Indonesia’s Palm oil Export Ban

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Context:

Indonesia, the world’s biggest producer, exporter, and consumer of palm oil, will ban all exports of the commodity and its raw materials to reduce domestic shortages of cooking oil and bring down its skyrocketing prices.

Relevance:

GS II- International Relations

Dimensions of the Article:

1. How important is palm oil to global supply chains?
2. Why are the prices of edible oils rising?
3. How will it impact India?

How important is palm oil to global supply chains?

• Palm oil is the world’s most widely used vegetable oil with its global production in crop year 2020 exceeding 73 million tonnes (MT), according to the United States Department of Agriculture (USDA).
  • Output is estimated to be 77 MT for the current year.
• Made from the African oil palm, it is used as cooking oil, and in everything from cosmetics to processed food to cleaning products.
• Indonesia and Malaysia together account for almost 90% of the global palm oil production, with Indonesia producing the largest quantity at over 43 MT in the 2021 crop year.
• According to Reuters, palm oil makes up 40% of the global supply of the four most widely used edible oils: palm, soybean, rapeseed (canola), and sunflower oil.
• Indonesia is responsible for 60% of the global supply of palm oil.

Criticism of Oil palm industry:

• Unsustainable production practices leading to deforestation,
• Exploitative labour practices carried forward from the colonial era.

Advantages:

• Palm oil is preferred by many as it is inexpensive
• Oil palms produce more oil per hectare than other vegetable oil plants.

Why are the prices of edible oils rising?

• The prices of palm oil rose this year as demand increased because of the short supply of alternative vegetable oils.
• The production of soybean oil, the second most-produced oil, is expected to take a hit this year due to a poor end soybean season in major producer Argentina.
• The production of canola oil was hit in Canada last year due to drought; and supplies of sunflower oil, 80-90% of which is produced by Russia and Ukraine, has been badly hit due to the ongoing conflict.
• Consumers across the globe have been bearing the brunt of these factors, with the pandemic driving up global edible oil prices to record highs.
• After Indonesia’s unprecedented announcement to ban palm oil exports, global prices of other vegetable oils saw spikes.

How will it impact India?

• India is the biggest importer of palm oil which makes up 40% of its vegetable oil consumption, as per the USDA.
• India meets half of its annual need for 8.3 MT of palm oil from Indonesia.
• The price of soybean oil, most consumed after palm oil, rose by 29% in the country this year; while sunflower oil, 90% of which India gets from Russia and Ukraine, stopped coming in almost completely.
• Amid this situation, India had requested Indonesia in to increase palm oil shipments to make up for the short supply and expensive alternatives.

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State of (un)employment in India

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Context:

Data from the Centre for Monitoring Indian Economy (CMIE) shows that India’s labour force participation rate (LFPR) has fallen to just 40% from an already low 47% in 2016. This suggests not only that more than half of India’s population in the working-age group (15 years and older) is deciding to sit out of the job market, but also that this proportion of people is increasing.

Relevance:

GS III- Indian Economy (Growth and Development)

Dimensions of the Article:

1. What is LFPR?
2. Significance of LFPR in India
3. How is it under-reported?
4. What is the correct way to assess India’s unemployment stress?
5. Why is India’s LFPR so low?

What is LFPR?

• According to the CMIE, the labour force consists of persons who are of age 15 years or older, and belong to either of the following two categories:
  • are employed
  • are unemployed and are willing to work and are actively looking for a job
• There is a crucial commonality between the two categories — they both have people “demanding” jobs.
• This demand is what LFPR refers to. While those in category 1 succeed in getting a job, those in category 2 fail to do so.
• Thus, the LFPR essentially is the percentage of the working-age (15 years or older) population that is asking for a job; it represents the “demand” for jobs in an economy.
• It includes those who are employed and those who are unemployed.
• The Unemployment Rate (UER), which is routinely quoted in the news, is nothing but the number of unemployed (category 2) as a proportion of the labour force.

Significance of LFPR in India

• Typically, it is expected that the LFPR will remain largely stable. As such, any analysis of unemployment in an economy can be done just by looking at the UER.
• But, in India, the LFPR is not only lower than in the rest of the world but also falling. This, in turn, affects the UER because LFPR is the base (the denominator) on which UER is calculated.
• The world over, LFPR is around 60%.
  • In India, it has been sliding over the last 10 years and has shrunk from 47% in 2016 to just 40% as of December 2021.
• This shrinkage implies that merely looking at UER will under-report the stress of unemployment in India.

How is it under-reported?

