Oct 25th 2024 Current Affairs

Index:

1. Q2 Revenue Growth at 16-Quarter Low

Context: A Crisil analysis indicates a significant slowdown in revenue growth for Indian companies during the July-September quarter of 2024 (Q2), reaching a 16-quarter low.

  • Data is based on an analysis of 435 firms, accounting for half of India’s listed market capitalization.

Key Points:

  1. Overall Revenue Growth:
    • Growth dropped to 5-7%, the weakest in 4 years.
    • Significant decline from 3% in the previous quarter (April-June 2024, Q1).

 

  1. Sectoral Performance:
    • Construction Sector:
      • Poor performance due to sluggish government spending post-elections.
      • Impact of above-normal monsoon, leading to slower construction activity.
    • Commodities Sector: Coal and other industrial commodities faced a 6-7% revenue decline.
    • Investment-Linked Sectors:
      • Power segment grew just by 1%.
      • Construction-linked sectors like steel saw a 2-3% revenue dip due to lower demand and price pressure from cheap Chinese imports.
    • Petrochemicals: Reported flat growth in Q2.
    • Agriculture: Fertilizer sector witnessed a 20-22% revenue drop.

 

  1. Factors Contributing to Slowdown:
    • High base effects from Q2 of the previous year.
    • Weak global prices across many sectors.
    • Sluggish government spending and a slow pickup in projects post-elections.
    • Monsoon-related disruptions impacted the construction and related sectors.

 

  1. Export-Related and IT Sectors:
    • Export-related firms saw a modest 5% revenue uptick.

IT sector managed modest growth of 3-4%, highlighting resilience compared to other sectors.

2. How Panchayat-Level Weather Forecasts Will Help

Context: Panchayat-Level Weather Forecasting is a joint initiative launched by the Panchayati Raj Ministry, India Meteorological Department (IMD), and Ministry of Earth Sciences to provide five-day weather forecasts updated every hour at the gram panchayat level.

  • The program was officially launched by Rajiv Ranjan Singh (Panchayati Raj Minister) and Jitendra Singh (MoS, Ministry of Science & Technology and Ministry of Earth Sciences) on October 24.

Key Points:

  1. Objective:
    • Empowering rural communities by enhancing disaster preparedness and promoting sustainable agricultural practices.
    • Focus on localized weather forecasts to increase climate resilience in rural areas.
    • Helps tackle environmental challenges effectively, especially with climate change leading to unpredictable weather patterns.

 

  1. Forecast Delivery:
    • Forecasts are available on platforms such as e-GramSwaraj, Gram Manchitra portals, and the Meri Panchayat app.
    • e-GramSwaraj is already operational, providing data on temperature, wind speed, cloud cover, rainfall, and humidity.
    • Forecasts include five-day updates on minimum and maximum temperatures, rainfall, wind direction and speed, and overall weather conditions.

 

  1. Benefits to Rural Communities:
    • Localized and detailed weather information can assist farmers in planning activities like sowing, irrigation, harvesting, and even disaster preparedness.
    • Helps mitigate risks associated with unpredictable weather, which is increasingly a concern due to climate change.
    • Empowers local communities to make informed decisions for agriculture and other critical activities.
    • Provides crucial support for rural livelihoods and enhances resilience to natural disasters like floods or droughts.

 

  1. Why Local Forecasts Matter:
    • Localized forecasts offer more precision in decision-making for rural areas, where broad-scale weather predictions may not suffice.
    • Panchayats will receive daily weather updates on key parameters to ensure accurate planning for agricultural and rural activities.
    • IMD uses sophisticated models to provide boundary-specific localized data down to the panchayat level, crucial for India’s 55 lakh village panchayats.

 

  1. Challenges of Weather Forecasting:
    • While advanced technologies exist, the science of weather forecasting has inherent uncertainties, especially in cases like the Indian monsoon and cyclonic systems.

Accurate predictions require precise spatial and time-window forecasting, making localized systems important for managing rural agricultural needs.

