GS Analyst: Daily Current Affairs

Ukraine's gas transit agreement with Russia expired on January 1, 2025. Ukraine decided not to renew this agreement due to the ongoing war with Russia.

About the Agreement

• This agreement, signed in 2019, allowed Russia to send gas to European Union (EU) countries through Ukraine.
• The gas is sent through the Soviet-era Urengoy-Pomary-Uzhgorod pipeline from Siberia through Sudzha, a town in Russia’s Kursk region which is now under the Ukrainian military’s control.
• The gas moves via Ukraine into Slovakia.
• There, the pipeline splits into branches which take the supply to the Czech Republic and Austria.
• The pipeline passing through Ukraine was one of the last functional routes used to export Russian gas.
  • Other pipelines were shut in the wake of the 2022 Ukraine war, including the Yamal-Europe pipeline through Belarus and the Nord Stream pipeline under the Baltic Sea which sent gas to Germany.
• Russia still uses the TurkStream pipeline on the bed of the Black Sea to export gas. The pipeline goes under the Black Sea to Turkey and then to other countries like Serbia, Bulgaria, and Hungary. However, it has limited capacity.

Impact on Russia and the EU:

• Loss of Market Share for Russia: Before the war, Russia supplied about 35% of Europe’s natural gas. This dropped dramatically after the war started and has now fallen to around 8%.
  • The EU has reduced its dependence on Russian gas by sourcing more gas from countries like Norway, the US, and Qatar.
• Gas Prices and Availability: Gas prices in the EU spiked to record highs in 2022 after Russia’s supply was reduced. With Ukraine halting the transit of gas, gas supplies to the EU are now much smaller.
• Countries Most Affected:
  • Austria and Slovakia are the most impacted by Ukraine’s decision because they receive a large portion of their Russian gas through Ukraine.
  • Hungary remains mostly unaffected by the halt, as it receives Russian gas via the TurkStream pipeline under the Black Sea, not through Ukraine.
  • Moldova, a small country near Ukraine, faces the most serious situation. It relies on Russian gas, and with Ukraine stopping its gas transit, Moldova is at risk of running out of gas.

Farmer unions tell Union government t to reject policy on agriculture marketing.

What is Agricultural marketing?

• Agricultural marketing is a critical link between farmers and consumers, ensuring that agricultural produce reaches the right buyers at fair prices.
• It is not just about selling crops but understanding market demands, facilitating the distribution process, and ensuring equitable transactions throughout the supply chain.
• Components: Production Planning; Pricing; Promotion; Distribution; Sales.
• Key components of India's agricultural marketing system include the Agricultural Produce Market Committee (APMC), which regulates the trade of agricultural commodities to ensure fair practices.
  • Agricultural Produce Market Committee (APMC) is a regulatory body that oversees agricultural commodity markets in India.
  • It was established under the APMC Acts, and its primary role is to manage and regulate the markets where agricultural products are sold.
  • APMCs operate under the jurisdiction of the State Governments in India, aiming to ensure fair and transparent trading of agricultural produce.
  • Market Structure: APMCs, commonly known as mandis, are the primary platforms where agricultural products are sold. These mandis are regulated by state governments and are used by farmers to sell their produce to wholesalers, retailers, or processors. Agricultural markets are divided into:
    • Primary Markets: Village-level markets.
    • Secondary Markets: Larger markets at the district level.
    • Terminal Markets: Large urban centers where products are traded in bulk.
  • Objectives of the APMC:
    • Manage Farm-to-Retail Price
    • Timely Payments to Farmers
    • Limit Distress Sale by Farmers
    • Prevent Exploitation by Intermediaries

What is the Draft National Policy Framework on Agricultural Marketing?