• Imagine that there are just 100 people in the working-age group but only 60 ask for jobs — that is, the LFPR is 60% — and of these 60 people, 6 did not get a job. This would imply a UER of 10%.
• Now imagine a scenario when the LFPR has fallen to 40% and, as such, only 40 people are demanding work.
• And of these 40, only 2 people fail to get a job. The UER would have fallen to 5% and it might appear that the economy is doing better on the jobs front but the truth is starkly different.
• In fact, every time the LFPR falls, the UER also falls — because fewer people are now demanding jobs — giving the incorrect impression to policymakers that the situation has improved.

What is the correct way to assess India’s unemployment stress?

• When LFPR is falling as steadily and as sharply as it has done in India’s case, it is better to track another variable: the Employment Rate (ER).
  • The ER refers to the total number of employed people as a percentage of the working-age population.
• By using the working-age population as the base and looking at the number of people with jobs (instead of those without them), the ER captures the fall in LFPR to better represent the stress in the labour market.
• If one looks at the ER data (Chart 1), it becomes clear that while India’s working-age population has been increasing each year, the percentage of people with jobs has been coming down sharply.
• Looking at the absolute numbers makes the stress even more clear.
• In December 2021, India had 107.9 crore people in the working age group and of these, only 40.4 crore had a job (an ER of 37.4%).
• Compare this with December 2016 when India had 95.9 crore in the working-age group and 41.2 crore with jobs (ER 43%).
• In five years, while the total working-age population has gone up by 12 crore, the number of people with jobs has gone down by 80 lakh.

Why is India’s LFPR so low?

• The main reason for India’s LFPR being low is the abysmally low level of female LFPR.
• According to CMIE data, as of December 2021, while the male LFPR was 67.4%, the female LFPR was as low as 9.4%.
• In other words, less than one in 10 working-age women in India are even demanding work.
• Even if one sources data from the World Bank, India’s female labour force participation rate is around 25% when the global average is 47%.

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Hepatitis B

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Context:

A series of unexplained cases of Hepatitis B in children has taken over the world. Many countries including the US and UK reported mysterious cases of a few children being diagnosed with Hepatitis B.

Relevance:

GS II- Health

Dimensions of the Article:

1. What is Hepatitis B?
2. How does hepatitis B virus spread?
3. Symptoms of Hepatitis B
4. What is adenovirus and how is it leading to Hepatitis B in children?

What is Hepatitis B?

• Hepatitis B is an infection in the liver which happens because of the Hepatitis B virus or HBV.
• The virus usually spreads through blood, semen or other body fluids.
• It can be prevented or protected against through vaccination.
• When it is acute, the virus lasts a small time and doesn’t always necessarily need treatments although it can get serious and lead to life-threatening diseases like organ scarring, liver failure and even cancer.

How does hepatitis B virus spread?

The virus is found in the blood or certain body fluids and is spread when blood or body fluid from an infected person enters the body of a person who is not infected. This can occur in a variety of ways including:

• Unprotected sexual contact
• Sharing drugs, needles, or “works” when using drugs
• Poor infection control practices in medical settings
• Sharing of blood sugar (diabetes) testing equipment
• Needle sticks or sharps exposures on the job
• From mother to baby during birth
• Contact with wounds or skin sores
• When an infected person bites another person
• Pre-chewing food for babies
• Sharing personal-care items, such as razors or toothbrushes

Hepatitis B virus particles can be found on objects, even in the absence of visible blood. The virus can remain infectious and capable of spreading infection for at least seven days outside the human body. Hepatitis B is not spread through food or water, sharing eating utensils, hugging, kissing, coughing, and sneezing or by casual contact, such as in an office or factory setting.

Symptoms of Hepatitis B

• Jaundice
• Fever
• fatigue that lasts for weeks or even months
• Vomiting
• Loss of appetite
• Pain in joints or belly

There is a fair chance that the symptoms are not visible for one to six months since you catch the virus.

What is adenovirus and how is it leading to Hepatitis B in children?

• Adenovirus is a group of viruses that commonly cause cold or flu-like symptoms, fever, sore throat, acute bronchitis, pneumonia, conjunctivitis, acute inflammation of the stomach, diarrhoea, vomiting, nausea and stomach pain.
• Adenovirus is known to spread from one person to another through close contact, coughing, sneezing and even by touching an object containing adenovirus and then further touching the mouth, nose or eyes.
• Type 41 adenovirus is suspected of causing Hepatitis B in children.
• While there are more than 50 types of adenoviruses, it is type 41 that causes diarrhoea, vomiting and fever along with respiratory problems.

