Profarmer turn in edible oil
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Policy Changes
1. Import hike:
a. Basic Customs Duty (BCD) on crude palm, soyabean, and sunflower oil: 0% to 20%
b. BCD on refined oils: 12.5% to 32.5%
c. Effective import duty on crude oils: 5.5% to 27.5% d. Effective import duty on refined oils: 13.75% to 35.75%
2. Center allowed for soyabean procurement in Maharashtra, Madhya Pradesh, Karnataka, and Telangana at minimum Support Price (MSP) set at Rs 4,892 per quintal.
3. Reason:
a. The rise in sunflower oil imports, particularly from Russia, Romania, and Ukraine
b. Declining global prices and negative inflation for edible oils provided a conducive environment.
Domestic Production vs Import Trends
1. Total Domestic Production (2022-23): ~10.3 mt a. Major sources: Mustard/rapeseed (4 mt), Soyabean (1.9 mt), Cottonseed (1.2 mt)
2. Imports
a. 2022-23: All-time high of 16.5 million tonnes (mt).
b. Nov 2023-Aug 2024: 13.5 mt (3.6% lower than previous year).
3. Sunflower Oil Surge
a. Imports reached 3.1 mt, surpassing previous year's total.
b. Main sources: Russia, Romania, Ukraine, Argentina.
4. Price Dynamics: Sunflower oil prices competitive with soyabean and palm oil since February 2023.
Analysis
1. A Policy Shift from pro-consumer to more pro-producer approach, which is also influenced by global price trends and domestic inflation.
2. Political Motivated: Maharashtra Assembly polls later this year.
Justice and constitutional spirit
Decline of Issue-Based Discourse
1. Explosion of electronic and social media over 25 years, lead to shift of public discourse from issue-based debates to personality obsession, creating a disconnect between political awareness and actual public concerns.
2. Prime-time debates and media noise have made it hard for citizens to distinguish between personalities and principles, leading to apathy and confusion.
3. Information Overload of social media platforms has lead to generation of fake news, mass hysteria and Increased cynicism and apathy.
Role & Values of Constitutional Institutions
1. Aim is to restore sanity, faith and act as watchdogs to protect constitutional spirit.
2. Set higher standards in operation and optics.
3. Create a balance between people's will and constitutional mandate.
4.To promote transparency in conduct and not to be reserved from public engagement.
5. To operate with independence, integrity and impartiality.
6. Justice must not only be delivered but also perceived as fair by the public.
7. Ex: T.N. Seshan, former Chief Election Commissioner, set a benchmark for constitutional officeholders by maintaining transparency and reticence in public engagement.
Need of eastern states
Background and Context
1. Eastern India Priority: The 2024 Budget emphasizes the development of eastern India, with a focus on Bihar, Andhra Pradesh, West Bengal, and Odisha.
2. PM Modi's Vision: Empowerment of eastern India as a critical component of India’s overall development.
3. Purvodaya Plan: An ambitious and bipartisan initiative to empower five eastern states, including Bihar.
Budget Allocations for Bihar
1. Infrastructure Projects: Rs 37,500 crore allocated for infrastructure, roads, and airport projects.
2. Flood Mitigation: Funds dedicated to addressing flood damage in Bihar.
3. Cultural Sites Development: Investment in the development of significant cultural sites such as Vishnupad Temple, Mahabodhi Temple, Nalanda, and Kashi Vishwanath Corridor.
4. Nalanda University: Inaugurated by the Prime Minister, symbolizing Bihar’s soft power.
Regional Development and Challenges
1. Balancing Regional Development: Efforts to address the historical lag in Bihar's development compared to western and southern states.
2. Centre-State Partnership: Collaboration between the Centre and Bihar’s government led by CM Nitish Kumar for effective implementation.
3. Transformation Potential: Plans to develop Gaya into an industrial hub and enhance the state’s tourism landscape.
Sectoral Impact and Economic Contributions
1. Economic Contributions (2021-22):
a. Agriculture: 26% b. Manufacturing: 15% c. Services: 59%
2. Investment Impact: Expected substantial improvement in these sectors, particularly services and tourism. Addressing Poverty and Unemployment.
Core Agenda:
Development beyond caste issues, focusing on addressing poverty.
2. Migration Concerns: High numbers of people living and working outside Bihar.
3. Market Access and Connectivity: Identified by a World Bank study as critical pain points curbing development.
Road Infrastructure and Connectivity Issues
1. Road Conditions: Poor state and national highways needing significant repair.
2. Village Connectivity: Many villages remain disconnected due to lack of roads.
3. Infrastructure Funds: Welcome investment in road infrastructure with emphasis on implementation and quality audits.
Future Prospects
1. Political Dividends: Budgetary announcements seen as beneficial for political gains.
2. Re-election Campaign: Positioning the NDA government in Bihar, led by Nitish Kumar, for the 2025 elections.