3. Justice Sanjiv Khanna Appointed as the 51st Chief Justice of India (CJI)

CONTEXT: Justice Sanjiv Khanna appointed as the 51st Chief Justice of India by President Droupadi Murmu.

  • Oath: Expected to take oath on November 11, 2024.
  • Predecessor: Will succeed CJI D. Y. Chandrachud, who retires on November 10, 2024.
  • Tenure: His tenure will be six months, as he is set to retire on March 13, 2025.

Background:

  • Education: Graduated from Delhi University’s Campus Law Centre.
  • Career:
    • Enrolled as an advocate in 1983.
    • Primarily practiced in the Delhi High Court.
    • June 2005: Elevated as a judge of the Delhi High Court.
    • Served as Senior Standing Counsel for the Income Tax Department.
    • Also held the position of standing counsel in civil matters.

 

Constitutional Provision:

The appointment is made under Article 124(2) of the Constitution of India.

4. Overflowing Godowns, Unhappy Millers: Paddy Procurement Crisis in Punjab

Context: Punjab’s paddy procurement process has faced delays and mismanagement due to overflowing storage facilities and miller resistance, despite favorable weather conditions for harvesting.

Key Points:

  1. Procurement Status as of October 23, 2024:
    • 81 lakh tonnes of paddy procured so far in Punjab.
    • Around 90% of procured paddy lies unsold in mandis due to insufficient storage capacity.
    • Rice millers resist government procurement of paddy as godowns are full, leading to storage crises.
    • Delayed processing impacts the paddy milling schedule

 

  1. Challenges in Storage:
    • Government godowns have reached near capacity, storing both current stock and carryover stock from the previous season under schemes like the National Food Security Act (NFSA).
    • Private rice millers hesitate to take on government paddy due to space shortages, forcing farmers to wait longer for payment.

 

  1. Hybrid Paddy Issues:
    • Hybrid varieties of paddy have gained popularity but have lower yield and different processing requirements than traditional varieties.
    • Millers argue that these hybrids do not meet FCI standards, resulting in mill-milling alignment problems and further slowing down the process.

 

  1. Labour and OTR (Out-Turn Ratio) Problems:
    • Mandi laborers seek higher wages similar to their counterparts in Haryana, causing additional delays.
    • Millers are struggling with OTR percentages, facing a lower grain recovery rate (paddy-to-rice yield) from hybrid paddy, which further complicates their ability to meet FCI requirements.
    • Current OTR is 67% for parboiled rice but millers suggest it be reduced to 62% for hybrids.

 

  1. Impact on Farmers:
    • Only 22% of the paddy crop has been harvested as of now, causing concern among farmers.
    • Farmers deliberately slow down harvesting to avoid the risks of delayed payment due to the crisis.
    • Delays affect farmer incomes and could potentially lead to protest actions if issues are not resolved swiftly.

 

  1. Environmental and Agricultural Consequences:
    • Delay in procurement could lead to a shorter window for wheat sowing, which can force farmers to burn stubble, contributing to air pollution in northern India.
    • Prolonged crisis risks sparking unrest among farmers.

 

  1. Possible Solutions:
    • The government could increase temporary storage solutions, and speed up the pace of paddy procurement.
    • Adjust OTR norms for hybrid varieties to ensure a smoother process.
    • Better coordination between government agencies and millers will be crucial to solving storage and procurement issues.
    • Address labour wage disputes promptly to avoid further protests and delays.

5. Landfall of a Cyclone: Cyclone Dana

CONTEXT: Cyclone Dana is expected to make landfall between Bhitarakanika National Park and Dhamra port in Odisha, bringing wind speeds up to 120 km/h.

Heavy rains hit Odisha and West Bengal, with over 1 million people evacuated from the affected areas.

What is Landfall?

  • Landfall: The event when the centre or eye of a tropical cyclone moves over the coastline from the ocean to land.
  • Cyclones are rotating storm systems developing over warm ocean waters between the Tropics of Cancer and Capricorn.
  • Cyclones have a central eye (an area of calm winds) surrounded by a storm wall where winds are strongest.

