Nov 8th 2024 Current Affairs

Index:

1. Corporate Social Responsibility (CSR) and Agriculture

Context: India was the first country to mandate Corporate Social Responsibility (CSR) under the Companies Act, 2013. Section 135 of this act outlines rules for CSR, requiring companies to spend a portion of their profits on social causes.

As of 2023, ₹1.84 lakh crore of CSR funds have been disbursed, and agriculture is a key area that needs focus due to its role in India’s economy and employment. However, tracking CSR contributions to agriculture is not sufficiently robust.

Key Points:

Importance of Agriculture in India:
- Nearly 47% of India’s population depends on agriculture for employment.
- Agriculture contributes 73% to India’s GDP.
- With the growing concerns of climate change, there is a need for sustainable agricultural practices, making CSR investments crucial for modern agricultural growth.

CSR’s Role in Agriculture:
- CSR funds are being utilized for various agricultural-related activities such as environmental sustainability, rural development, livelihood enhancement, water conservation, and energy-efficient irrigation.
- However, agriculture-related CSR contributions are underreported due to the inclusion of other sectors like gender equality, animal welfare, and women’s empowerment, making it difficult to assess their exact impact on agriculture.

Challenges in Tracking CSR for Agriculture:
- Lack of specific mechanisms to track CSR funds directly benefitting agriculture.
- Agriculture is bundled with other CSR activities, which dilutes the focus on agricultural sustainability.
- As per a report by CSR India, 23% of companies stated “environment and sustainability” as their CSR priority, but the lack of clarity in fund distribution hinders proper monitoring.

Way Forward:
- Establish better mechanisms for categorizing and tracking CSR funds specifically for agriculture.
- Encourage companies to channel CSR investments towards sustainable agricultural practices, rural development, and climate-resilient farming.
- Improve accountability and reporting systems for CSR contributions targeting agriculture.

2. Solar Alliance Stocktake

Background:

Launched at the 2015 Paris Climate Conference by PM Narendra Modi in collaboration with France.
Aimed at accelerating the deployment of solar energy worldwide, especially in developing countries.
ISA is a global intergovernmental organization, with more than 110 countries as members.

Key Points on ISA’s Progress and Challenges

Slow on Delivery
- The ISA was not designed as a project developer; instead, it was envisioned as a facilitator.
- Limited impact on solar energy deployment, especially in countries with high solar energy costs.
- ISA’s first major project will focus on battery storage solutions across African countries, targeting 50 MW solar plants.
Barriers in Solar Expansion
- Significant barriers, especially in Africa and parts of Asia, due to regulatory and infrastructural challenges.
- Cost and financing issues impede growth.
- Supply chain concentration (especially in China) hinders expansion in developing nations.
India’s Role in Solar Development
- India, as an ISA leader, has promoted solar initiatives but has had limited success in achieving ISA’s ambitious goals.
- Key efforts include facilitating solar projects, engaging with governments, and providing regulatory support.

Why Solar Matters

Solar energy is a crucial part of the global clean energy transition.
Despite its potential as a cost-effective and clean energy source, solar deployment remains unbalanced globally.
Solar energy is the cheapest form of new energy in many areas, and scaling it is essential for sustainable development goals.

India’s Leadership Challenges

ISA’s limited achievements reflect the complexity of facilitating solar energy on a global scale.
India continues to be seen as a key advocate for renewable energy in international forums, even as challenges persist.

3. SC: Rules Cannot Change Midway in Public Services Recruitment

Background:

A five-judge Constitution Bench led by Chief Justice D.Y. Chandrachud ruled that eligibility criteria for recruitment to public services cannot be altered once the recruitment process has commenced.
The judgment underscores that recruitment rules must align with the fundamental rights of equality and non-discrimination.

Key Points of the Judgment

Eligibility Criteria as “Rules of the Game”
- Eligibility requirements at the start of recruitment (such as qualifications or experience) must remain constant through the process.
- Any change in criteria would need to adhere to Articles 14 (Right to Equality) and 16 (Equal Opportunity in Public Employment), and pass the test of non-arbitrariness.

Two Categories of Rules
- The court divided rules into:
  - Eligibility Criteria: Essential qualifications or attributes needed for candidates to apply.
  - Selection Procedure: The methods and processes used to choose from eligible candidates.

