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6 September 2024 : The Hindu Editorial Analysis

1. The Food Security Act has revamped the PDS

(Source – The Hindu, International Edition – Page No. – 8)

Topic: GS2 – Social Justice – Development and management of social sector/services
Context
  • The article discusses the impact of the National Food Security Act (NFSA) 2013 on the Public Distribution System (PDS), highlighting reduced leakages in food distribution since its implementation.
  • It underscores reforms in early-adopting states and challenges with Aadhaar integration while calling for a focus on key systemic improvements.

Introduction

  • The National Food Security Act (NFSA) 2013 raised concerns about ensuring food security through the Public Distribution System (PDS) due to the system’s poor track record of leakages.
  • As per National Sample Survey (NSS) data, in 2011-12, PDS leakages at the all-India level were 41.7%.
  • However, PDS reforms in states like Bihar, Chhattisgarh, and Odisha led to significant improvements, reducing leakages between 2004-05 and 2011-12.

Data from NSS’s Household Consumption Expenditure Survey (HCES) 2022-23

  • The HCES 2022-23 is the first large-scale survey conducted after NFSA implementation and shows that PDS leakages have reduced to 22%.
  • PDS leakages refer to the amount of food grains released by the Food Corporation of India (FCI) that fail to reach consumers.
  • Leakages are estimated by comparing NSS data on household PDS purchases with offtake data from the Monthly Food Grain Bulletin of the Food Ministry.

Factors Influencing Leakage Estimates

  • PDS beneficiaries under NFSA receive five kilograms of grain per person per month, with additional relief under Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) during the COVID-19 pandemic.
  • Leakage estimates vary slightly depending on how offtake data is matched with NSS data.

Impact of NFSA on PDS Coverage

  • NFSA expanded PDS coverage to reduce exclusion errors, which had a positive effect on reducing leakages.
  • Prior to NFSA, in 2011-12, less than 50% of households had ration cards, and around 40% accessed the PDS.
  • In 2022-23, HCES data shows that 70% of households accessed PDS, driven largely by NFSA.
  • Despite this improvement, the Centre has not fully met NFSA’s coverage mandates, with around 59%-61% of beneficiaries accessing PDS as NFSA cardholders.

PDS Reforms in Early Reforming States

  • States like Chhattisgarh and Odisha, which undertook early PDS reforms, saw significant reductions in leakages by 2011-12.
  • Reforms included reducing PDS prices, ensuring doorstep delivery of food grains, digitizing records, and deprivatizing PDS management.
  • These reforms were later incorporated into NFSA 2013, and other states followed suit, reducing leakages significantly by 2022-23.

Role of Aadhaar in PDS Improvements

  • While Aadhaar-based biometric authentication (ABBA) is often credited for PDS improvements, surveys show that improvements preceded ABBA.
  • For instance, leakages in Jharkhand were already less than 20% before ABBA was introduced.
  • Surveys in 2017 showed that both offline and ABBA-enabled villages had similar purchase-entitlement ratios, indicating that Aadhaar did not significantly impact leakage reduction.
  • In states where the PDS has traditionally worked better, such as Tamil Nadu, leakage estimates have paradoxically increased, rising from 12% in 2011-12 to 25% in 2022-23.

Conclusion

  • The PDS has become a functional instrument of social policy, playing a crucial role during the COVID-19 lockdowns.
  • However, it remains vulnerable to “innovations” like cash transfer experiments and inappropriate technologies such as ABBA.
  • The government should focus on addressing significant issues, like the delayed Census and including more nutritious food items, rather than derailing the system with unnecessary changes.
PYQ: How far do you agree with the view that the focus on lack or availability of food as the main cause of hunger takes the attention away from ineffective human development policies in India? (250 words/15m) (UPSC CSE (M) GS-2 2018)
Practice Question:  Critically analyse the impact of the National Food Security Act (NFSA) 2013 on the Public Distribution System (PDS) in India. Discuss the challenges of leakages, reforms in early-adopting states, and the role of Aadhaar-based biometric authentication (ABBA) in improving food security outcomes. (250 Words /15 marks)

