THE INTERNATIONAL RELATIONS

1. INDIA-NETHERLANDS BILATERAL RELATIONS

THE CONTEXT: The three-day visit of President to the Netherlands is also significant as the two nations celebrate 75 years of diplomatic relations. President during his visit to the Netherlands also visited Keukenh of- the world’s largest flower garden.

THE EXPLANATION:

Celebration of 75 years of India’s Independence in Netherlands

The President also met the members of the Indian community living in the Netherlands. As part of the 75 years of India’s Independence celebrations, President hosted a cultural performance which will be graced by Queen Maxima and King Willem-Alexander of the Netherlands. The performance will be by Kalakshetra Foundation and a 25 member troop will enact a piece from Ramayan.

India-Netherlands relations: Background

In 2022, the diplomatic relations between India and Netherlands will complete 75 years which were established back in 1947. As India developed into a rapidly expanding economy, the bilateral trade between India and Netherlands continued to gather momentum. This was despite the slow economic growth of the Netherlands. The Netherlands is also among the top 10 partners of India in terms of trade volume.

Trade and Commercial Relations: The Netherlands was the fifth largest investor in India for FY 2020-21 with FDI inflows of USD 2.8 billion. For the same period, the Netherlands was the third largest destination for overseas direct investment from India (approx. USD 1.22 billion). The Netherlands was India’s 3rd largest trading partner in the Europe in FY 2020-2021. During FY 2020-2021, total two-way trade stood at US$13 billion with export from India amounting to US$ 8.85 billion and imports from the Netherlands at US$ 4.1 billion.

Indian Community and Diaspora: The Netherlands hosts the largest Indian Diaspora on mainland Europe, including 2,00,000 strong Surinami-Hindustani community of Indian origin. Descendants up to sixth generation of the original Indian immigrants who had arrived in Suriname and later migrated to the Netherlands can avail OCI facility. The approximate 48,000 NRIs/PIOs are mainly businessmen, knowledge workers, professionals and students. Indian students are amongst the top 3 in terms of numbers amongst non-EU foreign students in the Netherlands.

Renewable Energy: The Netherlands signed the Framework Agreement of the International Solar Alliance (ISA) in May 2018. India is one of the convening countries of the Global Commission on Adaptation. The Netherlands joined the Coalition for Disaster Resilient Infrastructure (CDRI) in 2021. India invited the Netherlands to support CDRI’s Technical Assistance Facility (TAF) for Small Island Developing States. Cooperation in the area of renewable energy continues under an MoU singed in 2014. In the virtual Dutch Trade Mission held in February 2021 solar energy, hydrogen, biofuels, energy transition and e-mobility were a core theme.

THE HEALTH AND SOCIAL ISSUES

2. INDIA’S FIRST CASE OF CORONAVIRUS VARIANT XE REPORTED FROM MUMBAI

THE CONTEXT: India’s first case of Coronavirus variant XE was reported in Mumbai, also one case of the Kappa variant has also been detected.

THE EXPLANATION:

The Brihanmumbai Municipal Corporation (BMC) announced that a 50-year-old woman with a travel history to South Africa may have been infected with the newly discovered ‘XE’ variant of the coronavirus.

What is the XE variant of coronavirus?

• The Omicron variant, which is responsible for over 90 percent of the infections detected this year, has two prominent sub-variants, called BA.1 and BA.2. There is a BA.3 sub-variant as well, but that is less common.
• During the initial phase, the BA.1 sub-variant was the most widespread. In India, however, it was the BA.2 that was the most dominant during the third wave.
• 2 was found to be slightly more transmissible than BA.1, even though it was not more dangerous. In the last couple of months, the BA.2 variety has become the most widespread across the globe, accounting for almost 94 percent of all Omicron infections in the last month, according to the World Health Organisation (WHO). The incidence of the BA.1 variety is declining sharply.

