Proliferation of Nuclear Weapons and Its Prevention

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Context:

The accelerating spread of nuclear weapons, nuclear know-how and nuclear material and rising regional instabilities has brought us to a new nuclear age. Prevention of proliferation and use of nuclear weapons is the need of the hour.

What does nuclear proliferation mean?

• In simplest terms, proliferation means rapidly increasing the number or amount of something.
• The term nuclear proliferation means spread of nuclear weapons, weapons applicable nuclear technology and information to countries which do not already possess them.
• Proliferation is of two types: Horizontal Proliferation and Vertical Proliferation
• Horizontal proliferation means nation-states or non-state entities do not have nuclear weapons but are acquiring, nuclear weapons or developing the capability and materials for producing them.
• Vertical proliferation means nation-states that possess nuclear weapons are increasing their stockpiles of these weapons, improving the technical sophistication or reliability of their weapons, or developing new weapons.
• Another important aspect of nuclear proliferation is nuclear terrorism.

What is nuclear terrorism?

The acquisition of nuclear weapons or the materials and know-how to produce them by non-state entities and the use of these to cause death, injury or massive devastation can be termed as “nuclear terrorism”

Nuclear terrorism can take different forms:

1. Acquisition of nuclear weapons by non-state entities
2. Production of nuclear weapons by non-state entities
3. Attack on nuclear power plant or other nuclear installations which could result in massive release of radioactive materials
4. Attacks involving radioactive materials: Use of “dirty bombs” in which radioactive material is dispersed by conventional explosives.

How can Nuclear Proliferation be prevented?

Background:

• It was after the Hiroshima and Nagasaki bombings in 1945 that people across the globe realized the devastating consequences of nuclear weapons.
• Efforts to control nuclear weapons and seek their elimination began in the first session of the United Nations General Assembly in 1946.
• However, these efforts achieved little success and Soviet Union tested its first nuclear weapon in 1949
• Nuclear proliferation emerged as a major issue during the Cold War period.
• During the Cold War, nuclear weapons and deterrence policy were vital elements for assuring peace between USA and the Soviet Union. Understanding the danger of accumulating nuclear weapons, both the countries took initiatives to control them.

Non-proliferation of Nuclear Weapons (NPT), 1968:

• Put forward by USA, UK and USSR, the treaty was signed in 1968 and came into force in 1970.

The main objectives of the treaty are:

1. To prevent the spread of nuclear weapons and weapons technology,
2. To promote co-operation in the peaceful uses of nuclear energy
3. To further the goal of achieving nuclear disarmament and general and complete disarmament

The NPT classified its state-parties into 2 groups:

1. Nuclear Weapon States (NWS):

• It consists of United States, Russia, China, France, and the United Kingdom
• These five states had tested nuclear weapons before the treaty was negotiated in 1968.
• Three other nuclear armed states—India, Israel, and Pakistan have not joined the NPT

2. Non Nuclear Weapon States (NNWS):

• The treaty prohibits the NNWS from developing nuclear weapons

The three pillars of NPT:

The NPT rests on three interrelated and mutually reinforcing pillars. These are:

1. Non-proliferation:

NPT prohibits NWS to transfer nuclear weapons or other nuclear explosive devices to any NNWS. It also prohibits the NWS to assist or encourage the NNWS in developing nuclear weapons.

2. Peaceful Uses: NPT acknowledges the right of all Parties to develop nuclear energy for peaceful purposes and to benefit from international cooperation in this area
3. Disarmament: One of the legal obligations of the treaty for the NWS is to eventually disarm.

Assessment:

• NPT has successfully restricted the Non-Nuclear weapon States from acquiring weapons of their own and has also reduced both the American and Russian nuclear weaponries
• However, few countries have not yet signed the NPT and do not adhere by the norms and process of inspection. This proves to be a major drawback of the treaty.

Comprehensive Test Ban Treaty:

• CTBT is a multilateral treaty that prohibits all nuclear explosive tests, above and below the Earth’s surface.
• It was adopted in 1996 however did not come into force till date
• India, Pakistan and North Korea are non-signatories to this treaty
• With 183 signatories, CTBT is one of the most widely accepted arms control treaty. This is because its non-discriminatory nature- everyone has a same obligation of never conducting a nuclear explosion.
• CTBT is the world largest multilateral verification system. It has more than 300 stations across the globe to monitor signs of nuclear explosions.
• CTBT has also made major contributions in the field of nuclear safety.

