Syllabus

• Mains – GS 2 & GS 3

Context: Inflation, based on the official consumer price index (CPI), stood at 8.69 % for cereals in May, and almost twice as much (17.14%) for pulses. These rates would probably have been higher, but for the sales from buffer stocks, especially of wheat and chana (chickpea), built by government agencies during surplus production years.

Background:-

• Overall CPI inflation, at 4.75% year-on-year in May, was the lowest in 12 months. It would have been lower had retail food inflation not stayed elevated at 8.69%.

Key takeaways

• The Food Corporation of India’s (FCI) open market sale scheme brought down retail inflation in cereals and wheat, from their respective highs of 16.73% and 25.37% in February 2023 to 8.69% and 6.53% in May 2024.
• The inherently volatility and unpredictability of food prices, exacerbated by climate change — fewer rainy days and extended dry spells, interspersed with intense precipitation, and also shorter winters and heat waves — has made it difficult for the Reserve Bank of India (RBI) to consider any monetary easing or cutting interest rates.
• The government, too, is forced to resort to undesirable measures such as restricting exports, or imposing produce stock limits on traders and processors.
• One possible way out of the conundrum would be to build a buffer stock of all essential food items, by procuring these from farmers during years of surplus production, and offloading the same in times of crop failures to moderate market prices.
• There’s scope to not only expand procurement of pulses and oilseeds, but extend it to staple vegetables and even skimmed milk powder (SMP).
• The onion, potato and tomato procured can be stored in dehydrated/processed form such as paste, flakes and puree for sales to hotels, restaurants, canteens, and other institutional buyers. This would ensure that both households and bulk buyers do not compete to drive up prices during shortages.
• The fiscal cost of maintaining buffer stocks of essential food items may not be that much: the stocked commodities are not meant to be given out free and, instead, offloaded during scarcity/inflationary periods at near-market prices.
• Buffer stocking can be an instrument for curbing excessive volatility in food prices, similar to the RBI’s foreign exchange reserves vis-à-vis the currency market. Increasing climate-driven price volatility — ultimately helping neither consumers nor producers — only strengthens the case for a food buffer policy.

Source: Indian Express

Syllabus

• Prelims & Mains – ECONOMY

Context: Indian Government Bonds (IGBs) are set to be included in the JP Morgan Government Bond Index, Emerging Market (GBI-EM) from June 28. The inclusion will take place over a period of 10 months starting June 28, 2024, through to March 31, 2025.

Background:

• Inclusion of domestic bonds to global indices will help bring in dollar inflows into India and ensure a stable financing of the current account gap of the country.

What was JP Morgan’s announcement?

• In September last year, JP Morgan had announced that it would include IGBs to its emerging markets bond index from June 2024. The decision was taken after the 2023 index governance review, it had said.
• India will have a 1% weightage in theJPMorgan Emerging Market (EM) Bond index, which will gradually rise to 10% over a 10-month period, at an inclusion rate of about 1% weight per month.
• A higher weightage will prompt global investors to allocate more funds for investment in Indian debt.

How many Indian Government Bonds are eligible for inclusion?

• JP Morgan said there are 23 IGBs that meet the index eligibility criteria, with a combined notional value of approximately Rs 27 lakh crore or $330 billion.
• Only IGBs designated under the Fully Accessible Route (FAR) are index-eligible. In March 2020, the RBI, in consultation with the government, introduced a separate channel, called the FAR, to enable non-residents to invest in specified Government of India dated securities.
• As per the index inclusion criteria, eligible instruments are required to have notional outstanding above $1 billion (equivalent) and at least 2.5 years remaining maturity, JP Morgan said.

What would be the impact of the bond inclusion?

• According experts, the move could lead to fresh active flows in the debt market, which remains underpenetrated on external financing.
• According to estimates by some economists, India is likely to receive $2 billion to $2.5 billion every month during the 10-month period starting June 28.
• Overall, it is expected that $20 billion to $25 billion of flows would come into India due to the inclusion.
• It will not only result in lower risk premia, but will also help India to finance its fiscal andcurrent account deficit (CAD), as well as enhance the liquidity and ownership base of government securities (G-secs; debt instruments issued by the central government to meet its fiscal needs).
• It could help lower funding costs slightly, and support further development of domestic capital markets, but direct positive effects on India’s credit profile will be marginal in the near term.
• While higher inflows will boost the rupee, inflation is likely to come under pressure. When the RBI mops up dollars from the market, it will have to release an equivalent amount in rupees, putting pressure on inflation.

