Rs. 6.28 lakh crore stimulus post 2nd COVID wave

• Finance Minister Nirmala Sitharaman announced some fresh relief measures for the economy, the first such package after the second COVID-19 wave, focusing largely on extending loan guarantees and concessional credit for pandemic-hit sectors and investments to ramp up healthcare capacities.
• The government pegged the total financial implications of the package, which included the reiteration of some steps that were already announced, such as the provision of foodgrains to the poor till November and higher fertilizer subsidies, at ?6,28,993 crore.
• Economists, however, noted that the elements of direct stimulus in the package and its upfront fiscal costs in 2021-22, are likely to be limited. More steps may be needed to shore up the economy through the rest of the year, they said.
• Calling the measures an effort to stimulate growth, exports and employment as well as provide relief to COVID-affected sectors, Ms. Sitharaman announced an expansion of the existing Emergency Credit Line Guarantee Scheme by ?1.5 lakh crore.
• She also announced a new ?7,500 crore scheme for loans up to ?1.25 lakh to small borrowers through micro-finance institutions.
• She also unveiled a fresh loan guarantee facility of ?1.1 lakh crore for healthcare investments in non-metropolitan areas and sectors such as tourism.
• A separate ?23,220 crore has been allocated for public health with a focus on paediatric care, which will also be utilised for increasing ICU beds, oxygen supply and augmenting medical care professionals for the short term by recruiting final year students and interns.
• Indirect support for exports worth ?1.21 lakh crore over the next five years, free one-month visas for five lakh tourists, and new seed varieties for farmers were also included in the package.
• The existing sop to spur employment, where the government bears EPF contributions for new employees earning less than ?15,000 a month for two years, has been extended till March 31, 2022.
• “Setting aside the guarantee schemes and the announcements that had already been made earlier, the step up in the fiscal outgo within 2021-22 based on the fresh announcements is estimated at around ?60,000 crore,” said Aditi Nayar, rating agency ICRA’s chief economist.
• Economist D.K. Srivastava reckoned that the additional burden on the 2021-22 Budget from the ‘three direct stimulus initiatives’ — providing free foodgrains, incremental health projects’ spending, and rural connectivity — would be ?1,18,390 crore or about 0.5% of estimated GDP for 2021-22.
• “Although the total impact amount seems large at nearly ?6.29 lakh crore, a large portion of this is by way of credit guarantee schemes where there is no immediate outflow. The impact on the fiscal deficit will be limited while the stock markets could give a mild positive reaction,” said HDFC Securities managing director and CEO Dhiraj Relli.

Plan for India to become Atmanirbhar in Phophatic fertilizers (DAP and NPK)

• Department of Fertilisers is ready with an Action Plan to make India Aatmanirbhar in Rock Phosphate, the key raw material of DAP and NPK Fertilisers.
• An Action Plan was chalked out for making India Aatmanirbhar in fertiliser production through indigenous resources.
• India is going to commercially exploit and ramp up the production in the existing 30 lakh MT of Phosphorite deposits which are available in Rajasthan, the central part of peninsular India, Hirapur(MP), Lalitpur(UP), Mussoorie syncline, Cuddapah basin(AP).
• Discussion and planning with the Department of Mining and Geological Survey of India are going on to expedite the exploration of the potential potassic ore resources in Rajasthan’s Satpura, Bharusari & Lakhasar and Uttar Pradesh, Madhya Pradesh, Rajasthan, Gujarat, Andhra Pradesh & Karnataka.
• The Action Plan included the steps to minimize the import dependency on costly raw materials imported from abroad and make it accessible and affordable to farmers.
• Rock Phosphate is the key raw material for DAP and NPK fertilisers and India is 90% dependent on imports.
• Volatility in international prices affects domestic prices of fertilisers and hinders the progress and development of agriculture sector in the country.

Fertilizer Industry in India

CCEA approved the proposal to hike subsidy rates for Phosphorus and Potassium based fertilizers

• The Cabinet Committee on Economic Affairs has approved the proposal to hike subsidy rates for phosphorus and potassium-based fertilizers by 140% in a bid to provide relief to farmers as the Kharif sowing season begins.
• The estimated additional subsidy burden is around 14,775 crore, with the Centre emphasising that this is a one-time measure as part of COVID-19 relief.
• Unlike urea, where the Centre sets a fixed maximum retail price, non-urea fertilizer prices are decontrolled, with the Centre fixing nutrient-based subsidy rates.
• So far, a 50 kg bag of di-ammonium phosphate (DAP), the fertilizer most popular with Indian farmers after urea, was sold at ?1,200, including a subsidy of about 500.
• However, the bull run in the global commodity markets has seen a surge in prices of imported raw materials as well as finished fertilizer. In early April, a number of Indian fertilizer companies hiked their DAP prices to 1,900 per bag.
• Farmers’ groups protested against the 700/bag hike, pointing out that their input costs for the Kharif season would spiral out of control.

