National Logistics Policy approved (GS Paper 3, Economy)
Why in news?
- The Union Cabinet has approved the National Logistics Policy.
- The Policy lays down an overarching interdisciplinary, cross-sectoral, multi-jurisdictional and comprehensive policy framework for the logistics sector.
Complementary to PM GatiShakti:
- The policy complements the PM GatiShakti National Master Plan.
- While PM GatiShakti National Master Plan is aimed at integrated infrastructure development, the National Logistics Policy is envisaged to bring efficiency in logistics services, and human resources through streamlining processes, regulatory framework, skill development, mainstreaming logistics in higher education and adoption of suitable technologies.
Vision:
- The vision is to develop a technologically enabled, integrated, cost-efficient, resilient, sustainable and trusted logistics ecosystem for accelerated and inclusive growth.
Targets:
The Policy sets targets and includes a detailed action plan to achieve them. The targets are:
- to reduce cost of logistics in India to be comparable to global benchmarks by 2030,
- improve the Logistics Performance Index ranking, to be among top 25 countries by 2030, and
- create data driven decision support mechanism for an efficient logistics ecosystem.
Implementation:
- To monitor the implementation of the Policy and integrate efforts across stakeholders, the Policy will utilize the existing institutional framework i.e., Empowered Group of Secretaries (EGoS) created under the PM GatiShakti NMP.
- The EGoS will also set up a “Services Improvement Group” (SIG) on the pattern of Network Planning Group (NPG) for monitoring of parameters pertaining to processes, regulatory and digital improvements in logistics sector that are not covered under the ToR of the NPG.
Salient Features:
- This policy paves way for reduction in logistics cost in the country.
- Focus will be on enabling adequate development of warehouses with optimal spatial planning, promotion of standards, digitization and automation across the logistics value chain and better track and trace mechanisms.
- Further measures to facilitate seamless coordination between different stakeholders and speedy issue resolution, streamlined EXIM processes, human resource development to create an employable pool of skilled manpower, are also laid out in the policy.
- The policy also clearly lays down an action agenda for immediate on ground implementation of various initiatives.
- In fact, to ensure that the benefits of this policy have maximum possible outreach, important initiatives under the policy including the Unified Logistics Interface Platform (ULIP), the Ease of Logistics Services platform, e-handbook on Warehousing, training courses on PM GatiShakti and logistics on i-Got platform, were launched along with the launch of the National Logistics Policy.
Stakeholders:
- Also, all States and UTs have been fully onboarded.
- Fourteen States have already developed their respective State Logistics Policies on the lines of the National Logistics Policy and for 13 States, it is in draft stage.
- The institutional frameworks under PM GatiShakti at Centre and State level, which will also monitor implementation of the Policy, is fully operational. This will ensure a fast and effective adoption of the Policy across all stakeholders.
Significance:
- This policy supports enhancing competitiveness of Micro, Small and Medium Enterprises, and other sectors such as agriculture and allied sectors, fast moving consumer goods and electronics. With greater predictability, transparency and reliability, wastages in supply chain and need for huge inventory will reduce.
- Greater integration of global value chains and higher share in global trade besides facilitating accelerated economic growth in the country, is another outcome envisaged.
- This is expected to reduce logistics cost to achieve global benchmarks and improve country’s Logistics Performance Index ranking and its global positioning.
- This policy lays down a clear direction for transforming India’s logistics sector, improving logistics efficiency, reducing logistics cost and improving global performance.
Convergence module between Agriculture Infrastructure Fund Scheme, Prime Ministers Micro Food Enterprises Upgradation Scheme and PM KisanSampadaYojanalaunched
(GS Paper 3, Economy)
Why in news?
- As part of AzadiKaAmritMahotsav, the convergence module between the Agriculture Infrastructure Fund (AIF) scheme of the Ministry of Agriculture and Farmers Welfare, Pradhan Mantri Micro Food Enterprises Upgradation Scheme (PMFME) and Pradhan MantriKisanSampadaYojana (PMKSY) of the Ministry of Food Processing Industrieswas launched.
- This will benefit different sections of the country, including farmers and Small scale entrepreneurs of processing industry.
Agriculture Infra Fund (AIF):
- Agriculture Infra Fund (AIF) is a financing facility launched on 8th July 2020 for creation of post-harvest management infrastructure and community farm assets, with benefits including 3% interest subvention and credit guarantee support.
- Under this, Rs 1 lakh crore from 2020-21 to 2025-26 provision of funds has been made and interest subvention and credit guarantee assistance will be given till the year 2032-33.