The draft National Policy Framework on Agricultural Marketing released by the Central government aims to create a competitive and transparent agricultural marketing ecosystem. The focus is on ensuring that farmers have access to diverse markets and can secure better prices for their produce. The key aspects of the framework:

• Digital Innovations and Market Access: The policy emphasizes digital innovations to improve the agricultural marketing ecosystem. By adopting technologies like blockchain, the framework aims to enhance transparency and efficiency in trading processes. Farmers will also be allowed to sell their produce across various platforms, such as:
  • Traditional mandis (regulated markets)
  • Private buyers
  • Direct sales to consumers
• Promoting Private Investment in Infrastructure: The policy highlights the need for private investment in essential agricultural market infrastructure. This includes building warehouses, cold storage facilities, and other logistics solutions to improve the storage and handling of agricultural produce. This is expected to reduce post-harvest losses and ensure that farmers receive fair prices for their products.
• Simplifying Regulations and Improving Market Coordination:
  • Simplification of licensing norms to make market entry easier for traders.
  • Reduction of state-specific restrictions that hinder the free movement of agricultural produce across states.
  • Grievance redressal mechanisms for both farmers and buyers to resolve issues and disputes quickly.
• Addressing Challenges Facing Farmers: The policy acknowledges the challenges faced by small and marginal farmers, including:
• • Fragmented landholdings
  • Inadequate market access
  • Price volatility
• These issues often lead to unfair pricing and low income for farmers, necessitating urgent policy interventions. The framework proposes a set of measures to improve market access, ensure fair prices, and support sustained income for farmers.

Criticisms and Farmer Concerns

• While the policy aims for inclusive growth, critics argue that the framework echoes aspects of the farm laws introduced in 2020, which were later repealed after widespread protests.
  • The draft policy talks about dismantling Agriculture Produce Marketing Committee (APMC) markets and promoting contract farming, which was one of the key points in the three farm laws that farmers had protested against.
• There are concerns that the policy could still lead to privatization of agricultural markets and further weaken minimum support price (MSP) mechanisms.
• The major concern among farmers is contract farming, a subject which was a part of the three repealed farm laws, equipping APMC markets with specific infrastructure and services in Public Private Partnership (PPP) mode and the push for reforms in the state’s agricultural marketing laws and policies.

The Gujarat cabinet approved the conversion of nine municipalities into municipal corporations, taking the total number of civic bodies in the state to 17.

What is a Municipal Corporation?

• A Municipal Corporation is a local self-government body responsible for managing urban areas, particularly cities with large populations, typically over one million. It is tasked with providing essential community services and city planning in metropolitan areas.
  • The British first established Municipal Corporations in Madras (1688), followed by Bombay and Calcutta (1726). In India, it is known by different names, such as Nagar Nigam, Mahanagar Palika, and others depending on the state.
• Structure & Functions:
  • The Municipal Corporation is made up of various departments to serve community needs, such as water supply, sewage disposal, healthcare, education, housing, and public safety.
  • The Mayor serves as the ceremonial head, while the Municipal Commissioner holds executive and administrative powers.
  • The Corporation is mainly funded by property taxes and grants from the state government.
• Constitutional Provision: The Constitution of India introduced local self-governance through Article 40 of the Directive Principles of State Policy. The 74th Amendment Act, 1992, mandated the formation of Urban Local Bodies (ULBs).
  • The Amendment added Part IX-A to the Constitution, covering the creation and functioning of municipalities, with specific provisions for Municipal Corporations from Articles 243P to 243ZG.
• Composition & Authority:
  • The composition and division of the Municipal Corporation are decided by the State Legislature.
  • The city is divided into wards, each represented by an elected member who serves for five years.
  • The Mayor is elected by the State law, while the Municipal Commissioner is responsible for the executive functions.
  • Reserved seats are available for Scheduled Castes, Scheduled Tribes, women, and disadvantaged classes.
• Authorities of the Municipal Corporation:
  • Municipal Council: The legislative body made up of members elected by the people. The Mayor heads this council.
  • Standing Committee: It helps in the functioning of the Municipal Council, with specific committees handling different matters like health, education, taxation, etc.
  • Municipal Commissioner: The chief executive officer responsible for executing decisions made by the council and standing committees. This post is typically held by an IAS officer and is appointed by the State Legislature.
• Qualifications for Membership:
  • Citizens above 21 years of age.
  • Must be registered on the electoral roll.
  • Cannot be disqualified from contesting municipal elections.
• Elections: Municipal Corporation elections are held every five years and are overseen by the State Election Commission, as per Article 243K of the Constitution. The Corporation can be dissolved if it fails to perform its duties, misuses power, or if elections are declared void.