For Your Information:

• After JP Morgan Chase & Co, Bloomberg announced inclusion of Indian bonds in the Bloomberg Emerging Market (EM) Local Currency Government Index and related indices from January 31, 2025.

Source: Money Control

Syllabus

• Prelims – Geography

Context: Israel has issued a strong warning, stating that if war were to break out with Hezbollah, it could result in Lebanon being “returned to the Stone Age.”

Background:

• Hezbollah is a Lebanese Shia Islamist political party and paramilitary group. Its actions have significant regional implications, and tensions persist between Hezbollah and Israel.

About Lebanon:

• Lebanon is a small Middle Eastern nation situated on the eastern coast of the Mediterranean Sea in Western Asia.
• It shares land borders with two countries: Syria to the north and east, and Israel to the south.
• The western part of Lebanon is bounded by the Mediterranean Sea, and it also shares maritime borders with Cyprus.

Disputed Border:

• One of the contentious issues is the disputed border between Lebanon and Israel.
• The Israel-Lebanon conflict has a complex history, including the 2006 war between Israel and Hezbollah in southern Lebanon.
• The Blue Line, drawn by the UN after Israel’s withdrawal from southern Lebanon in 2000, remains a contentious issue.

Source: Al Jazeera

Syllabus

• Prelims – ENVIRONMENT

Context: The Mainland Serow, a vulnerable mammal species recognized by the International Union for Conservation of Nature (IUCN), has been sighted in Assam’s Raimona National Park.

Background:

• Raimona National Park contributes to the Greater Manas Landscape, strengthening conservation efforts in the region.

About Raimona National Park

• Raimona National Park is located in the state of Assam along the Indo-Bhutan border, Raimona National Park is a significant conservation area.

Geography and Boundaries:

• The park shares its northern border with Bhutan’s Phibsoo Wildlife Sanctuary.
• The western part is marked by the Sankosh River, forming the inter-state boundary between West Bengal and Assam.
• The eastern part is traversed by the Saralbhanga River (also known as Swrmanga), flowing southward from Bhutan’s Sarphang district.

Vegetation and Flora:

• Raimona National Park boasts diverse forests, including moist sal forests, sub-Himalayan high alluvial semi-evergreen forests, savannah forests, and more.
• Orchids, tropical rainforest species, and riverine grasslands flourish within the park.

Fauna:

• The park is home to various wildlife, including the Golden Langur, Asian Elephant, Royal Bengal Tiger, and Clouded Leopard.
• Notably, a recent scientific observation recorded a Mainland Serow (Capricornis sumatraensis thar) at an unusually low elevation of 96 meters above sea level in Raimona National Park.

Mainland Serow:

• A mammal resembling a cross between a goat and an antelope.
• Inhabits altitudes ranging from 200 to 3,000 meters.
• Found across the India-Bhutan border in Phibsoo Wildlife Sanctuary and Royal Manas National Park in Bhutan.
• Other species include the Japanese serow, red serow (found in eastern India, Bangladesh, and Myanmar), and Taiwan or Formosan serow.

Source: PTI

Syllabus

• Prelims & Mains – CURRENT EVENT

Context: India has achieved an outstanding outcome in the Mutual Evaluation conducted during 2023-24 by the Financial Action Task Force (FATF).

Background:

• The FATF recognized India’s high level of technical compliance with anti-money laundering (AML), countering the financing of terrorism (CFT), and counter-proliferation financing (CPF) requirements.

About Financial Action Task Force (FATF)

• The Financial Action Task Force (FATF) is a global intergovernmental organization established in 1989.
• Initially, its objective was to examine and develop measures to combat money laundering.
• After the 9/11 attacks on the US, the FATF expanded its mandate to incorporate efforts to combat terrorist financing.
• In April 2012, it added efforts to counter the financing of proliferation of Weapons of Mass Destruction (WMD).

