Down To Earth (16–28 February, 2025)

Urgency of a Clean Energy Transition

• Transitioning to clean energy is not just about reducing emissions—it is about securing livelihoods. Millions of people still suffer from energy poverty, with unreliable, expensive, or unavailable electricity.
• It is why Indian industries prefer captive power generation, often relying on coal.
• Therefore, India’s strategy must focus on expanding access to energy, ensuring affordability, and making it cleaner.
• A well-executed transition to low-carbon growth can not only reduce emissions but also drive economic development.

500 GW of Clean Energy Capacity By 2030

• It aims not to replace coal, which currently provides 75% of India’s electricity, but to displace it by increasing the capacity of clean energy sources like solar and wind.
• By 2030, clean energy sources are expected to generate 44% of the country’s electricity demand, requiring a more than doubling of current clean energy capacity.

Assessing the Progress of Renewable Energy Deployment

• Currently, India has around 200 GW of installed clean energy capacity, accounting for 45% of total power generation capacity as of March 2024.
• However, this capacity is not translating into adequate power generation. Non-fossil fuel power sources contribute less than a quarter of the electricity produced, and solar and wind contribute only 13%.
• If India is to displace coal effectively, these two sources alone must generate 30% of electricity by 2030—a target far from reality.

Key Concerns

• Mismatch Between Installed & Actual Generation Capacity:
• One key issue is the capacity utilization factor (CUF) of solar and wind plants. While CUF data is available for governmentowned plants, it is lacking for private projects, creating a transparency gap. 
• Unlike thermal power plants, there is no public database tracking renewable energy projects, their electricity generation, or their distribution.
• Challenge of Stalled Projects and Power Purchase Agreements (PPAs):
• Solar Energy Corporation of India (SECI) highlights several projects that have not been commissioned even beyond the deadline set in their Power Purchase Agreements (PPAs).
• By June 2024, nearly 34.5 GW of solar, wind, and hybrid projects remained uncommissioned, despite having signed PPAs.
• Ironically, the cost of electricity from new coal projects is now higher than that of solar energy.

Road Ahead: Fixing the Systemic Shortcomings

• If India is to achieve its 500 GW clean energy target, urgent action is needed to resolve these systemic issues:
• Improve Data Transparency: Establish a public database tracking all renewable energy projects, including generation data, commissioning status, and power distribution.
• Address Project Delays: Streamline approvals and enforce stricter adherence to PPA deadlines to prevent project stagnation.
• Resolve PPA Bottlenecks: Encourage state power agencies to sign PPAs, especially when renewable energy is now cheaper than coal.
• Invest in Storage Solutions: Accelerate the deployment of battery storage and hybrid energy systems to ensure reliability.
• Enhance Private Sector Participation: Reduce bureaucratic hurdles and provide clear incentives for private investors.

Draft National Policy on Agricultural Marketing

Context

• Recently, the Union Ministry of Agriculture and Farmers’ Welfare released the Draft National Policy Framework on Agricultural Marketing (NPFAM) for public comments.

About the Policy

• It aims to create a vibrant marketing ecosystem where farmers can find markets of their choice to realize the best prices for their produce.
• It envisions improving the efficiency and competitiveness of agricultural markets through multiple marketing channels, transparency, infrastructure development, and innovative digital technologies.

Rationale Behind the Policy

• The draft NPFAM aims to enhance farmers’ income by creating a competitive and transparent marketing ecosystem.
• It seeks to mitigate market and price uncertainties, improve market efficiency, and integrate production and marketing through digital public infrastructure.
• The policy also addresses the unsustainability of Agricultural Produce Market Committees (APMCs) and the need for value chain-centric infrastructure.

Key Features of the Draft Policy

• Private Wholesale Markets: The policy encourages the establishment of private wholesale agricultural markets.
• Currently, there are 125 private wholesale markets in five states. The policy aims to expand this model to enhance market access for farmers.
• Direct Purchases: The draft policy promotes direct purchases by processors, exporters, organized retailers, and bulk buyers from farm gates.
• It aims to reduce intermediaries and ensure better prices for farmers.
• Corporate Post-Harvest Infrastructure: The policy proposes replacing traditional market yards with corporate warehouses and silos.
• It aims to improve storage and reduce postharvest losses.
• Unified National Market: The draft policy seeks to establish a unified market fee and trading license system.
• It aims to create a seamless national market for agricultural produce, reducing regional disparities.
• E-Trade Platforms: The policy allows the establishment and operation of private e-trading platforms.
• It aims to facilitate digital transactions and improve market transparency.
• Contract Farming: The draft policy enables agroprocessing, exporting, or trading units to enter into contracts with farmers and Farmer Producer Organizations (FPOs).
• It aims to provide assured markets and prices for farmers.
• Federal Committee: The policy proposes setting up an empowered agricultural marketing reform committee comprising state agriculture ministers.
• It aims to build consensus among states to move towards a unified national market.
• Modernization and Technology: The policy emphasizes leveraging cutting-edge technologies like blockchain, artificial intelligence, and machine learning to modernize supply chains and improve efficiency.

Key Concerns in Draft National Policy on Agricultural Marketing

• Privatization and Corporate Control: The draft policy proposes expanding private wholesale markets and promoting public-private partnerships (PPP) for improving infrastructure at Agricultural Produce Market Committee (APMC) markets.
• However, it is argued that this could lead to corporate control over the agricultural supply chain, similar to the concerns raised during the protests against the now-repealed farm laws.
• Lack of Legal Guarantee for MSP: Farmers have been demanding a legal guarantee for the Minimum Support Price (MSP) for all crops.
• Despite assurances from the government, this guarantee has not been provided, leading to continued dissatisfaction among farmers.
• The draft policy does not address this demand, which remains a significant point of contention.
• Implementation Challenges: The draft policy lacks a robust grievance redressal mechanism for farmers selling in private markets.
• Additionally, the limited window for public comments on the draft policy has been criticized as insufficient for meaningful stakeholder engagement.
• State Autonomy and Constitutional Validity: The draft policy proposes a unified national market, which raises questions about state autonomy and constitutional validity.
• Agriculture and agricultural marketing are state subjects under the Constitution, and the central government’s intervention could be seen as an overreach.
• Impact on Small and Marginal Farmers: The draft policy aims to address long-standing challenges in agricultural marketing, but critics argue that it does not provide sufficient support for the most vulnerable farmers.

Conclusion

• The Draft National Policy Framework on Agricultural Marketing has reignited debates about privatization, corporate control, and the need for a legal guarantee for MSP.
• Addressing these concerns will be crucial for ensuring that the policy benefits all stakeholders, particularly small and marginal farmers.

Budget 2025-26: India Has a Non-Paid Employment Crisis

Context

• The Union Budget 2025-26 has brought to light a significant issue plaguing India’s workforce: the non-paid employment crisis.

About

• Every second employed person in India is selfemployed, a statistic that is not necessarily a cause for celebration.
• Self-employment includes a wide range of activities, from running a tea stall to working on a farm to practicing as a doctor.
• However, a significant portion of this selfemployment is unpaid work undertaken in household enterprises.
• This shift towards self-employment has been driven by the need for flexible work arrangements and the lack of stable, remunerative jobs.

Economic Survey 2024-25 Insights

• It highlighted the rise in self-employment as a factor driving down the unemployment rate.
• However, it also pointed out that the share of workers in regular/salaried jobs has decreased from 22.8% in 2018 to 21.7% in 2024.
• It indicates that while more people are employed, they are not necessarily earning a stable income.

Challenges Faced by the Workforce

• The Economic Survey noted that the number of casual workers has declined from 24.9% in 2017- 18 to 19.8 % in 2023-24, suggesting a shift towards more structured forms of self-employment.
• However, this shift has not been enough to address the income disparity and job insecurity faced by many workers.

Government Initiatives and Measures

• The Union Budget 2025-26 has proposed several measures to address the non-paid employment crisis. These include revamping the PM SVANidhi scheme to provide greater financial assistance to street vendors and introducing UPI-linked credit cards to facilitate better access to formal credit.
• Additionally, the budget aims to include gig workers under the Ayushman Bharat health insurance scheme to provide them with social security.
• Union Finance Minister Nirmala Sitharaman’s budget speech emphasized the need for ‘hundred percent skilled labor with meaningful employment’ and ‘seventy percent women in economic activities’ by 2047.