In a bid to provide continued relief to farmers and ensure the affordability of fertilisers, the Indian government has extended its additional subsidy on Di-Ammonium Phosphate (DAP) beyond December 2024. This move will enable fertiliser companies to keep the retail price of DAP, avoiding a price hike that could have impacted the agricultural sector.

What is DAP?

• Di-Ammonium Phosphate (DAP) is one of the most commonly used fertilisers in India, second only to
• It is rich in two essential nutrients for plants: phosphorus and nitrogen, both of which play a crucial role in the growth of crops.
• Properties:
  • It is a very popular fertilizer because of its excellent physical properties and nutrient content.
  • It is free flowing, dust-free and does not normally give any storage problem.
  • DAP is almost water-soluble and ultimately leaves acid effect on soils because of ammonia (NH4) it contains.
  • DAP on incorporation into soil, reacts with water and gets converted into HPO4 and NH4.
  • Ammonium (NH4) follows the same routes as in case of urea.
  • Phosphorus in DAP is present in best available from (HPO4).
  • Depending upon the soil reaction (pH), phosphorus exists in 3 forms which can be absorbed by plant roots.
  • These are HPO4, H2PO4 and PO4. Phosphorus, which is immobile in soil, is not subjected to leaching losses.
• DAP is widely used to support the development of strong root systems, enhance flower and fruit production, and improve overall crop health.
• Due to its significant role in Indian agriculture, DAP is in high demand across the country, particularly during the Kharif and Rabi
• India imports around half of its annual DAP requirement, which amounts to 11 million tonnes. The cost of DAP has been volatile due to factors such as geopolitical tensions and increased transportation costs for raw materials, which has led to higher prices for imported DAP.

The total gross Goods and Services Tax (GST) revenue grew 7.3 per cent to Rs 1.77 lakh crore in December as compared to Rs 1.65 lakh crore in the same month a year ago.

GST Collection

• The total gross GST revenue for December was split across the following categories:
  • Central GST (CGST):Rs 32,836 crore
  • State GST (SGST):Rs 40,499 crore
  • Integrated GST (IGST):Rs 47,783 crore (including Rs 18,310 crore collected on imports)
  • Cess:Rs 11,471 crore (including Rs 1,258 crore collected on imports)

What is GST?

• GST (Goods and Services Tax), is an indirect tax imposed in India on the supply of goods and services.
• GST was introduced in India on July 1, 2017.
• A value-added tax, GST is imposed at each stage of the supply chain on the exact amount of value-addition achieved. Applicable across India, GST can also be described as a destination-based tax on consumption. 
• Types of GST: GST is divided into four types:
  • Central Goods and Services Tax or CGST: CGST is imposed on the supply of products and services from one state to another.
  • State Goods and Services Tax or SGST: SGST is imposed on the supply of goods and services within a state.
  • Integrated Goods and Services Tax or IGST:IGST is imposed on inter-state transactions of products and services.
  • Union Territory Goods and Services Tax or UTGST:UTGST is charged on the supply of products and services in Union Territories along with CGST.
• GST Council:
  • The GST Council is a joint forum of the centre and the states. The GST Council is responsible for making recommendations to the union and the states on GST-related issues.
  • The GST Council consists of the following members:
    • Union finance minister as the chairperson.
    • Union minister of state, in charge of revenue of finance as a member.
    • Minister in charge of finance or taxation or any other minister nominated by each state government as members.

As of 2023, 440 districts in India have been identified with excessive levels of nitrates in their groundwater, a significant increase from 359 districts in 2017, according to a report by the Central Groundwater Board (CGWB).  