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Sedition Law

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Context:

The Supreme Court has fixed May 5 for final hearing of the petitions challenging the constitutionality of the sedition law and made it clear that it will not brook any delay in the form of requests for adjournment.

Relevance:

GS-II: Polity and Constitution (Constitutional Provisions, Fundamental Rights), GS-II: Governance (Government Policies and Initiatives)

Dimensions of the Article:

1. What is Sedition?
2. About Sedition law
3. Criticism of Sedition
4. The Problem of Sedition being constitutional

What is Sedition?

Sedition, which falls under Section 124A of the Indian Penal Code, is defined as any action that brings or attempts to bring hatred or contempt towards the government of India and has been illegal in India since 1870.

Historical background of Sedition laws

• Sedition as a concept comes from Elizabethan England, where if you criticised the king and were fomenting a rebellion, it was a crime against the state.
• When they ruled India, the British feared Wahhabi rebellion. They brought the [sedition] law in, and it was used against our freedom fighters as well.
• We must remember that both Mahatma Gandhi and [Bal Gangadhar] Tilak were tried under this law and sentenced.
• Government didn’t remove it because every administrator has this thought that dissent is okay, but beyond a certain point it gets dangerous and an administration must have the means to control it.
• Previously policemen were much more independent. But since Indian independence, the independence of the police has also been severely compromised. So, any local leader can almost bully a policeman into registering a case.

About Sedition law

• The law was originally drafted by Thomas Macaulay. Since its introduction in 1870, meaning of the term, as well as its ambit, has changed significantly.
• Sedition is a cognisable, non-compoundable, and non-bailable offence, under which sentencing can be between three years to imprisonment for life.

About Section 124A of Indian Penal Code (IPC)

• The Indian Penal Code in Section 124A lays down the offence:
• “Whoever, by words, either spoken or written, or by signs, or by visible representation, or otherwise, brings or attempts to bring into hatred or contempt, or excites or attempts to excite disaffection towards the Government established by law in India, shall be punished with imprisonment for life, to which fine may be added, or with imprisonment which may extend to three years, to which fine may be added, or with fine.”
• A person charged under this law can’t apply for a government job. They have to live without their passport and must present themselves in the court as and when required.

Criticism of Sedition

• Colonial Era law: It is a colonial relic and a preventive provision that should only be read as an emergency measure.
• Right to Freedom of expression: Use of Section 124A by the government might go beyond the reasonable restrictions provided under fundamental right to freedom of speech and expression as per Article 19 of the Constitution.
• Democratic foundation: Dissent and criticism of the government are essential ingredients of robust public debate in a vibrant democracy and therefore, should not be constructed as sedition. The sedition law is being misused as a tool to persecute political dissent.
• Lower Conviction Rate: Though police are charging more people with sedition, few cases actually result in a conviction. Since 2016, only four sedition cases have seen a conviction in court which indicates that sedition as an offence has no solid legal grounding in India.
• Vague provision of sedition laws: The terms used under Section 124A like ‘disaffection’ are vague and subject to different interpretation to the whims and fancies of the investigating officers.
• Other legal measure for offences against the state: Indian Penal Code and Unlawful Activities Prevention Act (1967), have provisions that penalize “disrupting the public order” or “overthrowing the government with violence and illegal means”. These are sufficient for protecting the national integrity. o Similarly, the Prevention of Damage to Public Property Act is also there for offences against the state.
• Perception of law: Globally, sedition is increasingly viewed as a draconian law and was revoked in the United Kingdom in 2010. In Australia, following the recommendations of the Australian Law Reform Commission (ALRC) the term sedition was removed.

The Problem of Sedition being constitutional

• The law of sedition was not struck down by the Supreme Court in 1962 as unconstitutional even though sedition, as defined in Section 124A of the IPC, clearly violates Article 19(1)(a) of the Constitution which confers the Fundamental Right of freedom of speech and expression, the most valuable right of free citizens of a free country.
• Further, this section does not get protection under Article 19(2) on the ground of reasonable restriction.
• It may be mentioned in this context that sedition as a reasonable restriction, though included in the draft Article 19 was deleted when that Article was finally adopted by the Constituent Assembly. It clearly shows that the Constitution makers did not consider sedition as a reasonable restriction.
• However, the Supreme Court was not swayed by the decision of the Constituent Assembly. It took advantage of the words ‘in the interest of public order’ used in Article 19(2) and held that the offence of sedition arises when seditious utterances can lead to disorder or violence.
• This act of reading down Section 124A brought it clearly under Article 19(2) and saved the law of sedition. Otherwise, sedition would have had to be struck down as unconstitutional.