Non-Interference in Selection Process
- Courts have traditionally upheld that altering recruitment rules midway is unfair as it interferes with transparency, non-discrimination, and rationality.
- Once a “recruitment process” begins (with the release of an advertisement or notification), it must adhere to the initial eligibility requirements and selection method.

Burden of Proof on the State
- If a candidate is denied appointment despite meeting eligibility criteria, the state must justify the reasons for such denial.
- The state cannot use arbitrary or unreasonable measures that violate the “rules of the game.”

Implications of Being on a Select List
- Being on the select list does not guarantee an indefeasible right to appointment, even if there are vacancies.
- However, any exclusion or denial must be justified and cannot be arbitrary.

Constitutional Principles Highlighted

This judgment reiterates the importance of equal opportunity and non-discrimination in public employment, reinforcing the principles of Articles 14 and 16.
The ruling emphasizes transparency and fairness in recruitment, essential for maintaining public trust in state recruitment processes

4. Removing Bran on Millets Reduces Nutritional Benefits – Study

Background:

A study published in Nature Springer reveals that debanning (removing bran) from millets diminishes their nutritional benefits.
Millets like foxtail, little, kodo, barnyard, and proso were analyzed, focusing on their protein, fiber, fat, mineral, and phytate content.

Key Findings of the Study

Impact of Debranning on Nutrition
- Debranning leads to a decrease in protein, fiber, fat, minerals, and phytate content, essential for nutrition.
- Increases carbohydrates and amylose, which may increase the glycemic load of millets.
- Whole millets (dehusked but with bran intact) are more nutritionally beneficial compared to polished millets.

Nutritional Benefits of Millets with Bran
- Millets are rich in minerals such as calcium, iron, phosphorus, and potassium.
- They contain antioxidants, phenolic compounds, and other phytochemicals that offer anti-carcinogenic, anti-diabetic, and anti-inflammatory

Why is Millet Bran Removed?
- Bran and germ removal extends shelf life, as millets are high in fats which can turn rancid quickly.
- Removal also makes millets softer and easier to cook.

Glycemic Index Concerns
- Polished millets have a higher glycemic index (similar to polished rice), which may not be suitable for people with diabetes or those aiming to control blood sugar levels.

Market Trends and Health Implications
- A 2018 study found that polished millets dominate the market, which might reduce their health benefits.
- There is a need to promote whole grain millets for better health outcomes, especially as millets gain global attention with 2023 being declared the International Year of Millets by the FAO.

Health Recommendations

Whole-grain millets should be encouraged as they improve diet quality and may have benefits in managing chronic diseases.

Consumer awareness is needed to differentiate between polished and whole millets, especially for those with diabetes or aiming to manage blood sugar levels.

5. Air Quality Commission Doubles Fine on Farmers for Stubble Burning

Context: The Commission for Air Quality Management (CAQM) has increased the fines on farmers involved in stubble burning, following criticism from the Supreme Court for inadequate efforts to control this practice.

Stubble burning is a major contributor to air pollution in the Delhi-NCR region, especially during the winter months, and this decision is part of the government’s measures to curb pollution levels.

Key Points:

Increased Penalties for Stubble Burning:
- Farmers who are found burning stubble will face higher fines. For those with:
  - Less than 2 acres of land, fines increased from ₹2,500 to ₹5,000.
  - Between 2 to 5 acres, fines increased from ₹5,000 to ₹10,000.
  - More than 5 acres, fines increased from ₹15,000 to ₹30,000.
- The order empowers nodal officers appointed by state governments in Delhi, Punjab, Haryana, Rajasthan (NCR areas), and Uttar Pradesh to impose these fines.

Stubble Burning and Air Pollution:
- Stubble burning, especially after the rice harvest, leads to a spike in 5 levels in the Delhi-NCR region, causing severe air pollution.
- According to the Indian Agricultural Research Institute (IARI), satellite data shows a rising trend in stubble burning in Uttar Pradesh, Rajasthan, and Madhya Pradesh, while Punjab and Haryana have shown a decline.
- Stubble burning has contributed up to 35% of the PM2.5 concentration in Delhi on peak days, worsening the air quality, especially during the winter months when pollution levels typically rise.

Government Response:
- The CAQM has implemented these revised fines as part of a broader initiative to combat air pollution.
- Despite some improvement in Punjab and Haryana, the persistence of farm fires in other states necessitated stricter action.
- The fines are intended to discourage farmers from burning crop residue and encourage the adoption of eco-friendly alternatives like the Happy Seeder or other crop management techniques.

