THE HEALTH AND SOCIAL ISSUES

1. INDIA TO BE TB FREE BY 2025: INDIA TB REPORT 2022

THE CONTEXT: On World Tuberculosis Day, Union Health Ministry released India TB Report 2022 and it’s reaffirmed the government’s commitment to making India tuberculosis–free by 2025 and this will be achieved by ensuring access to quality healthcare and advanced treatment.

THE EXPLANATION:

• According to the report, 19% increase was witnessed in 2021 from the previous year in TB patients’ notification. The number of incident TB patients (new and relapse) notified during 2021 was 19,33,381 against the 16,28,161 in 2020.
• In terms of DS-TB (Drug sensitive) treatment performance, in 2021, among 21,35,830 patients diagnosed, 20,30,509 (95%) patients were put on treatment. While the dis aggregated treatment success rate of patients notified from the public and private sectors are 83% and 82%, respectively.
• Regarding DR-TB (Drug Resistant) treatment performance, in 2021, 48,232 MDR/RR-TB patients were diagnosed and 43,380 (90%) were put on treatment.
• In 2021, the data was captured for 72% of total notified patients, out of which 7% admitted to alcohol usage. Similarly, out of the 74% of the known tobacco usage among all TB patients, 12% of TB patients were reported to be tobacco users. Among those screened, 30% were linked to tobacco cessation services.
• In India, childhood Tuberculosis remains a staggering problem, contributing to approximately 31% of the global burden. Over the last decade, consistently, children constitute 6-7% of all the patients treated under NTEP annually, pointing to a gap of 4-5% in total notification against the estimated incidence. To that end, intersectoral coordination is critical for ensuring wide-reach of the programme to remedy this gap.

TB Prevention

‘Prevent’ is one of the four critical pillars (Detect – Treat – Prevent – Build) of India’s National Strategic Plan for Elimination of Tuberculosis (NSP 2017-25) that focuses on preventing the emergence of TB in a vulnerable population. The program has offered TB Preventive Therapy (TPT) for more than a decade, albeit limitedly to children below the age of six years and People living with HIV/AIDS (PLHIV) for the past few years.

Value Addition:

Visions & Goals of the National Strategic Plan 2017 – 2025

• The Vision is of a TB free India with zero deaths, disease and poverty due to tuberculosis.
• The Goal is to achieve a rapid decline in the burden of TB, mortality and morbidity, while working towards the elimination of TB in India by 2025.
• The requirements for moving towards TB elimination in India have been arranged in four strategic areas of Detect, Treat, Prevent & Build. There is also across all four areas, an overarching theme of the Private Sector. Another overarching theme is that of Key Populations.

Targets

The targets of the National Strategic Plan are set out as consisting of both outcome and impact indicators. There are also four main “thrust” or priority areas in the NSP which are:

• Private sector engagement;
• Plugging the “leak” from the TB care cascade (i.e. people with TB going missing from care);
• Active case finding among key populations;
• People in “high risk” groups, preventing the development of active TB in people with latent TB.

Nikshay Poshan Yojana has been implemented from 01^st April 2018, wherein 500 rupees per month is being provided to All TB patients towards nutritional support for the duration of their treatment. Tribal patient travel support, wherein 750 rupees is being provided to all TB patients in tribal notified blocks towards travel support is an ongoing scheme since the twelfth plan.

THE INTERNATIONAL RELATIONS

2. INDIA ABSTAINS ON UNGA VOTES

THE CONTEXT: India abstained on two resolutions at the United Nations General Assembly (UNGA) on related to the humanitarian crisis in Ukraine following the Russian invasion.

THE EXPLANATION:

What are the resolutions?

• The first abstention was on a draft resolution proposed by Ukraine that held Russia responsible for the crisis.
• The second was a procedural vote — on whether the UNGA ought to take up a second resolution, proposed by South Africa, for action at all. This resolution did not mention Russia.

