9 PM Daily Current Affairs Brief – April 11th, 2023

Print Friendly and PDF

Dear Friends,

9 PM Brief is our prime initiatives for the preparation of current affairs. What we are providing in this initiative:

  • Ensure that all relevant facts, data, and arguments from today’s newspaper are readily available to you.
  • We have widened the sources to provide you with content that is more than enough and adds value not just for GS but also for essay writing.

It is our endeavor to provide you with the best content, and your feedback is essential for the same. We will be anticipating your feedback and ensure the blog serves as an optimal medium of learning for all the aspirants.

For previous editions of 9 PM BriefClick Here

For individual articles of 9 PM BriefClick Here

Download Factly and 9 PM Weekly Compilations | Arranged Subject-wise and Topic-wise

Mains Oriented Articles

GS PAPER - 2

AAP now national party; NCP, Trinamool lose tag: How is a ‘national party’ in India defined

Source: The post is based on the article “AAP now national party; NCP, Trinamool lose tag: How is a ‘national party’ in India defined” published in The Indian Express on 11th April 2023.

Syllabus: GS 2 – Governance

Relevance: About national and state parties

News: The Election Commission has recognised the Aam Aadmi Party (AAP) as a national party, while revoking that status of the All-India Trinamool Congress, Nationalist Congress Party (NCP) and the Communist Party of India (CPI).

What is a national party?

A party with a national presence is known as a national party. These are usually bigger parties like Congress and BJP. However, some smaller parties are also recognized as national parties.

What are the current National Parties?

The BJP, Congress, CPI(M), Bahujan Samaj Party (BSP), National People’s Party (NPP) and the AAP are the national parties now.

How is a party recognized as a national party?

Click Here to Read

How is a party recognized as a state party?

Click here to Read

A party needs to have at least one MP for every 25 members, or any fraction allotted to the state in the Lok Sabha.

How did AAP fulfil the criteria of being a national party?

AAP has very large vote shares in Delhi and Punjab. In the Goa Assembly elections last year, it received 6.77% of the vote. This way it already fulfilled the criteria for recognition as a state party in three states.

It then required 6% of the vote in the Assembly elections in either Himachal or Gujarat last year to be recognized in a fourth state.

It received almost 13% vote in Gujarat which was more than double the required to be recognized as a state party there. That made it to four states and qualified for the national party.

As the Ukraine war grinds on, Russia, India seek ways to keep defence trade afloat

Source: The post is based on the article “As the Ukraine war grinds on, Russia, India seek ways to keep defence trade afloat” published in The Hindu on 11th April 2023.

Syllabus: GS 2 – International Relations

Relevance: concerns associated with import payments to Russia

News: Russia is currently facing problems with India in resolving payment problems for its defence exports.

What are some of the defence systems being exported by Russia to India?

Russia is now carrying out numerous large contracts with India, including the S-400 systems and two Project 11356 frigates.

The other deals include procurement of additional and modernisation of existing Sukhoi Su-30 MKI and upgrade of MIG-29s.

Moreover, India’s total imports from Russia rose by five times from $8.5 billion in April 2022 to $41.6 billion in February 2023, driven mainly by oil supplies.

As per Stockholm International Peace Research Institute (SIPRI), Russia’s share of arms imports to India fell from 69% in 2012-17 to 46% in 2017-21, while Russia remained the key defense supplier to India.

However, concern lies with the payment of the imports.

What are the concerns with payment?

Currently, Russian banks create vostro accounts with authorized dealer banks in India and pay in rupees, although Russia wants to pay in rubles.

However, the problems with India in adopting ruble payment are – a) the concerns of the Indian financial sector which is overall slowly adopting new mechanisms, and b) lack of trust on the Russian ruble.

After suffering a major shock last year, India is doubtful about the ruble, and there is an understanding that it is almost impossible to evaluate it correctly.

Therefore, the India has no particular interest in trading in the Russian currency and thus, India relies on payments in the rupee.

What is the way ahead?

Russia is upgrading its weapons after testing them in the real time war with Ukraine. This gives Russia a great advantage in terms of defense exports.

Therefore, the issue of payments needs to be resolved in the upcoming meeting between the two nations.

Do the wealthy influence policy-making more across all forms of democracy?

Source- The post is based on the article “Do the wealthy influence policy-making more across all forms of democracy?” published in “The Hindu” on 11th April 2023.