Also known as Recombinant:

• The XE variant is what is called a ‘recombinant’. This means it contains the mutations found in BA.1 as well as BA.2 varieties of Omicron. This was first discovered in the United Kingdom in January, and so far more than 600 samples of XE have been found in different countries.
• Recombinant variants are not uncommon. Variants that contain mutations characteristics of two or more known variants occur all the time. In fact, variants that contain the characteristic mutations of Delta and Omicron have also been identified.
• The random process of genetic mutations in viruses and other organisms keeps happening continuously. But only a small fraction of these mutations significantly alter the abilities of the virus to infect, or to cause severe diseases.

Will the XE variant of Covid-19 come to India?

• It would not be surprising if the XE variant is indeed found in India — in the Mumbai woman, or in some other patient at a later stage. Travel restrictions have been mostly done away with, and international air travel is back to almost where it was in the pre-pandemic period.
• Also, the possibility of XE, or any other recombinant variety of Omicron, developing within the Indian population cannot be ruled out. It is also possible that the XE variant is already circulating in the Indian population, but is yet to be detected.

3. THE MANACLES OF CASTE IN SANITATION WORK

THE CONTEXT: According to the Social Justice and Empowerment Ministry, a total of 971 people lost their lives while cleaning sewers or septic tanks since 1993, the year law prohibiting the employment of manual scavengers was enacted.

THE EXPLANATION:

• Even in 2020, the Indian government and our civil society continue to grapple with the inhuman nature of manual scavenging. While civil society started a movement in the 1990s to abolish dry latrines, the focus now is on manhole deaths and the provision of safety equipment to sanitation workers.
• The movement has been demanding the abolition of the dehumanizing practice of the manual removal of human excreta and calls for the introduction of mechanization for handling waste. Various State governments and the previous Central governments have responded to these civil society demands by introducing different laws to stop manual scavenging and provide incentives to build toilets.
• If, on the one hand, the civil society has tended to approach this issue as a collective problem that needs to be addressed by the State, on the other, the current ruling dispensation seems to be framing the issue as a spectacle in the form of Swachh Bharat Abhiyan and is addressing the problem in terms of an obstacle in the way of tourism promotion.

Background:

Manual Scavenging

• It is defined as the removal of human excrement from public streets and dry latrines, cleaning septic tanks, gutters and sewers.
• In the past, this referred to the practice of removing excreta from dry latrines.
• However, new modern sanitation technologies brought new forms of manual scavenging work, which include manual and unsafe cleaning of drains, sewer lines, septic tanks and latrine pits.

Concerns 

• Scavenging is mostly carried out by a subgroup of the Dalits, an outcast community also known as “untouchables” within India’s ancient system of caste hierarchies.
  • “Untouchables” are often impoverished, shunned by society and forbidden from touching Indians of other castes, or even their food.
• Scavenging continues in parts of India largely due to governmental indifference and social prejudice.
• There is a complete absence of planning for the maintenance of sewerage, septic tanks, and waste disposal systems in the urban policies made for the city by the state and private companies.
• The number of people killed while cleaning sewers and septic tanks has increased over the last few years.
• 2019 saw the highest number of manual scavenging deaths in the past five years.

Measures to tackle the Manual Scavenging:

Employment of Manual Scavengers and Construction of Dry Latrines (Prohibition) Act in 1993

• The  Act prohibited the construction of unsanitary dry latrines and employing manual scavengers.
• The Act had defined ‘manual scavenger’ as a person engaged in or employed for manually carrying human excreta.
• However, the government’s description of the dry latrine was a problem, as it defined dry latrine as “latrine other than a water-seal latrine”.
• Manual scavenging was not just a practice related to dry latrines, but also to insanitary latrines and open defecation.

Safai Karamchari Andolan

• The Safai Karamchari Andolan, a social movement that campaigned against manual scavenging, along with other organizations, filed public interest litigation(PIL) in the Supreme Court.
• The demand was to direct State governments and Union Territories to strictly enforce the law to stop the practice of manual removal of human excreta.

Prohibition of Employment as Manual Scavengers and their Rehabilitation Act,2013

• Though the construction of dry latrines has drastically reduced, thenumber of deaths in manholes, sewers and septic tanks continues to remain high.
• The Indian government had plans to amend the 2013 Act to completely mechanize the cleaning of sewers and manholes and build new sewers.
• However,neither the past nor the present amendment addresses the issue of labor safety.