Background:

• The first resolution was adopted with support from 140 countries and the second was not put to vote because it did not have sufficient support.
• The draft version of Ukraine’s resolution named Russia, the UNGA “demands an immediate cessation of the hostilities by the Russian Federation against Ukraine, in particular of any attacks against civilians and civilian objects.”
• The 140 countries that voted in its favour included the U.S. and European Union countries. India was among 38 abstentions, as were China, South Africa and Sri Lanka. Five countries voted against it: Russia, Belarus, North Korea, Syria and Eritrea.

Value Addition:

 United Nations General Assembly (UNGA)

• About: Established in 1945 under the Charter of the United Nations, the UN General Assembly occupies a central position as the chief deliberative, policy making and representative organ of the United Nations.
• The UNGA is headed by its President, who is elected for a term of one year.
• Composition: It comprises all 193 Members of the United Nations.
• Mandate: provides a unique forum for multilateral discussion of the full spectrum of international issues covered by the Charter.
• It also plays a significant role in the process of standard-setting and the codification of international law.

THE ECONOMIC DEVELOPMENTS

3. EXPLAINED: WHAT IS THE NATIONAL PHARMACEUTICAL PRICING AUTHORITY’S ROLE IN FIXING DRUG PRICES?

THE CONTEXT: According to the Government sources, for the first time in many years, prices of nearly 800 drugs and medical devices under the National List of Essential Medicines (NLEM) are set to increase by over 10 percent, owing to a sharp rise in the Wholesale Price Index (WPI).

THE EXPLANATION:

• If the National Pharmaceutical Pricing Authority (NPPA) allows a price hike of over 10% in the drugs and devices listed under the National List of Essential Medicines (NLEM) the consumers may have to pay more for medicines and medical devices.
• The escalation which is expected to have an impact on nearly 800 drugs and devices is propelled by the rise in the Wholesale Price Index (WPI). Lobby groups that represent domestic pharmaceutical companies have been engaging with the Central Government to ask it to extend the 10% annual hike to scheduled formulations under price control.
• NELM lists drugs used to treat common conditions such as fever, infection, heart disease, hypertension, skin diseases and anaemia, among others.
• It includes paracetamol and antibiotics such as azithromycin, used to treat bacterial infections, anti-anaemia prescriptions such as folic acid, vitamins and minerals.
• Some drugs used for treating moderately to severely sick COVID-19 patients, steroids like prednisolone, are also included

 About NPPA:

• The National Pharmaceutical Pricing Authority (NPPA) is a government regulatory agency that controls the prices of pharmaceutical drugs in India.
• It was constituted by a Government of India Resolution dated 29th August, 1997 as an attached office of the Department of Pharmaceuticals (DoP), Ministry of Chemicals and Fertilizers as an independent regulator for pricing of drugs and to ensure availability and accessibility of medicines at affordable prices with Headquarter at New Delhi, India.

Functions of NPPA:

4. FARM INCOME FELL IN FOUR STATES: REPORT BY PARLIAMENTARY PANEL

THE CONTEXT: According to the Parliamentary panel, While National farm income rose 27% between 2015-16 and 2018-19, Jharkhand saw a drop in monthly income by 30%.

THE EXPLANATION:

• The Committee recommended that the Department of Agriculture and Family Welfare “should formulate a Special Team to figure out the reasons for falling farmers’ income in those States and take some course corrective measures so that the doubling of farmers income is not lost sight of.”
• The Doubling Farmers’ Income (DFI) committee had calculated the 2015-16 baseline by extrapolating the National Statistical Organization’s (NSO) survey data from 2012-13, calculating that the national average monthly income of a farm family in that year was ₹8,059. By the time the next NSO survey was conducted in 2018-19, monthly income had risen 27% to ₹10,218.
• In Jharkhand, however, a farm family’s average income fell from ₹7,068 to ₹4,895 over the same period. In Madhya Pradesh, it fell from ₹9,740 to ₹8,339, in Nagaland, from ₹11,428 to ₹9,877, and for Odisha, it dipped marginally from ₹5,274 to ₹5,112.
• The panel also noted that while the Department’s budgetary allocation may have risen in absolute terms, it has consistently declined in percentage terms. In the 2019-20 Budget, announced just before Lok Sabha polls, the department received 4.7% of total allocations. That proportion has dropped every year since, and in 2022-23, the department’s budget accounted for only 3.1% of the total.