Syllabus: GS2- polity

Relevance– Issues related to democracy

News– The article explains the study ‘Affluence and Influence in a Social Democracy’ published in American Political Science Review (2023).

What are the issues with democracies?

In the real world, no democracy is perfect. Affluent people enjoy a disproportionately greater influence over policy-making compared to the average citizen.

As per a study, public policy favors the affluent section at the expense of the poor and the middle classes. American democracy has certain unique features like heavy reliance of political parties on private donations. It makes policy-making unresponsive to the non-affluent.

Three different studies were conducted in Germany, the Netherlands and Sweden. In all these countries, policy was skewed in favour of the affluent.

How is Norway different from other democracies?

Public policy is skewed toward the preferences of the affluent. But the opinions of the poor and the middle classes also matter.

On economic issues, the preferences of both the poor and the rich seemed to matter almost equally. The link between money and politics was much weaker than in the U.S.

Why are the wealthy in Norway not able to influence policy-making?

Universal welfarism– The first factor is Norway’s universal welfare schemes and high levels of wealth redistribution. Universal welfare measures benefit every citizen. This contrasts with ‘targeted schemes’ which only benefit needy people.

It generates resentment among the non-needy people about how their tax money is being given away in ‘freebies’. It ensures their legitimacy and endorsement across classes.

Income equality– Norway has one of the lowest levels of income inequality in the world. So, the affluent section does not enjoy resource advantage to influence politics.

Resource rich people are not able to convert money power into political influence through political party funding. Here, the contrast between Norway and the U.S. is sharp.

Political candidates in the U.S. rely on large donations from individuals and organizations to run their campaigns. But parties in Norway get two-thirds of their financing from state subsidies.

Television advertising is a huge campaign expense in American elections. But political advertising on television is banned in Norway. This brings down the campaign costs. It also reduces the effect of disparities in spending power between candidates and makes the campaign process less vulnerable to private wealth.

In India, there is the opposite scenario. Electoral bonds empower wealthy private entities to make donations to political parties with zero transparency.

Strong trade unions– Norway has historically had strong trade unions. They have been able to influence economic and social policy through their close political links with the Norwegian Labor Party. It acts as a counter force to the influence of the wealthy.

Norway has vast reserves of oil and natural gas. It enables the government to maintain generous welfare schemes while imposing lower tax rates. It fulfils the needs of both the poor through subsidies and the wealthy through low taxes.

Less wealthy politicians– The country’s political class is not particularly wealthy. The median wealth among Norwegian MPs is zero.

Norwegian laws require proportionate representation of women in government institutions. Women on average have lower income than men. Their higher levels of representation results in greater political influence for women. It translates into greater political influence for lower-income citizens.

A crucial six months for India-U.S. ties

Source- The post is based on the article “A crucial six months for India-U.S. ties” published in “The Hindu” on 11th April 2023.

Syllabus: GS2- Bilateral groupings and agreements

Relevance– India and US bilateral relationship

News– The next six months are going to be crucial for India-U.S. ties. Prime Minister Narendra Modi is likely to head to the U.S. in June, and U.S. President Joe Biden is expected to visit India for the G20 summit later this year.

What are the areas of divergence between India and the US?

The U.S. wants India to change its stance on the Ukraine crisis. India wants a stronger position by the US against China.

India is reluctant to sever its stable relations with Russia. Moscow has just released its foreign policy strategy in which it has identified China and India as its main allies.

India is also the president of the Shanghai Cooperation Organization, a forum that includes China and Russia. On the other hand, the North Atlantic Treaty Organization wants greater participation from Delhi.

What are the areas of convergence between India and the US?

The India-U.S. Initiative on Critical and Emerging Technology is expected to expand strategic technology partnership and defence industrial cooperation between the governments, businesses, and academic institutions of the two countries.

The Indo-Pacific partnership is aimed at promoting security and economic growth, increasing trade and investment, and enhancing connectivity in the region.

The partnership is based on the shared vision of a free, open, and inclusive Indo-Pacific region that is respectful of the sovereignty and territorial integrity of all countries.

The partnership involves a range of initiatives. It includes joint military exercises, information-sharing on security issues, and collaboration on economic and infrastructure development projects. It also involves cooperation in areas such as counter-terrorism, cybersecurity, and maritime security.

One of the key objectives of the Indo-Pacific partnership is to counter the growing influence of China in the region. Both countries share concerns about China’s aggressive actions in the South China Sea, its expanding military presence in the region, and its Belt and Road Initiative.

