Editorial 1 : India in AI age
Introduction: Last week’s international summit on Artificial Intelligence in Delhi highlighted India’s expansive ambition to be a power to reckon with in this new technological domain and a leader in shaping its global governance.
Global Partnership on Artificial Intelligence
- The Global Partnership on Artificial Intelligence — an interministerial forum of 28 countries and the European Union — was set up in 2020 to promote cooperation in AI and develop rules for its safe and responsible use.
- India has been a founding member of this forum.
The race to develop AI
- The Delhi summit comes when the revolution in AI is set to accelerate at a dizzying pace and produce long-term social, political, economic and military consequences for the world.
- Many nations — from mighty America and China to tiny Singapore and the UAE — are scrambling to intensify their national quests to develop AI and broaden international partnerships.
- In his opening remarks at the forum, Prime Minister Narendra Modi recognised the salience of the moment and laid out a broad set of markers for India’s national development of AI and outlined a balanced global approach to promoting the beneficial uses of the new technology and limiting its potentially massive harms.
How can India become a leader in AI technology?
- The NDA government’s successful recent push on semiconductor manufacture in India gives hope; but the scale of the effort involved in AI is far more demanding.
- The Indian enthusiasm for AI at the level of highest political leadership and the popular level will need to be matched quickly to overcome critical weaknesses.
- One is the lack of massive computing power — “compute” in the AI jargon.
- In his address to the forum, PM Modi referred to the planned launch of the national AI mission that aims to strengthen India’s compute capabilities.
- AI systems need large volumes of data to train on.
- PM Modi hinted that the government agencies could release the large volumes of data in their possession.
- He will have his hands full, though, in compelling the Indian state to shed its entrenched habit of hoarding data.
- India must also invest massively in basic sciences, including mathematics, material sciences, computer sciences, linguistics, and neurosciences.
- Delhi must also focus on multiplying manifold the number of engineers in AI-related technologies quickly.
Challenges in global governance on AI
- The demands on the external front, too, are immense.
- Through 2024, India will preside over the work of GPAI in developing norms for the responsible development and use of AI.
- This is a deeply contested arena not just between the democracies and autocracies but also within the West and between North and South.
- That Delhi has not decided on how exactly to proceed in the global governance of AI is reflected in its reluctance to sign several recent declarations on responsible civilian and military uses of AI.
- If India wants to lead in constructing a new global architecture for AI, it must shed some of its past multilateral baggage and develop an approach rooted in the first principles of national interest and collective global good.
Conclusion: Critical weaknesses, like lack of computing power, will need to be overcome. Government must invest massively in basic sciences, train engineers.
Editorial 2 : Food versus fuel
Introduction: Recently, the central government directed the sugar mills not to produce any ethanol directly from concentrated cane juice/syrup. This decision is a part of arrays of decisions that the government took like export curbs on rice, sugar and onion stocking limits, etc, that go against the government's effort to reform agribusinesses.
Recent policy changes introduced by government
- Export curbs: Rice, wheat, sugar, onions, and stocking limits on pulses imposed since mid-2022.
- Ethanol production: Ban on pure cane juice/syrup use, followed by partial allowance with limits.
Contradictions in recent policies and spirit of 3 farm laws
- Curbs contradict previous reform intent and farm laws (enacted and repealed 2020-2021).
- Sugar mills invested in new distilleries based on favourable ethanol policy.
What does the Government aim to achieve?
- Increase domestic availability of food (sugar) before the 2024 elections.
- Manage potential sugar price hikes due to low stocks and dry weather concerns.
Costs for the sugar mills
- Mills face financial losses from idle distilleries and potential debt payment issues.
- Policy credibility is damaged by sudden changes, deterring investments in agriculture.
How can the government reduce the losses of sugar mills?
Policy Flexibility:
- Review export curbs: Instead of blanket bans, consider calibrated export restrictions based on domestic sugar stocks and prices. This can provide mills with access to additional revenue while ensuring domestic availability.
- Promote flexible ethanol production: Allow mills to choose their feedstock for ethanol production (cane juice, molasses, or combinations) based on market conditions and production costs. This flexibility can optimize profitability and address the concern of idle distilleries.
- Targeted price support: Implement a price support mechanism for sugar that kicks in only when market prices fall below a certain threshold. This can provide a safety net for mills without distorting market dynamics.
Improving Efficiency:
- Encourage modernization: Support mill modernization through financial incentives, technological assistance, and streamlining licensing processes. Modernization can improve sugar extraction rates, reduce production costs, and increase energy efficiency.
- Promote co-generation: Encourage sugar mills to co-generate electricity from bagasse (sugarcane residue) and sell it to the grid. This can be a significant source of additional revenue and contribute to the government's renewable energy goals.
- Streamline cane procurement: Address inefficiencies in sugarcane procurement (e.g., fair pricing, timely payments) to ensure a stable and reliable supply for mills. This can reduce procurement costs and improve mill-farmer relationships.
Diversification and Value Addition:
- Promote diversification: Encourage mills to diversify into other value-added products like ethanol, bioplastics, bio-fertilizers, etc. This can provide additional income streams and utilize sugarcane byproducts efficiently.
- Support research and development: Invest in research and development for new sugarcane varieties with higher yields and greater resistance to pests and diseases. This can improve overall sugar production and reduce losses.
Market Mechanisms:
- Improved data transparency: Ensure transparent and readily available data on sugar stocks, production, and consumption. This information can help inform government policies and encourage informed decisions by market participants.
- Promote futures markets: Develop and encourage participation in futures markets for sugar. This can help hedge against price risks and provide greater price stability for both mills and consumers.
Conclusion: Directive by sugar mills poses questions over policy credibility, could deter investments in agriculture. The food vs fuel question regarding sugar production needs to be answered sustainably, keeping in mind the interests of all stakeholders.