Value Addition:

Committee on Doubling of Farmers Income:

The Government constituted an Inter-ministerial Committee (on the recommendation of Ashok Dalwai) in April, 2016 to examine issues relating to “Doubling of Farmers Income” (DFI) and recommend strategies to achieve the same. The Committee submitted its Report to the Government in September, 2018 containing the strategy for doubling of farmers’ income by the year 2022.  The DFI strategy as recommended by the Committee include seven sources of income growth viz.,

1. improvement in crop productivity.
2. improvement in livestock productivity.

• resource use efficiency or savings in the cost of production.

1. increase in the cropping intensity.
2. diversification towards high value crops; (vi) improvement in real prices received by farmers; and (vii) shift from farm to non-farm occupations.

5. FCRA REGISTRATION EXTENDED

THE CONTEXT: The Ministry of Home Affairs (MHA) extended the validity of FCRA [Foreign Contribution (Regulation) Act] registration of NGOs till June 30, 2022 revising its previous extended deadline of March 31, 2022.

THE EXPLANATION:

The registration of thousands of non-governmental organizations and associations that were up for renewal in October 2021 were stuck and the deadline for the same was December 31.

Value Addition:

Foreign Contribution (Regulation) Act:

It is an act of Parliament enacted in 1976 and amended in 2010. It was to regulate foreign donations and to ensure that such contributions do not adversely affect internal security.

• Coverage: It is applicable to all associations, groups, and NGOs which intend to receive foreign donations.
• Registration: It is mandatory for all such NGOs to register themselves under the FCRA. The registration is initially valid for five years. Further, it can be renewed subsequently if they comply with all norms.
• Registered NGOs can receive foreign contributions for five purposes — social, educational, religious, economic, and cultural. There are 22,591 FCRA registered NGOs.

Foreign Contribution Regulation (Amendment) Rules 2020:

• New rules require any organization that wants to register itself under the FCRA to have existed for at least three years. Further, it should have spent a minimum of Rs. 15 lakh on its core activities during the last three financial years for the benefit of society.

• Office bearers of the NGOs seeking registration under the Foreign Contribution (Regulation) Act must submit a specific commitment letter from the donor. It should indicate the amount of foreign contribution and the purpose for which it is proposed to be given.
• Any NGO or person making an application for obtaining prior permission to receive foreign funds shall have an FCRA Account.

THE PRELIMS PERSPECTIVE

6. IMD LAUNCHES CLIMATE HAZARDS E-BOOK AND VULNERABILITY E-ATLAS

THE CONTEXT: The India Meteorological Department (IMD) launched an e-book, Climate Hazards and Vulnerability Atlas of India- State: Tamil Nadu, as part of the World Meteorological Day celebrations.

THE EXPLANATION:

• According to the officials, the e-atlas would help disaster management agencies take preventive steps. Also, it helps in challenges in hydrological modelling in urbanized river basins for flood forecasting.
• The newly launched atlas can be accessed by the public from the website mausam.imd.gov.in.
• This e-atlas will help the disaster management agencies to take preventive steps against any disaster that they might face.
• A topic of discussion during the launch event of this e-atlas was about the challenges faced in the hydrological modelling in urbanised river basins for the forecasting of floods.
• An exhibition was hosted by the IMD, and its facilities were opened to the members of the public.

Value Addition:

About IMD

The India Meteorological Department (IMD) falls under the ambit of the Ministry of Earth Sciences. It is the country’s principal agency that is responsible for forecasting weather, meteorological observations, and seismology. This organization is headquartered in Delhi and has hundreds of other observation stations stationed across India and Antarctica. The regional offices of the IMD are Mumbai, Chennai, Nagpur, Kolkata, New Delhi, and Guwahati.