In recent years, there has been growing interest in diversifying supply chains away from China. The reasons are geopolitical tensions, trade disputes, and concerns about over-reliance on a single country.

India’s growing consumer market makes it an attractive destination for U.S. businesses. India has a relatively low-cost labour force and an abundance of skilled workers. The government has also implemented policies aimed at attracting foreign investment and promoting economic growth.

The U.S. and Indian governments have taken steps to promote closer economic ties and facilitate investment. For example, the U.S.-India Strategic Energy Partnership, aims to enhance cooperation in areas such as energy security and access, and climate change.

How has the India-U.S. relationship seen ups and downs over time?

Ups – The nuclear deal, liberalisation of markets, and the outsourcing of Indian techies for U.S. companies are a few key moments of the relationship.

Indian Americans are among the most successful immigrants in the U.S. India needs the knowledge, skill and investment of the diaspora to regain its global position.

The Green Revolution had transformed India from a shortage economy to one with surplus food with help from the US. The U.S. has also played an important role in making India an IT superpower. Many persons of Indian origin are working in Silicon Valley companies.

The U.S. and India are also partners in combating climate change. This involves a wide range of initiatives. It includes promoting renewable energy, joint research and development projects, and investment in renewable energy infrastructure. The two countries are also aligned on the importance of space technology.

Downs – In the past, there was a trust deficit between India and the U.S. India feels that the U.S. has not given support to it and has instead provided support to Pakistan.

The American pull-out from Afghanistan does not inspire confidence in the U.S. as a trusted partner. The U.S. has been flagging issues related to terrorism, human rights and democracy in India.

Right lessons – on NCERT Syllabus Revision

Source- The post is based on the article “Right lessons” published in “The Hindu” on 11th April 2023.

Syllabus: GS2- Issues related to development and management of education

Relevance– Issues related to syllabus and curriculum

News– Recently, controversy has been created by revision in NCERT textbooks.

Read more NCERT Textbook Revision

Why do textbooks and pedagogy need to be revised periodically?

Knowledge expands continuously. Syllabus revision is essential for a robust education system. Teaching to the younger generation is a collective decision of a society. Formal education is a critical part of it. The values and ethics of the collective are reflected in education.

As any society matures, it might be able to see the darker episodes of the past. It is important to decide the appropriate levels at which learners are introduced to various levels of knowledge.

When does the change in syllabus become problematic?

Sometimes, this exercise is carried out in a politically partisan manner, and in disregard of expertise. It turns out to be toxic when strife, not harmony, is promoted through formal education.

What is the way forward for syllabus change?

India’s growth and development depends almost entirely on educating the young population with vocational and social skills.

Youngsters should turn into caring citizens of a pluralistic nation. They should learn history with the aim of not repeating its tragedies in order to build a harmonious future.

There should be wider, more transparent consultations in shaping the curriculum at all levels.

GS PAPER - 3

Amendment to IT Rules and regulating fake news – Explained, pointwise

For 7PM Editorial Archives click HERE

Introduction

The Ministry of Electronics and Information Technology (MeitY) notified the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023, which are an amendment to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. The Amendment to IT Rules has generated intense debate, with some arguing that they could curtail freedom of speech and expression online, while others believe that they are necessary to prevent the spread of fake news and other harmful content.  

About the recent Amendment to IT Rules

Amendment to IT Rules
Source: Economic Times

Introduction of Fact-Check Bodies: The recent amendment to IT Rules introduces the creation of fact-check bodies to identify whether information related to the Central government is accurate or not.  

Regulation of Social Media Intermediaries: The new amendments also regulate social media intermediaries like Facebook and Twitter to take down posts and internet service providers to block URLs marked as fake, failure to do so could lead to social media platforms losing safe harbor protections.  

Identification and Removal of Fake News: The amendment aims to identify and remove fake news to prevent its spread, especially during tumultuous times where it can incite violence and cause panic.  

Ensuring Accountability of Online Platforms: The amendment seeks to ensure accountability of online platforms by requiring them to follow a code of ethics and take measures to prevent the misuse of their platforms.  

Addressing National Security Concerns: The amendment aims to address national security concerns by allowing the government to take down online content that threatens the sovereignty and integrity of India.  

Providing a Legal Framework for Tech Regulation: The amendment provides a legal framework for tech regulation and clarifies the responsibilities of online platforms, social media intermediaries, and the government in regulating online content.  