Membership:

• 39 member countries, including India.
• Regional organizations (European Commission and Gulf Cooperation Council) also participate.
• India joined as an observer in 2006 and became a full member in 2010.

Functions:

• Sets international standards.
• Assesses countries’ compliance.
• Identifies deficiencies and promotes policy reforms.

Lists:

• The FATF maintains two lists:
  • Black List: High-risk jurisdictions with significant deficiencies in countering money laundering and terrorist financing.
  • Grey List: Jurisdictions under increased monitoring.
• Currently, North Korea and Iran are on the black list.

Source: Money Control

Syllabus

• Prelims & Mains – Polity

Context: The Gujarat High Court on Thursday granted bail to a juvenile accused of rape and also facing charges under the Protection of Children from Sexual Offences (POCSO) Act after it held that the Juvenile Justice Board and the children court needed to examine whether he had the mental and physical capacity to understand the consequences of the offences he has been accused of.

Background:

• According to the case details, the juvenile was in a relationship with a schoolmate, who was also a minor. The girl had died by suicide on the day her elder sister, aged 22 years, found her alone at home with the juvenile. The sister had scolded and beaten up the girl, following which she died by suicide.

Protection of Children from Sexual Offences (POCSO) Act:

• It aims to address offences of sexual exploitation and sexual abuse of children, which were either not specifically defined or adequately penalised.
• It was enacted as a consequence of India’s ratification of the UN Convention on the Rights of the Child in 1992.

Key features of the Protection of Children from Sexual Offences (POCSO) Act:

• It is a gender-neutral legislation as it defines a child as “any person” under the age of 18.
• It considers non-reporting a crime so any person in charge of an institution (excluding children) who fails to report the commission of a sexual offense involving a subordinate, faces punishment.
• It does not specify any time limit for reporting abuse so a victim may report an offence at any time, even years after the abuse has occurred.
• It keeps the victim’s identity confidential as the Act forbids the disclosure of the victim’s identity in any form of media unless authorized by the special courts established by the Act.

Key Provisions of the Protection of Children from Sexual Offences (POCSO) Act:

• It defines a child as any person below the age of 18 years. The Act provides punishment as per the gravity of the offence.
• It mandates that investigation in the cases is to be completed in two months (from the date of registration of FIR) and trial in six months.
• It states a sexual assault is to be considered aggravated if – the abused child is mentally ill or, when the abuse is committed by a member of the armed forces or security forces, a public servant, or a person in a position of trust or authority of the child, like a family member, police officer, teacher, or doctor or a person-management or staff of a hospital, whether Government or private.
• It prescribes rigorous imprisonment for a term which shall not be less than ten years but which may extend to imprisonment for life and also a fine as punishment for aggravated penetrative sexual assault.
• It makes provisions for avoiding the re-victimization of the child at the hands of the judicial system. It makes it mandatory to report such cases as it makes it the legal duty of a person aware of the offence to report the sexual abuse. In case he fails to do so, the person can be punished with six months’ imprisonment or a fine.
• It prescribes punishment to the people who traffic children for sexual purposes.
• It provides for punishment against false complaints or untrue information.
• It was amended in 2019 to increase the minimum punishment from seven years to ten years. It further adds that if a person commits penetrative sexual assault on a child below the age of 16 years, he will be punished with imprisonment between 20 years to life, with a fine.

Source: Indian Express

Q1.) Consider the following countries:

1. Israel
2. Syria
3. Iran
4. Egypt

How many of the above-mentioned countries share border with Lebanon?

1. Only one
2. Only two
3. Only three
4. All four

Q2.) Consider the following National Parks:

1. Raimona
2. Manas
3. Kaziranga
4. Orang

How many of the above-mentioned National Parks are located in Assam?

1. Only one
2. Only two
3. Only three
4. All four

Q3.) Consider the following statements:

1. The Financial Action Task Force (FATF) is a global intergovernmental organization established in 1989.
2. Currently, India is in the black list of the FATF.

Which among the statements given above is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Comment the answers to the above questions in the comment section below!!

ANSWERS FOR ’  29th June 2024 – Daily Practice MCQs’ will be updated along with tomorrow’s Daily Current Affairs.st

Q.1) – b

Q.2) – d

Q.3) – a