THE CONTEXT: Recently, Prime Minister launched the world’s largest grain storage plan in the cooperative sector. The pilot project is being carried out in 11 states by primary agricultural credit societies where the government is looking to “set up a storage infrastructure of 700 lakh metric tons’’.

MORE ON THE NEWS:

• The foundation stone for additional 500 PACS for construction of godowns and other agri infrastructure has also been laid.
• A project for computersation in 18,000 PACS across the country, aligning farming with cutting edge technology and shifting to fully digital payments has also been launched.

LARGEST GRAIN STORAGE PLAN:

• The pilot project is being undertaken in 11 Primary Agricultural Credit Societies (PACS) in 11 states. Ministry of Cooperation will implement the project.
• The scheme aims to create storage capacity for storing 100 per cent of India’s grain production to strengthen food security, reduce wastage, and empower farmers.
• It aims to seamlessly integrate PACS godowns with the food grain supply chain, with a collaborative effort of NABARD and spearheaded by the National Cooperative Development Corporation (NCDC).
• 700 lakh tonne storage capacity will be created in the next five years, with an investment of ₹1.25 lakh crore.  In India, storage capacity with regards to food grain production is only 47%, whereas in the USA it is 161%, Brazil 149%, Canada 130% and China 107%.
• The Plan aims for creation of various agri infrastructure at Primary Agricultural Credit Societies (PACS) level, including warehouses, custom hiring center, processing units, Fair Price Shops, etc. by leveraging the ‘whole-of-Government’ approach.
• The initiative is being implemented through the convergence of various existing schemes like the Agriculture Infrastructure Fund (AIF), Agriculture Marketing Infrastructure (AMI), etc. to enable PACS participating in the project to avail subsidies and interest subvention benefits for undertaking infrastructure development.
• This ambitious project aims to converge eight ongoing schemes of three ministries to address the shortage of agricultural storage infrastructure in India.
• Ministry of Cooperation has constituted Inter-Ministerial Committee (IMC) with Hon’ble Home and Cooperation Minister as its chairman and Hon’ble Ministers and Secretaries of Ministries concerned as its members for smooth and effective implementation of the Plan.
• The Ministry of Cooperation has also constituted National Level Coordination Committee (NLCC) under the chairmanship of Secretary (Ministry of Cooperation) to steer the overall implementation of the Plan and reviewing the progress of implementation, etc.

BENEFITS OF THE PROJECT:

• Addressing Infrastructure Shortage:The plan aims to establish godowns at the level of PACS to alleviate the shortage of agricultural storage infrastructure in the country.
• Diversification of PACS Activities:PACS will be empowered to undertake various activities, including functioning as procurement centres for state agencies or the Food Corporation of India (FCI), serving as fair price shops, and setting up custom hiring centres and common processing units. This diversification will enhance the incomes of farmer members.
• Reduction of Food Grain Wastage:By creating decentralised storage capacity at the local level, the plan aims to reduce grain wastage, contributing to improved food security.
• Preventing Distress Sale:The plan provides farmers with various options, preventing distress sale of crops and enabling them to realise better prices for their produce.
• Cost Reduction:The establishment of storage facilities at the PACS level will significantly reduce transportation costs of food grains to procurement centres and fair price shops.

WHAT IS Primary Agricultural Credit Societies(PACS)?

• Primary Agricultural Credit Societies are the grass root level arms of the short-term co-operative credit structure.
• PACS deals directly with the rural (agricultural) borrowers, give those loans and collect repayments of loans given and also undertake distribution and marketing functions.
• They occupy a predominant position in the co-operative credit structure and form its base.
• It serves as the final link between the ultimate borrowers on the one hand and the higher financing agencies, namely the Scheduled Commercial Banks, and the RBI/NABARD on the other hand.

Organisational Structure of PACS

• General Body of PACS: Exercise the control over board as well as management.
• Management Committee: Elected by the general body to perform the work as prescribed by the society’s rules, acts, and by-laws.
• Chairman, Vice-Chairman, and Secretary: Work for the benefit of the members by performing their roles and duties as assigned to them.
• Office Staff: Responsible for performing day to day work.