- AIF scheme has the facility of convergence with any other scheme of State or Central Government, therefore in order to optimize the benefits of multiple government schemes for a particular project, these are being integrated with multiple external systems/portals for convergence of schemes on a large scale.
- Convergence of AIF has already been done for commercial horticulture development and cold storage development schemes of National Horticulture Board under INM Division of Ministry of Agriculture.
Pradhan Mantri Micro Food Enterprises Upgradation Scheme (PMFME):
- The Ministry of Food Processing Industries has launched the Pradhan Mantri Micro Food Industry Upgradation Scheme on 29th June, 2020 under the AtmaNirbhar Bharat Campaign to enhance the competitiveness of individual micro enterprises, which will provide financial, technical and commercial assistance for up-gradation of micro food processing enterprises in the country.
- All the States/UTs have appointed nodal agencies for its implementation. Applications for credit-linked subsidies for individual enterprises are approved at the district level, while applications for clusters are approved at the state level/ MoFPI.
- Under PMFME scheme, 35% credit linked subsidy will be provided for setting up of micro food processing unit with a maximum subsidy limit of Rs 10 lakh and common infrastructure with a maximum subsidy of Rs 3 crore.
- So far about 62,000 beneficiaries engaged in food processing activities have been benefitted by this scheme. Around 7,300 loans have been sanctioned under the scheme for setting up new micro food enterprises or for upgrading existing units.
- Out of these, about 60% eligible beneficiaries are engaged in primary agricultural produce and can avail direct benefit through this convergence by availing additional interest subvention of 3% at the rate of interest charged by the banks. The pace of loan approvals is expected to increase by 50% in the third quarter of 2022-23.
Pradhan MantriKisanSampadaYojana (PMKSY):
- Pradhan MantriKisanSampadaYojana, a Central Sector Scheme of the Ministry of Food Processing Industries, is envisaged as a comprehensive package, which will result in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet.
- It is an umbrella scheme consisting of sub-schemes.
Benefit of Convergence of AIF, PMFME & PMKSY:
- Through this convergence, eligible beneficiaries receiving credit-linked subsidy under PMFME and PMKSY schemes can avail interest subvention at the rate of interest charged by the banks.
- The eligible AIF beneficiaries under PMFME can get the benefit of subsidy by applying in PMFME MIS portal.
- The process of obtaining 3% interest subvention has been made very simple, wherein the beneficiary can apply on the portal using the already approved DPR and acceptance letter under PMFME and PMKSY.
- The ultimate objective of the Ministry of Food Processing Industries and the Ministry of Agriculture and Farmers Welfare is the sustainable development of farmers and food processing entrepreneurs in rural areas and increasing their income.
- The goal of this initiative is to make the benefits of the schemes reach all the beneficiaries and empower them financially, technically and professionally.
Way Forward:
- This partnership will prove to be a milestone in building a self-reliant India, taking the Prime Minister's slogan 'Vocal for Local' to newer heights.
PepsiCo India & FC5 potato variety
(GS Paper 3, Intellectual Right)
Why in news?
- Recently, the Delhi High Court, hearing a plea by PepsiCo India against a 2021 order revoking the patent of the company on the FC5 potato variety grown exclusively for its popular Lay’s potato chips, adjourned the case till 2 November.
PepsiCo sues Indian farmers:
- It all kicked off in April 2019 with PepsiCo, alleging infringement of its intellectual property rights (IPR), suing nine Gujarat farmers for cultivating the FC5 potato variety.
- That variety, registered in the US as ‘FL 2027’ in 2005, was introduced in India in 2009.
- In 2016, the multinational company listed the FC5 potato variety under the Protection of Plant Variety and Farmers Rights Act, 2001.
What does the law say?
- The Protection of Plant Variety and Farmers Rights Act, 2001, provides the “establishment of an effective system for protection of plant varieties, the rights of farmers and plant breeders and to encourage the development of new varieties of plants.”
- Laying down the farmers’ rights, the law states that “a farmer shall be deemed to be entitled to save, use, sow, resow, exchange, share or sell his farm produce including seed of a variety protected under this Act in the same manner as he was entitled before coming into force of this Act”.
- However, farmers cannot sell branded seeds i.e. “seed put in a package or any other container and labelled in a manner” that signals it is of a protected variety under the Act.
Why is ‘FL 2027’ so special?
- ‘FL 2027’ has five per cent less moisture content (80 per cent) than other potato varieties (85 per cent). Due to this, FL 2027 is deemedmore suitable for producing snacks such as potato chips.