The IMD is also one among the World Meteorological Organisation’s six Regional Specialised Meteorological Centres. IMD is responsible for naming, forecasting, and warnings distribution for tropical cyclones in the region of the Northern Indian Ocean that includes the Bay of Bengal, the Malacca Straits, the Persian Gulf, and the Arabian Sea.

THE PRELIMS PRACTICE QUESTIONS

QUESTIONS OF THE DAY 25^th MARCH 2022

Q1. Consider the following statements about ‘NIPUN Bharat’ initiative:

1. It seeks to ensure universal acquisition of foundational literacy and numeracy by the end of Grade 3 of schooling.
2. Target is to be achieved by 2025.
3. It is being funded through Samagra Shiksha Abhiyaan.

Which of the above given statements are correct?

a) 1 and 2 only

b) 2 and 3 only

c) 1 and 3 only

d) 1, 2 and 3

ANSWER FOR 24^th MARCH 2022

Answer: A

Explanation:

• Statement 1 is correct: The Abel Prize recognizes contributions to the field of mathematics that are of extraordinary depth and influence.
• Statement 2 is incorrect: It was established by the Norwegian government in 2002, on the occasion of the 200th anniversary of Niels Henrik Abel's birth. The Norwegian Academy of Science and Letters awards the Abel Prize based on a recommendation from the Abel committee.

1. An Ethical View of the Current Geopolitics Behind the War on Ukraine READ MORE
2. Concept of creation and evolution of unit mind READ MORE

1. Why has Earth’s Northern Hemisphere witnessed year’s shortest day today? READ MORE
2. Mumbai Climate Action Plan aims to remove carbon emissions by 2050. Can it be done? READ MORE

1. There’s a darkness over India, who will show the light?  READ MORE
2. Women and Indian society READ MORE

1. Sealed justice: On sealed cover jurisprudence READ MORE
2. Explained: What is the reason for the large number of vacancies in the IAS? READ MORE
3. ‘Love jihad’ laws and the path Supreme Court can take READ MOR

(Newspapers, PIB and other important sources)

Prelim and Main

1. IMD launches climate hazards e-book and vulnerability e-atlas READ MORE
2. Edu ministry conducts first-of-its-kind study to propel NIPUN Bharat Mission READ MORE
3. Concluding Evening Of Dhauli-Kalinga Mahotsav Drops With Tabla Recital, Odissi And Martial Dance THANG-TA READ MORE
4. MHA extends FCRA validity of NGOs till June 30 READ MORE
5. Explained: Google’s new pilot programme on third-party payment systems and its significance READ MORE
6. Mange in Jaisalmer’s desert foxes worries experts READ MORE
7. UN sets five-year goal to broaden climate early warning systems READ MORE
8. India Abstains on the Second Resolution on Ukraine in UN General Assembly READ MORE

Main Exam    

GS Paper- 1

1. Why has Earth’s Northern Hemisphere witnessed year’s shortest day today? READ MORE
2. There’s a darkness over India, who will show the light?  READ MORE
3. Women and Indian society READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

1. Sealed justice: On sealed cover jurisprudence READ MORE
2. Explained: What is the reason for the large number of vacancies in the IAS? READ MORE
3. ‘Love jihad’ laws and the path Supreme Court can take READ MOR

SOCIAL ISSUES

1. The problems with Common University Entrance Test that need examination READ MORE
2. Criminalizing marital rape: When is an exception not an exception? READ MORE

INTERNATIONAL ISSUES

1. India abstains in two UNGA votes on Ukraine humanitarian crisis READ MORE
2. View: How BIMSTEC can play a crucial role in regional cooperation READ MORE
3. India’s QUAD play in the Indo-Pacific’ READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. Crisis in Sri Lanka: India should help Sri Lanka during the crisis and also resolve some of the bilateral issues READ MORE
2. The effect of farm sector changes on agrarian movements in India READ MORE
3. Unlocking the potential of agri-tech READ MORE
4. Farmers and FCI need a new regime of MSP READ MORE
5. Economic Recovery a Myth Unless India Takes Inclusive Path READ MORE

