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G.S III - Economy

Issues with India’s Foodgrain Procurement System


Mains: GS – III – Economy | Agriculture - Public Distribution System- Functions, limitations; issues of buffer stocks and food security.

Why in news?

The recent kuruvai season procurement crisis in Tamil Nadu underscores the pressing need to reform procurement mechanisms, incentivize crop diversification, and rationalize food security policies for long-term sustainability.

How does India’s foodgrain procurement system function?

  • India's foodgrain procurement system – It is a centralized system managed by the Food Corporation of India (FCI) and state government agencies to ensure food security.
  • Purpose – To ensure food security, stabilize food prices, and provide a safety net for farmers by guaranteeing a minimum price for their produce.
  • Oversees by – Ministry of Consumer Affairs, Food and Public Distribution.
  • Procurement – Grains are purchased from farmers at a Minimum Support Price (MSP) and stored to the Central Pool for distribution under National Food Security Act (NFSA) and other welfare schemes.
    • This process is supported by both Centralized and Decentralized Procurement Systems (DCP).
  • Storage and distribution – The FCI manages the storage, transportation, and bulk allocation of foodgrains to states.
  • States are then responsible for distributing the grains to beneficiaries through the Public Distribution System (PDS) network of fair price shops.
  • Quality standards – Procurement is based on "Fair Average Quality" (FAQ) specifications.

What are the challenges that identified in India’s foodgrain system?

  • Overproduction of rice – India consistently produces more rice than required.
    • As of October 2025, rice stocks stood at 356.1 lakh tonnes, over three times the buffer norm of 102.5 lakh tonnes (as per the Union Ministry of Consumer Affairs).
  • Procurement-Utilization mismatch – Annual rice procurement (525–547 lakh tonnes) far exceeds PDS offtake (392–427 lakh tonnes), leading to stockpiling and wastage.
  • Wheat vs Rice
    • Balanced wheat– Wheat procurement is more balanced, with PDS offtake sometimes exceeding procurement in two of the last three years (except 2024–25).
    • Surplus rice – Rice remains significantly overstocked compared to wheat, as evidenced from the past procurement and offtake under the NFSA and allied schemes.
  • High food subsidy – The Union government spends Rs. 2 lakh crore annually on food subsidies, largely due to excessive procurement and storage.
  • Import dependence despite domestic potential – While India struggles with excessive rice stocks, it simultaneously bears a heavy financial burden from importing pulses and oilseeds.
    • Pulses – India is the world’s largest producer of pulses (252.4 lakh tonnes in 2024–25), yet imported Rs. 30,000 crore worth in 2023–24.
    • Edible oils – Imports worth Rs. 1.2 lakh crore in 2023–24, covering 55% of demand, despite stagnant domestic oilseed production, approximately 25 million hectares under cultivation.
  • MSP-driven paddy monoculture cultivation – Farmers prefer paddy due to assured returns, discouraging diversification.
  • PDS leakages – An Indian Council for Research on International Economic Relations (ICRIER) report estimated 28% leakage in rice and wheat distribution, raising concerns about systemic inefficiencies.
  • Legacy of liberalized imports – 1990s policy to allow cheap edible oil imports is blamed for stunting domestic oilseed production.
  • Institutional inefficiencies – The centralized procurement and distribution lack agility and transparency.
    • For example,Tamil Nadu Civil Supplies Corporation (TNCSC) faced procurement delays and corruption allegations.

What need to be done to enhance India’s foodgrain system?

  • Reassess procurement policy – Re-evaluate the sustainability of rice-centric procurement under the guise of food security and consider decentralizing procurement and involving more stakeholders.
  • Promote crop diversification – Conduct area-specific market studies and provide financial incentives and extension support to reduce farmer risk in switching crops.
  • Rethink export restrictions – The Due to surplus in rice production, the government should permit farmers to export rice without abrupt restrictions, ensuring stable market access and farmer confidence.
  • Strengthen farmer institutions – Empower Farmer Producer Organisations (FPOs) to handle procurement, marketing, and supply chains and facilitate direct tie-ups between producers and processors.
  • Build institutional capacity – Invest in capacity building for FPOs, self-help groups, and cooperatives and use these institutions to promote soil health awareness, market intelligence, and diversification strategies.
  • AI-enabled coordination – Use of technology and AI systems to improve coordination among stakeholders in food procurement and distribution.