- Facing intense backlash from politicians and farmers, the company withdrew the lawsuit in April 2019.
ASHA challenges patent:
- In June 2019, KavithaKuruganti, farmers’ rights activist and convenor of the Alliance for Sustainable and Holistic Agriculture (ASHA), filed an application for revocation of intellectual protection granted to PepsiCo’s FC5 potato variety, accusing the company of violating farmers’ rights over plant varieties.
- The order noted discrepancies in the document furnished by PepsiCo claiming it was the owner of the FL 2027 potato variety.
Violation of public interest:
- No doubts remain in the claim of revocation applicant (Kuruganti) that several farmers have been put to hardship including the looming possibility of having to pay huge penalty on the purported infringement they were supposed to have been committing which did not eventually happen as on date, simply because without being the legitimate breeder or his successor and also not being the assignee of the breeder of the potato variety FL 2027, the Registered Breeder (PepsiCo) exercised his Plant Breeder’s right to file a suit for infringement against farmers (though it was subsequently withdrawn) the fact is that they have been put to hardship. This violates public interest.
- This judgment is a historic victory for the farmers of India. It should also prevent any other seed or food corporation from transgressing legally granted farmers’ seed freedoms in India.
What do experts say?
- The PepsiCo case flared a row between farmers’ rights and plant-breeding companies’ bids for stringent intellectual property rights (IPR) in developing countries.
- The PepsiCo India case is reflective of how companies, when they have rights on seeds, tend to use it coercively to protect their interest, even if it means farmers’ interests are compromised.
Jharkhands domicile policy
(GS Paper 2, Governance)
Why in news?
- Recently, the Jharkhand cabinet approved the long pending demand of Adivasi-Moolvasis (original inhabitants) to make 1932 as the cut-off year for domicile under the title ‘Jharkhand Definition of Local Persons and for Extending the Consequential, Social, Cultural and Other Benefits of such Local Persons Bill, 2022’.
- The draft Bill will be passed in the next Assembly session and then sent to the Centre with a proposal to place it in the ninth schedule of the Constitution (which contains the list of Central and State laws and will accord it protection from challenges in courts).
Why has 1932 been decided as the cut-off year for the policy?
- Different tribal groups have been demanding 1932 as the cut-off year for several years because of the land survey and revenue register done that year in large parts of the State.
- Shibu Soren, who is the father of Chief Minister Hemant Soren and patron of the Jharkhand MuktiMorcha, has also been advocating for 1932 as the cut-off year.
- As per the proposed domicile policy, people who have their names or their ancestor’s name in the land records of 1932 or before, will be considered as local inhabitants of Jharkhand.
- But those who have lost their land records or have land records which are illegible or are landless people, can approach their respective Gram Sabhas for their inclusion.
Why this policy has been lanched?
- The State government claims that 1932 was fixed as the cut-off year for domicile policy as the migration of people from other States to Jharkhand (undivided Bihar) had resulted in negatively impacting the “original inhabitants/moolvasis/aboriginals.
- This can be verified as the percentage of population of the aboriginals/(STs) since the 1941 census has seen a steady decline in Jharkhand.
- There needs to be affirmative action at the policy level for the development of STs and moolvasis and the identification of local persons was a compelling necessity to provide social, cultural, educational service and other benefits.
Issues:
- However, records show that land and revision surveys were done in Jharkhand at different times in different districts and areas. It has been done several times in the State at different points.
- Therefore, marking 1932 as the only cut-off year for domicile policy would leave lakhs of citizens of the State as “refugees”.
- The first land survey, especially in the Santhal area of the State, was done in 1872 and then in 1922. J. F. Gantzer had a complete land survey of the SanthalPragana done with amendments in 1932, 1934 and 1936.
- The Kolhan region of the State comprising East Singhbhum, West Singhbhum and Saraikela districts had land surveys done in 1964-65, and the government’s decision to make 1932 as the cut-off year for domicile, will affect around 40-44 lakh people of the area.
Earlier attempts:
- After Jharkhand was bifurcated into a separate State in 2000 from Bihar, the BabulalMarandi-led BJP government brought in the domicile policy with 1932 as the cut-off year. However, it led to violent widespread protests.
- Later, while hearing a PIL over it, a division bench of the Jharkhand High Court stayed the government’s decision.
- The BJP government came back to power in 2014 and put forward a domicile policy with 1985 as the cut-off year and that too was protested by local people who demanded 1932 as the cut-off year.
