Current Affairs – 12th Feb 2024

Articles Covered:

  1. Protesting farmers want MSP law: How would such a guarantee work?
  2. How India can implement reservation for women in politics
  3. Parliament’s average annual sitting days down to 55 in the 17th Lok Sabha from 135 in the first
  4. gets ready to include ASHA and anganwadi workers/helpers in its Ayushman Bharat scheme
  5. Israel’s war on Gaza live: Rafah bombarded as Israel plans ground assault
  6. Number Theory: Are there long-term changes happening in western disturbances?
  7. PM-SVANidhi boosted annual income of street vendors by Rs 23,000: Study
  8. BJP releases first list of 14 RS nominees; R.P.N. Singh, Sudhanshu Trivedi make the cut
  9. India to leverage US-led Minerals Security Partnership to help PSUs secure critical mineral assets abroad

Protesting farmers want MSP law: How would such a guarantee work?

  • Protesting farmers from Punjab are set to reach the national capital in the coming days. One of their key demands is that the Centre bring in a law guranteeing minimum support prices or MSP. We explain what is MSP, and how an MSP gurantee can work.
  • Farmers, for the most part, operate in a buyer’s market. Since their crops — barring maybe milk — are harvested and marketed in bulk, it leads to sudden supply increases relative to demand, putting downward pressure on prices.
  • Such market conditions, favouring buyers over sellers, also mean farmers are price takers, not price makers. Lacking the market power to influence the prices of their produce — or to even set the MRP (maximum retail price), as firms in most industries do — they sell at prevailing supply-and-demand-determined rates. Worse, while their crops are sold wholesale, they pay retail prices for everything from seeds, pesticides, diesel, and tractors to cement, medicines, toothpaste, and soap.

Minimum Support Price:

  • MSP is the guaranteed amount paid to farmers when the government buys their produce.
  • MSP is based on the recommendations of the CACP which considers various factors such as cost of production, demand and supply, market price trends, inter-crop price parity, etc.

CACP is an attached office of the Ministry of Agriculture and Farmers Welfare. It came into existence in January 1965.

  1. TheCCEA  chaired by the Prime Minister of India takes the final decision (approve) on the level of MSPs.
  2. The MSP is aimed at ensuringremunerative prices to growers for their produce and encouraging crop diversification.

Crops Under MSP:

  1. The CACP recommends MSPs for 22 mandated crops and FRPfor sugarcane.
  2. The mandated crops include 14 crops of the kharif season, 6rabi crops  and 2 other commercial crops.

Three Kinds of Production Cost:

The CACP projects three kinds of production cost for every crop, both at state and all-India average levels.

  • ‘A2’:Covers all paid-out costs directly incurred by the farmer in cash and kind on seeds, fertilisers, pesticides, hired labour, leased-in land, fuel, irrigation, etc.
  • ‘A2+FL’:Includes A2 plus an imputed value of unpaid family labour.
  • ‘C2’:It is a more comprehensive cost that factors in rentals and interest for owned land and fixed capital assets, on top of A2+FL.
  • CACP considers bothA2+FL and C2 costs while recommending MSP.
  1. CACP reckons only A2+FL cost for return.
  2. However, C2 costs are used by CACP primarily as benchmark reference costs (opportunity costs) to see if the MSPs recommended by them at least cover these costs in some of the major producing States.
  • Recently, the Cabinet Committee on Economic Affairs (CCEA) has granted approval for an increase in the Minimum Support Prices (MSP) of kharif crops for the upcoming marketing season of 2023-24.
  • Government has increased the MSP of Kharif Crops for Marketing Season 2023-24, to ensure remunerative prices to the growers for their produce and to encourage crop diversification.
  • The Centre has increased the Minimum Support Price (MSP) for paddy cultivated during the kharif or monsoon season to ₹2,183 per quintal, marking a rise of ₹143 per quintal compared to the previous year.