ENVIRONMENT AND ECOLOGY  

1. Mumbai Climate Action Plan aims to remove carbon emissions by 2050. Can it be done? READ MORE

DISASTER MANAGEMENT

1. Two years on: India had major successes and big failures in Covid response. Right lessons must be learnt READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. An Ethical View of the Current Geopolitics Behind the War on Ukraine READ MORE
2. Concept of creation and evolution of unit mind READ MORE

Questions for the MAIN exam

1. Indian farm sector needs reforms to address its long-time distress but legalised MSP is not among them. Discuss.
2. ‘India will have to carefully calibrate its place in the changing geopolitics’. In the light of the statements, discuss how BIMSTEC can play a crucial role to give a right a right direction to India’s foreign policy?

QUOTATIONS AND CAPTIONS

• Life is a matter of choices, and every choice you make makes you.
• India should help Sri Lanka during the crisis and also resolve some of the bilateral issues.
• Supreme Court should lay down the limits of using sealed cover material to adjudicate cases.
• The time has come for the Supreme Court to determine and circumscribe the circumstances in which confidential government reports, especially those withheld from the other side, can be used by courts in adjudication.
• India faced the pandemic on the heels of a slowdown in economic momentum. This factor and the uncertain trajectory of the pandemic justified a fiscally cautious stance at first.
• At a time when India’s rural economy has been in distress for a long period amid declining agricultural profits and stagnant wages, agrarian mobilizations will require a broadening of the movement for it to have any political impact.
• Fostering public-private partnerships is vital for creating a viable ecosystem for agriculture technology.
• To realise the opportunity of emerging technologies for agriculture and food systems much change is needed.
• The world, despite ideological differences, cannot ignore the US and its strategic importance as a large superpower.
• The Supreme Court’s human rights judgments based on interpretation in light of disadvantaged class can act as a great tool for the court to decide on the constitutionality of ‘love jihad’ laws to protect the rights of women.
• India needs a new regime of MSP surmounting past legacy which will enable the farmers to get MSP while the fiscal and debt burden of the Government.

 50-WORD TALK

• India’s record $400 billion exports this fiscal is cause to celebrate, even if it was pushed by commodities and post-pandemic global demand. This shouldn’t be a one-off or an exception. India should build on the growth in engineering and electronics goods, boost manufacturing exports and ensure the PLI schemes succeed.
• Afghan Taliban’s decision to shut girls out of high schools isn’t surprising. Since it captured power, the Taliban has reimposed gender apartheid, using violence to stop women from working, accessing medical care and education. Pious Western talk about protecting global freedoms and rights means nothing if Taliban savagery remains unpunished.

Things to Remember:

• For prelims-related news try to understand the context of the news and relate with its concepts so that it will be easier for you to answer (or eliminate) from given options.
• Whenever any international place will be in news, you should do map work (marking those areas in maps and also exploring other geographical locations nearby including mountains, rivers, etc. same applies to the national places.)
• For economy-related news (banking, agriculture, etc.) you should focus on terms and how these are related to various economic aspects, for example, if inflation has been mentioned, try to relate with prevailing price rises, shortage of essential supplies, banking rates, etc.
• For main exam-related topics, you should focus on the various dimensions of the given topic, the most important topics which occur frequently and are important from the mains point of view will be covered in ED.
• Try to use the given content in your answer. Regular use of this content will bring more enrichment to your writing.

[WpProQuiz 186]

THE CONTEXT: As economic activity started showing signs of picking up in the second year of the pandemic, the global economy faced the fresh challenge of rising global inflation. COVID-19 related stimulus spending in major economies along with pent-up demand boosting consumer spending pushed inflation up in many advanced and emerging economies. The surge in energy, food, non-food commodities, and input prices, supply constraints, disruption of global supply chains, and rising freight costs across the globe stoked global inflation during the year.