Key Findings:

• Excessive Nitrate Contamination: 56% of India's districts have groundwater with nitrate levels exceeding the safe limit of 45 mg per liter.
  • The contamination is primarily attributed to the widespread use of subsidized nitrogenous fertilizers used in agriculture, which are a major source of nitrate leaching into groundwater.
• Groundwater Samples with Nitrate Contamination: Out of 15,239 groundwater samples collected across India for testing, 8% had nitrate levels above safe limits.
  • In comparison, 6% of the 13,028 samples tested in 2017 exceeded safe nitrate levels.
• Regional Concerns:
  • States such as Rajasthan, Karnataka, and Tamil Nadu report the highest levels of nitrate contamination, with 49%, 48%, and 37% of their tested samples exceeding the safe limit, respectively.
  • Regions like Maharashtra, Telangana, Andhra Pradesh, and Madhya Pradesh are seeing increasing nitrate contamination, raising alarms.
  • Monsoon rains tend to exacerbate nitrate levels in groundwater, with a slight increase in contamination after the rainy season.
• Other Chemical Contaminants:
  • Uranium contamination in groundwater is another serious issue, especially in Rajasthan, Punjab, Haryana, Karnataka, and Andhra Pradesh.
  • Fluoride contamination is a significant concern in states such as Rajasthan, Haryana, and Karnataka.
• Groundwater Over-Exploitation: The over-extraction of groundwater is also linked to rising uranium contamination, particularly in areas with deeper water extraction.
  • The CGWB report suggests that excessive water extraction in states like Rajasthan, Gujarat, Haryana, and Punjab is exacerbating contamination.
• Groundwater Availability: 4% of groundwater extraction across India is considered sustainable, remaining constant since 2009.
• 73% of groundwater blocks are now classified as safe, a notable improvement from 67.4% in 2022, although fewer blocks were analyzed for the 2024 assessment.

Factors contributing to contamination:

• Naturally Occurring Contaminants: Fluoride, arsenic, nitrate, iron, and heavy metals naturally exist in certain geological formations, affecting water quality.
• Industrial Activities: Untreated or poorly treated industrial effluents discharged into water bodies contaminate surface and groundwater sources.
• Agricultural Activities: Excessive use of pesticides, fertilizers, and agrochemicals in agriculture leads to water contamination over time.
• Sanitation Practices: Inadequate sanitation facilities and open defecation, especially in rural areas, contribute to water source contamination.
• Geogenic Processes: Geogenic processes, such as those causing uranium contamination, can occur naturally, exacerbated by groundwater overexploitation.
• Improper Waste Disposal: Improper disposal of biowaste contaminates groundwater and surface water, increasing the risk of waterborne diseases.

Impact of Groundwater Contamination

• Public Health Risks:Consumption of contaminated groundwater can lead to various health issues, including gastrointestinal disorders, neurological problems, skeletal deformities, and even cancer.
• Common Contaminants and Health Impacts:
  • Arsenic:Chronic exposure can lead to black foot disease and poses significant health risks.
  • Fluoride:High fluoride intake causes neuromuscular disorders, dental deformities, and skeletal fluorosis.
  • Nitrates:Excessive nitrate levels in water can result in methemoglobinemia and blue baby syndrome.
  • Uranium:Elevated uranium levels in drinking water can cause kidney toxicity.
  • Radon:Presence of radioactive radon in groundwater poses risks of lung cancer.
• Economic Burden:Treating water-related illnesses imposes significant healthcare costs on individuals and communities. Productivity losses due to sickness also impact economic development.
• Environmental Degradation: Contaminated groundwater affects ecosystems, harming aquatic life and disrupting biodiversity. It can also degrade soil quality and impair agricultural productivity.
• Social Inequities: Communities reliant on contaminated groundwater often face socio-economic challenges, including limited access to safe drinking water, reduced educational opportunities, and compromised livelihoods.
• Long-Term Consequences: Groundwater contamination can persist for decades or even centuries, posing ongoing risks to human health and the environment. Remediation efforts may require substantial time, resources, and technological interventions.