Read more: IT Ministry notifies body to flag ‘fake’ content about govt

What is the rationale behind the recent amendment to IT Rules?

The recent amendment to IT Rules aims to regulate social media platforms, online news publishers, and other digital media outlets.  

Regulating Fake News: One of the primary reasons behind the amendment is to regulate the spread of fake news and misinformation through social media platforms and other digital media outlets.  For instance, recently, a malicious disinformation campaign led to law-and-order issues in Tamil Nadu. The news spread false claims about violence against migrant workers from Bihar and was propagated through social media.

Non-liability of Intermediaries: Section 79 of the IT Act states that an intermediary (Digital media and OTTs) shall not be liable for any third party information, data, or communication shared on their platforms. They enjoy a safe harbour regime. This has been used to escape accountability or legal ramifications for content on these platforms. 

Amount of Internet users in the country: The internet in India has expanded significantly, making us the world’s largest connected democracy with over 83 crore people online. Every Indian will be on the Internet by 2025. The internet is now a space for user harm, misinformation and toxicity that has outpaced good innovation. Hence, without proper regulation, the information going on them might trigger national security issues and other challenges.  

Must read: Controlling Fake News in India and associated challenges  – Explained, pointwise

What are the advantages of amendment to IT Rules?

The amendments to the IT Rules bring some advantages, including:  

Addressing the issue of fake news: The creation of a fact-checking body can help to address the issue of fake news and misinformation on online platforms, which can potentially cause harm to society.  

Improved accountability: The amendments provide for increased accountability of social media intermediaries, which are required to remove content marked as fake or misleading. This can help to prevent the spread of harmful content and ensure that intermediaries are more responsible for the content on their platforms.  

Protection of citizens’ rights: The rules provide for an appeals process for citizens who feel that their content has been wrongly flagged as fake or misleading, ensuring that their rights to freedom of speech and expression are protected.  

Cybersecurity: The rules provide for the mandatory appointment of a chief compliance officer, a nodal contact person, and a resident grievance officer by social media intermediaries. This can help to improve cybersecurity and prevent the misuse of online platforms for illegal or harmful activities.  

Ensuring Compliance: It seeks to ensure compliance with Indian laws, including those related to national security and public order. This helps to prevent the misuse of social media platforms and other digital media outlets to incite violence or spread hate speech.  

Promoting Self-Regulation: Finally, it aims to promote self-regulation among social media platforms and other digital media outlets. This encourages these platforms to take proactive measures to prevent the spread of fake news and other malicious content, rather than waiting for the government to take action.

What are the challenges associated with the amendment to IT Rules?

Some of the challenges associated with the amendment:  

Lack of clarity on what constitutes “fake or false or misleading” information: The amendment does not provide a clear definition of what types of information qualify as “fake or false or misleading.” This lack of clarity creates ambiguity and can lead to arbitrary censorship by the government.  

Censorship and Freedom of Speech: The fact-check unit of the central government has been given unprecedented power to censor any content that they deem to be fake or false or misleading, which could potentially infringe upon the freedom of speech and expression of citizens.  

Lack of transparency and accountability: The proposed amendments do not provide any criteria or guidelines for the government to declare information as ‘fake’ or ‘false’, leading to potential misuse of power. Moreover, the lack of due process, notice and hearing for the originators and creators of information may lead to arbitrary takedowns and a lack of accountability. 

Burden on intermediaries: The proposed amendments increase the compliance burden on intermediaries, who may have to take down content based on government orders without any clarity on the criteria for declaring information as ‘fake’ or ‘false’. The additional layer of censorship through the Grievance Appellate Committees may further increase the burden on intermediaries. 

Impact on digital media and online news portals: The proposed amendments do not apply directly to news websites, which are not classified as intermediaries. This may lead to differential treatment of news websites and other online platforms, and potential challenges to the independence of digital media.  

Constitutional concerns: Some critics argue that the fact-checking powers granted to the government under the IT Rules, 2023 may infringe on the constitutional right to freedom of speech and expression guaranteed under Article 19(1)(a) of the Constitution of India.  

Short-circuiting established legal procedures: The amendments short-circuit a) The procedures, safeguards and conditions laid out in Shreya Singhal v. Union of India or under Section 69A of the IT Act, b) Madras High Court ruling in T M Krishna v. Union of India and the Bombay High Court ruling in Agij Promotion of Nineteen One Media Pvt. Ltd. & Ors. v. Union of India put a hold on the rules which provided the government with a wider say on content on OTT or digital media platforms.  