What lies ahead?

  • Changes in such a complex system cannot happen overnight but a beginning can be made.
  • It is time that agriculture experts, farmers, food security specialists, policy makers and planners collectively deliberated on ways to plug the loopholes in the system, if not reform it.

Reference

The Hindu | Time to sort out India’s cereal mess

 

 

 

 

 

 

 

G.S III - Economy

National Green Hydrogen Mission (NGHM)


Mains: GS-III – Economy - Infrastructure: Energy.

Why in news?

India is reducing fossil fuel dependence and ramping up domestic clean energy production, in line with its vision of achieving Net Zero by 2070. In this transition, Green hydrogen is emerging as a scalable, clean fuel to decarbonize hard-to-abate sectors.

What is Green Hydrogen?

  • Definition – Hydrogen produced using renewable energy, such as solar or wind power, instead of fossil fuels.
  • Process – Water is split into hydrogen and oxygen via electrolysis powered by clean energy from solar panels or wind turbines.
  • Emission Standard – As per Indian norms, it qualifies as “green” if emissions is very low, not more than 2 kg of CO₂ equivalent for every 1 kg of Hydrogen produced.
  • Alternate Source – Green Hydrogen can also be produced by converting biomass (like agricultural waste) into hydrogen, as long as emissions remain below the same limit.

What is National Green Hydrogen Mission?

  • Launch – In 2023, as an umbrella programme to develop a Green Hydrogen ecosystem (announced by the Prime Minister in 2021’s Independence Day speech).
  • Aim – To catalyse a systemic response to sectoral opportunities and challenges and making India a global hub for the production of green hydrogen.
  • Nodal Ministry – Ministry of New and Renewable Energy (MNRE).
  • Objectives
    • Enhance industrial competitiveness, import reduction, and long-term energy security—linking sustainability with self-reliance.
    • Build the capacity and ecosystem required to position India as a global leader in clean hydrogen.

What are India’s targets for Green Hydrogen by 2030?

  • Renewable Energy Expansion & Investment – Develop 125 GW of renewable energy capacity exclusively for green hydrogen production along with investments exceeding Rs. 8 lakh crore.
  • Employment generation – Expected to create for over 6 lakh people through sectoral expansion.
  • Import Reduction – Reduce fossil fuel imports by more than Rs. 1 lakh crore, and avoid nearly 50 MMT of greenhouse gas emissions every year by 2030.

What are the sectoral innovation & implementation under NGHM?

  • The National Green Hydrogen Mission has an initial outlay of Rs. 19,744 crore till Financial Year 2029-30.
  • 4 key pillars –
    • Policy & Regulatory Framework – Enabling rules, standards, and incentives for green hydrogen adoption
    • Demand Creation – Sectoral pilots in steel, mobility, shipping, and fertilizers
    • R&D & Innovation – Strategic Hydrogen Innovation Partnership (SHIP) with BARC, ISRO, CSIR, IITs
    • Infrastructure & Ecosystem Development – Electrolyser manufacturing, renewable energy integration, certification systems.
  • Implementation Progress (as of May 2025) -
    • 19 companies allocated 862,000 TPA green hydrogen production capacity.
    • 15 firms awarded 3,000 MW electrolyzer manufacturing capacity.
    • Pilot projects launched in steel, mobility, and shipping sectors.

What are the schemes and initiatives taken by the Government to accelerate production and use of green hydrogen?

  • Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme –
  • A financial incentive mechanism with an outlay of Rs. 17,490 crore up to 2029-30 provides incentives for the manufacturing of electrolysers
  • Purpose – Financial incentives to boost domestic manufacturing of electrolysers that are used for production of green hydrogen.
  • Development of Green Hydrogen Hubs –
  • In October 2025, the MNRE has announced the recognition of 3 major ports – will serve as integrated centres for production, consumption, and future export.
    • Deendayal Port Authority (Gujarat),
    • V.O. Chidambaranar Port Authority (Tamil Nadu), and
    • Paradip Port Authority (Odisha).

