Background

Last week, the World Bank released its latest report on global poverty. It stated that “economic upheavals brought on by Covid-19 and later the war in Ukraine” had produced “an outright reversal” in poverty reduction across the planet.

The pace of poverty reduction had been slowing down anyway since 2015, due to a slowdown in growth rates but the pandemic and war have caused an outright reversal. So much so that the “world is unlikely to meet the goal of ending extreme poverty by 2030”.

What is extreme poverty? 

The World Bank (WB) defines extreme poverty by particular consumption level. This is called the poverty line and it is pegged at US$2.15. In other words, anyone living on less than $2.15 a day is considered to be living in extreme poverty.

Anyone living on less than $2.15 a day is considered to be living in extreme poverty.

About 648 million people globally were in this situation in 2019.

But if you did a mental calculation — multiplying 2.15 by the rupee’s current market exchange rate with the US dollar (around 82) — and arrived at Rs 176 a day as the Indian equivalent of the international poverty line, you’d be wrong.

That’s because this $2.15 level is based on purchasing power parity (PPP). Simply put, the PPP equivalent of $2.15 is the number of Indian rupees an Indian would need to buy the same basket of goods in India that an American can buy with $2.15 in the US.

That equivalent in India is Rs 46, not Rs 176.

This difference happens because the price of the same goods is different in different countries and it is quite likely that a dollar in India buys far more of the same commodity (say, an egg or banana) or service (say, a haircut) that it buys in the US.

So, the international poverty line of $2.15 implies that any Indian who spends less than Rs 46 a day — in total — is considered to be living in extreme poverty.

Try to recall the last time when your daily expenditure was that low and you’d understand why this is called the poverty line for abject or extreme poverty.

This international poverty line is revised periodically to account for rising prices of goods and services over time.

The very first international poverty line — a dollar a day — was constructed in 1990 using the 1985 prices.

It was then raised to $1.08 a day in 1993, $1.25 a day in 2005 and $1.90 a day in 2011.

The $2.15 one is based on 2017 prices. (International Poverty Line)

What has the World Bank stated about India’s poverty levels?

According to the WB, India is the country with the highest number of poor people

According to the report, the number of people living in abject poverty increased by 56 million (5.6 crore) in 2020.

What’s worse, when the World Bank used the data from the Centre for Monitoring Indian Economy (CMIE), it found that the number of people living in abject poverty increased by 56 million (5.6 crore) in 2020.

In other words, according to this estimate, 8 out of every 10 people in the world who were pushed into poverty during Covid were in India.

India’s problem, however, isn’t just that it has the largest number of people in the world living below the extreme poverty line.

According to the Bank, close to 600 million Indians survive at less than $3.65 (Rs 84 -Calculated through PPP) a day level of expenditure.

Now many may simply wish to deny or dispute these figures, partly because they use CMIE data. But the only reason why the World Bank was forced to use data from CMIE is that there are no official estimates of poverty available since 2011. “The government decided not to release the 2017/18 NSS round because of concerns about data quality,”.

Who can India learn from?

Over the past week, there has been some acknowledgement that India faces three rather acute and growing problems: Widespread unemployment, widening inequalities and deepening poverty.

They require actual policy solutions. Without the right policies, India’s demographic dividend is looking more like a demographic bomb.

But there is one country — China — which is not only comparable to India in terms of the population size but is also globally recognised to have alleviated poverty at historically unprecedented speed and scale.

Perhaps, understanding what China did may provide some clues to Indian policymakers.

What did China achieve?

Intending to provide lessons to other developing countries, the World Bank and China’s Ministry of Finance undertook a study in 2019 to understand what China achieved and how it did it. This study was finally published earlier this year.

The World Bank found that between 1978 and 2019, China’s poverty headcount dropped from 770 million to 5.5 million people.

In other words, China lifted 765 million (76.5 crore) people from extreme poverty in the past four decades.

It means, on average, every year China pulled 19 million (1.9 crore) poor people out of extreme poverty for the past 40 years.

In doing so, China accounted for almost 75 per cent of the global reduction in the number of people living in extreme poverty during this period.

In 2021, China declared that it has eradicated extreme poverty according to the national poverty threshold, lifting 765 million people out of poverty since 1978, and that it has built a “moderately prosperous society in all respects.”

