Global Multidimensional Poverty Index (MPI) 2022

• The United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI) recently released the Global Multidimensional Poverty Index (MPI) 2022.

What are the Index's main highlights?

Global Information:

• Multidimensional poverty affects 1.2 billion people.
• Children under the age of 18 accounts for half of the poor (593 million).
• Sub-Saharan Africa has the poorest people (579 million), followed by South Asia (385 million). Together, the two regions are home to 83% of the poor.

Pandemic Effects:

• However, the data do not reflect post-pandemic changes.
• According to the report, the Covid-19 pandemic could halt global poverty reduction progress by 3-10 years.
• According to the World Food Programme's most recent food security data, the number of people living in food crises or worse increased to 193 million in 2021.

What are the most important findings about India?

Data:

• India has by far the poorest people in the world, with 22.8 billion, followed by Nigeria with 9.6 billion.
• Two-thirds of these people live in a household where at least one person is malnourished.

Poverty Reduction:

• Poverty in the country has decreased from 55.1% in 2005/06 to 16.4% in 2019/21.
• All ten MPI indicators saw significant reductions in deprivation, resulting in a more than halving of the MPI value and incidence of poverty.
• During the 15-year period between 2005-06 and 2019-21, 41.5 crore people in India were lifted out of poverty.
• The improvement in India's MPI has significantly contributed to the reduction of poverty in South Asia.
• South Asia now has a higher proportion of poor people than Sub-Saharan Africa.

Relative Poverty Reduction:

• From 2015/2016 to 2019/2021, the relative reduction was faster: 11.9% per year, compared to 8.1% from 2005/2006 to 2015/2016.

• State performance: Bihar, the poorest state in 2015-16, saw the fastest decrease in MPI value in absolute terms.
• Bihar's poor percentage fell from 77.4% in 2005-06 to 52.4% in 2015-16 and 34.7% in 2019-21.
• Bihar's poor percentage fell from 77.4% in 2005-06 to 52.4% in 2015-16 and 34.7% in 2019-21.
• However, in relative terms, the poorest countries have yet to catch up.
• Only one of the ten poorest states in 2015/2016 (West Bengal) is still on the list in 2019-21.
• The remaining states (Bihar, Jharkhand, Meghalaya, Madhya Pradesh, Uttar Pradesh, Assam, Odisha, Chhattisgarh, and Rajasthan) are among the poorest in the country.
• In India's states and union territories, Goa had the fastest relative reduction, followed by Jammu and Kashmir, Andhra Pradesh, Chhattisgarh, and Rajasthan.
• Poverty among Children: Although India still has the poorest children in the world, poverty among children has fallen faster in absolute terms.
• In India, more than one in every five children is poor, compared to one in every seven adults.

Poverty Reduction in the Region:

• Poverty incidence in rural areas fell from 36.6% in 2015-2016 to 21.2% in 2019-2021, and in urban areas from 9.0% to 5.5%.

What exactly is the Global Multidimensional Poverty Index (GMPI)?

• The index is a critical international resource that assesses acute multidimensional poverty in over 100 developing countries.
• It was first introduced in 2010 by the OPHI and the UNDP's Human Development Report Office.
• The MPI tracks deprivation across ten indicators, including health, education, and standard of living, and includes both the incidence and intensity of poverty.

Read Also: Multidimensional Poverty Index

One Nation, One Fertilizer’ Scheme

The 'One Nation, One Fertilizer' initiative was recently launched.

More on the 'One Nation, One Fertilizer' initiative

• The scheme requires all fertilizer companies, State Trading Entities (SMEs), and Fertiliser Marketing Entities (FMEs) to use a single "Bharat" brand and logo under the Pradhanmantri Bhartiya Janurvarak Pariyojna” (PMBJP).

• The PMBJP logo and the new "Bharat" brand name will cover two-thirds of the front of the fertilizer packet.
• The single brand name for UREA, DAP, MOP and NPK, etc. would be BHARAT UREA, BHARAT DAP, BHARAT MOP and BHARAT NPK
• On the remaining one-third space, the manufacturing brands can only display their name, logo, and other information.

The scheme's significance:

• Standardization: This will standardize fertilizer brands across the country, regardless of who manufactures them.
• Affordability: The scheme will provide farmers with affordable quality Bharat brand fertilizer.
• This scheme will lower the cost of fertilizers while increasing their availability.
• Single branding: With this single branding, competition among companies that push their brands will be reduced, ensuring a sufficient supply of fertilizers across the country.
• Reduced freight charges: By eliminating the crisscross movement of fertilizers, a single brand name will help to reduce freight charges and transit time.
• It will also put an end to the diversion of urea for industrial purposes.

