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The document covers various topics including the Minimum Support Price (MSP) system for farmers in India, the state of global animal health with a focus on zoonotic diseases, and the review of short selling regulations by SEBI. It also highlights the Self-Reliant India Fund Scheme, which has invested significantly in MSMEs since its launch in 2020. Key issues such as vaccine equity and market risks associated with short selling are discussed.

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2 views1 page

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The document covers various topics including the Minimum Support Price (MSP) system for farmers in India, the state of global animal health with a focus on zoonotic diseases, and the review of short selling regulations by SEBI. It also highlights the Self-Reliant India Fund Scheme, which has invested significantly in MSMEs since its launch in 2020. Key issues such as vaccine equity and market risks associated with short selling are discussed.

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savita137sharna
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© © All Rights Reserved
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Atomic Notes By Civilsdaily IAS- MAY 2025 Pg.

• M inimum Support Price (MSP) was first introduced in the 1960s during the Bi-
har famine to ensure price guarantees for farmers.
• CACP (Commission for Agricultural Costs & Prices), formed in 1985 from the earlier Ag-
ricultural Price Commission (1965), recommends MSPs to the government.
• M SP Fixation Process: CACP sends reports - shared with states & ministries - re-
viewed by CCEA - final MSP approved and published online.
• Cost Concepts in MSP:
• A2: Paid costs (seeds, fertilisers, labour, etc.)
• A2+FL: A2 + imputed family labour
• C2: A2+FL + rent on land + interest on capital
• Swaminathan Commission (2004) recommended MSP at 50% above C2, but GoI calculates 1.5x on A2+FL, not C2.
• Crops under MSP: 23 in total — 7 cereals, 5 pulses, 7 oilseeds, and 4 commercial crops (including sugarcane with FRP).
• Major Cereals covered: Paddy, Maize, Jowar, Bajra, Ragi, etc.; Pulses: Tur, Moong,
Gram, etc.; Oilseeds: Groundnut, Mustard, Soybean, etc.
• Commercial Crops: Cotton, Jute, Copra, and Sugarcane (with FRP) — recommended by CACP but notified separately.
Minimum Support Prices for Agricultural Produce

5. State of the World’s Animal Health


Report, 2025 by WOAH:
• F rom 2005–2023, 47% of global transboundary disease outbreaks were zoo-
notic, posing joint threats to animal and human health.
• A frican Swine Fever (ASF) spread 1,800 km to Sri Lanka in 2024, threatening India’s northeast pig-rearing zones.
• A vian Influenza (HPAI) outbreaks in non-poultry species exceeded poul-
try cases in 2024, raising risk in India’s dense poultry sector.
• F oot and Mouth Disease (FMD) remains endemic in India; new glob-
al SAT 1 and SAT 3 serotypes challenge existing vaccine efficacy.
• L umpy Skin Disease and PPR, earlier seen in India, are now expanding glob-
ally, indicating reintroduction risks for the country.
• W OAH calls for global action on vaccine equity, surveillance, and biosecuri-
ty, crucial for India’s trade, food security, and rural livelihoods.
• W OAH, formerly OIE, was founded in 1924, is headquartered in Paris, and has 183 member countries, including India.
• It runs WAHIS, sets animal health trade standards, promotes sci-
ence-based welfare, and works with partners like the FAO.
• I ndia is an active member via the World Assembly of Delegates.
Animal Husbandry, Dairy & Fisheries Sector – Pashudhan Sanjivani, E- Pashudhan Haat, etc

6. Short Selling and Associated Risks:


• S EBI is reviewing its January 2024 proposal baning short selling in non-
F&O stocks, aiming to ease restrictions amid market concerns.
• Short selling involves selling a stock first and buying it later to profit from a
price drop, opposite of traditional “buy low, sell high” trades.
• In short selling, the trader borrows shares, sells them at market val-
ue, and buys them back at a lower price to return to the broker.
• In the spot market, shorting is intraday only—positions must be squared off by 3:30 PM or face auction penalties.
• In the futures market, traders can hold short positions overnight, sub-
ject to margin deposits and rollovers, but with higher risk.
• K ey risks include unlimited losses if prices rise, short delivery penalties, and margin requirements limiting retail access.
• L iquidity risk arises if the stock is illiquid, delaying buyback; volatility can also lead to sharp losses.
• S EBI’s proposal sought to ban short selling in cash segment for non-F&O stocks, causing market uncertainty.
• D ue to its complexity and risk, short selling is not suited for beginners, and is typ-
ically used by institutional or experienced traders.
Capital Markets: Challenges and Developments

7. Self-Reliant India (SRI) Fund Scheme:


• S RI Fund has invested ₹10,979 crore in 577 MSMEs as of March 2025.
• Karnataka (151), Maharashtra (144), and Delhi (69) lead in investments.
• Launched in 2020 under the Atmanirbhar Bharat Package, the SRI Fund sup-
ports MSMEs with growth potential through equity financing.
• It targets a ₹50,000 crore corpus—₹10,000 crore from GoI and ₹40,000 crore mobilized from private investors.

Civilsdaily IAS, 1 LGF, Apsara Arcade, Pusa Road, Rajinder Nagar, New Delhi - 110060 (INDIA)
Tel: +91 73033 16700 Mail: [email protected]

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