2. Africa can make India’s ‘critical mineral mission’ shine

(Source – The Hindu, International Edition – Page No. – 8)

Topic: GS2 – International Relations
Context
  • India’s Critical Mineral Mission focuses on expanding domestic production, recycling, and acquiring overseas mineral assets.
  • With Africa holding 30% of global reserves, India aims to leverage its strong ties with the continent to secure supply chains.
  • Collaborating on sustainable value addition, infrastructure, and technology is crucial amidst China’s dominance.

Introduction

  • The Union Budget 2024-25 introduced the Critical Mineral Mission, emphasising domestic production, recycling of critical minerals, and overseas acquisition of assets.
  • Key amendments were made to the Mines and Minerals (Development and Regulation) Act of 1957, allowing private sector exploration of six minerals.
  • The mission is integral to securing India’s supply of critical minerals needed for its economic growth.

Current Progress

  • The Mines and Minerals (Development and Regulation) Amendment Bill, 2023 allows the private sector to explore six minerals removed from the atomic list.
  • Khanij Bidesh India Limited (KABIL), a public sector joint venture, is tasked with securing overseas mineral assets. It signed a major lithium mining agreement in January 2024 with Argentina.
  • India’s domestic mining companies are also focusing on ensuring a steady supply of minerals, though the country lacks the capacity to explore and process these minerals at scale.
  • A significant gap exists in India’s manufacturing capabilities for end-use components, especially in battery manufacturing, highlighting the need to upskill its workforce.

Situating Africa in India’s Supply Chain

  • Africa houses 30% of the world’s known critical mineral reserves, making it crucial to India’s Critical Mineral Mission.
  • India has deep economic, political, and historical ties with Africa, underpinned by a $98 billion bilateral trade relationship in 2022-23, with $43 billion attributed to the mining sector.
  • India sources 15% of its oil and rising amounts of minerals from Africa. Moreover, India has invested $75 billion in Africa, particularly in the acquisition of energy assets.
  • Africa is moving away from the ‘pit-to-port’ model, which focuses on exporting raw minerals. Countries like Tanzania, Zimbabwe, and Namibia are implementing policies that emphasise value addition and local processing.
  • Africa’s Green Mineral Strategy presents a developmental opportunity for India, which could help Africa industrialise by collaborating on mining and infrastructure projects.

Challenges from China

  • China dominates the critical mineral value chain, which poses a strategic risk for India.
  • China’s early acquisitions of mineral assets, particularly in cobalt mining in the Democratic Republic of Congo, and its recent $7 billion infrastructure-for-minerals deal highlight Beijing’s extensive influence in Africa.
  • India must strategize to mitigate risks arising from China’s stronghold on the global mineral supply chain.

Opportunities for Collaboration

  • India has a strong presence in African infrastructure development, with its companies completing projects in 43 African countries.
  • Developing mining-adjacent infrastructure in Africa, such as transmission lines and railways, can be key to advancing the Critical Mineral Mission.
  • India has signed MoUs with Zambia and Zimbabwe for collaboration in geological mapping, mineral deposit modelling, and capacity building.
  • India’s Indian Technical and Economic Cooperation (ITEC) program can be used to train African workforces, driving deeper energy and mineral partnerships.
  • Indian technology start-ups provide innovative solutions across the mining value chain, contributing to exploration, extraction, and ecological sustainability.

Conclusion

  • India should prioritise responsible practices in Africa, aligning with Africa’s priority of adding value to its minerals, as stated by Marit Kitaw, Director of the African Minerals Development Center.
  • The Critical Mineral Mission should focus on sustainable and responsible partnerships that foster value addition and local industrialization in Africa.
Practice Question:  Discuss the significance of India’s Critical Mineral Mission in securing essential mineral resources and how Africa can play a crucial role in this effort. (150 Words /10 marks)

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