Challenges and Solutions:
- Farmer Resistance: Despite the fines, many farmers continue to burn stubble due to the cost and time constraints of using alternative methods.
- Need for Subsidies: Providing farmers with access to affordable equipment and machinery, along with financial incentives, is crucial for the successful reduction of stubble burning.

Long-term Measures: In addition to penalties, the government needs to invest in sustainable farming practices and technological innovations to address the root cause of this issue.

6. Rural vs. Urban Demand in India's FMCG Sector

Context: According to a recent report by NielsenIQ (NIQ), the Fast-Moving Consumer Goods (FMCG) industry in India witnessed a growth of 5.7% in value during the July-September quarter of 2024. Despite challenges like softer consumption, rural demand continues to outpace urban demand, highlighting the resilience of rural markets in driving the industry’s growth.

Key Points:

FMCG Growth in India:
- The overall FMCG sector saw 7% value growth, driven by a 1.5% increase in prices and a 4.1% rise in volume during the July-September 2024 quarter.

Rural Demand Outpaces Urban Demand:
- Rural areas registered a 6% volume growth in Q3 2024, compared to 8% growth in urban areas. Rural demand is growing at twice the rate of urban demand, reflecting strong consumption patterns in these regions.
- This growth in rural markets is significant, considering softer overall consumption trends, indicating that the rural economy is driving the FMCG sector forward.

Trade Patterns:
- Traditional trade (kirana stores, small retail shops) grew by 1% in Q3 2024, up from 3% in Q2 2024.
- Despite a general economic slowdown, modern trade (organized retail) outpaced urban consumption growth, reflecting a shift in consumer preferences towards more organized retail formats.

Implications for the Economy:
- The strong demand from rural areas suggests that rural consumption remains a key pillar for the Indian economy, even during periods of softer overall growth.
- The government’s focus on rural development and welfare schemes may be contributing to higher disposable incomes in rural areas, boosting consumption.
- The FMCG sector, being a crucial indicator of consumption trends, reflects the broader economic recovery in rural India.

Insights from Industry Experts:
- Roosevelt Dsouza, Head of Commercial-India at NielsenIQ, stated that rural markets continue to outperform urban ones in terms of volume growth despite softer consumption trends.

This growth trend points to a resilient rural economy, with greater consumption of everyday goods, contributing to the overall economic recovery.

7. Supreme Court Verdict on Article 39(b) and (c) – Distribution of Material Resources

Context: A recent verdict by a nine-judge bench of the Supreme Court of India has clarified the interpretation of Articles 39(b) and (c) of the Directive Principles of State Policy (DPSP).

Key Points:

Article 39(b) and (c) – Directive Principles:
- Article 39(b) states that the ownership and control of material resources should be distributed to subserve the common good.
- Article 39(c) directs that the economic system should be prevented from working to the detriment of the community, avoiding concentration of wealth in a few hands.
Supreme Court Verdict:
- The Court’s majority opinion ruled that not all private resources can be considered “material resources of the community” under Article 39(b). The decision refines the earlier broad interpretation that suggested any privately-owned resource could be redistributed for the common good.
- The majority view rejected an expansive interpretation, arguing that the nature of resources, scarcity, and community necessity must guide whether the state can acquire or redistribute private property.
- The judgment reflects modern economic realities, advocating for a balanced approach that doesn’t adhere strictly to a socialist or ideological view.
Factors for State Action on Private Resources:
- The Court laid out non-exhaustive factors for state intervention:
  - The nature and characteristics of the resource.
  - Whether the resource is essential for the community.
  - The consequences of its concentration in private hands.
- Land acquisition follows the principle of eminent domain, while natural resources like minerals and water require transparent and fair allocation processes.
Constitutional Justification for State Action:
- Historically, state actions such as nationalization of industries and utilities have been justified through Directive Principles.
- The Constitution-makers deliberately worded Article 39 in broad terms to allow flexibility for future governments to implement varying economic policies.
Dissenting Opinion – Justice Sudhanshu Dhulia:
- He argued that limiting the scope of “material resources” may restrict the state’s ability to address such inequalities.
- He suggested leaving the decision on how to define material resources to the legislature, allowing for more democratic flexibility.
Implications of the Verdict:
- The decision reflects a shift away from expansive state control over private property, highlighting a pragmatic and balanced approach to economic policies.

It reaffirms the importance of private property rights, while ensuring that state actions to distribute resources are justified by clear community needs.