Decades of progress in China are also reflected in substantial improvements in other measures of well-being.

Life expectancy at birth went from 66 years in 1978 to 77 years by 2019, and the infant mortality rate dropped from 52 in 1978 to 6.8 per thousand infants in 2019.

Education achievements in China were also relatively higher than in its peers before 1978 and progressed further since, as the country universalised basic and secondary education.

Taken together, improvements in health, education, and income over the four decades are reflected in China’s rising position in the Human Development Index from 106 (out of 144 countries) in 1990 to 85 (out of 189 countries) in 2019, and the narrowing of the gaps with other large developing countries.

How did China do it?

The main conclusion is that China’s poverty reduction success relied mainly on two pillars.

The first pillar was rapid economic growth, supported by broad-based economic transformation, which provided new economic opportunities for the poor and raised average incomes

The report states that China’s poverty reduction story is primarily a growth story. But rapid and sustained economic growth was accompanied by a broad-based economic transformation.

In other words, reforms began in the agricultural sector, where poor people could benefit directly from improvements in productivity associated with the introduction of market incentives.

“The development of low-skilled, labor-intensive industries provided a source of employment for workers released from agriculture.

Urbanization helped migrants take advantage of the new opportunities in the cities, and migrant transfers boosted incomes of their relatives remaining in the villages.

Public investment in infrastructure improved living conditions in rural areas but also connected them with urban and export markets,” states the report.

A crucial point to note here from India’s perspective is that reforms were gradual. Reforms in all these areas were incremental, which may have helped businesses and the population adjust to the rapid pace of change.

“The gradualism adopted by China in reforming the economy (associated with Deng Xiaoping saying ‘Crossing the river by feeling the stones’) was reflected in the incremental approach toward the liberalization of agricultural and industrial product markets, the managed approach toward migration and urbanization, and a much larger role for the state in ownership of key assets and the allocation of resources than in other market economies,” finds the World Bank.

The second pillar was government policies to alleviate persistent poverty, which initially targeted areas disadvantaged by geography and a lack of economic opportunities, but subsequently focused on poor households, irrespective of their location.

“Broad economic reforms were complemented by strategies, policies, and programs directly targeted at poverty alleviation. China’s poverty alleviation strategy can be characterized as ‘development oriented,’ implying a focus on creating economic opportunities as a means to escape poverty. It evolved from an area-based approach, targeting poor counties and villages as a whole, to a set of interventions targeted at poor households,” states the report.

A component of these policies were social protection policies for poor households and they included specific programs in social assistance, social insurance, social welfare, and other targeted social policies

Two other factors that mattered heavily

“China’s success benefited from effective governance, which was key to the successful implementation of the growth strategy as well as the evolving set of targeted poverty reduction policies,” states the World Bank. This meant that the institutional arrangements China developed to deliver outcomes were shaped by its specific context.

For instance, China’s size necessitated decentralized implementation arrangements, with significant scope for local experimentation, and a high degree of competition among local governments.

Of course, to achieve coherence, local experimentation was subject to strong monitoring and accountability between levels of government.

China also benefited from some favorable initial conditions at the time of opening up, such as a relatively high level of human capital, which is widely recognized as a critical input for the population to rapidly benefit from new economic opportunities once market reforms set in.

The World Bank finds that for a country with a level of per capita income among the lowest in the world, China’s population in 1978 had relatively high human capital endowments. In 1949, only 7 percent of those ages 15–64 had completed primary school in China.

“Massive investment in education and expansion of health care since the 1950s resulted in real achievements: in 1978, the infant mortality rate was 52 per 1,000 births, less than half of the average in China’s income group; life expectancy at birth at 66 years far exceeded that of other developing countries; the primary school enrollment rate was 96 per cent; and the secondary school enrollment rate was 49.9 per cent,” it states.

Do you think India can replicate the Chinese success in reducing poverty? If so, are we on track? Are we doing enough?


 

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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.

  • Globally, around 80% of wastewater flows back into the ecosystem without being treated or reused, according to the United Nations.

    This can pose a significant environmental and health threat.

    In the absence of cost-effective, sustainable, disruptive water management solutions, about 70% of sewage is discharged untreated into India’s water bodies.

    A staggering 21% of diseases are caused by contaminated water in India, according to the World Bank, and one in five children die before their fifth birthday because of poor sanitation and hygiene conditions, according to Startup India.