NGHM

  • Green Hydrogen Certification Scheme of India (GHCI) -
  • Launched - In April 2025 to certify hydrogen as “green” based on lifecycle emissions to ensure transparency, traceability, and credibility for producers, consumers, and export markets.
  • Criteria – Hydrogen must be produced using renewable energy and emit ≤ 2 kg CO₂ equivalent per kg H₂.
    • Mandatory Certification – Required for facilities that receive government subsidies/incentives, or sell or use hydrogen domestically in India.
    • Nodal Authority – Bureau of Energy Efficiency (BEE) accredits agencies for monitoring and certification.
  • R&D initiatives under NGHM
    • Dedicated R&D Scheme - Rs. 400 crore allocated to support 23 cutting-edge projects in - hydrogen production, storage, safety systems, and industrial applications.
    • Start-up Support - Rs. 100 crore Call for Proposals launched to fund start-ups innovating in hydrogen production, transport, storage, and utilization with funding up to Rs. 5 crore per project to promote cost-effective, scalable technologies.

What are the sectoral applications of green hydrogen under NGHM?

  • Fertilizers – Replacing fossil-fuel-based feedstocks with Green Ammonia, the recent auction for 7.24 lakh metric tonnes per annum supply at Rs. 55.75/kg concluded.
  • Petroleum Refining – Facilitating the replacement of fossil-based hydrogen with green hydrogen in refineries to reduce carbon footprint.
  • Steel – 5 pilot projects was launched with public-private collaboration to focus on iron reduction, process innovation, safety, and cost-efficiency in Indian conditions.
  • Road Transport – 5 pilot projects, 37 hydrogen vehicles (15 fuel cell + 22 ICE), 9 refueling stations across 10 different routes.
  • High-Altitude Mobility (Leh) – NTPC in 2024 commissioned the world’s highest green hydrogen mobility project at 3,650 m, which includes 5 intra-city buses and a fueling station.

What are India’s global partnerships in the green hydrogen sector?

  • World Hydrogen Summit 2024 – India debuted with its 1st India Pavilion in Rotterdam, signaling global investment readiness.
  • EU–India Collaboration – Over 30 joint proposals under the Trade and Technology Council on hydrogen production from waste.
  • India–UK Standards Partnership – Workshop held in Feb 2025 to harmonize Regulations, Codes, and Standards (RCS) for safe and scalable hydrogen trade.
  • India–Germany (H2Global) – SECI signed MoU with H2Global Stiftung (Nov 2024) to design market-based mechanisms and enable green hydrogen exports.
  • India–Singapore (Sembcorp) – MoUs signed (Oct 2025) with V.O. Chidambaranar & Paradip Ports to build green hydrogen–ammonia hubs for production, storage, and export.

What lies ahead?

  • Green hydrogen is central to India’s clean energy strategy, promoting a low-carbon and self-reliant economy.
  • The National Green Hydrogen Mission boosts domestic production, innovation, and global market access.
  • It reduces fossil fuel dependence, drives industrial transformation, and strengthens India’s leadership in the global energy transition.

Reference

PIB | Unlocking India’s Green Hydrogen Production Potential

 

Prelim Bits

Grey Seal Milk


Prelims: Current events of national and international importance

Why in News?

A new study carried out by researchers at the University of Gothenburg (Sweden) reveals that grey seal milk is more complex than breast milk.

  • Recent Findings - The study revealed that seal milk had 33% more sugar molecules than in breast milk, which was previously thought to be the most complex.
  • It found that seal milk contains 332 distinct oligosaccharides, a type of sugar that contributes to the development and health of offspring.
  • This is the largest number of oligosaccharides that scientists have found in any kind of milk.
  • For comparison, human milk contains, on average, 100 oligosaccharides.
  • The researchers said that seal milk could be more complex than that of others, as grey seals are exposed to extreme environmental stresses and high exposure to external dangers.
  • A complex milk would help protect their rapidly growing young.
  • Uses - The newly discovered sugar molecules could be added to breast milk substitutes to strengthen the immune system in infants.
  • The unique sugars in seal milk may one day be used to develop medicines for humans.
  • These sugars also play a role in protecting against viruses and bacteria, cultivating the initial flora of the body’s microorganisms and promoting the development of the stomach and intestinal tract.

Grey seals

  • Scientific name - Halichoerus grypus
  • Family - Phocidae (true seals)
  • Gray seals are found in coastal waters throughout the North Atlantic Ocean.
  • They are sometimes called "horseheads" (adult males in particular have large, horse-like heads) because of their large, curved noses.
  • Identification Features
    • Long, horse-like head (called the “sea horse” profile)
    • Large size compared to other seals
    • Males have darker coats and bulkier necks
    • Pups are born with a white fluffy coat.

Grey Seal

  • Gray seals gather in large groups during the mating/pupping and molting seasons.
  • Outside of this, they often share their habitat with harbor seals.
  • Diet - Fish (cod, herring, sand eels), Squid and crustaceans, occasionally seabirds.
  • Conservation Status (IUCN) - Least Concern.
  • Threats -Entanglement in fishing nets, Plastic pollution, Climate change (affecting fish stocks), Disturbance at breeding sites.

Gray seals, like all marine mammals, are protected under the Marine Mammal Protection Act.

Reference

The Indian Express | Grey seal milk

Prelim Bits

INS Mahe


Prelims: Current events of national and international importance

Why in News?

The Indian Navy recently commissioned INS Mahe.

  • It is an Anti-Submarine Warfare Shallow Water Craft.
  • It is the first of the indigenously designed and built Mahe-class ASW-SWC, at the Naval Dockyard in Mumbai.
  • Designed and constructed by - Cochin Shipyard Limited (CSL), Kochi.
  • It is the lead ship of 8 vessels in her class.
  • Nomenclature - The ship takes her name from the historic coastal town of Mahe on the Malabar Coast.
  • Size - These vessels are 78 meters long and 11.36 meters wide, with a draught of about 2.7 meters.
  • The displacement is about 896 tonnes, with a maximum speed of 25 knots and an endurance of 1,800 nautical miles.
  • Key features - It has been designed and constructed as per the classification rules of Det Norske Veritas (DNV), a leading global classification society that sets technical standards for ships and offshore structures.
  • The ships in this class are the largest Indian Naval warships propelled by a diesel engine, waterjet combination.
  • They are designed for underwater surveillance, search and rescue operations, and Low Intensity Maritime Operations (LIMO).
  • The ship is capable of undertaking ASW operations in coastal waters, along with advanced mine-laying capabilities.
  • Significance - It will augment the Indian Navy’s capacity to ensure near-sea dominance, strengthen the coastal security grid, and safeguard India’s maritime interests across the littorals.
  • It bridges the operational gap by giving the Navy the crucial ability to detect and counter stealthy diesel-electric submarines operating close to the coastline, an area where larger surface combatants cannot manoeuvre effectively.
  • Their low draught, advanced sonars, and high manoeuvrability make them essential for securing harbour approaches, sea-lanes leading to major ports, offshore energy assets, and operational bases, all vulnerable and economically vital maritime assets.

The Mahe-class comprises the newly commissioned INS Mahe and the yet-to-be-commissioned Malval, Mangrol, Malpe, Mulki, Magdala, and Machilipatnam.

All these vessels are set to be commissioned in the coming 2–3 years.

Reference

The Indian Express | INS Mahe

Prelim Bits

Lake Biwa


Prelims: Current events of national and international importance

Why in News?

A nearly intact pottery vessel, dating back over 10,000 years, was found at the bottom of Lake Biwa in Japan.

  • Recent Discovery - It is one of the oldest known pottery artifacts in the world, was recovered from an underwater site long believed to hold the secrets of Japan’s ancient past.
  • Measuring 25 centimeters tall, this ancient artifact, believed to have been crafted by early Jomon-period societies, offers a rare and invaluable glimpse into prehistoric Japan.  
  • Lake Biwa – It is the largest freshwater lake in Japan, located entirely within Shiga Prefecture in west-central Honshu.
  • Maximum depth - ~104 m (the northern basin is deep and mesotrophic; the southern basin is shallower and more eutrophic).
  • Shoreline length - ~235 km — long enough that cycling around it at ~20 km/h would take over 10 hours.
  • Inflow/outflow - Hundreds of rivers and streams (catchment area is large); there is one natural outlet, the Seta River (which later becomes part of the Yodo River system) — linking to the sea.
  • Lake age - Lake Biwa is among the world’s ancient lakes. Its geological history spans several million years.
  • Because of its long geological age and stable freshwater environment, Lake Biwa supports rich biodiversity many aquatic plants, animals, fish, molluscs, birds, and more.
  • Lake Biwa and its wetlands have protections; it’s part of a quasi-national park/wildlife sanctuary.
  • Since 1993 the lake is designated under the Ramsar Convention as a wetland of international importance.
  • Historical Significance - Lake Biwa’s unique geography plays a critical role in preserving submerged artifacts.
  • The lake’s valley-like depression and the ongoing tectonic movements around the site have kept the artifacts in situ, preserving them for thousands of years.
  • As researchers continue to explore the lakebed, they are uncovering additional clues about the lives of the early people who lived around Lake Biwa, including other pottery vessels and even ancient fishing tools.