Reason for the increase in MSP

  • The increase in Minimum Support Price (MSP) for Kharif Crops during the Marketing Season 2023-24 aligns with the objective set in the Union Budget 2018-19.
  • According to this announcement, the MSP should be set at a minimum of 1.5 times the All-India weighted average Cost of Production, ensuring reasonable and fair remuneration for farmers.
  • The expected profit margins for farmers over their cost of production are projected to be the highest for bajra (82%), followed by tur (58%), soybean (52%), and urad (51%).
  • For other crops, the estimated margin to farmers over their cost of production is at least 50%.

Government Initiatives

  1. In recent years, the government has actively encouraged the cultivation of crops other than cereals, such as pulses, oilseeds, and Nutri-cereals/ Shree Anna, by offering higher MSPs for these crops.
  2. Additionally, various schemes and initiatives have been launched by the government, including the Rashtriya Krishi Vikas Yojana (RKVY) and the National Food Security Mission (NFSM), aimed at promoting crop diversification among farmers.
  3. These measures are designed to incentivize farmers to explore different crops and contribute to the overall agricultural development of the country.

How India can implement reservation for women in politics

Present Status of Women Representation

  1. As per the WEF ’s GLOBAL GENDER GAP REPORT-2023, India has made strides in political empowerment, achieving 3% parity in this domain.
  2. Women represent1% of parliamentarians,which is the highest representation since the inaugural report in 2006.

Status of Women’s Reservation in Panchayats and ULBs

Women’s Reservation – Initiatives and Current Data

Early Initiatives:

  • In 1985, the state government of Karnataka implemented 25% reservation for womenin Mandal Praja Parishads with a sub-quota for scheduled caste and scheduled tribe
  • women, becoming the first state to do so.
  • In 1987, the erstwhile united Andhra Pradesh implemented 9%reservation for women in gram panchayats.
  • In 1991, Odisha affected 33% reservationfor women in Panchayats.
  • The 1992 Constitutional amendment made this quota national, and inserted a 33% sub-quota for scheduled caste and scheduled tribe women.

73rd and 74th Amendments:

  • In 1992, following the recommendations of theNational Perspective Plan for Women 1988-2000, the 73rd and 74th Amendment Acts (1992) mandated the reservation of 1/3rd of seats for women in PRIs and in urban local bodies.
  • ‘Panchayat’, being “Local government”, is aState subject and part of the State list of the Seventh Schedule of the Constitution of India.
  • ARTICLE 243 D of the Constitution ensures participation of women in PRIs by mandating atleast 1/3rd reservation for women out of total number of seats to be filled by direct election and number of offices of chairpersons of Panchayats.

Status In Different States:

States with >50% Reservation:

  • According to government data, as of Sept 2021, in at least 18 states, the percentage of women elected representatives in PRIs was more than 50%:
  • Uttarakhand, Chhattisgarh, Assam, Maharashtra, Tamil Nadu, Odisha, Kerala, Bihar, Jharkhand, West Bengal, Rajasthan, Manipur, Telangana, Sikkim, Himachal Pradesh, Karnataka, Andhra Pradesh, and Madhya Pradesh.
  • These 18 states, including Gujarat and Kerala have also made legal provisions for 50% reservation for women in PRIs.

Highest proportion of women representatives in PRIs – Uttarakhand (56.02%)

Lowest – Uttar Pradesh (33.34%)

Overall percentage in India – 45.61%

Bihar was the first one to increase the reservation percentage to 50% (in Panchayats and ULBs) in 2006 followed by Sikkim the next year.

The Nagaland Controversy:

  1. In April 2023, Nagaland was amid controversies regarding the reservation of seats for women in urban local body (ULB) polls.
  2. The issue centers around the Nagaland Municipal Act of 2001, which mandated a 33% reservation for women in ULB polls (as per 74th amendment).
  3. Many traditional tribal and urban organizations opposed it, arguing that it would violate the special provisions granted by Article 371A.
  4. Their apex tribal body argues that women have traditionally not been part of decision-making bodies.
  5. Nagaland is the only state where ULB seats are not reserved for women.

