The Legal row between farmers and PespsiCo

Why in NEWS

• Delhi High Court held that there was “no merit” in the appeal filed by PepsiCo over the patent rights for its ‘unique potato’ variety.
• The appeal was against an order passed by the Protection of Plant Varieties and Farmers Rights’ Authority (PPVFRA), revoking PepsiCo’s registration vis ¬a ¬vis the unique potato variety developed by it.

What is the PPV&FR Act?

• The Act provides an effective framework to conserve and encourage the development of various plant varieties.
• It established an effective system to safeguard and recognise the rights of breeders, researchers and farmers to promote agricultural development in the country.
• Additionally, it also facilitates the mushrooming of the Indian seed industry to ensure the availability of high¬ quality seeds and planting materials to farmers.

What are grounds for revocation?

According to Section 34 of the PPV&FR Act, the protection granted to a breeder may be revoked by the authority on the following grounds —

• The grant of a registration certificate is based on incorrect information furnished by the applicant;
• The registration certificate was granted to an ineligible person; when the breeder does not provide the registrar with the required documents;
• Failure to provide an alternative denomination for variety registration in case the earlier variety provided is not permissible for registration;
• Failure of the breeder to provide the required seeds for compulsory licence;
• Failure to comply with the acts, rules, regulations and directions issued by the Authority;
• The grant of the registration certificate is against public interest.

Conclusion

• India is an agri-¬based economy with the agriculture sector having the highest workforce, nearly 152 million as of FY2021 as per Statista.
• Multinational food processing companies and investors must prioritise the well¬being of farmers and their rights by developing a comprehensive understanding of India’s local laws, particularly the PPV&FR Act 2001, and recognise the safeguards and protections it provides to farmers.

GS PAPER – III

415 million Indians came out of multidimensional poverty in 15 years, says UNDP study

Why in NEWS

• It said that 25 countries, including India, successfully halved their global MPI values within 15 years.

• These countries include Cambodia, China, Congo, Honduras, India, Indonesia, Morocco, Serbia and Vietnam.

• The report noted that deprivation in all indicators declined in India.

Findings in India

• People who are multidimensionally poor and deprived under the nutrition indicator in India declined from 44.3% in 2005¬06 to 11.8% in 2019¬21, and child mortality fell from 4.5% to 1.5%.

• Those who are poor and deprived of cooking fuel fell from 52.9% to 13.9%

• Those deprived of sanitation fell from 50.4% in 2005/2006 to 11.3% in 2019/2021.

• In the drinking water indicator, the percentage of people who are multidimensionally poor and deprived fell from 16.4 to 2.7 during the period, electricity (from 29 to 2.1) and housing from 44.9 to 13.6.

According to the 2023 release, 1.1 billion out of 6.1 billion people (just more than 18%) live in acute multidimensional poverty across 110 countries.

About UNDP

• United Nations Development Programme (UNDP), United Nations (UN) organization formed in 1965.

• It helps countries eliminate poverty and achieve sustainable human development, an approach to economic growth that emphasizes improving the quality of life of all citizens while conserving the environment and natural resources for future generations.

GS PAPER – II

Schedule M to be mandatory for MSME pharma firms soon

Why in NEWS

• Union Health Minister has stated that Schedule M would be made compulsory for the MSME pharma sector in a phased manner

What are Schedule M drugs?

• Schedule M, part of the ‘Drugs and Cosmetics Act, 1940’ deals with ‘Good Manufacturing Practices’ for pharmaceuticals that should be followed by pharmaceutical manufacturing units in India.

Drugs and Cosmetics Rules, 1945

• The Drugs and Cosmetic Rules of 1945 allocated provisions for the classification of the drugs under various given schedules including details regarding the storage, display, sale and the prescription of an individual schedule.

• The prominent schedules included Schedule G, H, X, J.

Drugs and Cosmetics Act,1940

• The act talks about maintaining the quality of cosmetics and drugs, establishment of a board of technical experts which can further advise the central and the state governments on the technical matters.

• This Act in particular, provides for the guidelines about distribution, manufacture, import and sale of cosmetics and drugs.

• The regulation of Ayurveda, Siddha and Unani drugs and provisions related to the same are also incorporated under this Act.G

GS PAPER – III PAPER –III

Central Bank Digital Currency

Why in NEWS

• RBI Deputy Governor T. Rabi Sankar has said that the RBI is aiming to increase the number of Central Bank Digital Currency transactions to 10 lakh per day by the end of 2023.

• At present, the number of CBDC or e-rupee transactions stand at about 5,000 to 10,000 a day.

What Is a Central Bank Digital Currency (CBDC)?

• Central bank digital currencies (CBDCs) are a form of digital currency issued by a country’s central bank.

• They are similar to cryptocurrencies, except that their value is fixed by the central bank and equivalent to the country’s fiat currency.

Types of CBDCs

• There are two types of CBDCs, wholesale and retail.

• Financial institutions are the primary users of wholesale CBDCs, whereas consumers and businesses use retail CBDCs.

Issues Addressed by CBDCs

• Free from credit and liquidity risk

• Lowers cross-border payment costs

• Supports the international role of the dollar

• Aims for financial inclusion

• Expands access to the general public

Issues Created by CBDCs

• Financial structure changes to digital one.

• Financial system stability can be disrupted with emerging financial crimes.

• Monetary policy influence/transmission will become complex.

• Privacy and protection of digital currency will b challenging.

• Cybersecurity of the entire CBDC eco-system will be complex.

GS PAPER –III

Foreign Portfolio Investment

Why in NEWS

• Supreme Court on Tuesday asked the Securities and Exchange Board of India (SEBI) to explain why the law was altered in 2018 to junk crucial clauses that prohibited opacity in Foreign Portfolio Investors’ (FPI) ownership structure.

What Is Foreign Portfolio Investment (FPI)?

• Foreign portfolio investment (FPI) consists of securities and other financial assets held by investors in another country.

• It does not provide the investor with direct ownership of a company’s assets and is relatively liquid depending on the volatility of the market.

• Along with foreign direct investment (FDI), FPI is one of the common ways to invest in an overseas economy.

FPI vs. Foreign Direct Investment (FDI)

• In FPI, an investor does not actively manage the investments or the companies that issue the investments.

• They do not have direct control over the assets or the businesses.

• In contrast, foreign direct investment (FDI) lets an investor purchase a direct business interest in a foreign country.

• The investor’s goal is to create a long-term income stream while helping the company increase its profits.

About SEBI

• The Securities and Exchange Board of India (SEBI) is the most important regulator of securities markets in India.

• The objective is to protect the interests of investors in securities.

• To promote the development of, and to regulate the securities market.

• The Securities and Exchange Board of India was established in its current incarnation in April 1992, following the passage of the Securities and Exchange Board of India Act.