Lake BIwa

Reference

Indian Defence Review | Lake Biwa

 

 

 

 

 

 

Prelim Bits

Central Board of Indirect Taxes and Customs (CBIC)


Prelims: Current events of national and international importance

Why in News?

The Central Board of Indirect Taxes and Customs (CBIC) wins top prize in Public Outreach & Communication Category at India International Trade Fair (IITF) 2025.

  • The Central Board of Indirect Taxes and Customs (CBIC) is the apex administrative authority for indirect taxation in India.
  • Working Under - The Department of Revenue, Ministry of Finance.
  • Earlier name - Central Board of Excise and Customs (CBEC).
  • Renamed as - CBIC in 2018 (after roll-out of GST).
  • Constitution - Created under the Central Boards of Revenue Act, 1963.
  • Functions & Responsibilities
    • Administration of Indirect Taxes - GST (Central GST and Integrated GST), Customs duties, Central Excise (on petroleum products, tobacco, etc.)
    • Policy Implementation & Advisory Role - Drafts rules and notifications for indirect taxes, advises the government on tax policy, and Issues circulars for uniform application of tax laws
    • Revenue Collection - Ensures efficient collection of customs and excise duties and prevents tax evasion and smuggling
    • Trade Facilitation - Simplifies procedures for importers/exporters, promotes ease of doing business, modernizes customs through digitisation and faceless assessment.
    • Enforcement & Anti-Smuggling - Investigates tax fraud and evasion, Coordinates with agencies like:
      • DRI (Directorate of Revenue Intelligence)
      • Narcotics Control Bureau
      • Other enforcement agencies
  • Organisational Structure – Chairperson & 6 Members (Customs, GST, Audit, Legal, Administration, etc.)
  • Key Field Formations under CBIC
    • Customs Commissionerates
    • GST Commissionerates
    • Customs Preventive units
    • Central Excise offices
    • DRI, DGARM, NACIN etc.

Reference

PIB | CBIC

Prelim Bits

Arunachaleswarar Temple


Prelims: Current events of national and international importance

Why in News?

Encroachments around Arunachaleswarar Temple demolished for Karthigai Deepam.

  • Location - Tiruvannamalai, Tamil Nadu
  • Deity - Lord Shiva (as Arunachaleswarar / Annamalaiyar), Goddess Unnamalai Amman.
  • Form of Shiva - Agni Lingam (Fire)
  • Associated Hill - Arunachala Hill.
  • Temple type - Dravidian-style Hindu temple.
  • Religious Significance - One of the Pancha Bhoota Sthalams represents the Fire (Agni) elements (Others represent Earth, Water, Air, and Space)
  • Connected with the legend of Shiva as an endless pillar of fire
  • Considered one of the holiest Shiva temples in South India.
  • Architecture - Famous for its massive gopurams (temple towers).
  • Eastern Rajagopuram is about 66 metres tall (one of India’s tallest)
  • Sprawling temple complex with:
    • Large mandapams (halls)
    • Sacred tanks
    • Intricate sculptures
  • Built and expanded mainly by the Chola, Hoysala, and Vijayanagara dynasties
  • Festivals - Karthigai Deepam – the most famous festival
  • A huge sacred flame is lit on Arunachala Hill
  • Symbolizes divine light removing ignorance
  • Girivalam / Giri Pradakshina - Devotees walk around the Arunachala Hill (about 14 km) barefoot, especially on full moon nights.
  • Cultural Importance - Centre for Shaivism and spiritual learning
  • Associated with Saint Ramana Maharshi.

Reference

The HIndu | Arunachaleswarar Temple

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