Chilling Effect: The mere existence of the fact-check unit and its power to censor content could have a chilling effect on free speech, as people may be hesitant to express their opinions online for fear of being censored or facing legal consequences.  

Potential for Misuse: The fact-check unit’s power could be misused by the government to silence dissenting voices or criticism of government actions, which could have serious implications for democracy and human rights.  

Opposition from civil society and media organizations: The Editors Guild, the Indian Newspaper Society, and other civil society and media organizations have spoken out against the amendment, stating that the determination of “fake news” should not be in the sole hands of the government and that it could allow the government to proscribe any criticism of its actions.  

Conflict of interest: The role played by the fact-checking unit has a significant conflict of interest as it plays the role of judge, jury and executioner.

Read more: Express View on IT Rules amendments: Government sets itself up as judge, jury and executioner  

What should be done?

Need develop a more transparent and participatory process: The government should work with civil society, media organizations, and other stakeholders to develop a more transparent and participatory process for determining what content should be considered fake or misleading.  

Need an independent and non-partisan fact-checking body: The government should ensure that anybody tasked with fact-checking is independent and non-partisan, with clear guidelines for how decisions are made.  

According to judicial guidelines: The government should ensure that any takedown requests are made in accordance with the procedures and safeguards laid out in Shreya Singhal v. Union of India or under Section 69A of the IT Act, which defines and restrict the conditions under which government can take down online content.  

Need to find a balanced approach: The government should engage in dialogue with social media platforms and other intermediaries to find a balanced approach to tackling fake news and misinformation, which takes into account the need to protect freedom of expression and the rights of media organizations, journalists, and readers.  

Need regularly reviewed and updated: The government should also ensure that any regulations or guidelines are regularly reviewed and updated to reflect the evolving nature of online content and the challenges associated with regulating it. 

Source: Indian Express(Article 1 and Article 2), The Hindu, Livelaw, The Times of India, Hindustan Times and The Wire

Syllabus: GS 3: Security Issues – role of media and social networking sites in internal security challenges.

Burning bright – India must balance conservation efforts with the rights of forest dwellers”

Source: The post is based on the article “Burning bright – India must balance conservation efforts with the rights of forest dwellers” published in The Hindu on 11th April 2023.

Syllabus: GS – 3: Environment and Bio-diversity Conservation.

Relevance: About tiger population.

News: Recently, the government released the 5th cycle of India’s Tiger Census. Based on the survey, the tiger population in India has grown from 1,411 in 1972 to 3,167 in 2022.

What are the key findings of India’s tiger census?

Read here: India is home to 75% of global tigers; count rises above 3,000

What are the government initiatives that led to an increase in the tiger population?

Read here: Increasing tiger population in India and government initiatives – Explained, pointwise

What are the challenges India faces with the increased tiger population?

The ‘Status of Tiger’ report warns that a) All of India’s five main tiger zones, while largely stable, face challenges of deforestation and loss of tiger habitat, b) In Western Ghats, tiger numbers are on the decline, with only populations within protected forests stable, and c) Tiger reserves has increased from nine in 1973 to 53 today. However, the increase in reserves has not resulted in all of these reserves becoming suitable habitats for tigers.

The other challenges include a) Serious conservation efforts are needed in tiger population recovery in Jharkhand, Odisha, Chhattisgarh, Telangana, and Andhra Pradesh. Wildlife habitats in these areas face various threats that include habitat encroachment, hunting, conflicts with humans, unregulated cattle grazing, excessive harvesting of non-timber forest products, fires, mining, and expanding infrastructure, b) According to Experts, India’s tiger reserves, in their present state, can be able to sustain populations of up to 4,000 only.

Read more: Tiger Reserves in India (Updated 2023)

What more can be done?

-The government has to maintain the delicate balance between conservation efforts and ensuring the right to livelihood and dignified living of forest-dwelling communities.

-The cheetah, the leopard, the lion and the tiger can co-exist in India only with the right incentives in place for all stakeholders.

Small & Green Future – That India needs more nuclear power generation is not in doubt. But it should rely less on big plants

Source: The post is based on the article “Small & Green Future – That India needs more nuclear power generation is not in doubt. But it should rely less on big plants” published in The Times of India on 11th April 2023.

