaria is still widespread in tropical and subtropical nations, while being rare in temperate areas.

Malaria statistics

• About half of the world's population is still at risk from malaria, which continues to be one of the most deadly diseases in the world.
• It caused 241 million infections and 627,000 fatalities in 2021.

Genetic modification in Mosquitoes

• GM mosquitoes are mass-produced in a lab and contain two different types of genes:
• A self-limiting gene that limits the lifespan of female mosquito offspring.
• A fluorescent marker gene that shines when exposed to a certain red light. As a result, scientists can recognise GM mosquitoes in the wild.
• As mosquitoes become resistant to pesticides and treatments, new technologies are becoming more and more necessary.
• Shorter lifespan: The peptides reduce the development of the malarial parasite and shorten the lifespan of the mosquitoes.
• Gene drive technology is one such potent tool that, when combined with medications, vaccines, and measures to reduce mosquito populations, can help stop the spread of malaria and save lives.

Positive aspects of GM mosquitoes

• In some areas of Brazil, the Cayman Islands, Panama, and India, GM mosquitoes have been employed to effectively suppress Ae. aegypti mosquitoes.
• Only the target mosquito species will be affected by GM mosquitoes, not other mosquito species.
• Neither people nor animals nor the environment are in danger.
• According to scientists, the introduction of GMO mosquitoes will gradually reduce the number of disease-carrying biting insects.
• According to reviews, since invasive mosquito species didn't belong there to begin with, their extinction will likely have little to no impact on the local environment.
• When employing GMO mosquitoes, the ecosystem is not exposed to any insecticides.
• It is relatively simple and requires little labour to seed areas with GMO male mosquitoes.

Negative effects of GM mosquitoes

• GMO mosquitoes may harbour or produce unidentified pathogens that harm people.
• Critics claim that not enough GMO mosquitoes have been tested and observed.
• Despite being an invasive species, the mosquito has come to replace other local species as a food source.
• GMO mosquitoes could change into a more potent species that can reproduce, posing a completely new hazard.
• Fear that some of the GMO mosquito eggs will survive to adulthood and reproduce despite the gene change.
• It costs too much money and takes too long to produce GMO mosquitoes.

Moving Forward/Advice

• Prior to any field experiments, there would need to be very cautious planning to reduce dangers.
• Two distinct strains: Two distinct but compatible strains of transgenic mosquitoes, one with an anti-parasite alteration and the other with a gene drive, must be developed.

Integrated control of mosquitoes

• Educating the local population on mosquito prevention measures for their houses and surrounding areas.
• Monitoring the mosquito population (tracking and monitoring the number of mosquitoes, and types of mosquitoes in an area).
• Eliminating stagnant water where mosquitoes breed.

Read Also: Aatmanirbhar in Defence Production

Emperor Penguin

• According to a significant evaluation of environmental pollution near the South Pole, there is no evidence of microplastics in Emperor penguins.
• It is the largest penguin in the order (Sphenisciformes). Of all the living penguin species, it is also the tallest and heaviest.
• Geographical Presence: Antarctica-Specific Endemic
• IUCN Status: Close to Endangered.

About Penguin

• They are a flock of water birds without wings. World Penguin Day is commemorated annually on April 25.
• Only one species, the Galapagos penguin, is found north of the equator and is mostly found in the Southern Hemisphere.
• Penguins cope with an exceptionally hostile environment by using physiological adaptations and social behaviours.
• There are six genera of penguins. They are Emperor penguin (Aptenodytes forsteri), snares penguin (Eudyptes robustus), little penguin (Eudyptula minor), yellow-eyed penguin (Megadyptes antipodes), gentoo penguin (Pygoscelis papua), African penguin (Spheniscus demersus).

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