UPSC Key | Elephant Census, New SEBI rules, Food Safety laws and more

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Front

Govt printed, then shelved its report on elephant census: Count fell by 20% in 5 years

UPSC Syllabus:

Preliminary Examination: Current events of national and international importance

Mains Examination: GS-III: Conservation, environmental pollution and degradation, environmental impact assessment.

What’s the ongoing story- Hundreds of copies of the Environment Ministry’s elephant census report — Status of Elephant in India 2022-23 — have been gathering dust since February this year. The government hasn’t released the report citing a delay in the census in the Northeast.

Prerequisites:

— Know about elephants, their types, Elephant reserves in India, and Conservation status.

— What is the objective of the Elephant census?

— Read about the role and function of the Wildlife Institute of India (WII)

Key takeaways: 

— The data from the unreleased report, reviewed by The Indian Express, shows a 20 per cent drop in the elephant population from five years ago, with the Central Indian and Eastern Ghats even recording an alarming 41 per cent dip compared with 2017 estimates.

— Besides recording the dip in the elephant numbers, the unreleased report identifies “mushrooming developmental projects” such as “unmitigated mining and linear infrastructure construction” as significant threats to the species.

— The elephant census is conducted every five years by the Wildlife Institute of India (WII), an autonomous body under the ministry.

— In the Central Indian and Eastern Ghats cluster which saw the biggest slide in the elephant population, Southern West Bengal, Jharkhand and Orissa saw the maximum loss — 84 per cent, 68 per cent and 54 per cent, respectively.

— The drop in the Western Ghats landscape could be as high as 18 per cent, primarily due to a slide in the elephant population of Kerala by nearly 2,900 (51 per cent) from the revised estimate of 2017. 

— The report also warned that the once-contiguous elephant population in the Western Ghats — southern Maharashtra to Kerala — is “rapidly disconnecting due to changing land use, including expanding commercial plantations (coffee and tea), farmland fencing, human encroachment and mushrooming developmental projects.”

For Your Information:

— The Captive Elephant (Transfer or Transport) Rules, 2024, notified on March 14 after Parliament amended the Wildlife Protection Act, allows transfer of elephants for “religious or any other purpose” by those possessing valid ownership certificates. 

— The transfer and transport rules specify the terms and conditions to be followed for such transfers. Elephants are an endangered species and listed under Schedule I of the Wildlife Protection Act, 1972.

Points to Ponder: 

— What is human-animal conflict?

— What are the issues related to elephant conservation in India?

— What are the initiatives taken by the government?

Post Read Question:

(1) With reference to Indian elephants, consider the following statements: (UPSC CSE 2020)

1. The leader of an elephant group is a female.

2. The maximum gestation period can be 22 months.

3. An elephant can normally go on calving till the age of 40 years only.

4. Among the States in India, the highest elephant population is in Kerala.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 and 4 only

(c) 3 only

(d) 1, 3 and 4 only

Other Important Articles Covering the same topic:

Plug gaps in captive elephant transfer rules to prevent misuse: Jairam to Environment Minister

India’s worry: Long trade route, high shipping rates, corridor risks

UPSC Syllabus:

Preliminary Examination: Current events of national and international importance

Mains Examination: GS-II, GS-III: International Relations, Indian Economy 

What’s the ongoing story- As the conflict in West Asia enters a new and unstable phase, with Iran launching a barrage of missiles on Israel overnight, both global and Indian traders are bracing for a prolonged disruption in trade, as the vital Red Sea shipping route may remain inaccessible to global shipping lines for a much longer duration than previously anticipated, potentially keeping freight rates uncomfortably high.

Prerequisites:

— What are Hezbollah and Houthi?

— What is the ongoing Israel-Hezbollah conflict?

— Read about the  India-Middle East-Europe Economic Corridor (IMEC). 

— Map work: Red Sea, Israel, Lebanon, Suez Canal, Iran, Gaza, Yemen.

Key takeaways: 

— A major escalation of the year-long conflict in West Asia has emerged after Israel, having seemingly concluded its military operation against Hamas in Gaza, shifted its focus to the larger and more powerful Iranian proxy, Hezbollah, by launching a military operation in Lebanon.

— While some see Nasrallah’s assassination as a strategic victory for Israel, as the Hezbollah chief had emerged as one of the most important figures in the Arab world after being credited for being the only Arab force to stop Israeli forces during its 2006 invasion, others, including former Israeli Prime Minister Ehud Olmert in his interview with a TV channel, warned that the Israeli incursion into Lebanon will be “messy” and may conclude with “no clear-cut defeat of the Hezbollah militant group”

— The widening of the conflict has increased the risk of trade disruptions, as Hezbollah shares close ties with the Houthi rebels in Yemen, who are responsible for the majority of the attacks on ships traversing the Red Sea route. This assumes significance for India as it relies heavily on this route through the Suez Canal for its trade with Europe, the US, Africa, and West Asia, as these regions accounted for over $400 billion in FY23, according to Crisil Ratings.

— Exporters have long feared a direct conflict between Israel and Iran as it would mean a protracted disruption of the crucial Red Sea shipping route. 

— However, India’s trade with West Asia has a silver lining due to the neutrality of regional players such as Saudi Arabia, the UAE, Kuwait, and Qatar, who have thus far remained uninvolved in the conflict. 

— Since the Red Sea crisis began, Indian exporters have been asking the government to focus on developing an Indian shipping line of global repute. The request comes as India’s outward remittance on transport services is increasing with rising exports.

— The widening conflict in West Asia could jeopardise the progress of the India-Middle East-Europe Economic Corridor (IMEC), which was announced last year during the G20 meeting in New Delhi.

From the Editorial Page “A mirage called peace”

—P.R. Kumaraswamy writes–  “Violence in the Middle East is rapidly increasing with each passing day…The escalation manifests through five different but closely connected fronts that Israel is currently fighting: The Gaza Strip, pockets of the West Bank, Hezbollah in the north, Houthi forces in Yemen along the Red Sea and the Islamic Republic.”

— “Since the October 7 attack by Hamas, Israel has extended its counter-offensive. Beginning with its full-scale land offensive on October 27, it has expanded its intensity and reach.”

— “For Iran, Hezbollah has been a cheap, effective and cost-effective option against Israel…On April 14, Hezbollah joined Iran when the latter launched a wave of drones, cruise missiles and ballistic missiles against Israel. Since the assassination of former Hamas Prime Minister Ismail Haniyeh in Tehran on July 31, there have been widespread speculations of Iranian retaliation. The temptations of a Gaza ceasefire seemed to restrain Tehran.”

— “Even before the Lebanese violence, the ongoing Israel-Gaza conflict has crossed several unpleasant, painful and avoidable milestones: The longest war Israel had fought since 1948 and the largest single-event casualty faced by the Palestinians. Both the US and Arab interlocutors — Egypt and Qatar — were unable to bridge the gap. Even domestic pressures within Israel against Prime Minister Benjamin Netanyahu have been insufficient to change the course of events.”

— “Scores of people in the region and beyond want a ceasefire, temporary suspension of hostilities and resumption of dialogue; but warring leaders see the situation differently.”

— “When peace is viewed as “surrender”, there is little one can accomplish. Without an effective carrot-and-stick strategy for all players — especially Israel, Iran, Hamas and Hezbollah — there is little the international community can do.”

For Your Information:

—  Hezbollah translates to “Party of God”. The think tank Centre for Strategic and International Studies (CSIS) has previously described it as “The world’s most heavily armed non-state actor, with a large and diverse stockpile of unguided artillery rockets, as well as ballistic, antiair, antitank, and antiship missiles.”

— Hezbollah originated during the Lebanese Civil War (1975-1990), which was a result of “long-simmering discontent over the large, armed Palestinian presence in the country”, according to the Council on Foreign Relations (CFR).

— The Houthis are a large clan belonging to the Zaidi Shia sect, with roots in Yemen’s northwestern Saada province. Zaidis make up around 35 per cent of Yemen’s population.

— IMEC is a connectivity project that seeks to develop a seamless infrastructure of ports, railways, roads, sea lines and pipelines to enhance trade among India, the Arabian Peninsula, the Mediterranean region and Europe.

Points to Ponder: 

— What is the history of conflict in the West Asia?

— What is the significance of West Asia for India?

— What do recent developments in the middle east mean for India’s Middle East policy?

— What are the various measures taken to ensure conflict resolution in the middle east? 

Post Read Question:

Prelims

(2) What is/are the impacts on India of the conflict between Israel and Iran?

1. Decrease in export

2. Increase in import

3. Change of trade route

Select the correct answer using the codes given below:

(a) 1, 2 and 3

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1 and 2 only

Mains

Examine the opportunities for a lasting West Asia peace solution in the context of the ‘historic’ talks started in September 2010. (UPSC CSE 2010)

Explained

New SEBI rules to curb F&O frenzy, aim to protect small investors

UPSC Syllabus:

Preliminary Examination: Current events of National importance, Economic & Social Development

Mains Examination: GS-III: Indian Economy

What’s the ongoing story- Markets regulator Securities and Exchange Board of India (SEBI) has released a set of six measures to strengthen the equity index derivatives — also known as equity futures & options (F&O) — framework.

Prerequisites:

— Read about SEBI

— What are futures & options (F&O)?

— Difference between capital and money market

Key takeaways:

— The F&O segment has been witnessing an exponential jump in trading volumes, with the majority of investors incurring losses. The increased activity in the derivatives market has become a cause of concern for the government and regulators, as surging F&O volumes have started to impinge on capital formation and pose a systemic risk to the country’s economic growth.

— Market experts believe that tighter F&O rules could help limit speculation in the derivatives market, protect the interest of retail investors, increase constructive participation, and improve market stability.

New Rules

— Contract size for index derivatives recalibrated: The minimum contract size at the time of its introduction in the market has been recalibrated to Rs 15 lakh from the existing stipulation of Rs 5-10 lakh.

—Implication: V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the increase in contract size can curb speculation by small traders who have been hyperactive in the F&O segment.

— Upfront collection of options premium: To deny undue intra-day leverage to the end client, and discourage the practice of allowing positions beyond the collateral at the end client-level, SEBI has mandated the collection of options premium upfront from options buyers by the trading member (TM) or the clearing member (CM). The new rule will be applicable from February 1, 2025.

—Implication: This is primarily to ensure prudent risk management at the investor level, Puneet Sharma, CEO and Fund Manager at Whitespace Alpha, a multi-asset class asset management firm, said.

—Rationalisation of weekly index derivatives products: SEBI has said that expiry-day trading in index options at a time when option premiums are low, is largely speculative. Stock exchanges offer short-tenure options contracts on indices which expire on every day of the week, leading to hyperactive trading in index options on expiry day.

—Implication:  Sanghavi said this will limit the avenues for uncovered/ naked options selling. A naked position one that is not hedged.  SEBI is focusing on reducing the volume of purely speculative trades, and thereby curbing the frequent price fluctuations that can destabilise the market.

—Intra-day monitoring of position limits: Amid large volumes of trading on expiry day, there is a possibility of undetected intra-day positions beyond permissible limits. “To address the risk of position creation beyond permissible limits…existing position limits for equity index derivatives shall henceforth also be monitored intra-day by exchanges,” SEBI said. This will be effective from April 1, 2025.

—Implication: Intra-day monitoring of position limits, rather than just end-of-day checks, reflects a commitment to ensuring real-time compliance with regulatory norms.

—Removal of ‘calendar spread’ treatment on expiry day: Expiry day can see significant ‘basis’ risk, where the value of a contract expiring on the day can move very differently from the value of similar contracts expiring in future.

—Implication: “This will force players to do rollovers early and not wait until expiry day, easing expiry day ‘basis’ speculation,” Sanghavi said.

—Increase in ‘tail risk’ coverage on day of expiry: The regulator has increased the ‘tail risk’ coverage by levying an additional ‘Extreme Loss Margin’ (ELM) of 2% for short options contracts. ELM is the margin that exchanges charge over and above the normal margin requirement. Tail risk is the chance of a loss due to a rare event.

—Implication: This will ensure that market participants have more skin in the game, particularly on days when volatility spikes. It acts as a buffer against abrupt market moves driven by leveraged short options, protecting both investors and the broader market ecosystem from significant downside risk.

For Your Information:

From Editorial:

— In recent years, trade volumes in the Indian derivative markets have dramatically outpaced the cash market, according to Axis Mutual Fund research. The research also noted that India’s derivatives to cash volume ratio was far larger than those of other countries. Much of this growth has been driven by ordinary investors, the majority of whom have lost money in this market but have continued to trade.

— According to a recent report by the stock market regulator, 1.13 crore individuals have lost a stunning Rs 1.81 lakh crore trading in the F&O segment during the last three fiscal years.

— According to the Economic Survey 2023-24, trading in these categories “caters to humans’ gambling instincts” because they have the potential to generate massive rewards.

Points to Ponder:

— What is ‘tail risk’ coverage?

— What is a  ‘calendar spread’ treatment?

Post Read Question:

With reference to the recent guidelines issued by the Securities and Exchange Board of India (SEBI) aimed at regulating the activities of foreign institutional investors (FIIs), discuss the implications of these rules on the Indian stock market and small investors. 

Other Important Articles Covering the same topic:

Sebi tightens F&O rules to curb derivatives market frenzy, protect small investor

Food Safety laws in States

UPSC Syllabus:

Preliminary Examination: Current events of National importance.

Mains Examination: GS-III: Food processing and related industries in India- scope’ and significance, location, upstream and downstream requirements, supply chain management.

What’s the ongoing story- The Uttar Pradesh government last week made it mandatory for food establishments to “prominently” display to customers the names of “the operator, proprietor, manager, and other relevant personnel”. A day later, Himachal Pradesh minister Vikramaditya Singh said that in his state too, “every eatery and fast food cart will have to display the owner’s ID”.

Prerequisites:

— Read about FSSAI

— Read about the Food Safety Index 2024

Key takeaways:

— On July 22, the Supreme Court stayed similar orders passed by police in UP and Uttarakhand for this year’s kanwar yatra. The court said that the “competent authority” under the Food Safety and Standards Act, 2006 (FSSA) could indeed issue such orders, but police could not “usurp” this power.

Regulations for selling food in India

— Anyone who intends to operate a food business is required to either register or licence their business from the Food Safety and Standards Authority of India (FSSAI), a body established under the FSSA to monitor and create regulations for how food should be processed, distributed, sold, and imported to ensure “safe and wholesome” food.

— Under the Food Safety and Standards (Licensing and Registration of Food Businesses) Rules, 2011 (enacted under the FSSA), “Petty Food Manufacturers” such as small-scale food businesses, hawkers, vendors, and stall holders, are required to register with the FSSAI.

— If the registration is approved, the Petty Food Manufacturer receives a registration certificate and a photo identity card “which shall be displayed at a prominent place at all times within the premises or vehicle or cart”.

— Under the same rules, owners of rather large firms must get a licence from the food authority. The licence must also be “displayed at a prominent place at all times within the premises where the Food Business Operator carries on the food business” . In both cases, the owner’s identity and the location of the establishment must already be revealed (by photo ID and FSSAI licence).

— Under Section 63 of the FSSA, any operator who conducts a food company without a licence faces up to six months in prison and a fine of up to Rs 5 lakh.

For Your Information:

— Section 94(1) of the FSSA states: “Subject to the powers of the Central Government and the Food Authority to make rules and regulations respectively, the State Government may, after previous publication and with the previous approval of the Food Authority… make rules to carry out the functions and duties assigned to the State Government and the State Commissioner of Food Safety under this Act and the rules and regulations made thereunder”.

— Matters on which state governments can make rules are detailed in Section 94(2). Under Section 94(2)(a), states can make rules on matters that come under “other functions of the Commissioner of Food Safety under clause (f) of sub-section (2) of section 30”.