Different Committees and Their Reports on the Issue

1971 Committee on the Status of Women in India (CSWI):

  1. It was created in response to a request from the UN for a report on the status of women ahead of International Women’s Year, 1975.
  2. Set up by the erstwhile Ministry of Education and Social Welfare.
  3. It examined the constitutional, administrative, and legal provisions that have a bearing on the social status of women, their education, and employment — and the impact of these provisions.
  4. It published the report – ‘Towards Equality’ as per which, the Indian state had failed in its constitutional responsibility to ensure gender equality.
  5. Following this, several states began announcing reservations for women in local bodies.

1987 Committee under Margaret Alva:

  1. In 1987, the government constituted a 14-member committee under then Union Minister Margaret Alva.
  2. In 1988, the committee presented the National Perspective Plan for Women 1988-2000 to the Prime Minister.
  3. Among the committee’s 353 recommendations was the reservation of seats for women in elected bodies.

Geeta Mukherjee Committee 1996:

  1. The Committee had 21 members from LS and 10 from RS.
  2. The panel noted that seats for women had been reserved within the SC/ST quotas, but there was no such benefit for OBC women because there is no provision for OBC reservation.
  3. It recommended that the government “may consider…extending…reservation to OBCs also at the appropriate time so that the women belonging to OBCs will also get the benefit of reservation”.

2013 Committee on the Status of Women:

In 2013, the Ministry of Women and Child Development constituted a committee on the status of women, which recommended ensuring at least 50% reservation of seats for women in the Local bodies, State Legislative Assemblies, Parliament, Ministerial levels and all decision‐making bodies of the government.

Parliament’s average annual sitting days down to 55 in the 17th Lok Sabha from 135 in the first

The recently concluded 17th Lok Sabha held 274 sittings, and four previous Lok Sabhas, all of which were dissolved before the stipulated five-year period, had fewer sittings

The Lok Sabha Functioned So far

Productivity of Budget Session 2023:

  1. The latest session (Budget session) held from January 2023 to April 2023, saw limited legislative activity and minimal discussionon the BUDGET amidst continuous disruptions.
  2. In this session, the Lok Sabha functioned for 33% of its scheduled time (46 hours) and the Rajya Sabha functioned for 24% (32 hours).
  3. This has been the sixth shortest budget session since 1952.Lok Sabha spent 18 hours on financial business, of which 16 hours were spent on the general discussion of the budget.

Past Eleven Sessions:

  1. From the 2019 Budget Session to the 2023 Budget Session, 150 Bills have been introduced and 131 Bills have been passed.
  2. In the first session, 38 Bills were introduced and 28 were passed.Since then, the number of Bills introduced and passed has declined.
  3. Fewer than 10 Bills have been introduced or passed in each of the last four consecutive sessions.

House Productivity:

  1. In 2022, the functioning of the Lok Sabha was at 177 hoursand in the Rajya Sabha it was 127.6 hours.
  2. In 2021, it was 131.8 hours in the Lok Sabha and 104 hours in the Rajya Sabha.
  3. Similarly, in 2020, productivity hours for the Lower House were 111.2and 93.8 hours for the Upper House.
  4. During the first half of this year’s Budget Session, the Lok Sabha devoted a total of 14 hours and 45 minutes to discussingit against the allotted time of 12 hours.

Debates in Parliament Reducing:

  1. In the 17thLok Sabha, only 11 short-duration discussions and one half-an-hour discussion have been held so far, and none were held during the latest session.
  2. Question Hour functioned for only 19% of the scheduled timein the Lok Sabha and 9% of the scheduled time in the Rajya Sabha.
  3. No Private Member Bills were introduced or discussed. Each House discussed one Private Member Resolution.

