Editorial 1: Partners in Prosperity;
India and European Free Trade Association (EFTA)
Context:
- Indian officials met the High level delegates from four European Free Trade Association (EFTA) nations in New Delhi
Introduction:
- Meeting between the Indian officials and delegates from the European Free Trade Association has revitalized the prospects of resuming negotiations towards a Trade and Economic Partnership Agreement (TEPA)
What is European Free Trade Association (EFTA)?
- The European Free Trade Association (EFTA) is an intergovernmental organization set up for the promotion of free trade and economic integration to the benefit of its four Member States – Iceland, Liechtenstein, Norway and Switzerland and the benefit of their trading partners around the globe.
- EFTA was founded by the Stockholm Convention in 1960. Relations with the European Union (EU), have been at the core of EFTA activities from the beginning.
What is so significant about EFTA states?
- With a total population of just over 14 million, the EFTA states may be small but their economies stand tall.
- With import and export of goods and services close to $1.3 trillion in 2021, the EFTA is the 10th largest service traders worldwide.
- These four nations ranks among the highest in the world in innovation, competitiveness, per capita wealth creation, life expectancy and quality of life.
- EFTA companies are worldwide leaders in pharmaceutical, biotechnology, machinery manufacturing, R&D driven technologies, marine technology, energy related services, financial services, banking and insurance.
- EFTA has a track record of negotiating mutually beneficial trade agreements, which to date covers an extensive network of 29 free trade agreements (FTAs) with 40 partner countries.
How EFTA is relevant for India?
- EFTA states are partners in India’s growth story. They have contributed by the way of significant investment of over $ 35 billion in India.
- These investments span sectors such as machinery, electrical engineering and metals, pharmaceuticals, banking, insurance etc.
- EFTA states can complement India’s impressive economic growth and its leadership in the development of green technologies by strengthening trade and investment.
- India and the EFTA have a mutually beneficial relationship when it comes to skilled labor. The EFTA states gain from the highly skilled Indian workforce, especially in the services sector.
- India aims to meet 50 percent of its energy needs with renewables by 2030. Therefore EFTA states can contribute to India’s green growth aspirations.
Conclusion:
- The potential benefits of a Trade and Economic Partnership Agreement (TEPA) between India and EFTA states are significant. The agreement will foster a strong partnership that shares values such as promoting sustainable development and gender equality. The agreement will be and must be, a win-win situation for all parties.
Editorial 2: Reimagining ration shops
Context:
- Department of Food & Public Distribution, ministry of Consumer Affairs, organized a “Chintan Shivir” to discuss “how to leverage PDS to offer more nutritious food and also help make Indian agriculture more climate resilient”.
Introduction:
- Fair price shops should be upgraded as Nutritious Food Hubs through which PDS beneficiaries could be provided fortified rice and wheat, millet, pulses, milk, edible oils and eggs. PDS can be leveraged to provide beneficiaries with nutritious food, purchased through targeted electronic vouchers.
Wheat: Yield and Procurement
- The Ministry of Agriculture and Farmers’ Welfare (MoA&FW) had estimated 112 MT of wheat production.
- However, unseasonal rains have damaged the quality of grain in many pockets.
- The FCI hopes to procure at least 25 MT, which is sufficient for its public distribution system (PDS) needs.
- Three states, Punjab, Haryana and Madhya Pradesh contributes more than 98 per cent to the central pool.
- Punjab is the biggest contributor to wheat procurement.
Fair Price Shops as Nutritious Food Hubs (NFHs):
- Government should upgrade and declare at least 10 per cent of the five lakh odd fair price shops as Nutritious Food Hubs (NFHs).
- These NFHs will have fortified, rice and wheat, millets, pulses, oilseeds (especially soyabean products with 40 per cent protein), fortified milk and edible oils, eggs, etc.
- The consumers of PDS list may be given electronic vouchers (like an e-food coupon in a food court) that can be charged by the government three or four times a year.
- A family of 5 members currently gets a food subsidy of around Rs 8,000/year through rice and wheat under PM-Garib Kalyan Yojana. This amount can be loaded on e-vouchers of targeted beneficiaries.
Sustainability of agriculture:
- The procurement of rice would have to be capped, especially in districts where the water table has been depleting alarmingly.
- Farmers of such districts could be incentivized to grow millets, pulses, oilseeds, etc. that are climate smart, use much less water and fertilizers.
- The Centre and the states should give a special package for carbon credits for growing such crops.
- Mulching of paddy straw increases organic carbon in the soil. Such practices should be incentivized and promoted to check stubble burning.
Targeted Public Distribution System (TPDS):
- Government of India launched the Targeted Public Distribution System (TPDS) in 1997, with focus on the poor.
- Under the PDS, States are required to formulate and implement arrangements for identification of the poor for delivery of food grains and for its distribution in a transparent and accountable manner at the FPS level.
- The identification of the poor under the scheme was done by the States as per State-wise poverty estimates of the Planning Commission for 1993-94.
- The quantum of food grains in excess of the requirement of Below Poverty Line (BPL) families was provided to the State as ‘transitory allocation’.
- Government increased the allocation to BPL families from 10 kg to 20 kg of food grains per family per month in 2000.