GOVERNMENT EMPHASIS ON COOPERATIVES

• A separate Cooperation Ministry has been set up by the government as cooperatives have a great role in strengthening agriculture.
• The Ministry of Cooperation has developed the grain storage plan to leverage the strength of cooperatives and transform them into successful business enterprises,aligning with the vision of “Sahakar-se-Samriddhi” (Cooperation for Prosperity). The vision of Sahakar se Samriddhi is to rejuvenate the cooperative sector and empower small and marginal farmers.
• The government seems to be increasingly emphasising the role of cooperatives in agricultural marketing and storage, as opposed to government-owned entities such as Food Corporation of India and Central Warehousing Corporation.
• The government had even reduced minimum alternate tax on cooperative societies – bringing it at par with the corporate sector and raised the slab for tax to be deducted at source to income above Rs 3 crore.
• The government believe that the success achieved by Gujarat Cooperative Milk Marketing Federation (Amul) in augmenting income of farmers in their home state can be replicated across the country.

THE WAY FORWARD:

• Strengthen transportation networks: There is need to improve transportation infrastructure, including roads, rail networks, and logistics systems, will enable efficient movement of food from farms to storage facilities and distribution centers. This will reduce delays, minimize spoilage, and ensure timely delivery of food to the market.

• Encourage private sector participation: The involvement of the private sector in food storage infrastructure development and management can bring in expertise, technology, and investments. Public-private partnerships can help bridge the gap between demand and supply of storage facilities.

• Facilitate access to finance: Providing financial support, subsidies, and credit facilities to farmers, small-scale food businesses, and storage facility operators can help them invest in modern storage technologies and facilities. This will enable them to store food properly and efficiently.

• Promote research and innovation: Continued research and innovation in food storage technologies, packaging materials, and preservation methods is the need of hour. This can lead to the development of cost-effective and sustainable solutions tailored to Indian conditions.

THE CONCLUSION:

By strengthening Cooperatives, governments and stakeholders aim to improve the overall state of agriculture, uplift rural communities, and promote inclusive economic growth. These efforts can contribute to poverty reduction, food security, and sustainable development in agrarian economies.

UPSC PREVIOUS YEAR QUESTIONS

Q.1 In the villages itself no form of credit organisation will be suitable except the cooperative society.” – All India Rural Credit Survey. Discuss this statement in the background of agricultural finance in India. What constraints and challenges do financial institutions supplying agricultural finance face? How can technology be used to better reach and serve rural clients? (2014)

Q.2 Examine the concept of cooperative farming, in light of problem of land fragmentation, in promoting the socio-economic welfare of farmers. (2019)

MAINS PRACTICE QUESTIONS

Q.1 Recently, Prime Minister launched the world’s largest grain storage plan in the cooperative sector. Highlight the key rationale behind the initiative and its significance in boosting agriculture economy.

Q.2 Critically assess whether cooperative can take over the role of government bodies to contribute towards promoting food security and for improvement of rural livelihoods.

SOURCE: https://indianexpress.com/article/opinion/editorials/express-view-on-governments-new-grain-storage-plan-more-in-store-9182666/

THE CONTEXT: The Supreme Court’s 2024 verdict on the Chandigarh Mayor’s election highlights India’s defense of electoral integrity against polarization, emphasizing the balance between legal frameworks, political practices, and societal fabric in the world’s largest democracy.

THE ISSUES:

• Subversion of Electoral Process: The Returning Officer’s unprecedented move to ignore the ballot papers and the constitutional procedure, as evidenced by the dumping of the votes in the Chandigarh Mayor’s elections, signifies serious attempts to transgress the democratic character of the electoral process. The various breaches in ethics that arise from the case in this crack additionally connote a conflict of credibility of democratic governance. In the elections concerning this case, the results can become a subject for manipulation and change.
• Judicial Defense of Electoral Integrity: The Supreme Court’s participation reiterates the institutions’ role as the last voice of justice on aspects that conflict with the principles of election transparency. Still, the case implied that many courts, especially the lower ones, failed to acknowledge and implement such measures aimed at discouraging the votes candling and ensuring that the decisions taken at the top would be respected and enforced. Therefore, the Supreme Court felt the judiciary needed to take severe measures and protect democratic principles.
• Legal and Constitutional Safeguards Under Threat: The legality of elections and adherence to constitutional grounds are essential for ensuring fair and just democratic elections. However, the institutions responsible for upholding these principles are often overlooked. Neglecting these crucial institutions could lead to long-lasting barriers against interference and deception in elections, potentially resulting in the decline of the electoral system and the future of democracy.
• Misuse of Religion in Elections: Political preaching within religion or using religious symbols to influence electoral decisions can lead to unfortunate outcomes. However, the Supreme Court has recognized that allowing religious figures to create enthusiasm and then benefit from it during elections is detrimental to secularism in Indian democracy. The court has directed concerned authorities to ensure the maintenance of secularism by recognizing the non-alignment of politics with religion.
• Uncertain Future for Electoral Democracy: These issues raise profound questions about the nature of India’s electoral democracy and whether it is the best option for the nation. Many people recognize a problem with the electorate’s behavior, and some see the current system as an obstacle to progress. Additionally, the political culture in India may promote religious tolerance, but it also appears to discriminate against certain ethnic and cultural groups, which undermines the integrity of public institutions.