Lower Examination under Parliamentary Committee:

  1. During the course of the 17thLok Sabha, only 14 Bills have been referred for further examination under PARLIAMENTARY COMMITTEE so far.
  2. As little as 25% of the Bills introduced were referred to committees in the 16thLok Sabha, as compared to 71% and 60% in the 15th and 14th Lok Sabha respectively. This represents a declining trend of national legislation being subjected to expert scrutiny.

Delayed Election of Deputy Speaker:  Article 93 of the Constitution states that Lok Sabha will choose two Members of the House to be Speaker and DEPUTY SPEAKER as soon as possible. The 17th Lok Sabha has not elected a Deputy Speaker even as it enters the final year of its five-year term.

Govt. gets ready to include ASHA and anganwadi workers/helpers in its Ayushman Bharat scheme

  • It receives Aadhaar details of 23 lakh anganwadi workers/helpers and over three lakh ASHA

ASHA and anganwadi staff get health cover

Health Budget 2024: Anganwadi, ASHA workers explain how the expansion of Ayushman Bharat cover can help them

  • ‘We are more susceptible to infections from those we screen. Now we can avail treatment in empanelled hospitals without worrying about funds’

Accredited Social Health Activist (ASHA):

  1. ASHA is a trained female community health activist.
  2. ASHA workers are a core part of the National Rural Health Mission launched by the Government of India.

Selected from the community itself and accountable to it, the ASHA will be trained to work as an interface between the community and the public health system.

Functions:

  1. Act as a care provider at the community level.
  2. Facilitating access to healthcare, medicine, and sanitation services.
  3. Raising the level of awareness of health issues among the marginalised sections within the community.
  4. Advocate for female health and hygiene standards.
  5. Advocate for a health-conscious behaviour and approach to livelihood.
  • The ASHA scheme is presently in place in all States/UTs (except Goa).
  • The states are mandated to employ at least one ASHA worker per every 1000 people.
  • They are chosen through a rigorous process of selection involving various community groups, self-help groups, Anganwadi Institutions, Block Nodal officer, District Nodal officer, the village Health Committee and the Gram Sabha.
  • The States have been given the flexibility to relax the population norms as well as the educational qualifications on a case to case basis, depending on the local conditions as far as her recruitment is concerned.

Selection Criteria:

  1. In rural areas, ASHA must primarily be a woman resident of the village married/ widowed/ divorced, preferably in the age group of 25 to 45 yearsand literate preferably qualified up to 10th standard (formal education up to Class 8).
  2. In urban areas, ASHA must be a woman resident of the “slum/vulnerable clusters” and belong to that particular vulnerable group which have been identified by City/District Health Society for selection of ASHA, and must have good communication and leadership skills.

Ayushman Bharat-PMJAY

  • PM-JAY is the world’s largest health insurance scheme fully financed by the government.
  • Launched in February 2018, it offers a sum insured of Rs.5 lakh per family for secondary care and tertiary care.
  • Health Benefit Packages covers surgery, medical and day care treatments, cost of medicines and diagnostics.

Beneficiaries:

  • It is an entitlement-based scheme that targets the beneficiaries as identified by LATEST SECC data.
  • The National Health Authority (NHA) has provided flexibility to States/UTs to use non– SECC beneficiary family databases with similar socio-economic profiles for tagging against the leftover (unauthenticated) SECC families.

Funding:

  • The funding for the scheme is shared – 60:40 for all states and UTs with their own legislature, 90:10 in Northeast states and Jammu and Kashmir, Himachal and Uttarakhand and 100% Central funding for UTs without legislature.

Nodal Agency:

  • The NATIONAL HEALTH AUTHORITY has been constituted as an autonomous entity under the Society Registration Act, 1860 for effective implementation of PM-JAY in alliance with state governments.
  • The State Health Agency (SHA) is the apex body of the State Government responsible for the implementation of AB PM-JAY in the State.