Nuclear Weapon Prohibition Treaty, 2017:

• The NWPT prohibits and makes it illegal to possess, use, produce, transfer, acquire, stockpile or deploy nuclear weapons.
• States are also prohibited from using or threatening to use nuclear weapons and other nuclear explosive devices
• As of October 2017, 53 countries have signed the treaty.

Nuclear Weapon Free Zones:

• It is a regional approach to strengthen global nuclear non-proliferation and disarmament norms
• Many non- nuclear weapon states are party to NWFZs. Nuclear weapon-free zones are in force in South America and the Caribbean, Southeast Asia, the South Pacific, Africa, and Central Asia.

Treaties involved are:

1. Treaty of Tlatelolco — Treaty for the Prohibition of Nuclear Weapons in Latin America and the Caribbean
2. Treaty of Rarotonga — South Pacific Nuclear Free Zone Treaty
3. Treaty of Bangkok — Treaty on the Southeast Asia Nuclear Weapon-Free Zone
4. Treaty of Pelindaba — African Nuclear-Weapon-Free Zone Treaty
5. Treaty on a Nuclear-Weapon-Free Zone in Central Asia
6. Antarctic Treaty
7. Moon Agreement-It governs the activities of States on moon and other celestial bodies
8. Outer space Treaty-Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, including the Moon and Other Celestial Bodies
9. Seabed Treaty- Treaty on the Prohibition of the Emplacement of Nuclear Weapons and Other Weapons of Mass Destruction on the Sea-Bed and the Ocean Floor and in the Subsoil

The Way Forward:

• Nuclear weapons today pose an unimaginable threat to mankind and a nuclear weapon free world is call of the hour.
• The recent North Korean nuclear crisis highlight the fact that the world is heading toward a dangerous nuclear era which poses threat not only to human life and property but has the potential to cause irreversible damage to the environment.
• There is a need to continuously reduce substantially the size of nuclear forces in all states that possess them.
• There is a need for increased efforts to resolve regional confrontations and conflicts that give rise to new nuclear powers.
• The security of nuclear weapons and materials should be increased
• There should be an inclusive step-by-step approach toward nuclear weapons free world
• Non –governmental organisations also have important role to play. Recently, ICAN received the Noble Peace Prize. Geneva-based ICAN is a coalition of nongovernmental organizations from different countries working together to eradicate nuclear weapons. ICAN had been at the forefront to bring about the United Nations Treaty on the Prohibition of Nuclear Weapons.

Triple talak law 📄

Significance: A bill seeking to criminalize the practice of instant triple talaq among Muslims is set to be introduced in the Lok Sabha on Thursday. The Muslim Women (Protection of Rights on Marriage) Bill, 2017, is listed for introduction in the Lok Sabha by law minister Ravi Shankar Prasad on 28 December, according to the list of business in the Lower House.

The bill, prepared by an inter-ministerial group headed by home minister Rajnath Singh, makes instant triple talaq in any form- be it through speech, in written form or by electronic means such as email, SMS and WhatsApp- illegal and void.

What is triple talaq and why controversy about it: It is a practice in Islamic law whereby a divorce is effected by the husband’s enunciation of the word ‘talaq’ which is permissible in their law.There are three forms of talaq: Ahsan, Hasan and Talaq-e-Biddat(triple or instant talaq). Ahsan and Hasan are revocable. Biddat — pronouncing divorce in one go by the husband — is irrevocable.

The All India Muslim Personal Law Board holds that for the Hanafis(a school of thought within Islam religion), who make up more than 90% Sunnis in India, triple talaq is a matter of faith followed for 1,400 years. The Central government and the All India Muslim Personal Law Board (AIMPLB) have been locked in a fight over the issue of triple talaq.

AIMPLB argue that the practice of triple talaq is a matter concerned with personal law and it cannot be interfered by courts or the legislature on the grounds of violation of fundamental rights.

Milestone incidents of triple talaq issue: 

Shah Bano Case: The case arose because of a conflict between the wife and husband about maintenance fees for the wife during divorce period. Shah Bano appealed to Supreme Court in this case. Husband maintained that under Muslim personal law he was obliged to pay her maintenance for a period of three months only. However, the Madhya Pradesh High Court and later the Supreme Court decided in Shah Bano’s favour, granting her maintenance for life under Section 125 of the CrPC. The Supreme Court said that since the CrPC was common for all citizens she could claim maintenance under it and that Muslim personal law would not be applicable in this matter.