    As we confront these public health challenges emerging out of environmental concerns, expanding the scope of public health/environmental engineering science becomes pivotal.

    For India to achieve its sustainable development goals of clean water and sanitation and to address the growing demands for water consumption and preservation of both surface water bodies and groundwater resources, it is essential to find and implement innovative ways of treating wastewater.

    It is in this context why the specialised cadre of public health engineers, also known as sanitation engineers or environmental engineers, is best suited to provide the growing urban and rural water supply and to manage solid waste and wastewater.

    Traditionally, engineering and public health have been understood as different fields.

    Currently in India, civil engineering incorporates a course or two on environmental engineering for students to learn about wastewater management as a part of their pre-service and in-service training.

    Most often, civil engineers do not have adequate skills to address public health problems. And public health professionals do not have adequate engineering skills.

     

    India aims to supply 55 litres of water per person per day by 2024 under its Jal Jeevan Mission to install functional household tap connections.

    The goal of reaching every rural household with functional tap water can be achieved in a sustainable and resilient manner only if the cadre of public health engineers is expanded and strengthened.

    In India, public health engineering is executed by the Public Works Department or by health officials.

    This differs from international trends. To manage a wastewater treatment plant in Europe, for example, a candidate must specialise in wastewater engineering. 

    Furthermore, public health engineering should be developed as an interdisciplinary field. Engineers can significantly contribute to public health in defining what is possible, identifying limitations, and shaping workable solutions with a problem-solving approach.

    Similarly, public health professionals can contribute to engineering through well-researched understanding of health issues, measured risks and how course correction can be initiated.

    Once both meet, a public health engineer can identify a health risk, work on developing concrete solutions such as new health and safety practices or specialised equipment, in order to correct the safety concern..

     

    There is no doubt that the majority of diseases are water-related, transmitted through consumption of contaminated water, vectors breeding in stagnated water, or lack of adequate quantity of good quality water for proper personal hygiene.

    Diseases cannot be contained unless we provide good quality and  adequate quantity of water. Most of the world’s diseases can be prevented by considering this.

    Training our young minds towards creating sustainable water management systems would be the first step.

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    To leverage this opportunity even further, India needs to scale up in the same direction.

    Consider this hypothetical situation: Rajalakshmi, from a remote Karnataka village spots a business opportunity.

    She knows that flowers, discarded in the thousands by temples can be handcrafted into incense sticks.

    She wants to find a market for the product and hopefully, employ some people to help her. Soon enough though, she discovers that starting a business is a herculean task for a person like her.

    There is a laborious process of rules and regulations to go through, bribes to pay on the way and no actual means to transport her product to its market.

    After making her first batch of agarbathis and taking it to Bengaluru by bus, she decides the venture is not easy and gives up.

    On the flipside of this is a young entrepreneur in Bengaluru. Let’s call him Deepak. He wants to start an internet-based business selling sustainably made agarbathis.

    He has no trouble getting investors and to mobilise supply chains. His paperwork is over in a matter of days and his business is set up quickly and ready to grow.

    Never mind that the business is built on aggregation of small sellers who will not see half the profit .

    Is this scenario really all that hypothetical or emblematic of how we think about entrepreneurship in India?

    Between our national obsession with unicorns on one side and glorifying the person running a pakora stall for survival as an example of viable entrepreneurship on the other, is the middle ground in entrepreneurship—a space that should have seen millions of thriving small and medium businesses, but remains so sparsely occupied that you could almost miss it.

    If we are to achieve meaningful economic growth in our country, we need to incorporate, in our national conversation on entrepreneurship, ways of addressing the missing middle.

    Spread out across India’s small towns and cities, this is a class of entrepreneurs that have been hit by a triple wave over the last five years, buffeted first by the inadvertent fallout of demonetization, being unprepared for GST, and then by the endless pain of the covid-19 pandemic.

    As we finally appear to be reaching some level of normality, now is the opportune time to identify the kind of industries that make up this layer, the opportunities they should be afforded, and the best ways to scale up their functioning in the shortest time frame.

    But, why pay so much attention to these industries when we should be celebrating, as we do, our booming startup space?

