Table of Contents
Today- Question- 150-250 words
Rupee’s troubles just do not seem to end. On. The currency weakened past 69 intraday against the U.S. dollar, an all time low. Analyse the Situation.
Today- Question- 150-250 words
Rupee’s troubles just do not seem to end. On. The currency weakened past 69 intraday against the U.S. dollar, an all time low. Analyse the Situation.
Sinking rupee
As the dollar puts emerging market currencies under strain,
the RBI needs to have a plan
Rupee‟s troubles just do not seem to end- weakened 69
Lost almost 8% in value since January 1, is the worst
performing currency in Asia this year
Rise in international crude oil prices is one of the reasons
behind the rupee‟s decline as importers have had to shell o
ut more dollars to fund their purchases.
India‟s current account deficit jumped to 1.9% of GDP
Now expected to widen to 2.5% in FY 2019.
Could spell even more trouble for the rupee
Ongoing trade war could be another factor
Tightening of U.S. monetary policy…Investors attracted by
higher yields in the United States- capital out of India
RBI may need to think out of the box to avoid a crisis similar to the taper tantrum of 2013.
The deepening disconnect
Postponement of the 2+2 dialogue has come amid growing India-U.S. estrangement in South
Asia.
Target incomes, not prices
Income support must be provided to at least the most vulnerable farmers
Our farm policy is so bad, the proverb ‘you reap(काटिा) what you sow(बीज बोिा)’
isn’t true any longer
A bumper crop is no different from a drought, for it too depresses farm incomes.
None of the economic tools available for protecting farm incomes
Price support scheme,
Price stabilisation fund
Market intervention scheme
Instead, inflows of imports were allowed to go on, which worsened the price situation.
Continue
Budget promised that the Minimum Support Prices (MSPs) would be at least 150% of
production costs, a longstanding demand of farmers and recommendation of experts.
Even if the market prices fall below the MSP, as they did for major kharif crops
in 2017, the government will procure the produce on MSP.
And if it does not procure, it will provide a mechanism to ensure payments, equal to the gap
between the MSP and the market price, would reach farmers.
On the formula for calculating production costs for plugging into the MSP formula,
farmer groups and the government are not as yet on the same page
The system is not geared for scaling up procurement- For several crops last year, the
quantities procured were small portions of the total produce.
Continue
MSPs are announced for more than 20 crops, noteworthy procurement is conducted for
three: paddy, wheat and sugarcane (procurement by sugar mills, not the government,
given cane must be crushed within a few hours of being cut, or it dries, impacting
sugar recovery drastically)
Procurement frequently takes places at prices below the MSP, as is happening this year,
according to reports.
Finally, small and vulnerable farmers usually do not get paid MSPs at all, as they sell
their produce to aggregators, not directly in mandis.
The Telangana example- announced such payments for farmers at the rate of
₹1•0,000/ha (₹4•000/acre) per season.
Forget that the agriculture sector engages more than 50% of the total workforce
The current farm crisis is purely because of policy failure- there is no alternative to reforms.
Prelims Focus Facts-News Analysis
Page-1- LeT killed Bukhari: J&K police
The plot was hatched in Pakistan and it was executed by four militants‟.
Prelims Focus Facts-News Analysis
Page-1- Revise relations with Iran, Haley tells India
Calling Iran a “threat” to the world, U.S. envoy to the UN Nikki Haley
Prelims Focus Facts-News Analysis
Five killed as aircraft crashes into construction site
Prelims Focus Facts-News Analysis
Turmoil continues in Karnataka Cong.
Kharif sowing on, but no word on MSPs
Trump-Putin summit to unfold in Helsinki on July 16
2+2 postponed due to scheduling issue’
Map Practice
Last Day- Q’s- Answers…
Pradhan Mantri Ujjwala Yojana
Launched by Hon’ble Prime Minister Shri Narendra Modi on May 1st, 2016 in Ballia, Uttar
Pradesh.
Implemented by- Ministry of petroleum & Natural Gas
Dharmendra Pradhan – Ministry of Petrolium and Natural gas.
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