Main Objectives of AB-PMJAY

  1. To reduce the financial burden of out-of-pocket expenditure (OOPE) on healthcare for the beneficiaries.
  2. To improve the access and affordability of healthcare services for the beneficiaries.
  3. To enhance the quality and efficiency of healthcare delivery systems in the country.
  4. To promote preventive, promotive, and curative health interventions for the beneficiaries.

Israel’s war on Gaza live: Rafah bombarded as Israel plans ground assault

  • The Rafah border crossing in SOUTHERN GAZAhas gained global attention as Palestinians are attempting to leave Gaza in anticipation of a possible Israeli attack as part of the ongoing  ISRAELI- PALESTINIAN CONFLICT

Rafah Crossing

  • The Rafah crossing is the southernmost exit point from the Gaza Strip, and it shares a border with Egypt’s Sinai Peninsula.
  • The crossing is controlled by Egypt.
  • It is the only exit that does not lead to Israeli territory.
  • There are only two other border crossings in and out of Gaza:
  • Erez is located in the north and is used by people in Israel.
  • Kerem Shalom, in the south, which is exclusively for commercial goods.
  • Both Erez and Kerem Shalom controlled by Israel are currently closed.

Importance:

  • The Rafah crossing gained heightened importance after Hamas’s assault on the Erez crossing,resulting in over 1,300 casualties in southern Israel.
  • In response, Israel closed both Erez and Kerem Shalom indefinitely, leaving the Rafah border as the sole means of entry and exit for Gaza’s people and the only crossing for humanitarian aid.

Egypt’s Sinai Peninsula

  • The Sinai Peninsula is a triangle-shaped peninsula in Egypt. It’s located in the northeastern part of the country.
  • The peninsula is bordered byTHE MEDITERRANEAN SEA to the north, the RED SEA to the south, and the Gulf of Aqaba to the east.
  • The peninsula includes the Suez Canal, which is a man-made waterwaythat connects the Mediterranean Sea to the Red Sea.

Number Theory: Are there long-term changes happening in western disturbances?

Western Disturbances

  • A Western Disturbance refers to an extratropical storm or a low-pressure system that originates in the Mediterranean region.
  • As they travel eastward across the Middle East and Iran, they bring changes in weather conditions to the Indian subcontinent.
  • Western Disturbance has a substantial influence on the weather in northern India.

The meaning of WD lies in its name.

  1. The disturbance travels from the “western” to the eastern direction.
  2. These travel eastwards on high-altitude WESTERLY JET STREAMS – massive ribbons of fast winds traversing the earth from west to east.
  3. Disturbance means an area of “disturbed” or reduced air pressure.
  4. Equilibrium exists in nature due to which the air in a region tries to normalise its pressure.
  5. In the term “extra-tropical storm”, storm refers to low pressure. “Extra-tropical” means outside the tropics. As the WD originates outside the tropical region, the word “extra-tropical” has been associated with them.
  6. A WD is associated with rainfall, snowfall and fog in northern India. It arrives with rain and snow in Pakistan and northern India. The moisture which WDs carry with them comes from the Mediterranean Sea and/or from the Atlantic Ocean.
  7. WD brings winter and pre-monsoon rain and is important for the development of the RABI CROP in the Northern subcontinent.

The WDs are not always the harbingers of good weather. Sometimes WDs can cause extreme weather events like floods, FLASH FLOODS, LAND SLIDES dust storms, hail storms and COLD WAVES killing people, destroying infrastructure and impacting livelihoods.

Formation

  1. They are usually formed by the interaction between cold polar air masses and warm tropical air masses.
  2. As they move eastward, they bring moisture from the Mediterranean region and the Caspian Sea.

Influence on weather conditions of India

  • During the winter months, Western Disturbances are primarily responsible for bringing rainfall and snowfall to the northwestern Himalayan region, including Jammu and Kashmir, Himachal Pradesh, and Uttarakhand.
  • Western Disturbances also influence the weather conditions in the Indo-Gangetic plains.
  • As they approach the plains, they often lead to cloud cover, lower temperatures, and occasional rainfall.