The controversy turned to a major political issue as  Muslims organised protests against the Supreme Court decision. Ultimately the Rajiv Gandhi Government bowed to the pressure and enacted a law exempting Muslim women from the purview of Section 125 of the CrPC. The new law, the Muslim Women (Protection of Rights on Divorce) Act, came into force in 1986. Progressive Muslims and others dubbed this enactment as a great setback for Muslim women. They felt that Section 125 of the CrPC was not essentially un-Islamic. The new Act provided for one-time payment to Muslim women who were divorced under triple talaq.

Shayara Bano case: She was the original petitioner in the case against triple talaq after she approached the court in 2016 demanding that the instant talaq pronounced by her husband be declared as void. She also contended that such unilateral, abrupt and irrevocable form of divorce be declared unconstitutional, arguing that the practice of triple talaq violated the fundamental rights of Muslim women. The Supreme Court struck down the practice of saying talaq or divorce three times in one go as arbitrary and unconstitutional and said it violated women’s right to equality and was against the tenets of Islam.

AIMPLB on Supreme Court Verdict: The AIMPLB welcomed the verdict since it accords protection to Muslim personal law and says that personal laws cannot be tested by courts on the grounds of violation of fundamental rights. They said the judgement ensures the fundamental right of citizens of this country to freely profess and practice their religious faith/beliefs under Article 25 of the Constitution. However, the decision of Supreme Court to strike down triple talaq as unconstitutional is not welcomed by them.

Muslim Women Protection of Rights on Marriage Bill, 2017: Bill prescribes a punishment of three years and fine for any man who resorts to triple talaq, making it a cognizable and non-bailable offence. However, there are some issues with regard to the proposed bill:

• Non-proportionate punishment: Marriage is a civil matter but the bill tries to criminalise the people who undertake triple talaq which is non-proportionate in nature. Bharatiya Muslim Mahila Andolan, one of the petitioners in the case titled Muslim Women’s Quest for Equality, says that the Bill should be referred to the Standing Committee of the Parliament and amendments should be made.
• Gender justice not achieved: Bill was tabled to bring about a level playing field between Muslim women and men. It sought to avoid the discriminations against them. However, criminalization in itself cannot serve the objective. The deterrence in this law should be guided by the other progressive laws such as the bigamy law, dowry law or the law against domestic violence.
• Bill not codified family law: The Muslim women must get legal parity just like Hindu women and Christian women through codified law. A codified Muslim family law based on the Quran and compliant with the Constitutional provisions could bring dignity, equality to them. however, it does not present a codified law.
• Non-consultative: Bill was prepared without any consultations with the AIMPLB or even with representative organisations of Muslim women. Thus, it is not comprehensive overall. Also, the bill was not referred to any Standing Committee of the Parliament which brings a narrow picture to the legislation tabled in Parliament.

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Irene Thompson - The Poetess 📄

Irene thompson 

Irene thompson was a famous poetess born in England in the 19th century. Her father was an English country gentleman. He helped his daughter to aquire an excellent classic education and possessing it considerable.
She always showed a remarkable preference for  arts,but especially for poetic art. Her contribution towards English literature is remarkable. She has written many poems especially for children's which include The town child, Rainy nights, A penny wish, Caravans feet, Secrete place, The country child, Welcome to spring, etc.

Some of the famous poems of her are 
Rainy Nights

• I like the town on rainy nights
• When everything is wet —
• When all the town has magic lights
• And streets of shining jet!
• When all the rain about the town
• Is like a looking-glass,
• And all the lights are upside down
• Below me as I pass.
• In all the pools are velvet skies,
• And down the dazzling street
• A fairy city gleams and lies
• In beauty at my feet.

The Town Child

________________________________________

I live in the town

In a street;

It is crowded with traffic

And feet;

There are buses and motors

And trams;

I wish there were meadows

And lambs.

The houses all wait

In a row,

There is smoke everywhere

That I go.

I don't like the noises

I hear —

I wish there were woods

Very near.

There is only one thing

That I love,

And that is the sky

Far above,

There is plenty of room

In the blue

For castles of clouds

And me, too!

A Penny Wish

by Irene Thompson

_________________________

I wish I had an aeroplane

To fetch my oranges from Spain.

I wish I had a motor car

To ride in when I go too far.

I wish I had a little train

To go to town and home again.

