Whatsapp/Telegram No Updates for Crux of Indian Economy for IAS Prelims 2018 February 2018 Edition.

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1 Whatsapp/Telegram No Updates for Crux of Indian Economy for IAS Prelims 2018 February 2018 Edition Update-26 NITI Aayog to work on mechanism for implementation of Minimum Support Price (MSP) for different agricultural crops In our country, MSP for 24 agricultural commodities of Kharif and Rabi season are announced by the Government based on the recommendations of the Commission for Agriculture Cost and Prices (CACP). However, procurement by Central and State Agencies is limited to rice and wheat and some amount of coarse cereals. The Government also procures limited quantity of oil seed and pulses through NAFED, SFAC and some other agencies. Market intervention scheme (MIS) is implemented in case of the prices falling below the threshold level in perishable crops. Three concepts were discussed at the meeting. First option related to Market Assurance Scheme, which proposes procurement by States and compensation of losses upto certain extent of MSP after the procurement and price realization out of sale of the procured produce. Second option related to Price deficiency procurement scheme. Under this scheme, if the sale price is below a modal price then the farmers may be compensated to the difference between MSP and actual price subject to a ceiling which may not exceed 25% of the MSP. No compensation would be due if modal price in neighbouring States is above the MSP. Third option related to Private Procurement and Stockist Scheme, which relates to procurement by private entrepreneurs at MSP and Government providing some policy and tax incentives and a commission to such private entities which may be decided on the basis of transparent criteria and bidding for the empanelment of private players by the State Government to do the procurement operations.

2 Whatsapp/Telegram No Government extended the facility of hiring workers on Fixed Term Employment to All Sectors Objectives To provide flexibility to the employers in order to meet the challenges of globalization, new practices and methods of doing businesses. The demand is from those sectors where there is fluctuation in demand and hence variation in demand of the labour accordingly. These seasonal demands have to be met with the flexibility in operation to meet the dynamics of the market and hence inclusion of the category of fixed term employment in Industrial Employment (Standing Orders) Act, Concept of Fixed Term Employment The concept of Fixed Term Employment define the tenure of employment as well as other associated conditions of service and remunerations, which are provided to regular employees under various labour laws. Fixed term employment was defined as a workman who is employed on a contract basis for a fixed period. Thus the services of workman will be automatically terminated as a result of non renewal of the contract between the employer and the workman concerned. Separation of service of a workman as a result of non renewal of the contract of employment between the employer and workman concerned shall not be construed as termination of employment. Old provision Earlier, this facility was available only for the apparel manufacturing sector as per the Industrial Establishment (Standing Order) Benefits The working conditions in terms of working hours, wages, allowances and other statutory dues of a fixed term employee would be at par with permanent workmen. A fixed term worker will also be eligible for all statutory benefits available to a permanent workman proportionately according to the period of service rendered by him even though his period of employment does not extend to the qualifying period of employment required in the statute. The employer can directly hire a worker for a fixed term without mediation of any contractor. The worker employed for short period will get better working and service conditions as compared to a contract worker.

3 Whatsapp/Telegram No Impact inclusion of On the termination of fixed term employment of the workman the workman is not entitled to any notice or pay in lieu thereof. Win Win situation It is a win win situation for both worker and employer as at on the one side it provided flexibility for employing workers as per the demands of the market and on the other hand it ensures that worker hired gets equal benefits and working condition at par with the permanent employee. South Asian Cooperative Environment Programme (SACEP) Why in news The Union Cabinet chaired by Prime Minister has approved signing of a MoU between India and SACEP for cooperation on the response to Oil and Chemical Pollution in the South Asian Seas Region. Background The SACEP jointly with the International Maritime Organisation (IMO) developed a "Regional Oil Spill Contingency Plan" to facilitate international co-operation and mutual assistance in preparing and responding to a major oil pollution incident in the seas around the Maritime States of Bangladesh, India, Maldives, Pakistan and Sri Lanka. Impact The MoU intends to promote closer cooperation between India and other maritime nations comprising the South Asian seas region namely Bangladesh, Maldives, Pakistan and Sri Lanka for protection and preservation of marine environment in the region. Implementation Indian Coast Guard (ICG) will be the Competent National Authority and national operational contact point for implementation of "Regional Oil Spill Contingency Plan" under the MoU and shall respond to oil and chemical spills on behalf of Government of India. Further, ICG Maritime Rescue Coordination Centres (MRCCs) will be the national emergency response centre for marine incidents. About SACEP In order to promote and support protection, management and enhancement of the environment in the South Asian region, the Governments of Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka established the SACEP in 1982 in Sri Lanka. Secretariat Sri Lanka

4 Whatsapp/Telegram No South Asian Seas Programme (SASP) The establishment of SACEP in 1982 as the regional environmental hub, facilitated the introduction of the Regional Seas Programme to South Asia. South Asian Seas Action Plan (SASAP) to protect and manage the marine environment of the South Asian Sea was adopted in March 1995 by the region s five maritime countries (Bangladesh, India, Maldives, Pakistan and Sri Lanka). The South Asian Seas Region can be categorised into two distinct geographical groups: Mainland and island nations. While Maldives and Sri Lanka are island nations, Bangladesh, India and Pakistan are situated on the Asian mainland. The SAS Region is comprised of the marine and coastal waters of Bangladesh, India, Maldives, Pakistan and Sri Lanka and is physically divided by the Indian subcontinent into three distinctive areas: two large marine ecosystems the Arabian Sea in the west and the Bay of Bengal in the east; and a large area of the open Indian Ocean to the south of India and Sri Lanka. SACEP also serves as the secretariat of South Asian Seas Programme (SASP). International Competition Network Annual Conference in Delhi This is the first time India hosted the ICN2018 Annual Conference since it joined International Competition Network (ICN) in It was hosted by Competition Commission of India. The ICN provides competition authorities with a specialized yet informal venue for maintaining regular contacts and addressing practical competition concerns. This allows for a dynamic dialogue that serves to build consensus and convergence towards sound competition policy principles across the global antitrust community. The ICN is unique as it is the only international body devoted exclusively to competition law enforcement and its members represent national and multinational competition authorities. The ICN does not exercise any rule-making function. Where the ICN reaches consensus on recommendations, or "best practices", arising from the projects, individual competition authorities decide whether and how to implement the recommendations, through unilateral, bilateral or multilateral arrangements, as appropriate.