The relationship between China and Russia has evolved over the past few years, especially following Russia's invasion of Ukraine in February 2022. Initially, the two countries declared a “no limits” friendship, but the rhetoric has since cooled. Despite this, their strategic partnership continues to grow, causing concern in the West due to its political, military, and economic implications.

Nature of the Sino-Russian Partnership:

• Limits on the Relationship: The Sino-Russian partnership, though growing, has evident limitations. While China has provided indirect support for Russia, it has refrained from offering direct military assistance in the war against Ukraine. Both countries also manage each other's ambitions, seeking pragmatic cooperation rather than ideological alignment.
• Economic and Military Cooperation: Despite these limits, the two countries have expanded their economic and military ties, with joint military exercises signaling their combined strength. However, this cooperation does not reflect the interoperability seen in the US-European alliances.
• Differing Strategies: Russia’s approach is more disruptive, while China’s goal is to shape the current global order to its advantage. This divergence in strategies suggests an alignment based on mutual interests rather than a formal alliance, making the relationship more flexible and sustainable.

Global Implications and Challenges:

• Rising Threat to the West: The partnership between China, Russia, and other states like Iran and North Korea has raised alarms in the West, with concerns about a new cold war. Nuclear risks and potential flashpoints, such as Taiwan, have rekindled fears of global instability.
• Challenges for the US and NATO: Internal divisions within Western democracies, exemplified by potential shifts in US foreign policy under Donald Trump, make it difficult to counter the growing Sino-Russian alliance. NATO faces increasing challenges in maintaining cohesion and adapting to a changing global order.
• Economic Pressures on China and Russia: Both China and Russia face economic challenges despite their growing cooperation. China’s economy, struggling after years of rapid growth, faces new difficulties, while Russia’s military and economic weaknesses have been exposed by the war in Ukraine. These vulnerabilities complicate their global ambitions.

The Rise of Multipolarity in Global Affairs:

• Multipolar World Order: Unlike the Cold War’s bipolar structure, the current global landscape is multipolar, with countries like India, South Africa, Turkey, and Indonesia asserting independent foreign policies. This shift is reshaping global alliances and power dynamics.
• Economic Interdependence: Despite efforts by the West to decouple from China, the global economy remains deeply integrated. Western sanctions on Russia and decreasing trade with China show signs of shifting economic relations, yet China’s global economic footprint remains significant.
• Need for Global Cooperation: Challenges such as climate change and global health require international cooperation. However, national interests often take precedence, as seen during the pandemic. The growing divides between countries pose risks to global stability, and an escalatory spiral must be avoided.

Practice Question:

Q. Critically examine the implications of the growing Sino-Russian partnership in the context of a multipolar world order, highlighting its impact on global security, economic relations, and Western alliances.

The issue of the proposed delimitation exercise in India has become a contentious topic, especially in the southern states of Andhra Pradesh and Tamil Nadu. These states, which are ahead in fertility transition, are concerned about losing parliamentary seats due to their reduced population growth compared to northern states. This has triggered political reactions and discussions about fertility policies and the fairness of the exercise.

Fertility Transition and Its Political Implications:

• Fertility Decline Impact: Southern states have seen a decline in fertility, which could lead to a reduction in their share of parliamentary seats. Politicians like N. Chandrababu Naidu and M.K. Stalin have raised concerns about this, with Naidu even suggesting incentives for larger families.
• Reversal of Fertility Trends: While reversing fertility decline through incentives is being discussed, international experiences, such as China’s one-child policy, show that such attempts may not be effective in the long term and may lead to social crises.
• Potential Imbalance: Encouraging higher fertility could create an imbalance, similar to China’s demographic crisis. An overemphasis on population control could disregard the composition of the population and lead to unplanned consequences.

Gender and Social Considerations in Fertility Policies:

• Women’s Role in Fertility: Encouraging women to have more children is complex, as the personal cost for women can be high due to inadequate state support. The state's approach to fertility has often failed to provide sufficient social support for women who are expected to bear additional children.
• Impact of Fertility on Women’s Lives: Measures to incentivize childbearing must be accompanied by compensations and state-provided social support, including maternity leave, healthcare, and financial aid, to address the personal loss for women.
• Political Representation and Gender Equity: There is a need for a broader perspective on political representation beyond fertility numbers. Policies should balance gender concerns and recognize the social costs of encouraging increased fertility rates.