Major Issues/Challenges in the Fertilizer Industry

Supply constraints:

• India is facing a scarcity of fertilizers, particularly phosphatic and potassic nutrients.
• Retail food inflation has reached 7.68 percent.
• The difficulties include securing supplies from new sources, more expensive raw materials, and logistics.
• The pandemic has had an impact on fertilizer production, import, and transportation worldwide.

Global concerns:

• Due to a drop in production, major fertilizer exporters such as China have gradually reduced their exports.
• This has had an impact on countries such as India, which imports 40-45% of its phosphates from China.
• Demand has increased in regions such as Europe, America, Brazil, and Southeast Asia.
• While demand has increased, supply has become constrained.

Other reasons:

• Raw material prices, as well as logistics and freight costs, have been steadily rising.
• Because of the disruption in the logistics chain caused by COVID, the average freight rate for ships has increased fourfold.
• Furthermore, the prices of fertilisers like DAP and urea, as well as raw materials like ammonia and phosphatic acid, have risen by 250-300%.
• The total fertilizer subsidy bill is expected to reach Rs 2.5 lakh crore this fiscal year, up from Rs 1.62 crore in the previous fiscal's revised estimates.

Criticisms

• Critics argue that completely commoditizing fertilizers will have an impact on their quality and will discourage manufacturers from bringing newer and more efficient products to market because there will be less opportunity to build a unique brand identity.
• It may also reduce the company to the status of mere fertilizer importers or contractors for the government.
• Many manufacturers have also expressed apprehension about spending money on a brand they do not own.
• Some companies may bear the expense on occasion, but it will be difficult to spend continuously on advertisements when the company's brand value is zero.
• Regulation: A government brand will add another layer of regulation to the fertilizer manufacturing sector, where the government controls almost every aspect, from product pricing to cost structure to geographical distribution and sale.
• Currently, in case of any bag or batch of fertilizers not meeting the required standards, the blame is put on the company. But now, that may be passed on fully to the government

The government's reasoning behind the One Nation, One Fertilizer initiative:

MRP and Subsidy

• The government currently sets the maximum retail price of urea, which compensates companies for higher manufacturing or import costs.
• Non-urea fertilizer MRPs are decontrolled on paper.
• Companies, however, are ineligible for subsidies if they sell at MRPs higher than those formally indicated by the government.
• Simply put, there are 26 fertilizers (including urea) for which the government provides subsidies and effectively determines MRPs.

Plan of supply

• Aside from subsidizing and determining the price at which companies can sell, the government also determines where they can sell.
• The Fertiliser (Movement) Control Order, 1973 is used to accomplish this.
• In accordance with this, the Department of Fertilisers develops an agreed-upon monthly supply plan for all subsidized fertilizers in consultation with manufacturers and importers.

Read More: One Nation One Fertilizer

Green Crackers

• The Chandigarh government recently approved the use of green crackers.

About

• Three Categories of Green Crackers: developed by the Council of Scientific and Industrial Research (CSIR).

SWAS (Safe water releaser)

• Have a small water pocket/droplet which gets released when burst, in the form of vapour.
• Suppresses the dust released by releasing water vapour in the air.
• Does not comprise potassium nitrate and sulphur and the particulate dust released will reduce approximately by 30 per cent.

STAR (Safe thermite cracker)

• Does not comprise potassium nitrate and sulphur,
• Emits reduced particulate matter disposal and reduced sound intensity.

SAFAL (Safe minimal aluminium)

• Has minimum usage of aluminium, and used magnesium instead.
• Ensures reduction in sound in comparison to traditional crackers.
• Advantages of Green crackers
• Reduction in size of shell,
• Elimination of ash usage,
• Reduced usage of raw materials, uniform acceptable quality, etc.,
• Leading to the reduction of particulate matter and gaseous emission.
• Different from Traditional Crackers:
• Green crackers cause 30 per cent less air pollution as compared to traditional ones.
• Green crackers reduce emissions substantially and absorb dust and don’t contain hazardous elements like barium nitrate.

Permission to Use:

• According to the National Green Tribunal (NGT), green crackers are permitted only in cities and towns where air quality is moderate or poor.
• Guidelines to choose the Right Green Cracker:
• Buy green crackers only from licensed sellers.
• Identify through the CSIR NEERI logo.

Read Also: Green Crackers and NGT