 

Characteristics of Landfall:

  • Not a Direct Hit: Landfall does not necessarily mean the eyewall (where the most severe winds occur) comes ashore. The storm can cause severe damage even before the eye reaches land.
  • According to the US NOAA, strongest winds are not always located at the center, meaning destructive impacts can be felt before landfall.

 

Extent of Damage:

  • Cyclone Dana may cause damage such as:
    • Destruction of kutcha houses.
    • Disruption of power and communication.
    • Minor disruptions in rail and road traffic.
    • Potential flooding and threats from flying debris.
  • Damage results from heavy rainfall, strong winds, and storm surges.

 

Duration of Landfall:

  • Landfall usually lasts a few hours, depending on:
    • Wind speed and size of the storm.
    • Cyclone Dana is expected to bring winds of 125 km/h for about 5-6 hours.

Cyclone Weakening: Once on land, cyclones lose intensity as the moisture supply is cut off and friction from land surfaces increases.

6. India-China Agreement on Patrolling Along the LAC (2024)

Background:

  • LAC (Line of Actual Control): The boundary between India and China, not clearly demarcated, leading to frequent disputes.
  • 2020 Border Standoff: Escalated tensions in areas like Eastern Ladakh, Galwan Valley, Pangong Tso, and Gogra-Hot Springs. Both sides had significant troop deployments.
  • Diplomatic Efforts: Continuous negotiations since 2020 through diplomatic and military channels to resolve border issues.

 

Recent Developments (2024):

  • April 2024 Statement by PM Modi: Emphasized the importance of India-China relations and the need to resolve the prolonged border situation.
  • Chinese Response: Chinese Foreign Ministry responded positively, signaling progress in resolving the boundary issues.
  • May 2024: Indian External Affairs Minister S. Jaishankar highlighted that the core unresolved issues revolved around “patrolling rights” along the LAC.

 

Key Elements of the Agreement:

  1. Patrolling Pact (2024):
    • Announced by Foreign Secretary Vikram Misri.
    • Patrolling Rights Restored: Both sides can resume patrolling and grazing in certain areas, such as Demchok and Depsang Plains, to the status quo as of pre-May 2020.
    • Patrolling System: Indian troops patrol up to the Indian perception of the LAC, leaving behind markers of their presence.

 

  1. Article 4 of the 2005 Border Pact:
    • Codifies conduct during face-offs:
      • Exercise self-restraint.
      • Avoid escalation.
      • No use of force.
      • No provocative actions.
      • No marking or placing signs at the spot.

 

  1. Three-Step Process for De-escalation:
    • Disengagement: Immediate step to pull back troops from friction points.
    • De-escalation: Reduction of military presence.
    • De-induction: Complete withdrawal of troops from the disputed areas.
    • Close Monitoring: Emphasis on preventing clashes like those that occurred in Galwan (2020).

 

Contours of the Agreement:

  • Areas Covered:
    • Eastern Ladakh: Demchok, Depsang Plains, and legacy issues predating the 2020 incursions.
    • Previous Disengagements: In Galwan, Pangong Tso, and Gogra-Hot Springs, disengagement had already taken place but no renegotiations were made on reopening them.

 

Diplomatic Meetings:

  • BRICS Summit 2024 (Kazan, Russia): PM Modi and President Xi Jinping endorsed the agreement.
  • Divergent Statements:
    • India emphasized complete disengagement.
    • China focused on overall progress but avoided specific mention of disengagement.

 

Cautionary Approach:

  • Trust-Building: India is cautious about trusting China’s actions, emphasizing the need to “trust but verify.”
  • Next Steps:
    • India’s Special Representatives on the boundary question will meet to explore a mutually acceptable solution.
    • China focused on broader talks, with foreign ministers and officials to improve bilateral relations.

Strategic circles in India remain cautious, expecting the entire process to take a couple of years.

7. Other Headline

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments