Daily Current Affairs for UPSC Civil Services Exam – 19 December 2020

Daily Current Affairs for UPSC Civil Services Exam – 19 December 2020

In Today’s News:

  1. E20 fuel.
  2. Minimum Support Price.

1. E20 fuel

News Summary

The Ministry of Road Transport and Highways has published a draft notification GSR 757(E) dated 11th December 2020, seeking comments from the public for the adoption of E20 fuel.

Prelims GS – Economic Development/Infrastructure

E20 fuel:
  • E20 fuel is a blend of 20% of ethanol with gasoline.
  • It is proposed to be used as an automotive fuel.
  • E20 fuel will help in the development of E20 compliant vehicles.
  • This will also help in reducing emissions of carbon dioxide, hydrocarbons, etc.
  • This will help reduce the oil import bill, thereby saving foreign exchange and boosting energy security.

2. Minimum Support Price

News Summary

Hon’ble PM has said that MSP will continue and cautioned the farmers not to believe the false propaganda against the farm laws.

Prelims GS – Agriculture/Economic Development

(Note: Very important topic. Recent debates on farmer protests and farm laws may lead to a question regarding MSP)

MSP:
  • Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.
  • The minimum support prices are announced by the Government of India at the beginning of the sowing season for certain crops on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP).
  • MSP is price fixed by the Government of India to protect the producer – farmers – against excessive fall in price during bumper production years.
  • The major objectives are to support the farmers from distress sales and to procure food grains for public distribution.
  • In case the market price for the commodity falls below the announced minimum price due to bumper production and glut in the market, government agencies purchase the entire quantity offered by the farmers at the announced minimum price.
  • MSP is determined for the country as a whole and not region or state-specific.
  • The 22 mandated crops, for which MSP is being announced by the government for the last three years, include 14 Kharif crops viz. paddy (Common and Grade ‘A’), jowar (Hybrid and Maldandi varieties), bajra, maize, ragi, arhar, moong, urad, groundnut, soyabean, sunflower, sesamum, nigerseed, cotton (medium staple and long-staple variety) and 6 Rabi crops viz. wheat, barley, gram, Masur (lentil), rapeseed & mustard, safflower, and two commercial crops viz. jute and copra (milling and ball copra).
  • In addition, MSP for toria and de-husked coconut is also fixed on the basis of MSPs of rapeseed & mustard, and copra respectively.
  • While recommending MSP, CACP considers various factors viz. cost of production, overall demand-supply situations of various crops in domestic and world markets, domestic and international prices, inter-crop price parity, terms of trade between agriculture and non-agriculture sector, likely effect of price policy on rest of economy and a minimum of 50 percent as the margin over the cost of production.

Click here to know more about MSP in the courtesy website Vikaspedia(govt source guide)

 

 

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