And if I had a sailing boat

I'd use it with my sailor coat.

But what's the good of wanting any

When all I have is just a penny!

Secret Places

by Irene Thompson

__________________________

Nests well hidden,

Secret treasure —

Bird's black eyes are

Bright with pleasure.

Woods have many

Secret spaces;

Violet-scented,

Silent places.

Buds are cradles;

Leaves and flowers

Wake when called

By sun and showers.

Bees know where

The blossoms keep

Their sweetest secrets

Hidden deep.

After flying,

After roaming,

Swallows know

The way back — homing!

Welcome to Spring

by Irene Thompson

_____________________________________________________________________________________________________________________________

I have heard a mother bird

Singing in the rain—

Telling all her little ones

Spring has come again!

I have seen a wave of green

Down a lovely lane—

Making all the hedges glad

Spring has come again!

I have found a patch of ground

Golden in the sun;

Crocuses are calling out

Spring has just begun!

Author of this blog is a teacher who teach civil service aspirants and Can be find at Facebook clickhere

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Financial Stability Report 2017

Why in news?
Financial stability report (FSR) of the RBI has been recently released.
What is FSR?
Financial Stability Report (FSR) is a biannual publication which reflects the overall assessment on the stability of India’s financial system.
It will discuss India’s resilience to risks emanating from global and domestic factors and issues relating to development and regulation of the financial sector.
What are the factors which makes Indian economy unstable?

• Public ector banks, which account for almost 70 per cent share in the country, even private banks are experiencing much turbulence on bad loans.
• Group of public sector banks are also highly vulnerable to further declines in asset quality and higher provisioning needs.
• Thus balance sheets of both public sector banks and quite a few large corporate houses are in terrible shape and were seen as a major obstacle to investment and reviving growth.

What are the recent findings of the report?
Government hastaken steps to recapitalise public sector banks to enable them to lend afresh and institutionalise a system to reduce stressed loans through IBC.
FSR has raised pertinent questions about such moves having a sustainable solution.
Credit growth of scheduled commercial banks (SCBs) has improved but the banking stability indicator (BSI) suggests that the asset quality in the Indian banking sector is worsening.
Report also points out there is a worrisome development in credit quality of large borrowers, who have aggregate exposure of Rs 5 crore or more.
This essentially means that stressed companies are still not able to generate enough revenue to honour loan payments.
FSR concludes that the gross non-performing assets GNPA ratio may increase to 10.8 per cent by March 2018 and further to 11.1 per cent by September 2018.

Source: Business Standard
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Quick Fact

BSI
It is an asset quality indicator for banks.
It is the expected number of banks that could become distressed given that at least one bank has become distressed.
If BSI is higher more banks are expected to become distressed if one bank in the system is distressed.

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Urdu paper for mains 2017(IAS)

              Paper A, mains 2017                  

For paper B  ask me at my Facebook page 

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Or clickhere

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What is Sakhi scheme?

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Sakhi: One stop centres in strengthening multi sectoral response to violence

The Union Ministry of Women and Child Development has inaugurated a National Workshop on Role of Sakhi One Stop Centres in Strengthening Multi Sectoral Response to Violence in New Delhi.

• The conference provides platform to understand, discuss and deliberate on strengthening the multisector response to address violence against women through the Sakhi One Stop Centres across the country.

Participants:

• Around 400 Sakhi- One Stop Centre Functionaries and nodal officials from State Department of Women and Child Development from 33 States/UTs across the country, are participating in the workshop.

What is Sakhi scheme?

Ministry of Women and Child Development (MWCD) has formulated a Centrally SponsoredOne Stop Centre Scheme, popularly known as Sakhi scheme for setting up One Stop Centre.

It is a sub-scheme of Umbrella Scheme for National Mission for Empowerment of women including Indira Gandhi Mattritav Sahyaog Yojana.

• The Sakhi scheme is being implemented since 1st April 2015.
• The scheme aims to facilitate access to an integrated range of services including medical aid, police assistance, legal aid/case management, psychosocial counselling, and temporary support services to women affected by violence.
• Under the scheme, it has been envisaged that One Stop Centres (OSC) would be set up across the country in a phased manner.
• The One Stop Centre will provide support and assistance to women affected by violence, both in private and public spaces.

[Ref: PIB]

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Act east policy

 Significance: In separate statements,  P.M. of India said that Singapore has a special place in India’s Act East Policy that is built on the foundation of a strong India-ASEAN relationship. Also, the President of India said that focus of the Centre’s Act East policy aims at providing access to new markets for the State of Mizoram.