RETAIL INFLATION

The retail inflation, as measured by Consumer Price Index-Combined (CPI-C) moderates to 5.2% in 2021-22 (April-December) from 6.6% in the corresponding period of 2020-21. The Survey also says effective supply-side management kept prices of most essential commodities under control during the year.

DOMESTIC INFLATION

Compared to many Emerging Markets and Developing Economies (EMDEs) and advanced economies, the Survey finds that Consumer Price Index – Combined (CPI-C) inflation in India has remained range-bound in the recent months, touching 5.2% in December 2021. This was possible largely because of the proactive steps taken by the Government for effective supply management.

GLOBAL INFLATION

• In 2021, inflation picked up globally as economic activity revived with the opening up of economies. Inflation surged from 0.7 % in 2020 to around 3.1 % in 2021 in the advanced economies. For instance, inflation in the USA touched 7.0 % in December 2021, the highest since 1982. In the UK, it hit a nearly 30 years high of 5.4% in December 2021. Among emerging markets, Brazil witnessed inflation of 10.1% in December 2021 and Turkey also saw double-digit inflation touching 36.1%. Argentina has been experiencing inflation rates above 50% during the last 6 months.

RECENT TRENDS IN RETAIL INFLATION

• Retail inflation, well within the target limits of 2% to 6%, declined to 5.2% as against 6.6% during April – December 2020-21. The Survey states that this was largely attributed due to the easing of food inflation. Food inflation, as measured by the Consumer Food Price Index (CFPI), averaged at a low of 2.9% in 2021-22 (April-December) as against 9.1% in the corresponding period last year.
• A “refined” Core inflation has been constructed to exclude the volatile fuel items. The items of “petrol for vehicle” and “diesel for vehicle” and “lubricants & other fuels for vehicles”, in addition to “food and beverages” and “fuel and light” have been excluded from headline retail inflation. Since June 2020, refined core inflation has been much below the conventional core inflation, indicating the impact of inflation in fuel items in the “conventional” core inflation measure.

DRIVERS OF RETAIL INFLATION

• Major drivers of retail inflation have been the “miscellaneous” and “fuel & light” groups. Contribution of miscellaneous increased to 35% in 2021-22 (April – December) from 26.8% in 2020-21 (April – December). According to the Survey, within the miscellaneous group, a subgroup of “transport and Communication” contributed the most, followed by “health”. On the other hand, the contribution of food & beverages declined from 59% to 31.9%.

“FUEL & LIGHT” AND “TRANSPORT & COMMUNICATION”

• Inflation in the above two groups for the period of 2021-22 (April – December) has been largely due to the high international crude oil, petroleum product prices, and higher taxes.

MISCELLANEOUS

• Apart from transport & communication; “clothing and footwear” inflation also saw a rising trend during the current financial year possibly indicating higher production and input costs (including imported inputs) as well as due to revival of consumer demand.

FOOD AND BEVERAGES

• “Oils and fats” contributed around 60% of “food and beverages” inflation despite having a weight of only 7.8% in the group. The demand for edible oils is largely met through imports (60%) and fluctuations in international prices have been responsible for the high inflation in this subgroup. Though India’s imports of edible oils have been the lowest in the last six years, in terms of value, it has increased by 63.5% in 2020-21 as compared to 2019-20.
• Inflation in pulses declined to 2.4% in December 2021from 16.4% in 2020-21.With an increase in area sown for Kharif pulses to a new high of 142.4 lakh hectares (as of 1^stOctober 2021) pulses inflation is on a downward trajectory.

RURAL-URBAN INFLATION DIFFERENTIAL

• The gap between rural and urban CPI inflation declined in 2020 as compared to the higher gaps witnessed from July 2018 to December 2019. The factor largely responsible for divergence, for brief periods, is the component of food and beverages.

TRENDS IN WHOLESALE PRICE INDEX-BASED INFLATION

• WPI inflation has shown an increasing trend and has remained high during the current financial year touching 12.5% during 2021-22 (April – December). The Survey describes that part of the high inflation could be because of a low base in the previous year as WPI inflation has been benign during 2020-21.