    It is indeed true that India has the third largest number of unicorns in the world now, adding 42 in 2021 alone. Braving all the disruptions of the pandemic, it was a year in which Indian startups raised $24.1 billion in equity investments, according to a NASSCOM-Zinnov report last year.

    However, this is a story of lopsided growth.

    The cities of Bengaluru, Delhi/NCR, and Mumbai together claim three-fourths of these startup deals while emerging hubs like Ahmedabad, Coimbatore, and Jaipur account for the rest.

    This leap in the startup space has created 6.6 lakh direct jobs and a few million indirect jobs. Is that good enough for a country that sends 12 million fresh graduates to its workforce every year?

    It doesn’t even make a dent on arguably our biggest unemployment in recent history—in April 2020 when the country shutdown to battle covid-19.

    Technology-intensive start-ups are constrained in their ability to create jobs—and hybrid work models and artificial intelligence (AI) have further accelerated unemployment. 

    What we need to focus on, therefore, is the labour-intensive micro, small and medium enterprise (MSME). Here, we begin to get to a definitional notion of what we called the mundane middle and the problems it currently faces.

    India has an estimated 63 million enterprises. But, out of 100 companies, 95 are micro enterprises—employing less than five people, four are small to medium and barely one is large.

    The questions to ask are: why are Indian MSMEs failing to grow from micro to small and medium and then be spurred on to make the leap into large companies?

     

    At the Global Alliance for Mass Entrepreneurship (GAME), we have advocated for a National Mission for Mass Entrepreneurship, the need for which is more pronounced now than ever before.

    Whenever India has worked to achieve a significant economic milestone in a limited span of time, it has worked best in mission mode. Think of the Green Revolution or Operation Flood.

    From across various states, there are enough examples of approaches that work to catalyse mass entrepreneurship.

    The introduction of entrepreneurship mindset curriculum (EMC) in schools through alliance mode of working by a number of agencies has shown significant improvement in academic and life outcomes.

    Through creative teaching methods, students are encouraged to inculcate 21st century skills like creativity, problem solving, critical thinking and leadership which are not only foundational for entrepreneurship but essential to thrive in our complex world.

    Udhyam Learning Foundation has been involved with the Government of Delhi since 2018 to help young people across over 1,000 schools to develop an entrepreneurial mindset.

    One pilot programme introduced the concept of ‘seed money’ and saw 41 students turn their ideas into profit-making ventures. Other programmes teach qualities like grit and resourcefulness.

    If you think these are isolated examples, consider some larger data trends.

    The Observer Research Foundation and The World Economic Forum released the Young India and Work: A Survey of Youth Aspirations in 2018.

    When asked which type of work arrangement they prefer, 49% of the youth surveyed said they prefer a job in the public sector.

    However, 38% selected self-employment as an entrepreneur as their ideal type of job. The spirit of entrepreneurship is latent and waiting to be unleashed.

    The same can be said for building networks of successful women entrepreneurs—so crucial when the participation of women in the Indian economy has declined to an abysmal 20%.

    The majority of India’s 63 million firms are informal —fewer than 20% are registered for GST.

    Research shows that companies that start out as formal enterprises become two-three times more productive than a similar informal business.

    So why do firms prefer to be informal? In most cases, it’s because of the sheer cost and difficulty of complying with the different regulations.

    We have academia and non-profits working as ecosystem enablers providing insights and evidence-based models for growth. We have large private corporations and philanthropic and funding agencies ready to invest.

    It should be in the scope of a National Mass Entrepreneurship Mission to bring all of them together to work in mission mode so that the gap between thought leadership and action can finally be bridged.

     

    Heat wave is a condition of air temperature which becomes fatal to human body when exposed. Often times, it is defined based on the temperature thresholds over a region in terms of actual temperature or its departure from normal.

    Heat wave is considered if maximum temperature of a station reaches at least 400C or more for Plains and at least 300C or more for Hilly regions.

    a) Based on Departure from Normal
    Heat Wave: Departure from normal is 4.50C to 6.40C
    Severe Heat Wave: Departure from normal is >6.40C

    b) Based on Actual Maximum Temperature

    Heat Wave: When actual maximum temperature ≥ 450C

    Severe Heat Wave: When actual maximum temperature ≥470C

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    It is occurring mainly during March to June and in some rare cases even in July. The peak month of the heat wave over India is May.