Variations in the intensity and locations of the  WESTERN DISTURBANCES have brought heavy rainfall to Delhi during some months and kept the city dry and in the grip of a heat wave at other times.

Variation in Western Disturbances

  •  In 2021, Delhi witnessed the rainiest October in 65 years, with the Safdarjung weather observatory recording 122.5 mm of rainfall against a normal of 28 mm, on account of western disturbances.
  • Excess rainfall was also recorded in January and February this year. In contrast, there was no rainfall in November 2021 and March 2022, and the summer saw an unusually early start with heat waves setting in at the end of March 2022.
  • Multiple western disturbances that brought cloud cover had also kept the maximum temperature low in February 2022, when the lowest maximum temperature in 19 years was recorded.
  • Active western disturbances eluded northwest India in March 2022, and absence of cloud cover and rain allowed temperatures to remain high.

Probable Cause of the Variation

  • The frequency of western disturbances has increased, but not the precipitation associated with them, partly due to a warming atmosphere .
  • Western disturbances are low-pressure areas. If it is a feeble western disturbance, it will not have moisture to precipitate.
  • For precipitation, you need moisture, and by virtue of a warming atmosphere, there is less amount of moisture available to precipitate.
  • Simultaneously, because of warming in the atmosphere, western disturbances are going higher in elevation. In general, they move in subtropical westerly jet, now they are becoming lighter and moving higher, above 200 hectopascals.
  • Variations will have to be monitored over the next few years to determine what climate change impact might be.

PM-SVANidhi boosted annual income of street vendors by Rs 23,000: Study

PM SVANidhi was launched in 2020 to help street vendors resume their livelihood impacted by the Covid-19 lockdown, by offering them affordable working capital loans.

  • A study that evaluated the impact of the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi), a small working capital loan scheme for street vendors, has found that the first tranche of `10,000 led to an additional annual income of `23,460 for each beneficiary, The Indian Express has learnt.
  • The study, commissioned by the Union Ministry of Housing and Urban Affairs, was carried out between January and June last year by the Centre for Analytical Finance of the Indian School of Business (ISB). The report will be used by the Ministry for its own assessment of PM SVANidhi and is not likely to be made public, sources said.

PM SVANidhi Scheme:

  1. It was launched in 2020 amid the pandemic by the Ministry of Housing and Urban Affairs (MoHUA), Government of India.
  2. It is a micro-credit facility that provides street vendors a collateral-free loan of Rs 10,000with low rates of interest (below 12%) for a period of one year, aiding the vendors at getting back on their feet financially.
  3. In the long term, it aims at –
  4. Establishing a credit score for the vendors
  5. Creating a digital record of their socio-economic status
  6. This will enable street vendors toavail the Central government schemes later, formalise the informal sector of the economy and provide them safety nets and a means of availing loans in the future.

Eligible for the Loan

  1. All vendors who have been vending from or before (March 24, 2020) and witha certificate of vending can avail the loan.
  2. As per the Street Vendors Act 2014, the Town Vending Committees(which comprises the local authorities and vendors from an area) issue a certificate of vending after a survey has been conducted of all the vendors.

BJP releases first list of 14 RS nominees; R.P.N. Singh, Sudhanshu Trivedi make the cut

Ministers have not been renominated as the party has been encouraging them to contest in the upcoming Lok Sabha polls

  • The BJP on Sunday announced a list of 14 candidates for the biennial polls to the Rajya Sabha, with former Union Minister R.P.N Singh — who joined the BJP ahead of the Assembly polls in Uttar Pradesh in 2022 — among those nominated. With 28 of its members retiring and the same number expected back, the list of 14 names has nominations from Uttar Pradesh, Chattisgarh, Karnataka, Haryana, Uttarakhand, West Bengal and Bihar.