THE WAY FORWARD:

• Strengthening Electoral Integrity: Ensure swift and decisive judicial action against electoral malpractices. The Supreme Court’s rapid intervention in electoral bond issues and other election-related cases demonstrates the judiciary’s role in safeguarding democracy. The Law Commission of India, in its 255th report, suggested electoral reforms, including measures to address criminalization in politics, which indirectly contributes to ensuring judicial oversight.
• Legislative Measures Against Misuse of Religion in Elections: Laws like Section 123(3) of The Representation of the People Act, 1951, should be strictly enforced to prevent appealing to voters based on religion. The ECI monitors election campaigns to check for violations of the Model Code of Conduct, including misuse of religion for political gains. In “Abhiram Singh vs C.D. Commachen (2017)“, a more expansive interpretation was given to Section 123(3), emphasizing the non-permissibility of any appeal in the name of religion.
• Promoting Secular and Pluralistic Values: Promote secularism and pluralism through educational and social campaigns, emphasizing the importance of unity in diversity. Education is crucial in fostering mutual respect and understanding in diverse societies. Celebrating India’s cultural diversity can help bridge communal divides.
• Political Will and Leadership: Leaders and parties must maintain the integrity of the electoral process and uphold the secular fabric. Ethical leadership is crucial to combat corruption and shape political discourse, as highlighted by the Second Administrative Reforms Commission’s report on “Ethics in Governance.”
• Civil Society and Media Engagement: Encourage active participation and oversight by civil society organizations and vigilant media to hold electoral processes and political discourse to higher standards of transparency and integrity. The role of civil organizations in voter education and monitoring electoral practices has been pivotal in numerous democracies worldwide.

THE CONCLUSION:

This case highlights the critical importance of having judicial oversight and robust legal and institutional mechanisms to protect democratic processes. It emphasizes the need for well-informed citizens and resilient institutions to address the democratic challenges faced by India effectively. It is crucial to ensure the preservation and advancement of constitutional values.

UPSC PAST YEAR QUESTIONS:

Q.1 There is a dire need for electoral reforms in India, discuss various challenges related to elections in India and suggest some measures to resolve them. (2023)

Q.2 The role played by the Election Commission of India has bestowed a very high level of confidence in the minds of Indian citizens in ensuring the purity of the elected legislative bodies in the country. Critically examine. (2021)

MAINS PRACTICE QUESTION:

Q.1 How can the judiciary contribute to maintaining the integrity of electoral processes in the face of political and religious polarization? What steps can be taken to improve the electoral system and protect democratic values in India?

SOURCE:

https://www.thehindu.com/opinion/lead/everything-in-the-garden-of-elections-is-not-lovely/article67889113.ece

THE CONTEXT: The government recently released the broad findings of the All-India Household Consumption Expenditure Survey carried out between August 2022 and July 2023. These surveys inform about changes in household consumption expenditure patterns and also form the basis of poverty and inequality estimation.

HOUSEHOLD CONSUMPTION EXPENDITURE SURVEY (HCES)

• The National Sample Survey Office conducts large-scale surveys on household consumption expenditure in the country, typically once every five years.
• This survey provides detailed information on how households allocate their financial resources across various categories such as food, housing, education, healthcare, and transportation.
• It is a critical statistical tool used by governments, policy analysts, and researchers to collect data on the spending habits of households within a country.
• It is used for understanding economic behaviour, assessing living standards, and formulating policies aimed at economic development and poverty alleviation.

Methodology

• It adopts a stratified multistage sampling design to ensure representativeness across urban and rural areas.
• The survey covers a wide range of expenditure items, from necessities like food, clothing, and housing to discretionary spending on education, healthcare, and entertainment.
• Households are usually selected through a random sampling method, and data are collected through personal interviews and expenditure diaries.

OBJECTIVES OF HCES

• Measuring Living Standards: It helps in assessing the living standards and quality of life of the population by examining how households spend their income.
• Policy Development: It helps government to design and implement effective social, economic, and fiscal policies for various social welfare programs.
• Economic Analysis: It aims to analyze consumption patterns, which are key indicators of economic stability, growth, and the distribution of wealth within a society.
• Poverty and Inequality Assessment: It provides essential data for measuring poverty levels, identifying vulnerable groups, and understanding income inequality.
• Inflation and Cost of Living: It calculates inflation rates and cost of living indexes to help central banks and governments in monetary policy formulation.