    Heat wave generally occurs over plains of northwest India, Central, East & north Peninsular India during March to June.

    It covers Punjab, Haryana, Delhi, Uttar Pradesh, Bihar, Jharkhand, West Bengal, Odisha, Madhya Pradesh, Rajasthan, Gujarat, parts of Maharashtra & Karnataka, Andhra Pradesh and Telengana.

    Sometimes it occurs over Tamilnadu & Kerala also.

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    However, maximum temperatures more than 45°C observed mainly over Rajasthan and Vidarbha region in month of May.

     

     

    a. Transportation / Prevalence of hot dry air over a region (There should be a region of warm dry air and appropriate flow pattern for transporting hot air over the region).

    b. Absence of moisture in the upper atmosphere (As the presence of moisture restricts the temperature rise).

    c. The sky should be practically cloudless (To allow maximum insulation over the region).

    d. Large amplitude anti-cyclonic flow over the area.

    Heat waves generally develop over Northwest India and spread gradually eastwards & southwards but not westwards (since the prevailing winds during the season are westerly to northwesterly).

     

    The health impacts of Heat Waves typically involve dehydration, heat cramps, heat exhaustion and/or heat stroke. The signs and symptoms are as follows:
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    Norman Borlaug and MS Swaminathan in a wheat field in north India in March 1964

    Political independence does not have much meaning without economic independence.

    One of the important indicators of economic independence is self-sufficiency in food grain production.

    The overall food grain scenario in India has undergone a drastic transformation in the last 75 years.

    India was a food-deficit country on the eve of Independence. It had to import foodgrains to feed its people.

    The situation became more acute during the 1960s. The imported food had to be sent to households within the shortest possible time.

    The situation was referred to as ‘ship to mouth’.

    Presently, Food Corporation of India (FCI) godowns are overflowing with food grain stocks and the Union government is unable to ensure remunerative price to the farmers for their produce.

    This transformation, however, was not smooth.

    In the 1960s, it was disgraceful, but unavoidable for the Prime Minister of India to go to foreign countries with a begging bowl.

    To avoid such situations, the government motivated agricultural scientists to make India self-sufficient in food grain production.

    As a result, high-yield varieties (HYV) were developed. The combination of seeds, water and fertiliser gave a boost to food grain production in the country which is generally referred to as the Green Revolution.

    The impact of the Green Revolution, however, was confined to a few areas like Punjab, Haryana, western Uttar Pradesh in the north and (unified) Andhra Pradesh in the south.

    Most of the remaining areas were deficit in food grain production.

    Therefore the Union government had to procure food grain from surplus states to distribute it among deficit ones.

    At the time, farmers in the surplus states viewed procurement as a tax as they were prevented from selling their surplus foodgrains at high prices in the deficit states.

    As production of food grains increased, there was decentralisation of procurement. State governments were permitted to procure grain to meet their requirement.

    The distribution of food grains was left to the concerned state governments.

    Kerala, for instance, was totally a deficit state and had to adopt a distribution policy which was almost universal in nature.

    Some states adopted a vigorous public distribution system (PDS) policy.

    It is not out of place to narrate an interesting incident regarding food grain distribution in Andhra Pradesh. The Government of Andhra Pradesh in the early 1980s implemented a highly subsidised rice scheme under which poor households were given five kilograms of rice per person per month, subject to a ceiling of 25 kilograms at Rs 2 per kg. The state government required two million tonnes of rice to implement the scheme. But it received only on one million tonne from the Union government.

    The state government had to purchase another million tonne of rice from rice millers in the state at a negotiated price, which was higher than the procurement price offered by the Centre, but lower than the open market price.

    A large number of studies have revealed that many poor households have been excluded from the PDS network, while many undeserving households have managed to get benefits from it.

    Various policy measures have been implemented to streamline PDS. A revamped PDS was introduced in 1992 to make food grain easily accessible to people in tribal and hilly areas, by providing relatively higher subsidies.

    Targeted PDS was launched in 1997 to focus on households below the poverty line (BPL).

    Antyodaya Anna Yojana (AAY) was introduced to cover the poorest of the poor.

    Annapoorna Scheme was introduced in 2001 to distribute 10 kg of food grains free of cost to destitutes above the age of 65 years.

    In 2013, the National Food Security Act (NFSA) was passed by Parliament to expand and legalise the entitlement.