Fertilizer Industry in India

• It is 1 of the 8 core industries. Fertilizer has the minimum share in the Index of Core Industries.
• India is the 2nd largest consumer of Urea fertilizers after China. India also ranks 2nd in the production of nitrogenous fertilizers and 3rd in phosphatic fertilizers. Potash requirement is met through imports since we have limited reserves of potash. There are 2 types of Fertilizers
  1. Primary Fertilizers: classified on the basis of nutrients they supply to soil like N:P:K:
     1. Nitrogenous (Urea),
     2. Phosphatic (di-ammonium phosphate - DAP) and
     3. Potassic (muriate of potash (MOP) fertilizers.
  2. Secondary Fertilizers include Calcium, Magnesium and Sulphur.
  3. Micronutrients include Iron, Zinc, Boron, Chloride etc.
• Fertilizer subsidy (Food > Fertilizer > Petroleum > Interest payments)
  1. Earlier no Fertilizer subsidy was paid till 1977. Oil crisis of 1973 led to increase in Fertilizer prices leading to a decline in consumption and an increase in food prices. In 1977, Govt subsidized manufacturers.
  2. After the 1991 crisis, Govt decontrolled the import of Phosphate and Potash but Urea imports is restricted.

Urea Production and Pricing Mechanism

• Urea is the source of Nitrogenous fertilizer and it is heavily subsidized by Center. Today Urea is the only fertilizer which remains controlled.
• CCEA approved the continuation of the Urea Subsidy Scheme up to 2020
  1. It is a part of the Central Sector Scheme. Urea price will be the same till 2020.
  2. Now DBT Scheme is approved for fertilizer subsidy to urea manufacturers and importers. It also includes an imported Urea subsidy which is directed towards import to bridge the gap between demand and indigenous production of urea. It also includes freight subsidy for the movement of urea.
  3. Benefits
     1. DBT will ensure timely payment of subsidy to urea manufacturers. Fertilizer Co. leading to timely availability of urea to farmers.
     2. This will reduce the leakage of fertilizer subsidies and black marketing.
     3. A ceiling might be put to reduce the overuse of Nitrogenous fertilizers.
  4. Subsidy to Fertilizer manufacturer/ importer = Farm Gate price - MRP paid by Farmers.
• New Urea Policy of 2015 (till 2019-20)
  1. With the objective of maximizing indigenous urea production, promoting energy efficiency in urea production and rationalising subsidies.
  2. It is applicable to the existing 25 gas-based units.
  3. It ensures timely payment to urea manufacturers resulting in timely availability of urea to farmers.
• Urea is given at statutorily controlled price = Rs. 5360/ MT. Other charges for Neem coating.
• Center plans to ease control on the retail prices of Urea and wants to make it more targeted.
• Earlier Mandatory Neem coated urea production was done to slow down the dissolution of nitrogen into the soil, resulting in less nutrient requirement.
• Govt is also planning over fixing a Nutrient Based Subsidy (NBS) rate for Urea to promote the balanced use of fertilizers and bring efficiency in the industry.

CCEA approved continuation of Nutrient Based Subsidy scheme till 2020

• Under this scheme a fixed amount of subsidy decided on annual basis, is provided to fertilizer companies (other than Urea) depending on its nutrient content. It is applicable to 22 fertilizers (other than Urea).
• Govt announces a fixed rate of subsidy on each nutrient of subsidized Nitrogen, Phosphate, Potash and Sulphur fertilizers. MRP is decided by considering international and domestic prices of P&K fertilizers, exchange rate and inventory level in the country.

Infrastructure

• Fertilizer Corporation of India Limited: has 4 units at Sindri (Jharkhand); Gorakhpur (UP); Ramagundam (AP) and Talcher (Odisha) and Korbe (Chattisgarh).
• Hindustan Fertilizer Corporation Limited: at Barauni (Bihar); Durgapur (WB) and Namrup (Assam).
• Rashtriya Chemicals and Fertilizers Limited, Trombay.
• National Fertilizers Limited at Bhatinda (Punjab) and Panipat (Haryana).