— The Commissioner of Food Safety is appointed by the state government under Section 30 to ensure “efficient implementation” of the FSSA and its accompanying rules and regulations. Sections 30(2)(a) to (e) cover specific functions of the Commissioner of Food Safety (carrying out surveys, training programmes, and approving prosecution for offences, etc.); Section 30(2)(f) gives the Commissioner a broad mandate — “such other functions as the State Government may, in consultation with the Food Authority, prescribe”.

— In addition, Section 94(2)(c) allows the state government to make rules for “any other matter which is required to be, or may be prescribed or in respect of which provision is to be made by rules by the State Government”. Section 94(3) requires that the rule must be placed before the state legislature for approval “as soon as may be”.

Points to Ponder:

— What can happen if any provisions, rules, and regulations under the FSSA are violated?

— Can a state government’s directives under FSSA be challenged in court?

Post Read Question:

(3) Consider the following statements:

1. The Commissioner of Food Safety is appointed by the central government under Section 30 to ensure “efficient implementation” of the FSSA (Food Safety and Standards Authority).

2. Matters on which state governments can make rules are detailed in Section 94(2)

Which of the statement(s) given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Other Important Articles Covering the same topic:

This Indian state has secured top position in FSSAI’s State Food Safety Index 2024 for second time in a row

Why FSSAI withdrew its advisory on removing A1, A2 claims on milk and milk products

 

The Ideas Page

A mission’s next step

UPSC Syllabus:

Preliminary Examination: Current events of national and international importance

Mains Examination: GS-III: Science and Technology- developments and their applications and effects in everyday life.

What’s the ongoing story-  Kris Gopalakrishnan writes: What’s common to the following accomplishments — a drone swarm lighting the skies in coordinated splendour at the Beating Retreat ceremony at Rashtrapati Bhavan… All of them are successful outcomes from the Government of India’s Department of Science and Technology’s ambitious National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS).

Prerequisites:

— What is the objective of the National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS)?

— What are cyber-physical systems (CPS)?

Key takeaways: 

— Launched by Prime Minister Narendra Modi in December 2018 with a budget outlay of Rs 3,660 crore, it aims to establish India as a global leader in Cyber-Physical Systems (CPS) — merging the physical world with computational systems, driving breakthroughs in areas like AI/ML, robotics, cybersecurity, and autonomous navigation.

— The Mission has adopted several innovative mechanisms such as the establishment of Technology Innovation Hubs as separate Section 8 companies to translate existing research into high technology readiness level (TRL), market-ready products pertaining to national priorities.

— The IT-OT Security Operations Center (SOC) from C3iHub at IIT Kanpur offers 24/7 cyber threat protection, integrating advanced technologies like intrusion detection, malware analysis, and real-time risk assessment. 

— Designed for both IT and OT assets across sectors such as power and water treatment and implemented at the National Highways Authority of India, it is 3x-5x more cost-effective than larger competitors.

— TiHAN Foundation at IIT Hyderabad focuses on autonomous navigation for both aerial and terrestrial systems, offering a state-of-the-art testbed with advanced features like test tracks, rainfall simulators, and V2X communications.

— AWaDH at IIT Ropar is advancing cyber-physical systems to promote sustainable agriculture and water management.

— Another startup making a difference in the defence sector is COMRADO Aerospace from ARTPARK at IISc, which develops high-performance, cost-effective solutions for commercial and military applications…

— The innovation hubs are expected to move towards self-funding through commercialisation as part of their financial autonomy journey. Indian industry has a significant role to play here. They should fund and co-create their next innovations from these hubs.

— NM-ICPS’ success will play a pivotal role in positioning India as a global leader in CPS technologies, with far-reaching implications for the country’s economic growth, self-reliance, and societal well-being.

For Your Information:

— Prime Minister Narendra Modi on September 26 inaugurated three PARAM Rudra supercomputers worth Rs 130 crore.