    Conventionally, a card holder has to go to a particular fair price shop (FPS) and that particular shop has to be open when s/he visits it. Stock must be available in the shop. The card holder should also have sufficient time to stand in the queue to purchase his quota. The card holder has to put with rough treatment at the hands of a FPS dealer.

    These problems do not exist once ration cards become smart cards. A card holder can go to any shop which is open and has available stocks. In short, the scheme has become card holder-friendly and curbed the monopoly power of the FPS dealer. Some states other than Chhattisgarh are also trying to introduce such a scheme on an experimental basis.

    More recently, the Government of India has introduced a scheme called ‘One Nation One Ration Card’ which enables migrant labourers to purchase  rations from the place where they reside. In August 2021, it was operational in 34 states and Union territories.

    The intentions of the scheme are good but there are some hurdles in its implementation which need to be addressed. These problems arise on account of variation in:

    • Items provided through FPS
    • The scale of rations
    • The price of items distributed through FPS across states. 

    It is not clear whether a migrant labourer gets items provided in his/her native state or those in the state s/he has migrated to and what prices will s/he be able to purchase them.

    The Centre must learn lessons from the experiences of different countries in order to make PDS sustainable in the long-run.

    For instance, Sri Lanka recently shifted to organic manure from chemical fertiliser without required planning. Consequently, it had to face an acute food shortage due to a shortage of organic manure.

    Some analysts have cautioned against excessive dependence on chemical fertiliser.

    Phosphorus is an important input in the production of chemical fertiliser and about 70-80 per cent of known resources of phosphorus are available only in Morocco.

    There is possibility that Morocco may manipulate the price of phosphorus.

    Providing excessive subsidies and unemployment relief may make people dependent, as in the case of Venezuela and Zimbabwe.

    It is better to teach a person how to catch a fish rather than give free fish to him / her.

    Hence, the government should give the right amount of subsidy to deserving people.

    The government has to increase livestock as in the case of Uruguay to make the food basket broad-based and nutritious. It has to see to it that the organic content in the soil is adequate, in order to make cultivation environmentally-friendly and sustainable in the long-run.

    In short, India has transformed from a food-deficit state to a food-surplus one 75 years after independence. However, the government must adopt environmental-friendly measures to sustain this achievement.

     

    Agroforestry is an intentional integration of trees on farmland.

    Globally, it is practised by 1.2 billion people on 10 per cent area of total agricultural lands (over 1 billion hectares).

    It is widely popular as ‘a low hanging fruit’ due to its multifarious tangible and intangible benefits. 

    The net carbon sequestered in agroforestry is 11.35 tonnes of carbon per ha

    A panacea for global issues such as climate change, land degradation, pollution and food security, agroforestry is highlighted as a key strategy to fulfil several targets:

        1. Kyoto Protocol of 2001
        2. Reducing Emissions from Deforestation and Forest Degradation (REDD) as well as REDD+ mechanisms proposed by the United Nations Framework Convention on Climate Change
        3. United Nations-mandated Sustainable Developmental Goals (SDG)
        4. Paris Agreement 
        5. Carbon Neutrality

     

    In 2017, a New York Times bestseller Project Drawdown published by 200 scientists around the world with a goal of reversing climate change, came up with the most plausible 100 solutions to slash–down greenhouse gas (GHG) emissions. 

    Out of these 100 solutions, 11 strategies were highlighted under the umbrella of agroforestry such as:-

    1. multistrata agroforestry,
    2. afforestation,
    3. tree intercropping,
    4. biomass production,
    5. regenerative agriculture,
    6. conservation agriculture,
    7. farmland restoration,
    8. silvopasture,
    9. tropical-staple tree,
    10. intercropping,
    11. bamboo and indigenous tree–based land management.

     

    Nowadays, tree-based farming in India is considered a silver bullet to cure all issues.

    It was promoted under the Green India mission of 2001, six out of eight missions under the National Action Plan on Climate Change (NAPCC) and National Agroforestry and Bamboo Mission (NABM), 2017 to bring a third of the geographical area under tree cover and offsetting GHG emissions. 

    These long-term attempts by the Government of India have helped enhance the agroforestry area to 13.75 million hectares. 