OUTCOMES OF THE SURVEY:

• Rise in household expenditure: There is a rise in household expenditure. In rural areas, household consumption expenditure has risen from Rs 1,430 in 2011-12 to Rs 3,773 in 2022-23, and in urban areas from Rs 2,630 to Rs 6,459. At 2011-12 prices, this translates to an increase of 3.1 per cent per year in rural areas, and 2.7 per cent in urban areas.
• Fall in expenditure on food: As household incomes have continued to grow, expenditure on food has continued to fall. In rural areas, the share of food in the spending basket has declined from 52.9 per cent in 2011-12 to 46.4 per cent in 2022-23, while in urban areas it has fallen from 42.6 per cent to 39.2 per cent.
• Greater allocation for share on nutritional foods: Households are now allocating a greater share for nutritional items such as eggs, fish and meat, milk and fruits, as well as on beverages, refreshments and processed foods. Milk and milk products are now the second highest item in the consumption basket.
• Rise in discretionary spending: A greater share of spending is also now being directed towards education, health and conveyance and on consumer durables and services. As household incomes rise and expenditure on essential items falls, discretionary spending will rise further.
• Less income disparity: The factsheet estimates that monthly per-capita consumption expenditure rose 164% in rural India compared to 146% in urban India. This narrowed the gap in per-capita spending between rural and urban India by nearly 13% over 11 years. The survey shows that the spending gap between rural and urban India has narrowed, there remains a wide intra-state and inter-state disparity in spending.
• Huge disparity in top and bottom layer: There is also a huge disparity between the spending of the bottom and top layer of the society. As, there is a noted wide gap in the spending of the top 5% compared to the next 5%. This difference was 58% and 68% in rural and urban areas, respectively.

CHALLENGES RELATED TO HCES

• Underreporting: There is an issue of inaccurate reporting of consumption which often leads to underestimation or recall bias.
• Sample Representativeness: It is a difficult task to make sure the sample fairly represents the diverse population of India with a range of socioeconomic and cultural backgrounds.
• Temporal and Regional Variability: There are more difficulties in capturing the seasonal variations in spending and the regional differences.

SIGNIFICANCE OF HCES

Despite challenges, the HCES remains a vital tool for economic and social planning in India. Its data are extensively used for:

• Policy Making: It helps in taking informed decisions in policy making regarding subsidies, social welfare schemes, and taxation policies.
• Academic Research: It serves as a primary source for studies on consumption patterns, poverty, and socio-economic status.
• International Comparisons: It facilitates comparisons with other countries on economic welfare and living standards.
• Understanding poverty and inequality: With the release of the detailed survey data, it will now be possible to arrive at an understanding of the trends in poverty and inequality in India over the past decade.
• Updating consumer price index: This survey data will also help in updating the consumer price index, which is a valuable input for monetary policy.
• Filling the data vacuum: The release of this survey also marks an important step towards filling the data vacuum in the country. The government should take this forward, initiate the much-delayed census exercise and take steps to strengthen the country’s statistical system.

THE CONCLUSION:

The Household Consumption Expenditure Survey (HCES) in India is a critical source of data that provides insights into the spending patterns of Indian households. It plays a pivotal role in understanding the socio-economic fabric of the country, guiding policy formulation, and assessing the impact of economic reforms on different segments of the population. Despite the challenges associated with data collection and interpretation, the HCES is instrumental in guiding the nation’s socio-economic policies and addressing the needs of its citizens. As India continues to evolve, the significance of accurate, transparent, and comprehensive consumption data cannot be overstated for shaping a more inclusive and equitable society.

UPSC PREVIOUS YEAR QUESTIONS

Q.1 Among several factors for India’s potential growth, the savings rate is the most effective one. Do you agree? What are the other factors available for growth potential? (2017)

Q.2 Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments. (2019)

MAINS PRACTICE QUESTIONS

Q.1 The Household Consumption Expenditure Survey plays significant role not only about changes in household consumption expenditure patterns but also form the basis of poverty and inequality estimation. Comment.

Q.2 What is Household Consumption Expenditure Survey and how is it calculated? Discuss its role in measuring retail inflation and for deriving other macroeconomic indicators.