History of Act East Policy: Before devising an Act East policy, India had a Look East policy. It was an effort to cultivate extensive economic and strategic relations with the nations of Southeast Asia in order to bolster its standing as a regional power and a counterweight to the strategic influence of the People’s Republic of China. It was Initiated in 1991 and it marked a strategic shift in India’s perspective of the world away from the influences of non-alignment.

In 2014, P.M. in India told world leaders that his government accorded high priority to turn India’s erstwhile Look East policy into an Act East policy. It serves as a platform for deepening and strengthening its relationship with ASEAN and the East Asian economies. The least-developed nations of Cambodia, Lao PDR, Myanmar and Vietnam (CLMV) have been a special focus area for India.

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Differences between Look East and Act East: 

• Geographical range: Act East Policy focusses on the extended neighborhood in the Asia-Pacific region. Look East Policy was primarily targeted to bolster the relationship between ASEAN countries and India. Act East Policy include the regions up to the East China Sea. India has upgraded its relations to a strategic partnership with Indonesia, Vietnam, Malaysia, Japan, Republic of Korea (ROK), Australia, Singapore and Association of Southeast Asian Nations (ASEAN) and forged close ties with all countries in the Asia-Pacific region.
• Dimensions: Look East Policy primarily included only strategic initiatives. It has since gained political, strategic and cultural dimensions including establishment of institutional mechanisms for dialogue and cooperation.
• Regional to multilateral: Apart from ASEAN, India has expanded its involvement to  ASEAN Regional Forum (ARF) and East Asia Summit (EAS). India has also been actively engaged in regional fora such as Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), Asia Cooperation Dialogue (ACD), Mekong Ganga Cooperation (MGC) and Indian Ocean Rim Association (IORA).
• Inclusion of North East India: Act East Policy is to promote economic cooperation, cultural ties and develop a strategic relationship with countries in the Asia-Pacific region through continuous engagement at bilateral, regional and multilateral levels thereby providing enhanced connectivity to the States of North Eastern Region including Arunachal Pradesh with other countries in our neighborhood. The North East of India has been a priority in our Act East Policy. AEP provides an interface between North East India including the state of Arunachal Pradesh and the ASEAN region.
• Infrastructure, Connectivity Projects: AEP policy emphasize to develop and strengthen connectivity of Northeast with the ASEAN region through trade, culture, people-to-people contacts and physical infrastructure. Some of the major projects include Kaladan Multi-modal Transit Transport Project, the India-Myanmar-Thailand Trilateral Highway Project, Rhi-Tiddim Road Project, Border Haats, etc.

Critical Analysis of AEP: 

• External factors:  The political instability and the frequent regime changes in countries like Myanmar, Thailand cause delays in achieving the objectives of AEP.
• Role of China: China has capitalized the opportunities of delayed implementation of projects by India. During the past decades, China has made a substantial influence in the region. India is also concerned about the growing assertiveness of China in the South China Sea.
• Indian diaspora: Diaspora in India is not yet active in these countries and not an active stakeholder in India’s progress.
• Divergence in engagement: Even though India have convergence in strategic issues of South China Sea with countries like Philipines, there is very little engagement both countries.

Conclusion: Act East Policy has to be refocused to enable the dream of the Asian Century which is a projected 21st-century dominance of Asian politics and culture, assuming certain demographic and economic trends persist.

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WTO’s Ministerial Conference

Context
The December 10-13 (WTO’s) Ministerial Conference in Buenos Aires, Argentina 

 What has happened? 

At next month’s meeting of the World Trade Organisation’s (WTO) highest decision-making body, India will not compromise on its interests including ensuring food security as well as protecting its resource-poor and low-income farmers and fisher-folk, according to commerce minister Suresh Prabhu
India’s stance
• Against inclusion of new issues: India will hold firm on its position against the inclusion of new issues such as ‘e-commerce’ and ‘investment facilitation’ into the ongoing round of multilateral trade negotiations, without first resolving the outstanding ones including food security
 • Doha Development Agenda (DDA): India will make sure that the ‘development agenda’ (to improve the developing countries’ trading prospects) of the talks, which began in Doha in 2001, is not subverted
• Permanent solution to public stockholding issue: The highest priority for India was to ensure that a ‘permanent solution’, much better than a peace clause, on the issue of public stockholding for food security purposes is a part of the Buenos Aires meeting outcomes
 Why India wants a permanent solution when peace clause already exists?  
Since a country that wants to invoke the Peace Clause has to comply with several stringent conditions (on notification and transparency and commitment on prohibition of exports from public stockholding), India is keen that a ‘permanent solution’ does not have onerous riders

