As of now, the introduction of GM Mustard has been put on hold. The Genetic Engineering Appraisal Committee (GEAC) which was supposed to take a decision on whether or not to commercialize genetically modified (GM) mustard has failed to decide, in the face of opposition from many quarters, including former health minister Dr Ambumani Ramadoss.
Earlier, a moratorium was put on GM Brinjal in 2010. Developed by Delhi University’s Centre for Genetic Manipulation of Crop Plants (CGCMP), GM mustard or Dhara Mustard Hybrid 11(DH-11) is claimed to give a 20 to 30 per cent higher yield than normal mustard varieties.
Bt cotton was the first GM crop to be introduced in India. But notwithstanding claims of boll-worm resistance and higher yield, Bt cotton has found to fall short of expectations. In fact, the initial high yield could not be sustained in later years, and while it was found to be resistant to boll-worm, it could not provide resistance to other pests. Thus, more pesticides required to be used by farmers, hiking the cost of production, and pushing farmers into debt.
GM crops are even otherwise, subject to many controversies. Dr Vandana Shiva, one of the most outspoken critics of GM crops, has been stridently questioning the claims of high yield and pest resistance that are the major arguments presented in favour of this technology.
The most important question is that of bio-safety where GM crops are concerned. Transgenic crops are required to be planted away from other crops in keeping with biosafety regulations. However, these rules were violated at the time of clinical trials conducted for Bt cotton. Subsequent exploitation of farmers, and the infertility of GM seeds have also been major issues, since GM seeds can never be stored or re-used. Farmers, hence, need to buy these every year. Such as system benefits the seed manufacturers and strengthens their monopoly, to the detriment of the farmer.
Since labeling is not a common feature in India-unlike abroad, GM crops like Bt cotton have ended up being sold in the open market, alongside traditional cotton. At a time when India is grappling with a cancer epidemic due to uncontrolled use of pesticides, especially in states like Punjab, the high risks involved with a hybrid crop that will need high pesticide inputs has made most Indians resistant to GM crops.
Lack of transparency and the reluctance of companies to make the results of field trials available in the public domain is another major factor that has gone against the introduction of GM crops. The opaqueness of regulators of not placing the biosafety data in the public domain, despite a Supreme Court Order to the contrary, was recently cited by DrRamadoss, who has called on the government to reconsider the introduction of GM crops.
Another argument put forth is that many times people don’t know which genes are being inserted in the crop.GMO labeling is an important aspect, which needs to be addressed.GM plants can also lead to ‘super resistant weeds’.Since certain GM plants might be resistant to herbicides this can lead to weeds becoming resistant through natural selection.Agri-scientists fear that GM crops may interact with wild varieties of plants and form ‘hybrid plants’, resulting in the loss of wild varieties and precious biodiversity.
Dr. Deepak Pental, Professor of Genetics and the Ex Vice Chancellor of Delhi University and the developer of GM mustard claims, “Tests were mostly carried out in Western India and the mustard should be grown where it is most adapted to”. “Also, no adverse effect on pollinators such as bees, birds, has been found yet”, he cites. On being asked as to why the biosafety data was not being released, he said, “…the data has to go first to the GEAC who will then present their findings to the statutory body. You can also file a RTI to get information about the biosafety trials.”
Critics of GM, such as Dr Shiva’s organization, Navdanya, remain extremely agitated about the biosafety factor. They point out, “GM mustard is unethical and may not meet Indian medical standards. Normal mustard is used in ayurveda and massage oils.Since there won’t be any labeling differentiating between GM and normal mustard, how will people be able to make a choice between the two?”
On claims of GM crops getting engineered to fight droughts,salinity and natural disasters, and giving high yields with low input, they point to how organic cultivation of wild cultivars can produce better results, and a healthier population.
On the other side, India will need to take a quick, and well-informed decision to ensure food security and ample yields for its ever-growing population in the face of climate change, dropping groundwater levels, and frequent natural disasters.
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Petrol in India is cheaper than in countries like Hong Kong, Germany and the UK but costlier than in China, Brazil, Japan, the US, Russia, Pakistan and Sri Lanka, a Bank of Baroda Economics Research report showed.
Rising fuel prices in India have led to considerable debate on which government, state or central, should be lowering their taxes to keep prices under control.
The rise in fuel prices is mainly due to the global price of crude oil (raw material for making petrol and diesel) going up. Further, a stronger dollar has added to the cost of crude oil.
Amongst comparable countries (per capita wise), prices in India are higher than those in Vietnam, Kenya, Ukraine, Bangladesh, Nepal, Pakistan, Sri Lanka, and Venezuela. Countries that are major oil producers have much lower prices.
In the report, the Philippines has a comparable petrol price but has a per capita income higher than India by over 50 per cent.
Countries which have a lower per capita income like Kenya, Bangladesh, Nepal, Pakistan, and Venezuela have much lower prices of petrol and hence are impacted less than India.
“Therefore there is still a strong case for the government to consider lowering the taxes on fuel to protect the interest of the people,” the report argued.
India is the world’s third-biggest oil consuming and importing nation. It imports 85 per cent of its oil needs and so prices retail fuel at import parity rates.
With the global surge in energy prices, the cost of producing petrol, diesel and other petroleum products also went up for oil companies in India.
They raised petrol and diesel prices by Rs 10 a litre in just over a fortnight beginning March 22 but hit a pause button soon after as the move faced criticism and the opposition parties asked the government to cut taxes instead.
India imports most of its oil from a group of countries called the ‘OPEC +’ (i.e, Iran, Iraq, Saudi Arabia, Venezuela, Kuwait, United Arab Emirates, Russia, etc), which produces 40% of the world’s crude oil.
As they have the power to dictate fuel supply and prices, their decision of limiting the global supply reduces supply in India, thus raising prices
The government charges about 167% tax (excise) on petrol and 129% on diesel as compared to US (20%), UK (62%), Italy and Germany (65%).
The abominable excise duty is 2/3rd of the cost, and the base price, dealer commission and freight form the rest.
Here is an approximate break-up (in Rs):
a)Base Price | 39 |
b)Freight | 0.34 |
c) Price Charged to Dealers = (a+b) | 39.34 |
d) Excise Duty | 40.17 |
e) Dealer Commission | 4.68 |
f) VAT | 25.35 |
g) Retail Selling Price | 109.54 |
Looked closely, much of the cost of petrol and diesel is due to higher tax rate by govt, specifically excise duty.
So the question is why government is not reducing the prices ?
India, being a developing country, it does require gigantic amount of funding for its infrastructure projects as well as welfare schemes.
However, we as a society is yet to be tax-compliant. Many people evade the direct tax and that’s the reason why govt’s hands are tied. Govt. needs the money to fund various programs and at the same time it is not generating enough revenue from direct taxes.
That’s the reason why, govt is bumping up its revenue through higher indirect taxes such as GST or excise duty as in the case of petrol and diesel.
Direct taxes are progressive as it taxes according to an individuals’ income however indirect tax such as excise duty or GST are regressive in the sense that the poorest of the poor and richest of the rich have to pay the same amount.
Does not matter, if you are an auto-driver or owner of a Mercedes, end of the day both pay the same price for petrol/diesel-that’s why it is regressive in nature.
But unlike direct tax where tax evasion is rampant, indirect tax can not be evaded due to their very nature and as long as huge no of Indians keep evading direct taxes, indirect tax such as excise duty will be difficult for the govt to reduce, because it may reduce the revenue and hamper may programs of the govt.