The Way Forward - Rethinking Delimitation and Representation:

• Migration as a Short-Term Solution: While reversing fertility decline may not be feasible, migration could help address regional population imbalances. Migration could act as an immediate solution for southern states facing a reduction in political representation due to lower population growth.
• Equitable Political Representation: The fairness of delimitation based on population counts alone is questioned. A revised approach, accounting for other factors such as development, education, and demographic characteristics, could ensure equitable political representation.
• Long-Term Solution: The key to resolving regional population imbalances lies in revising the count-based delimitation and finding an alternative way to ensure political representation, which should not be solely based on population figures.

Practice Question: 

Q. Delimitation based on population counts alone might not be the most equitable way to ensure fair political representation. Critically evaluate the implications of regional population imbalances in the context of southern states' fertility transition and suggest a way forward."

The Union Ministry of Home Affairs (MHA) recently claimed success in fostering unity and peace in India’s Northeast, particularly in Manipur. However, this claim has been challenged by ongoing ethnic violence in Manipur, where sporadic conflicts continue to disrupt peace. The Chief Minister of Manipur even issued an apology for the violence, signaling the failure of efforts to address the situation effectively.

Conflict Resolution and Peacebuilding:

• Conditions for Lasting Peace: A stable peace can be achieved in conflicts where there is a winning side that reconciles with the loser or where both sides reach a mutually honourable compromise. In some cases, a tenuous peace may be maintained through dialogue, even if conflicts persist.
• Failure to Establish Peace in Manipur: The situation in Manipur contradicts the claims of peacebuilding. The state continues to witness ethnic violence despite repeated efforts by the government, showing that the conflict has not been resolved, and peace remains elusive.
• Dialogue and Hostility: Peace cannot be claimed in a situation where violence continues intermittently, and where parties in the conflict remain hostile and unwilling to engage in dialogue. The absence of constructive communication and resolution indicates a failure to establish true peace.

Critique of the MHA’s Claims:

• False Claim of Peace and Prosperity: The MHA’s assertion that the Northeast is on a path to peace and prosperity is undermined by the ongoing ethnic violence in Manipur. Despite the government's rhetoric, the reality of continuing crises in the region presents a stark contrast to claims of success.
• Political Apology and Loss of Confidence: The apology issued by the Chief Minister of Manipur for the ethnic violence highlights the government's failure to gain the trust of all ethnic communities in the state. This apology is seen as inadequate and too little, too late, to resolve the deep-rooted issues.
• Repressive Measures and Demographic Concerns: The reimposition of restrictive measures such as the Protected Area Regime and the mapping of demographic data along the Myanmar border to tackle security concerns are problematic. Labeling refugees fleeing the Myanmar junta as infiltrators could worsen already fragile ethnic relations in Northeast states like Manipur, Nagaland, and Mizoram.

Humanitarian Approach to Refugees:

• Mislabeling Refugees as Infiltrators: The MHA’s framing of refugees from Myanmar’s civil war as infiltrators risks escalating tensions and damaging fragile ethnic ties. A more compassionate approach to the refugee issue is needed, rather than stigmatizing people fleeing persecution.
• Urgent Need for Humane Policies: The MHA should work with state governments to develop a more humane refugee policy, addressing the refugee crisis sensitively while maintaining security concerns. Effective cooperation on this front is vital for long-term peace and stability in the region.
• Failure in Census and Policy Implementation: The government's failure to conduct a thorough and inclusive census and lack of a coordinated refugee policy further contribute to the confusion and unrest. The government must act decisively to improve its approach to managing these complex issues.

Practice Question:

Q. Evaluate the role of the Ministry of Home Affairs in promoting peace and resolving ethnic conflicts in the Northeast, with particular reference to the situation in Manipur. Suggest measures for addressing the ongoing challenges in the region.