• Protection to fisherfolk: On talks to eliminate ‘harmful’ fisheries subsidies, the minister said “India will protect its small and subsistence fisherfolk, and we want sustainable fishing. We want subsidies for small fisherfolk to continue

 • Trade Facilitation in Services: India will also “very aggressively” push its proposal for Trade Facilitation in Services (which, among other things, aims to ease norms on movement of skilled workers/professionals across borders for short-term work) 

What is public stockholding?

• Public stockholding is a policy tool used by governments to procure, stockpile and distribute food when needed. Ex: MSP scheme • Governments purchasing at prices higher than market prices are considered to be subsidising their farmers, under WTO rules. This subsidy is not without limits.
 • ‘The limit’ has been setupat 10% of the value of production of the particular grain being procured. The methodology for subsidy calculation is based on a price index of 1986-88, and that does not account for inflation
What is considered as trade-distorting under WTO rules and how Peace clause will give immunity? 

• If food grains for the public stocks are procured through an administered price/minimum support price and if this minimum support price is higher than the archaic fixed reference price (calculated on base period 1986-88), then it is considered as trade-distorting agriculture support

• Such trade-distorting support should be within ‘the limit’, which is 10% of the value of production of the particular grain being procured. This is also called as Peace clause. • One of the first things that this government did in 2014 was to intensely engage with the WTO to obtain a ‘peace clause’ so that even if we did breach ‘the limit’, no one shall challenge our programme till such a time a permanent solution is found, agreed on, and adopted by the WTO membership  Issue of subsidy is covered under AoA 
Agreement on Agriculture (AoA)
 The Agreement on Agriculture (AoA) was negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade, and entered into force with the establishment of the WTO on January 1, 1995
 • It aims at reforming trade in agriculture, envisaging a fair and market-oriented system, which improves predictability and stability for both importing and exporting countries
• The Agreement allows governments to support their rural economies, but preferably through policies that cause less trade “distortions”.
• The Agreement on Agriculture applies not only basic agricultural products (such as wheat and live animals), but also the products derived from them (such as flour and meat), as well as most processed agricultural products (e.g. chocolate and sausages). The coverage of the Agreement also includes wines, spirits and tobacco products, as well as fibres (such as cotton)

• 3 pillars of AoA
1. Market Access 
2. Domestic support (Subsidies) 
3. Export competition  

Types of subsidies under AoA

There are 3 types of subsidies under AoA, Green, Blue and Amber box subsidies, which are discussed below:
• Green Box Subsidies: Green box subsidies are those subsidies which cause no, or at most minimal, trade distorting effects or effects on production. These include the amounts spent on Government services such as research, disease control, and infrastructure and food security o This also includes the subsidies given to the farmers that directly don’t affect international trade badly o Since they are permitted in WTO regime, the most developed countries have kept providing subsidies to their farmers o The Green Box contains fixed payments to producers for environmental programs, so long as the payments are “decoupled” from current production levels.
• Blue Box Subsidies 
Blue Box contains direct payment subsidies which can be increased without limit, so long as payments are linked to production-limiting programs
• Amber Box Subsidies 

All domestic support measures considered to distort production and trade (with some exceptions) fall into the amber box

Limits: The provisions accept 5% of agricultural production for developed countries, 10% for developing countries
 • De–Minimus level: Amber box subsidies are intended to be limited at De-Minimus level. De Minimus is the Minimal amounts of Amber box subsides permitted by WTO, even though they distort trade. 
• Amber box subsidies in the Blue box: The Amber box subsidies with conditions designed to reduce distortion are placed in Blue Box. They include the direct payment to the farmers to reduce production.
 • What is Doha Development Agenda (DDA)? 
At the Fourth Ministerial Conference in Doha, Qatar, in November 2001 WTO member governments agreed to launch new negotiations. They also agreed to work on other issues, in particular the implementation of the present agreements. The entire package is called the Doha Development Agenda (DDA)

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Food Processing and Indian Economy?