Swachh Bharat Abhiyan

• The same is the case with the Swachh Bharat Abhiyan, which skirts the issue of labor rights and the stigma attached to sanitation.
• Also, not only toilets but even cleaning work is seen as a lowly job in India.
• Most sanitation contracts are given to private contractors or self-help groups, and such staff hardly have ID cards, leave alone the protection of medical insurance policies.

What lies ahead?

• The Swachh Bharat Abhiyan should make expansion of the sewer network a top priority and come up with a scheme for scientific maintenance that will end the manual cleaning of septic tanks.
• The laws should be enforced vigorously to eliminate manual scavenging in its entirety.
• There should be trials and testing of protective gears and provisions for better healthcare facilities, insurance cover, pension plans and regulations on preventive and social medicine education for the manual scavengers.

THE ECONOMIC DEVELOPMENTS

4. EXPLAINED: WHAT IS SDF, THE RBI’S NEW TOOL TO ABSORB EXCESS LIQUIDITY TO CONTROL INFLATION?

THE CONTEXT: While retaining the reverse repo rate at 3.35 per cent, the Reserve Bank of India (RBI) introduced the Standing Deposit Facility (SDF), an additional tool for absorbing liquidity, at an interest rate of 3.75 per cent.

THE EXPLANATION:

What is a Standing Deposit Facility (SDF)?

A Standing Deposit Facility or SDF allows the RBI to absorb liquidity (deposit) from commercial banks without giving government securities in return to the banks.

Role of SDF

• The main purpose of SDF is to reduce the excess liquidity of Rs 8.5 lakh crore in the system, and control inflation.
• In 2018, the amended Section 17 of the RBI Act empowered the Reserve Bank to introduce the SDF – an additional tool for absorbing liquidity without any collateral. By removing the binding collateral constraint on the RBI, the SDF strengthens the operating framework of monetary policy. The SDF is also a financial stability tool in addition to its role in liquidity management.

The SDF will replace the fixed rate reverse repo (FRRR) as the floor of the liquidity adjustment facility corridor. Both the standing facilities — the MSF (marginal standing facility) and the SDF will be available on all days of the week, throughout the year.

How it will operate

The SDF rate will be 25 bps below the policy rate (Repo rate), and it will be applicable to overnight deposits at this stage. It would, however, retain the flexibility to absorb liquidity of longer tenors as and when the need arises, with appropriate pricing. The RBI’s plan is to restore the size of the liquidity surplus in the system to a level consistent with the prevailing stance of monetary policy.

Reverse repo rate

The fixed rate reverse repo (FRRR) rate which is retained at 3.35 per cent will remain part of the RBI’s toolkit, and its operation will be at the discretion of the RBI for purposes specified from time to time. The FRRR along with the SDF will impart flexibility to the RBI’s liquidity management framework, the RBI said.

Question of liquidity

• The “extraordinary” liquidity measures undertaken in the wake of the pandemic, combined with the liquidity injected through various other operations of the RBI, have left a liquidity overhang of the order of Rs 8.5 lakh crore in the system.
• This has pushed up the retail inflation level in the system. “The RBI will engage in a gradual and calibrated withdrawal of this liquidity over a multi-year time frame in a non-disruptive manner beginning this year.

5. EXPLAINED: INDONESIA’S PALM OIL CRISIS, AND ITS IMPLICATIONS FOR INDIA

THE CONTEXT: The world’s largest producer and exporter of palm oil is facing domestic shortages, leading to price controls and export curbs.

 

THE EXPLANATION:

• It’s rare for any country that is the largest producer and exporter of a product to experience domestic shortages of the same product — so much so as to force its government to introduce price controls and curbs on shipments.
• But that is precisely the story of Indonesia vis-à-vis palm oil. The US Department of Agriculture (USDA) has estimated the archipelago’s palm oil production for 2021-22 (October-September) at 45.5 million tonnes (mt). That’s almost 60% of the total global output and way ahead of the next bigger producer: Malaysia (18.7 mt). It is also the world’s No. 1 exporter of the commodity, at 29 mt, followed by Malaysia (16.22 mt).