Conclusion

• While the Union Budget 2025-26 has taken steps to address the non-paid employment crisis, there is still a long way to go in ensuring that all workers have access to stable, remunerative jobs.
• The government’s focus on skill development and women’s participation in the workforce is a step in the right direction, but more needs to be done to create meaningful employment opportunities for all.

Stubble Burning

Context

• Recently, Thailand ordered a crackdown on stubble burning as pollution levels spiked in Bangkok and other cities.

About

• Stubble burning, the practice of setting fire to the straw stubble left after harvesting crops like rice and wheat, is a significant environmental issue, particularly in South Asia.
• It is often used as a quick and cost-effective method to clear fields for the next planting season.

Environmental Impact

• Stubble burning contributes to severe air pollution, releasing large amounts of particulate matter (PM2.5 and PM10), carbon monoxide (CO), nitrogen oxides (NOx), and other harmful pollutants into the atmosphere.
• These pollutants can travel long distances, affecting air quality in urban areas far from the source of the fires.
• For instance, the smoke from stubble burning in Punjab and Haryana often drifts to Delhi, exacerbating the city’s already poor air quality.

Health Consequences

• Exposure to the pollutants from these fires can lead to respiratory diseases, cardiovascular issues, and other serious health problems
• Children, the elderly, and individuals with pre-existing health conditions are particularly vulnerable.
• The World Health Organization (WHO) has highlighted the need for sustainable agricultural practices to mitigate these health risks.
• It recommended a safe limit of 15 μg per cubic metre.

Key Government Initiatives to Address Stubble Burning in India

• In-Situ Crop Residue Management: The Ministry of Agriculture and Farmers Welfare has introduced the Crop Residue Management (CRM) Scheme, which supports in-situ management of crop residues.
• It includes the procurement of CRM machines, setting up Custom Hiring Centers (CHCs), and promoting the use of bio-decomposers.
• Financial assistance is provided to farmers and cooperative societies to purchase machinery for residue management.
• Ex-Situ Crop Residue Management: The government is also promoting the ex-situ use of crop residues.
• It involves utilizing paddy straw for biomass power projects, co-firing in thermal power plants, and as feedstock for 2G ethanol plants and compressed biogas plants.
• These initiatives aim to provide alternative uses for crop residues, reducing the need for burning.
• Prohibition and Monitoring: The Commission on Air Quality Management (CAQM) has developed a framework for the effective prevention and control of stubble burning.
• It includes statutory directions to state governments for implementing action plans, monitoring fire counts, and enforcing prohibitions on stubble burning.
• Information, Education, and Communication (IEC) Activities: The government has focused on creating awareness about the ill effects of stubble burning through IEC activities.
• These efforts aim to educate farmers about sustainable practices and the benefits of using CRM machinery and bio-decomposers.

Hike in the Minimum Support Price (MSP) For Raw Jute

Context

• The Union government announced a 6% increase in the minimum support price for raw jute, to Rs 5,650 per quintal for the 2025-26 marketing season.
• It came to boost jute production, which has dropped by over 29% in the past decade, as per advanced estimates of the Union Ministry of Agriculture and Farmers Welfare.

Key Details of the MSP Hike

• New MSP: The MSP for raw jute has been increased to `5,500 per quintal, up from 5,300 per quintal in the previous season.
• Reason for Increase: The hike is based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), which takes into account factors such as the cost of production, market price trends, and the need to provide a fair return to farmers.
• Impact on Farmers: The increase in MSP is expected to benefit jute farmers by providing them with better financial returns, thereby incentivizing the cultivation of jute and ensuring the sustainability of this crop.

Government Initiatives

• Jute Packaging Materials (Compulsory Use in Packaging) Act, 1987: This act mandates the use of jute packaging materials for certain commodities, thereby creating a stable demand for jute.
• Jute Development Programs: The government has launched several programs to improve jute cultivation techniques, enhance productivity, and provide financial assistance to farmers.
• Promotion of Jute Products: Efforts are being made to promote the use of jute products in various sectors, including packaging, textiles, and handicrafts.

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