— Developed indigenously under the National Supercomputing Mission (NSM), the three new supercomputers are located inPune, Delhi, and Kolkata, and make up a High-Performance Computing (HPC) system tailored for weather and climate research.

Points to Ponder: 

— What is the significance of NM-ICPS?

— What are the other government initiatives to promote research in new-age technology?

— What is the role of private investment in new technologies?

Post Read Question:

Introduce the concept of Artificial Intelligence (AI). How does Al help clinical diagnosis? Do you perceive any threat to privacy of the individual in the use of Al in healthcare? (UPSC CSE 2023)

Other Important Articles Covering the same topic:

Explained: the significance of India’s mission to develop supercomputers

 

Economy

India’s Saudi oil imports jump as Riyadh looks to claw back share lost to Russia

UPSC Syllabus:

Preliminary Examination: Current events of national and international importance

Mains Examination: GS-II, GS-III: International Relations, Indian Economy 

What’s the ongoing story- “India’s crude oil imports recovered sequentially in September as a few under-maintenance refineries are slated to come back on stream in October. Notably, the sequential recovery in import volumes was led by Saudi Arabia, which has reduced its prices in a bid to claw back some of its lost market share in India, according to ship tracking data and industry watchers.”

Prerequisites:

— What is crude oil and what are petroleum products?

— What is the import share of crude oil of total energy imports? 

— What is meant by Brent crude?

— What are the top 5 crude oil-producing countries in the world?

Key takeaways: 

— Oil imports from Russia—New Delhi’s largest source market for oil—also rose in September as India’s overall oil demand expanded.

— Oil imports from Saudi Arabia in September jumped 39.8 per cent month-on-month to 0.73 million barrels per day (bpd), the highest since March this year, per provisional vessel tracking data from commodity market analytics firm Kpler.

— Riyadh had been bleeding market share in India’s oil import basket due to the relatively higher price of its oil than the competing crude grades from other major suppliers—Russia and Iraq. In fact, in June, India’s Saudi Arabian oil imports had crashed to a multi-year low of 0.42 million bpd.

— Riyadh now appears to be making an attempt to win back part of its lost market share by offering its oil at a lower price. Market participants expect import volumes from Saudi Arabia to rise further in the coming months, so long as Riyadh is able to keep its barrels competitive for price-sensitive Indian refiners.

— According to sources in India’s refining sector, if Saudi Arabia gets more aggressive in its effort to increase market share in India, Indian refiners stand to gain as it would lead to increased competition among suppliers. This could force other major suppliers like Russia and Iraq to offer better prices to Indian buyers.

— India’s import of Russian crude rose 6.4 per cent over August to 1.88 million bpd, accounting for a staggering 40.2 per cent of New Delhi’s overall crude oil imports of 4.68 million bpd in September, which were 5 per cent higher sequentially.

— Iraq, India’s second-largest crude oil source market, delivered 0.87 million barrels per day in September, accounting for 18.7% of New Delhi’s total oil imports. Saudi Arabia increased its market share to 15.5% in September, from 11.7% in August.

For Your Information:

— Prior to the war in Ukraine, Iraq and Saudi Arabia were the top two suppliers of crude oil to India. But as the West started weaning itself off Russian energy supplies following Moscow’s February 2022 invasion of Ukraine, Russia started offering discounts on its crude and Indian refiners started snapping up the discounted barrels.

— As the world’s third-largest consumer of crude oil with a high import dependency level of over 85 per cent, India is extremely sensitive to oil prices.

Points to Ponder: 

— What is the status of India’s oil imports?

— Which country is the biggest supplier of crude oil to India?

— What are the geopolitical factors that are influencing petroleum prices in the world today?

— Over-dependence on crude oil can impact India’s energy security. Discuss.

(Thought Process: Diversification of sources, Reducing import dependence – increasing domestic production, use of bio-fuel, electric vehicles, green hydrogen and other renewable energy. Looking for routes and country sources which have less geo-political tensions and can be economical)

Post Read Question:

(4) The top oil importing country for India as of September 2024:

(a) Saudi Arabia

(b) Russia

(c) Iraq

(d) UAE

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