India is one of the fastest growing economies in the world and Food Processing Sector has emerged as an important segment of the Indian economy in terms of its contribution to GDP, employment and investment. During 2015-16, the sector constituted as much as 9.1 and 8.6 per cent of GVA in Manufacturing and Agriculture sector respectively.

Thus it is now needed that food processing services and industry be incentivised for farmers to get better income and creating jobs.

For this, there has been launch of a central sector scheme- SAMPADA (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) as “Pradhan Mantri Kisan Sampada Yojana (PMKSY) to create world class food processing infrastructure. This will leverage investment of 5 billion dollar investment, benefit 2 million farmers and create more than half a million jobs. It incorporates ongoing schemes such as Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, etc. and also new schemes like Infrastructure for Agro-processing Clusters, Creation of Backward and Forward Linkages, Creation / Expansion of Food Processing & Preservation Capacities.

Scope of food processing in India

India as one of the biggest food producers of the world is in an advantageous position to become the hub for food processing industry. In any agricultural commodity, India is in 1,2or 3 position. However, this industry in India has not been able to take off as yet. Till now, even small time snacks such as chips, biscuits were imported.

Now the Indian agriculture is being modernised and it has to be ensured that the farmers’ produce gets a good market at fair price to keep up the agriculture productivity. It means not only consumption of main cereals but also that the surplus food output has to be converted into food processing snacks for domestic consumption as well as exports.

Food processing creates jobs, helps farmers double farmers’ income through good output, livestock and food processing facilities. This creates much bigger market for farm produce.

India has to fit into the global supply chain and system of food processing. For this, the good domestic market helps because people don’t like to do investment to export completely. It’s a combination of good domestic market and India’s own strength in food sector.

Food processing is one of the most important part of manufacturing process as it is also a significant part of make in India programme.

Challenges

• The exports are only 2.2% of the global food processing exports. This is because of problems created by US and EU in terms of TBT (Technical Barriers to Trade) and SPS (Sanitary/Phyto-Sanitary) measures. This impacts the export scenario significantly.
• There is poor warehousing and storage capacity. It is needed to upgrade the agri-infrastructure to become the food processing hub.
• Lesser facilitation by a dedicated agency to the farmer. Though there is FSSAI, but it is for post-production facilities. So there is need for dedicated approach for pre-harvest procedures.
• Lot of inorganic chemicals are used in agricultural production. This needs to be shifted to organic chemicals because the advanced economics are identifying the pesticides in the products.
• In dairy sector, the canned meat industry is being hit because of few stray remarks. The unproductive cattle is not being able to reach the cattle mandis which is hampering the entire value chain. Political and administrative focus should be given to this area as there is lot of scope for meat exports within the laws.

Potential

• Developing the agri-infrastructure.
• Increasing gross capital in agri-infrastructure along with public investments.
• Connect the farm to the mandis so the facilitation with start with them. Linking them with good warehouses and increasing the storage capacities, then increasing the productivity of the farm sector and thus increasing the part in global food market.
• Food parks model can be replicated across the country. The food parks offer an alternative to farmers. There are different crops grown which also replenishes the soil nutrients, leads to better water management.

Some steps by government to encourage food processing

• 100% FDI in trading including through e-commerce, in respect of food products manufactured and / or produced in India.
• Special Fund of Rs. 2000 crore in NABARD to make available affordable credit at concessional rate of interest to designated food parks and agro processing units.
• Food and agro-based processing units and cold chain infrastructure have been brought under the ambit of Priority Sector Lending (PSL) to provide additional credit for food processing activities and infrastructure.

Conclusion

India has about 40 billion worth food processing market. There is a need for diversification of crop pattern because most of farmers are concentrating on few farm products like rice and wheat only. India is importing about 22 billion dollar food processing products. So if there is diversification and substituting the imports, there is huge scope for second green revolution.

There is lot of diversity in the productivity levels of all the states which needs to be minimised.  There is a need to adopt the good agricultural practices of the states like Punjab and Haryana.

More food processing training institutes should be opened up in different parts like UP, MP and not only in coastal areas. It is critical for Skill sets to be improved in food processing sector.

India has its own brands like Amul, haldiram, bikarnewala which are good companies that can diverse in the food processing markets. They aree trusted by consumers as they give quality products. Hence, strict enforcement of quality and hygiene is must.

There is need to strengthen the university industry linkages to create centre for excellence for food processing sector. With these, it will give push to food processing sector as it will give awareness to the farmers and to food processing units for the international practices to generate good productivity and to generate good production in export markets.

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