5 Whatsapp/Telegram No Gold imports 20:80 scheme The increase in gold imports had put pressure on the current account deficit in A series of steps were taken in response to this situation, including increasing the import duties on gold and gold products, and placing restrictions on gold imports. Subsequently first on and then on , the restrictions were modified to introduce the 20:80 scheme, under which, it was mandated that at least 20% of gold imported is to be used for export. Under this scheme, only banks and PSUs like MMTC, STC, etc. were allowed to import gold for domestic use following 20:80 formula. The scheme was designed to restrict the import of gold, conserve foreign exchange by imposing export obligations, and ensure that the premium from purchase and sale of gold resided in the hands of public agencies. However, from , the Premier Trading Houses and Star Trading Houses were also allowed to import gold under 20:80 scheme. The then Finance Minister approved the modified scheme on , even though the model code of conduct was in place since with the announcement of the Lok Sabha Polls, and the counting was due on At the time when the scheme was announced, it was known that there was a shortage of gold for domestic use and a premium between USD 100 to USD 150 per ounce (Approximately Rs 2 lakh per Kg) was being charged from the domestic customers. Allowing private companies like PTHs and STHs to import gold provided these agencies an opportunity of windfall gain, as the benefit of the high premium on gold could now be availed of by these agencies. It has been observed by CAG that gold imported by 13 trading houses during June 2014 to November 2014 was MTs which means a windfall gain of about Rs 4500 cr to these agencies during this period, assuming a premium of Rs 2 lakh per kg and 80% of imported gold supplied to domestic market earning the premium. Even the export obligations were being met through export of plain jewellery, viz., bangles and chains, which were re-melted in offshore locations through front/ shell companies for the purpose of re-import. The new Government reviewed the scheme. It was noted that since the liberalization in May 2014, recorded gold imports had increased substantially averaging about tons a

6 Whatsapp/Telegram No month. The increase in gold imports had benefitted disproportionately the STH/PTHs whose imports had shot up by 320 percent and who then accounted for 60% of all imports compared to 20% before May. Therefore, it was found that the advantage to the STHs/PTHs extended in May 2014 was unfair and this discrimination in their favour needed to be eliminated. Therefore, the new Government took a bold decision of ending the discrimination and liberalizing the import and scrapped the 20:80 scheme altogether on As pointed out by CAG, average monthly import of gold declined to MT after abolition of 20:80 scheme (from December 2014 to March 2015) from a high of MTs during June 2014 to November 2014 when PTHs/STHs were allowed under 20:80 scheme. It was merely MT per month under 20:80 during August 2013 to May 2014 before PTH/STHs were allowed in May Thus, it is clear that abolition of 20:80 scheme eliminated undue advantage to PTHs/STHs and import of gold was reduced. Baltic Dry Index The Baltic Dry Index is a shipping freight index reported daily by the Baltic Exchange in London. The index provides a benchmark for the price of moving the major raw materials by sea. The BDI is a composite of 3 sub-indices, each covering a different carrier size: Capesize, Panamax, and Supramax. Capesize carriers are the largest ships with a capacity greater than 150,000 DWT. Panamax refers to the maximum size allowed for ships travelling through the Panama Canal, typically 65,000-80,000 DWT (Deadweight tonnage i.e how much weight a ship can carry). The Supramax Index covers carriers with a capacity of 50,000-60,000 DWT.

7 Whatsapp/Telegram No Mahila Shakti Kendra scheme It will empower rural women through community participation to create an environment in which they realize their full potential. The budget speech ( ) of the Finance Minister announced setting up of Mahila Shakti Kendra is meant to provide one stop convergent support services for empowering rural women with opportunities for skill development, employment, digital literacy, health and nutrition. Accordingly, a new sub-scheme namely Mahila Shakti Kendra (MSK) under the Umbrella Scheme Pradhan Mantri Mahila Shashaktikaran Yojana (PMMSY) has been approved for implementation during upto The Scheme will provide an interface for rural women to approach the government for availing their entitlements and for empowering them through awareness generation, training and capacity building. The new scheme MSK is envisaged to work at various levels. While, National level (domain based knowledge support) and State level (State Resource Centre for Women) structures will provide technical support to the respective governments on issues related to women, the District and Block level Centres will provide support to MSK and also give a foothold to women empowerment schemes including BBBP in 640 districts to be covered in a phased manner. Community engagement through Student Volunteers is envisioned in 115 most backward districts as part of the MSK Block level initiatives. Student volunteers will play an instrumental role in awareness generation regarding various important government schemes/ programmes as well as social issues that have an impact on lives of women in a given block. These student volunteers will serve as "agents of change" and have a lasting impact on their communities and the nation. Miscellaneous 1. Himachal Pradesh Govt levies Rs 1 cess (to be called Gau vansh vikas cess) on the sale of every bottle of liquor to generate revenue for the maintenance of gaushalas (cow shelters) in the state. Govt also announced to amend the HP Religious Endowments and Temple Trust Act to make way for utilising 15% of temple offerings for maintaining cowsheds. 2. Multi Commodity Exchange of India (MCX) launched world s first brass futures contract.