Delta and Delta Plus Variants: Frequently Asked Questions

Q. Why does a virus mutate?

• A virus by its very nature mutates. It is part of its evolution.
• The SARS-Cov-2 virus is a single-stranded RNA virus. So, changes in the genetic sequence of the RNA are mutations.
• The moment a virus enters its host cell or a susceptible body, it starts replicating.
• When the spread of infection increases, the rate of replication also increases. A virus that has got a mutation in it is known as a variant.

Q. What is the impact of mutations?

• The normal process of mutations begins to impact us when it leads to changes in transmission levels or on treatment. Mutations can have positive, negative or neutral effects on human health.
• Negative impacts include clustering of infections, increased transmissibility, ability to escape immunity and infect someone who has prior immunity, neutralization escape from monoclonal antibodies, improved binding to lung cells and increased severity of infection.
• Positive impacts can be that the virus becomes non-viable.

Q. Why are frequent mutations seen in SARS-CoV-2 virus? When will the mutations stop?

SARS-CoV-2 can mutate due to the following reasons:

• Random error during replication of virus
• Immune pressure faced by viruses after treatments such as convalescent plasma, vaccination or monoclonal antibodies (antibodies produced by a single clone of cells with identical antibody molecules)
• Uninterrupted transmission due to lack of COVID-appropriate behaviour. Here the virus finds excellent host to grow and becomes more fit and more transmissible.
• The virus will continue to mutate as long as the pandemic remains. This makes it all the more crucial to follow COVID appropriate behavior.

Q. What are Variants of Interest (VoI) and Variants of Concern (VoC)?

• When the mutations happen – if there is any previous association with any other similar variant which is felt to have an impact on public health – then it becomes a Variant under Investigation.
• Once genetic markers are identified which can have association with receptor binding domain or which have an implication on antibodies or neutralizing assays, we start calling them as Variants of Interest.
• The moment we get evidence for increased transmission through field-site and clinical correlations, it becomes a Variant of Concern. Variants of concern are those that have one or more of the following characteristics:
  1. 1. Increased transmissibility
     2. Change in virulence/ disease presentation
     3. Evading the diagnostics, drugs and vaccines
• The 1st Variant of Concern was announced by the UK where it was found. Currently there are four variants of concern identified by the scientists - Alpha, Beta, Gamma and Delta.

Q. What are Delta and Delta Plus variants?

• These are the names given to variants of SARS-CoV-2 virus, based on the mutations found in them. WHO has recommended using letters of the Greek Alphabet, i.e., Alpha (B.1.1.7), Beta (B.1.351), Gamma (P.1), Delta (B.1.617), etc., to denote variants, for easier public understanding.
• Delta variant, also known as SARS-CoV-2 B.1.617, has about 15-17 mutations. It was first reported in October 2020. More than 60% of cases in Maharashtra in February 2021 pertained to delta variants.
• It is the Indian scientists who identified the Delta Variant and submitted it to the global database. Delta variant is classified as a Variant of Concern and has now spread to 80 countries, as per WHO.
• Delta variant (B.1.617) has three subtypes B1.617.1, B.1.617.2 and B.1.617.3, among which B.1.617.1 and B.1.617.3 have been classified as Variant of Interest, while B.1.617.2 (Delta Plus) has been classified as a Variant of Concern.
• The Delta Plus variant has an additional mutation in comparison to Delta variant; this mutation has been named as the K417N mutation. ‘Plus’ means an additional mutation has happened to the Delta variant. It does not mean that the Delta Plus variant is more severe or highly transmissible than the Delta variant.

Q. Why has the Delta Plus Variant (B.1.617.2) been classified as a Variant of Concern?

The Delta Plus variant has been classified as Variant of Concern because of the following characteristics:

• Increased transmissibility
• Stronger binding to receptors of lung cells
• Potential reduction in monoclonal antibody response
• Potential post vaccination immune escape

Q. How often are these mutations studied in India?

• Indian SARS-CoV-2 Genomics Consortium (INSACOG) coordinated by the Department of Biotechnology (DBT) along with Union Health Ministry, ICMR, and CSIR monitor the genomic variations in the SARS-CoV-2 on a regular basis through a pan India multi-laboratory network. It was set up with 10 National Labs in December 2020 and has been expanded to 28 labs and 300 sentinel sites from where genomic samples are collected. The INSACOG hospital network looks at samples and informs INSACOG about the severity, clinical correlation, breakthrough infections and re-infections.
• More than 65,000 samples have been taken from states and processed, while nearly 50,000 samples have been analysed of which 50% have been reported to be Variants of Concern.

