Making sense of India’s record Food Production

• According to recent data from the ministry of agriculture, India’s food production in the fiscal year 2022–2023 reached a record high.
• The government’s move to limit the export of important staples like rice and wheat, as well as the ongoing trend of growing food inflation, seem to be at conflict with this production boom.

Data on Food Production

• Record-High Food output: According to the agriculture ministry, food output in 2022–2023 is expected to reach a historic 329.7 million tonnes, up 4.5% from the year before.

Cereal Production:

• The production of major cereals, such as wheat and rice, increased by 2.6% and 4.9%, respectively. Production of coarse grains increased by 12%, while production of pulses decreased 4.4% annually but was still 6% over the five-year average.
• Difficulties: These estimates were made in spite of unfavorable circumstances, such as poor monsoons that reduced rice production and late rains that harmed agricultural harvesting.

Variations in the Information

• Export Restrictions: In September 2022, India implemented export limitations on broken rice and levied a 20% tax on some types as a result of anticipated difficulties with domestic production. Since then, these restrictions have become more severe.
• Wheat Export Ban: Despite assurances that exports would fill supply shortages worldwide following Russia’s invasion of Ukraine, last year’s miscalculation of the wheat harvest—mainly caused by a heatwave—led to export bans in May 2022.
• Growing Food Prices: Retail food prices have continued to rise in spite of record production and export limitations. Prices for wheat and rice have been in the double digits, while the cost of consumer cereal has increased by 11% annually and that of pulses by 16.4%. Retail prices for wheat flour and rice were 5% and 12.7% higher year over year as of October 21.

Outlook for 2023–2024

• Kharif Production Estimate: It has not yet been published the first advance estimate for kharif production, which is usually provided in September. The primary kharif crop, rice, is predicted to be negatively impacted by this year’s monsoon due to its unequal distribution and the lowest rainfall in the previous five years.
• Additionally, decreased rainfall in a few states could have an impact on the production of oilseeds and pulses. Retail costs for certain types of pulses, such as tur (pigeon peas), have already increased by 38% from the previous year.

Leniency Plus Norms to curb Cartelisation

A draft of updated reduced penalty laws has been released by the Competition Commission of India (CCI), which also reveals the details of its novel “Leniency Plus” Norms and its approach to countering cartels.

Understanding “Leniency Plus”

• Current Leniency Program: If a company provides considerable information regarding their involvement in a cartel, they may be eligible to get partial amnesty from fines under the Competition Act of 2002. This helps antitrust regulators find covert cartels and gather insider information.
• Additional Penalty Reduction: Under the “Leniency Plus” framework, a cartel member working with CCI for leniency may reveal, at the time of the initial leniency procedures, the existence of a separate cartel. They also get an additional penalty reduction in exchange.
• Encouraging Disclosure: As a proactive antitrust enforcement tactic, “Leniency Plus” encourages businesses who are already the subject of a cartel investigation to notify other, as-yet-undisclosed cartels, thereby fostering transparency.

Legal foundation

• Legal basis: The Competition (Amendment) Act 2023, which was approved by the President in April of that same year, included the “Leniency Plus” regime.
• Worldwide Adoption: The notion of “Leniency Plus” is not new; in fact, it has been acknowledged and applied in countries such as the US, Singapore, Brazil, UK, and US.
• Encouraging Disclosure: One of the main features of these regulations is that they encourage businesses that are already the subject of a cartel investigation to notify the competition authority of any further cartels that they are unaware of.

Women, marriage and labour market participation

The article examines the drop in Indian married women’s labor force participation rates, with a focus on the economic ramifications. It outlines government initiatives and suggests ways to improve women’s participation in the labor market while discussing important issues such cultural norms and the lack of educational possibilities.

Relevant Data from the Article:

• Global female labor force participation rate (LFPR) is estimated by the World Bank to reach 47.3% in 2022; in India, the LFPR fell from 28% to 24% in that same period.
• According to economist Goldin’s analysis, women’s LFPR throughout economic expansion follows a U-shaped pattern that is impacted by substitution effects and income.
• The article highlights the notable 5% decrease in female LFPR among married women in India between 2004–05 and 2022–23 who are between the ages of 25 and 49.

Current Situation:

• Due to societal rejection of women in the workforce, low educational achievement, and greater family responsibilities, married women show a considerable decline in LFPR after marriage.
• An examination of data from India’s NSSO Periodic Labour Force Survey shows that married women’s LFPR has significantly decreased, particularly in the 25–29 age range.

Key Challenges:

• Women’s labor market outcomes are greatly influenced by their marital status; married women have lower LFPR than their single counterparts.
• One factor that influences this is educational attainment; women with lower levels of education tend to be more likely to enter the workforce after marriage.

Government Schemes and Initiatives:

• One government program to encourage women to enter the labor field is the National Creche Scheme for the Children of Working Mothers.
• The essay emphasizes how important it is to improve daycare facilities’ accessibility and quality in order to encourage working women, particularly married women.

Way Forward:

• Improving daycare and crèches in both the public and private sectors for people from different socioeconomic backgrounds is one of the suggested solutions.
• To increase women’s engagement in the labor market, work environments that prioritize the needs of women, safe mobility choices, and the growth of part-time job opportunities are recommended.

Marshall Islands

• With the Marshall Islands, the United States inked a new 20-year pact worth more than $2 billion in economic support.
• This agreement is a component of the Compacts of Free Associations (COFAs), whereby the United States grants economic and defense support to a number of Pacific Island countries in exchange for military access to vital oceanic regions.
• In the face of competition from China, this pact builds on previous agreements with Micronesia and Palau, with the goal of fortifying American influence in the Northern Pacific.

About Marshall Islands:

• Known for its islands and atolls, it is an island nation located in the Pacific Ocean. Its past includes German and Spanish influence, Japanese occupation during World War I, and American rule following the war, which included nuclear testing. Through a Compact of Free Association with the United States, it became independent in 1979.

South China Sea

• Tensions between China and the Philippines have increased as a result of recent events in the South China Sea.
• While on a replenishment mission in the contentious area close to Second Thomas Shoal within the Philippines’ Exclusive Economic Zone, over which both countries assert sovereignty, the Philippines has accused Chinese coastguard warships of purposefully colliding with its vessels.