Syllabus: GS – 3: Energy.

Relevance: About the need for small modular reactors(SMRs).

News: India, by 2047, aims to produce 9% of its electricity from nuclear power, up from the current 3%. By 2031, installed nuclear power capacity is set to increase from 6,780 MW to 22,480 MW with 20 new nuclear plants. In that process, ten new reactors were approved recently.

About the nuclear power plants around the world

Rich countries that have had 20 years of nuclear power generation. A 2019 IAEA report of nuclear plants’ age-profile highlighted the challenges of ‘nuclear fade’.

Note: Nuclear fade means the nations are giving up on nuclear power as plants age and costs rise.

About 83% of plants across Europe are over 30 years old, in the US more than 90% are over 30. Though nuclear plants had licences for decades more, several retired early. This stalls the transition to non-carbon energy. 

In contrast, almost 80% of China’s plants are less than 10 years old; the corresponding number for India is 40%.

Read more: Nuclear Energy: Status, Advantages and Concerns – Explained, pointwise

What does India need to do while planning nuclear power plants?

India should move away from big plants and plans small modular reactors (SMRs), which are typically under 300MW in capacity.

The major advantages of SMRs are a) though SMRs only generate a third of a nuclear plant’s power, many can be built since the smaller investment is easier to mobilise, b) SMRs are reportedly safer in design and simpler to construct and require much less land. They are therefore easier propositions to sell to locals, c) They could reduce costs by enabling prefabrication of reactor units in factories, which would yield scale economies, and d) They could also be installed in existing sites of coal-based power plants that are to be phased out in the country’s transition to net zero.

According to the IAEA, SMRs’ economic viability in operational settings is not proven. But India’s huge electricity demand, need for non-carbon energy, net zero commitment can be aided significantly with SMRs.

Read more: [Yojana October Summary] Energy Security: Nuclear Power – Explained, pointwise

Amul vs Nandini threatens to limit choices for consumers

Source: The post is based on the following articles

“Who Moved My Milk? – Amul vs Nandini battle is meaningless. India needs both to expand nationally and shake things up” published in The Times of India on 11th April 2023.

“Express View: Amul vs Nandini threatens to limit choices for consumers” published in the Indian Express on 11th April 2023.

Syllabus: GS – 3: Changes in industrial policy and their effects on industrial growth.

Relevance: About the milk cooperatives.

News: Recently, Amul, a Gujarat Cooperative Milk Marketing Federation, announced on social media that it will make online deliveries in Bengaluru. This supposedly threatens the local Karnataka Cooperative Milk Producers’ Federation (KMF) alias Nandini.

Why milk cooperatives are fighting with each other for markets?

Share for the market: India is the world’s largest milk producer, with 222. 1 million tonnes production in 2021-22. Almost half the milk produced is consumed locally. The rest enters the urban market, which is the growth area.

Role of state governments: Co-ops impart a unique dimension to milk and milk product markets. For example, the Karnataka government provides incentives for them. So, they have little flexibility over procurement or end-product pricing. In a difficult phase such as the lockdowns, the government was reluctant to raise product prices.

To fulfil farmer’s interest: Dairy is often the primary source of income for many landless households and marginal farmers. So, it’s in their best interest, successful brands like Amul and Nandini procure and sell across markets. In short, Karnataka’s dairy farmers, like their Gujarat counterparts, need to find new markets.

Surplus procurement: As per the government, milk cooperatives and private players share the liquid milk market. This market is expected to touch 54% by 2026, from 41% now. Milk cooperatives procure more from farmers with their attractive collection strategies. For example, Nandini Cooperative provide Rs 6-per-litre incentive to farmers. This led the KMF unions to procure milk far in excess of what can be absorbed within Karnataka. This surplus is, then, being “dumped” as milk powder, butter and ghee in other states.

Why blocking competition between milk cooperatives is wrong?

Neither producers nor consumers benefit from such protectionism and beggar-thy-neighbour policies. Competition can enable consumers to take the form of better quality or product differentiation.

By favouring one brand over the other might trigger a similar response in other states. For example, by blocking Amul in Bengaluru, politicians are risking similar retribution when it comes to Nandini selling outside Karnataka.

Blocking competition can frame a political economy challenge. Hence, the government has to consider electoral necessities before embarking on market reforms.

Prelims Oriented Articles (Factly)

Sorry, there are no articles today from this source

Blog
Academy
Community