Nominated Members of Rajya Sabha:

12 people are nominated by the President for six-year term in Rajya Sabha for their contribution and expertise in the fields of:

  1. Art
  2. Literature
  3. Science
  4. Social Service

Normal composition

  • The present strength is 245 members of whom 233 are representatives of the states and UTs and 12 are nominated by the President.
  • The Rajya Sabha is not subject to dissolution; one-third of its members retire every second year.

Article 80

  1. As per Article 80 (Part V) of the Constitution, President can nominate 12 members in the Council of States (Rajya Sabha).
  2. These persons should have special knowledge or practical experience in the field of Art, Science, Literature and Social Service.
  3. The rationale behind principle of the nomination is to facilitate the representation of eminent professionals and experts who cannot face direct elections.

Difference between Nominated and Elected members:

  1. Nominated members enjoy all powers, privileges and immunities available to an elected member of Parliament.
  2. They, however, are not entitled to vote in the election of the President of India.
  3. But in the election of the Vice-President of India, they have a right to vote.
  4. A nominated member is allowed six months, should he decide to join a political party after he has taken his seat in the House in terms of article 99 of the Constitution.
  5. A nominated member has also been exempted from filing his assets and liabilities under Section 75A of the Representation of the Peoples Act, 1951 which requires the elected member to do so within 90 days of his making or subscribing oath/affirmation.

India to leverage US-led Minerals Security Partnership to help PSUs secure critical mineral assets abroad

PSUs such as Coal India Limited, NLC India Ltd, and NTPC Ltd, representatives of whom were present at the meeting, have expressed interest in securing lithium, cobalt, and graphite assets overseas.

Critical Minerals

  1. Critical minerals are elements that are the building blocks of essential modern-day technologies, and are at risk of supply chain disruptions.
  2. These minerals are now used everywhere from making mobile phones, computers to batteries, electric vehicles and green technologies like solar panels and wind turbines.
  3. Based on their individual needs and strategic considerations, different countries create their own lists.
  4. However, such lists mostly include graphite, lithium and cobalt, which are used for making EV batteries; rare earths that are used for making magnets and silicon which is a key mineral for making computer chips and solar panels.
  5. Aerospace, communications and defence industries also rely on several such minerals as they are used in manufacturing fighter jets, drones, radio sets and other critical equipment.

resources critical-

  1. As countries around the world scale up their transition towards clean energy and digital economy, these critical resources are key to the ecosystem that fuels this change.
  2. Any supply shock can severely imperil the economy and strategic autonomy of a country over-dependent on others to procure critical minerals.
  3. But these supply risks exist due to rare availability, growing demand and complex processing value chain.
  4. Many times the complex supply chain can be disrupted by hostile regimes, or due to politically unstable regions.
  5. They are critical as the world is fast shifting from a fossil fuel-intensive to a mineral-intensive energy system.

China ‘threat’

  1. China is the world’s largest producer of 16 critical minerals.
  2. China alone is responsible for some 70% and 60% of global production of cobalt and rare earth elements, respectively, in 2019.
  3. The level of concentration is even higher for processing operations, where China has a strong presence across the board.
  4. China’s share of refining is around 35% for nickel, 50-70% for lithium and cobalt, and nearly 90% for rare earth elements.
  5. It also controls cobalt mines in the Democratic Republic of Congo, from where 70% of this mineral is sourced.
  6. In 2010, China suspended rare earth exports to Japan for two months over a territorial dispute.

countries around the world doing about it

  1. US has shifted its focus on expanding domestic mining, production, processing, and recycling of critical minerals and materials.
  2. India has set up KABIL or the Khanij Bidesh India Limited, a joint venture of three public sector companies, to “ensure a consistent supply of critical and strategic minerals to the Indian domestic market”.
  3. Australia’s Critical Minerals Facilitation Office (CMFO) and KABIL had recently signed an MoU aimed at ensuring reliable supply of critical minerals to India.
  4. The UK has unveiled its new Critical Minerals Intelligence Centre to study the future demand for and supply of these minerals.
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