SOURCE: https://indianexpress.com/article/opinion/editorials/express-view-consumption-expenditure-survey-is-necessary-to-fill-data-vacuum-in-india-9180686/

THE CONTEXT: The proposal to penalize live-in relationships challenges personal liberties and sparked a nationwide debate on state intervention. The Bill appears regressive and critically tests India’s constitutional and democratic ethos. The judiciary has emphasized privacy, autonomy, and consent.

THE ISSUES:

• Invasion of Privacy and Autonomy: The UCC’s mandatory registration of live-in relationships invades privacy and autonomy, violating the right to privacy under Article 21 of the Constitution. In Justice K.S. Puttaswamy (Retd.) vs Union of India and Ors (2017), the Supreme Court recognized privacy as a fundamental right, including the privacy of personal choices, which the UCC provision infringes upon.
• Formalization of Live-in Relationships: Critics argue that UCC formalizes live-in relationships, undermining their flexibility. Supreme Court recognizes them under Article 21, upholding adults’ freedom to choose life partners as part of their right to autonomy and privacy.
• Potential for Harassment and Moral Policing: UCC’s registration requirement and penalties for non-registration may lead to moral policing and harassment, infringing the right to equality before the law. The provisions may also create a discriminatory environment for those in live-in relationships, contrary to the principle of equality.
• Violation of Constitutional Rights: The Uniform Civil Code’s provisions may violate constitutional rights such as privacy (Article 21), equality (Article 14), and freedom of choice in personal relationships (linked to freedom of speech under Article 19(1)(a)). These articles protect individual autonomy and the right to live free from unwarranted state intervention.
• Misuse of Law and Arbitrary Punishment: Non-registration of live-in relationships may lead to arbitrary punishment, violating Article 14. The Supreme Court has emphasized the importance of non-arbitrariness in state action, holding that equality is antithetical to arbitrariness.
• Impact on Social Norms and Individual Choices: The UCC’s approach to regulating live-in relationships conflicts with the Supreme Court’s recognition of the right to choose one’s life partner and individual autonomy.

THE WAY FORWARD:

• Ensuring Privacy and Autonomy: Eliminate mandatory registration of live-in relationships in Uttarakhand Uniform Civil Code to respect privacy and autonomy. Uphold the right to privacy under Article 21 of the Indian Constitution and implement legal safeguards that protect the privacy and independence of individuals in live-in relationships with voluntary and non-intrusive registration.
• Preserving the Essence of Live-in Relationships: Recognize live-in relationships without imposing marriage formalities, aligning with the Supreme Court’s right to life and personal liberty. Launch awareness campaigns to educate citizens about legal protections without formal registration.
• Preventing Harassment and Moral Policing: Set guidelines for law enforcement to prevent harassment of couples in live-in relationships and strengthen anti-discrimination laws to protect them from societal and legal harassment.
• Upholding Constitutional Rights: It is imperative that we conduct a thorough constitutional examination of the provisions outlined in the UCC to protect the fundamental rights of privacy, equality, and freedom of choice. Additionally, we must advocate for judicial intervention to assess the constitutionality of this legislation.
• Preventing Misuse of Law and Arbitrary Punishment: Implement procedural safeguards against arbitrary punishment and ensure fair penalties for non-registration. Offer legal aid to individuals living in a relationship to ensure access to relevant information and legal recourse.
• Respecting Social Norms and Individual Choices: Involve diverse stakeholders in the policymaking process to ensure that laws reflect and respect the diversity of social norms and individual choices. Foster education and dialogue on the diversity of relationships and family structures to promote a more inclusive society that respects individual choices and freedoms.

THE CONCLUSION:

The legislation challenges India’s Constitution and its fundamental principles. It’s essential to critique it based on constitutional guarantees, personal liberties, and democratic values. Accepting or rejecting the legislation will reflect India’s commitment to protecting citizens’ fundamental rights amidst changing social norms.

UPSC PAST YEAR QUESTIONS:

Q.1 Examine the scope of Fundamental Rights in the light of the K.S. Puttaswamy vs. Union of India judgement. (2019)

Q.2 The Fundamental Rights enshrined in the Indian Constitution have often met with a wide and varied criticism. Analyse. (2022)

MAINS PRACTICE QUESTION:

Q.1 Recent legislative attempts to penalize live-in relationships in India have sparked significant debate on balancing societal morality and individual rights. Critically examine the implications of such legislation on the constitutional rights of privacy, autonomy, and equality before the law.

SOURCE:

https://www.thehindu.com/opinion/op-ed/a-chilling-effect-on-the-freedom-to-love/article67885660.ece

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