Plausible factors

How does one explain this conundrum — consumers unable to access or paying through the nose for a commodity in which their country is the preeminent producer and exporter?

There are two possible reasons.

The first has to do supply disruptions — man made and natural — in other cooking oils, especially sunflower and soyabean.

• Ukraine and Russia together account for nearly 80% of the global trade in sunflower oil, quite comparable to the 90% share of Indonesia and Malaysia in palm. Russia’s invasion of Ukraine which is ongoing, has resulted in port closures and exporters avoiding Black Sea shipping routes.
• Sanctions against Russia have further curtailed trade in sunflower oil, the world’s third most exported vegetable oil (12.17 mt, according to USDA estimates for 2021-22) after palm (49.63 mt) and soyabean (12.39 mt).
• Soyabean oil, too, is facing supply issues due to dry weather in South America. The USDA has projected the combined soyabean output of Brazil, Argentina and Paraguay for 2021-22 to fall by 9.4%, translating into the continent’s lowest harvest in six years. Supply tightness in sunflower and soyabean — from war and drought, respectively — has, in turn, transmitted to palm oil.

The second factor is linked to petroleum, more specifically the use of palm oil as a bio-fuel.

• The Indonesian government has, since 2020, made 30% blending of diesel with palm oil mandatory as part of a plan to slash fossil fuel imports. The country’s domestic consumption of palm oil is forecast at 17.1 mt, of which 7.5 mt is for bio-diesel and the balance 9.6 mt towards household and other use.

Impact on India

• India is the world’s biggest vegetable oils importer. Out of its annual imports of 14-15 mt, the lion’s share is of palm oil (8-9 mt), followed by soyabean (3-3.5 mt) and sunflower (2.5). Indonesia has been India’s top supplier of palm oil, though it was overtaken by Malaysia in 2021-22 (see table).
• On March 2022, the Indonesian government lifted its retail price caps on palm oil along with the 30% domestic market sale obligation on exporters. At the same time, it levied a progressive tax on exports, linked to a reference price for CPO. These rates range from $175 per tonne (when the reference export price is $1,000-1,050) to $375 (when prices are above $1,500).

The restrictions on exports, even in the form of levy, take into cognizance Indonesia’s higher population (27.5 crore, against Malaysia’s 3.25 crore) as well as its ambitious bio-fuel programme (Malaysia is still to fully implement even 20% palm oil admixture in diesel). To that extent, the world – more so, the bigger importer India – will have to get used to lower supplies from Indonesia.

Meanwhile, import prices of edible oils have eased from March 2022  peaks, although higher than one year back. That should provide some relief, both for households and industrial consumers (including soap and cosmetic makers) in India.

Landed prices of CPO (cost plus freight, Mumbai) are currently ruling around $1,750 per tonne, as against $2,000 and $1,175 in March 2021, respectively. The corresponding import prices (current versus month-ago and year-ago) stood at $1,690 ($1,960 and $1,115) for RBD palmolein and $1,800 ($1,925 and $1,290) for crude de-gummed soyabean oil.

THE PRELIMS PRACTICE QUESTIONS

QUESTION OF THE DAY

Q. Consider the following statements about UNHRC:

1. 1. It is made up of 47 United Nations Member States elected by the UN General Assembly.
   2. Each elected member serves for a term of two years.
   3. Countries are disallowed from occupying a seat for more than two consecutive terms.

Which of the statements given above is/are correct?

a) 1 only

b) 1 and 3

c) 2 and 3

d) 1, 2 and 3

ANSWER FOR 7TH APRIL 2022

Answer: B

Explanation:

The Lokpal and Lokayuktas Act (2013) amended the Delhi Special Police Establishment Act (1946) and made the following changes to the composition of CBI:

The Central Government shall appoint the Director of CBI on the recommendation of a three-member committee consisting of the Prime Minister as Chairperson, the Leader of Opposition in the Lok Sabha and the Chief Justice of India or Judge of the Supreme Court nominated by him.

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