Q. On what basis are the samples subjected to Genome Sequencing?

Sample selection is done under three broad categories:

• International passengers (during the beginning of the Pandemic)
• Community surveillance (where RT-PCR samples report CT Value less than 25)
• Sentinel surveillance - Samples are obtained from labs (to check transmission) and hospitals (to check severity)

When there is any public health impact noticed because of genetic mutation, then the same is monitored.

Q. What is the trend of Variants of Concern circulating in India?

As per the latest data, 90% of samples tested have been found to have Delta Variants (B.1.617). However, B.1.1.7 strain which was the most prevalent variant in India in the initial days of the pandemic has decreased.

Q. Why public health action is not taken immediately after noticing mutations in virus?

• It is not possible to say whether the mutations noticed will increase transmission. Also, until there is scientific evidence that proves a correlation between rising number of cases and variant proportion, we cannot confirm there is a surge in the particular variant. Once mutations are found, analysis is made week on week to find if there is any such correlation between the surge of cases and variant proportion. Public health action can be taken only after scientific proofs for such correlation are available.
• Once such correlation is established, this will help greatly to prepare in advance when such variant is seen in another area/region.

Q. Do COVISHIELD and COVAXIN work against the variants of SARS-CoV-2?

• Yes, COVISHIELD and COVAXIN are both effective against the Alpha, Beta, Gamma and Delta variants. Lab tests to check vaccine effectiveness on Delta Plus Variant are ongoing.
• Delta Plus Variants: The virus has been isolated and is being cultured now at ICMR’s National Institute of Virology, Pune. Laboratory tests to check vaccine effectiveness are ongoing and the results will be available in 7 to 10 days. This will be the first result in the world.

Q. What are the public health interventions being carried out to tackle these variants?

The public health interventions needed are the same, irrespective of the variants. The following measures are being taken:

• Cluster containment
• Isolation & Treatment of cases
• Quarantining of contacts
• Ramping up vaccination

Q. Do public health strategies change as the virus mutates and more variants arise?

No, public health prevention strategies do not change with variants.

Q. Why is continuous monitoring of mutations important?

Continuous monitoring of mutations is important to track potential vaccine escape, increased transmissibility and disease severity.

Q. What does a common man do to protect him/her from these Variants of Concern?

• One must follow COVID Appropriate Behaviour, which includes wearing a mask properly, washing hands frequently and maintaining social distancing.
• The second wave is not over yet. It is possible to prevent a big third wave provided individuals and society practise protective behaviour.
• Further, Test Positivity Rate must be closely monitored by each district. If the test positivity goes above 5%, strict restrictions must be imposed.

India’s Merchandise Trade Data, May 2021

India’s merchandise exports in May 2021 was USD 32.21 billion, an increase of 67.39% over May 2020 and an increase of 7.93% over May 2019

• India’s egg :merchandise imports in May 2021 was USD 38.53 billion, an increase of 68.54% over May 2020 and a decline of 17.47% over May 2019
• Value of non-petroleum and non-gems and jewellery exports in May 2021 was USD 23.97 billion, a positive growth of 45.96% over May 2020 and a positive growth of 11.51% over May 2019
• Non-oil, non-GJ imports was USD 26.14 billion in May 2021, a positive growth of 41.32% over May 2020 and a negative growth of 4.08% over May 2019
• Top 5 commodity groups of export which have recorded positive growth during May 2021 vis-à-vis May 2020 are: Other Cereals, Jute mfg. including Floor Covering, Petroleum Products, Handicrafts excl. Handmade Carpet, and Gems and Jewellery (179.16%)
• Top 5 commodity groups of export which have recorded positive growth during May 2021 vis-à-vis May 2019 are: Other Cereals, Iron Ore, Cereal Preparations And Miscellaneous Processed Item, Cotton yarn/fabs./madeups, handloom products etc, and Jute mfg.
• Top 5 commodity groups of import which have shown a fall in May 2021 vis-à-vis May 2020are: Silver, Newsprint, Pulses, Transport equipment, and Iron & Steel
• Top 5 commodity groups of import which have shown a fall in May 2021 vis-à-vis May 2019which are: Silver, Gold, Newsprint, Transport equipment, and Pulses