    The net carbon sequestered in agroforestry is 11.35 tonnes of carbon per ha and carbon sequestration potential is 0.35 tonnes of carbon per ha per year at the country level, according to the Central Agroforestry Research Institute, Jhansi.

    India will reduce an additional 2.5-3 billion tonnes of CO2 by increasing tree cover. This extra tree cover could be achieved through agroforestry systems because of their ability to withstand minimum inputs under extreme situations. 

    Here are some examples which portray the role of agroforestry in achieving at least nine out of the 17 SDGs through sustainable food production, ecosystem services and economic benefits: 

    SDG 1 — No Poverty: Almost 736 million people still live in extreme poverty. Diversification through integrating trees in agriculture unlocks the treasure to provide multifunctional benefits.

    Studies carried out in 2003 in the arid regions of India reported a 10-15 per cent increase in crop yield with Prosopis cineraria (khejari). Adoption of agroforestry increases income & production by reducing the cost of input & production.  

     

    SDG 2 — Zero hunger: Tree-based systems provide food and monetary returns. Traditional agroforestry systems like Prosopis cineraria and Madhuca longifolia (Mahua) provide edible returns during drought years known as “lifeline to the poor people”. 

    Studies showed that 26-50 per cent of households involved in tree products collection and selling act as a coping strategy to deal with hunger.

    SDG 3 — Good health and well-being: Human wellbeing and health are depicted through the extent of healthy ecosystems and services they provide.

    Agroforestry contributes increased access to diverse nutritious food, supply of medicine, clean air and reduces heat stress.

    Vegetative buffers can filter airstreams of particulates by removing dust, gas, microbial constituents and heavy metals. 

    SDG 5 — Gender equality: Throughout the world around 3 billion people depend on firewood for cooking.

    In this, women are the main collectors and it brings drudgery and health issues.

    A study from India stated that almost 374 hours per year are spent by women for collection of firewood. Growing trees nearby provides easy access to firewood and diverts time to productive purposes. 

    SDG 6 — Clean Water and Sanitation: Water is probably the most vital resource for our survival. The inherent capacity of trees offers hydrological regulation as evapotranspiration recharges atmospheric moisture for rainfall; enhanced soil infiltration recharges groundwater; obstructs sediment flow; rainwater filtration by accumulation of heavy metals.

    An extensive study in 35 nations published in 2017 concluded that 30 per cent of tree cover in watersheds resulted in improved sanitisation and reduced diarrheal disease.  

    SDG 7 — Affordable & Clean Energy: Wood fuels are the only source of energy to billions of poverty-stricken people.

    Though trees are substitutes of natural forests, modern technologies in the form of biofuels, ethanol, electricity generation and dendro-biomass sources are truly affordable and clean.

    Ideal agroforestry models possess fast-growing, high coppicing, higher calorific value and short rotation (2-3 years) characteristics and provide biomass of 200-400 tonnes per ha.

    SDG 12 — Responsible consumption and production: The production of agricultural and wood-based commodities on a sustainable basis without depleting natural resources and as low as external inputs (chemical fertilisers and pesticides) to reduce the ecological footprints.

    SDG 13 — Climate action: Globally, agricultural production accounts for up to 24 per cent of GHG emissions from around 22.2 million square km of agricultural area, according to the Food and Agriculture Organization. 

    A 2016 study depicted that conversion of agricultural land to agroforestry sequesters about 27.2± 13.5 tonnes CO2 equivalent per ha per year after establishment of systems. 

    Trees on farmland mitigate 109.34 million tonnes CO2 equivalent annually from 15.31 million ha, according to a 2017 report. This may offset a third of the total GHG emissions from the agriculture sector of India.

    SDG 15 — Life on Land: Agroforestry ‘mimics the forest ecosystem’ to contribute conservation of flora and faunas, creating corridors, buffers to existing reserves and multi-functional landscapes.

    Delivery of ecosystem services of trees regulates life on land. A one-hectare area of homegardens in Kerala was found to have 992 trees from 66 species belonging to 31 families, a recent study showed. 

    The report of the World Agroforestry Centre highlighted those 22 countries that have registered agroforestry as a key strategy in achieving their unconditional national contributions.

    Recently, the  Government of India has allocated significant financial support for promotion of agroforestry at grassroot level to make the Indian economy as carbon neutral. This makes agroforestry a low-hanging fruit to achieve the global goals.