• Crude petroleum & natural gas subgroup under WPI has witnessed very high inflation and stood at 55.7% in December 2021. Within manufactured food products, edible oils were a major contributor.

DIVERGENCE BETWEEN WPI AND CPI-BASED INFLATION RATES

• The Survey attributes a host of factors for the divergence witnessed between the two indices. Some of them, amongst others, include the variations due to base effect, the conceptual difference in their purpose and design, the price behavior of the different components of the two indices, and lagging demand pick up. The Survey states that with the gradual waning of base effect in WPI its divergence in WPI and CPI inflation is expected to narrow down.

HOUSING PRICES

• The residential housing sector was also affected by COVID-19 induced restrictions through both supply and demand channels.
• Amidst initial COVID-19 restrictions, not only did the construction of new houses slow down but the launch of new housing projects also got delayed. With the loss of income, uncertainty about future income, and stay-at-home orders, home buyers delayed their housing purchases.
• During the second COVID-19 wave (April-June, 2021), transactions of housing properties were once again impacted adversely, but not as much as it was seen during the first COVID-19 wave (April-June, 2020).

PHARMACEUTICAL PRICING

• Several steps have been taken to ensure the affordability of drugs and medical devices. Ceiling prices for 355 medicines and 886 formulations were fixed for medicines under the National List of Essential Medicines, 2015 until 31 December 2021.
• Retail prices for approximately 1798 formulations were fixed under DPCO, 2013 till 31 December 2021.
• During the recent years, exercising extraordinary powers under DPCO, 2013 in the public interest, prices of coronary stents and knee implants have also been fixed.
• NPPA also capped the trade margin up to 30 percent on selected 42 anti-cancer non-schedule medicine on a pilot basis in February 2019.

LONG TERM PERSPECTIVE

• Given the importance of supply-side factors in having a predominance in the determination of inflation in India, certain long-term policies are likely to help. This includes changing production patterns which would lead to diversification of production of crops, calibrated import policy to address uncertainty, and increased focus on transportation and storage infrastructure for perishable commodities.
• Better storage and supply chain management is required to ensure availability in lean season and reduced wastages of horticulture and other perishable essential commodities to reduce the seasonal spikes in prices for consumers, glut for the farmers in times of good harvests due to lack of marketing infrastructure, resulting in distress sales.
• Effective utilization of the Agriculture Infrastructure Fund for investment in viable projects for post-harvest management infrastructure for perishable commodities can help improve agriculture infrastructure in the country.
• Schemes like Operation Green and Kisan Rail need to be exploited further to protect the interests of the farmers as well as the consumers.

HIGHLIGHTS

• The average headline CPI-Combined inflation moderated to 5.2 percent in 2021-22 (April-December) from 6.6 percent in the corresponding period of 2020-21.
• The decline in retail inflation was led by the easing of food inflation.
• Food inflation averaged at a low of 2.9 percent in 2021-22 (April to December) as against 9.1 percent in the corresponding period last year.
• Effective supply-side management kept prices of most essential commodities under control during the year.
• Proactive measures were taken to contain the price rise in pulses and edible oils.
• Reduction in central excise and subsequent cuts in Value Added Tax by most States helped ease petrol and diesel prices.
• Wholesale inflation based on the Wholesale Price Index (WPI) rose to 12.5 percent during 2021-22 (April to December).
• This has been attributed to:
• Low base in the previous year,
• Pick-up in economic activity,
• Sharp increase in international prices of crude oil and other imported inputs, and
• High freight costs.
• Divergence between CPI-C and WPI Inflation:
• The divergence peaked to 9.6 percentage points in May 2020.
• However, this year there was a reversal in divergence with retail inflation falling below wholesale inflation by 8.0 percentage points in December 2021.
• This divergence can be explained by factors such as:
• Variations due to base effect,
• Difference in scope and coverage of the two indices,
• Price collections,
• Items covered,
• Difference in commodity weights, and
• WPI being more sensitive to cost-push inflation led by imported inputs.