Good crop, but demand may suffer

This is an article published on August 15 in the Perspective page of the Statesman.

Former Union Agriculture Secretary Siraj Hussain opined his views on the scenario in the agriculture sector. 

Please click to see the printed version  https://epaper.thestatesman.com/c/54237992 

About Siraj Hussain, Former Union Agriculture Secretary, Government of India.

Former Union Agriculture Secretary Siraj Hussain was one of the main officers, who prepared a roadmap and formulated most of the agriculture schemes announced by PM Narendra Modi during the Modi 1.0. He also headed the Food Corporation of India—a statutory body under the Ministry of Consumer Affairs, Food and Public Distribution, which is mainly engaged in the procurement and distribution of main Rabi and Kharif crops in India. Prior to Union Agriculture Secretary post, he was the Union Secretary in Food Processing Ministry.

The 1979 batch Uttar Pradesh cadre IAS officer has also served in Uttar Pradesh in various capacities including the chief of UPSIDC (Uttar Pradesh States Industrial Development Corporation), Registrar of Cooperatives Societies and Secretary to UP Chief Minister.

In 2016 Siraj was awarded Honorary Doctorate by Acharya NG Ranga Agriculture University in Andhra Pradesh. Since his superannuation in January 2016, he has been working with ICRIER (Indian Council for Research on International Economic Relations) as Visiting Senior Fellow. Besides, he has also been engaged in research on various aspects of Indian agriculture and food processing and has authored several research papers on agriculture and rural economy. Siraj spoke to Vijay Thakur, Special Representative, The Statesman, on the issues related to farmer’s problem in the country.

Question:

Lockdown had an impact on all sector in the country. How do you see Lockdown and market slump thereafter on Agriculture and its allied sectors?

 

Answer:

The situation was very bad during the Initial days of lockdown during March. Farmers were beaten up at some places. In some places, it was reported that they were not allowed to transport their produce to market. It caused huge loss to farmers engaged in fruits and vegetable crops.

However, the government took prompt action and exempted agriculture operations from the lockdown. As a result, we had record high procurements of wheat. Farmer’s did not suffer much in the procurement process. wheat grower got MSP but Channa and Cotton crop farmers procurement was below the MSP. In nutshell procurement, this time was better than previous years.

 

Question:

It means there was little impact of lockdown and subsequent market slump on agriculture and its allied sector.

 

Answer:

No. It had a real impact on two main sectors Poultry and milk sectors. The Producers were very badly hit. Most affected were the poultry farmers, the price of a live bird, which was around Rs 85 per Kg in February-March came down to Rs 35 a bird.

So was the situation of milk producers. The bulk producers, which contributes to nearly 25 % of the milk consumption, did not buy it to that level. According to a rough estimate, the price of bulk milk price went down by Rs 10 a litre. That is why milk producers are agitating in Maharashtra.

 

Question:

Will Covid-19 have an impact on Kharif production as well?

 

Answer:

Thankfully, this time Kharif operations have taken place in time because of good and timely Monsoon. Availability of labour has increased in the farming sector as well because of the job. Direct seeding of rice has an impressing increase in Punjab. Present scenario indicates that we would have record production of Kharif this year.

 

Question

It means everything is going to be fine in the Agriculture Sector?

 

Answer:

No, The problem is probably still there. We may have the problem of plenty this time. The Record high Kharif production is good, but the purchasing power of people have gone down due to lockdown and slump in the market. The decrease in income and increasing unemployment due to COVID 19 may not generate as much demand as we had expected. Migrant labours who had gone back home are facing a tough time. They are earning less than what they used to earn in urban areas. I think it would be very difficult for farmers to get a good price for their produce.

 

Question

But then we have export options?

Answer

As regards the export of our Kharif crop major exporting crop is rice and cotton. Export of Cotton we cannot predict, as most of our cotton goes to China. Considering the present scenario, it is difficult to comment on its export.

Now coming to rice, unfortunately, Indian rice export has also been declining in the international market.

In case of rice our major importer country is Iran, thankfully it would continue to import it from India. Look at the import figure, the import of non-basmati Indian rice has come from USD 3 Billion to 2 Billion—a 33 % decline. Similar is the situation of Basmati rice—it came down from USD 4.7 billion to USD 4.3 Billion.

Globally also, the purchasing power of people has gone down. And that is our worry. I still do not think the global demand for food products would go down that much. I am not sure if we will get a better price in the international market as well.

 

Question:

What is your hope from the Agriculture Sector? What more you think the government should do to help the farmers?

Answer:

Government has taken a few good steps. They have opened up the market. Now a farmer can sell their produce anywhere in the country through E-NAM. It has allowed movement of agriculture produce anywhere in the country. If all goes well, it would bring very good results in future. New players will enter the market, would give a better price to the farmers.

Then e-commerce companies are also coming up. They would also procure directly from the farmers. The big question still remains, the private players would come only when there is demand in the market. We also have some hope from the infrastructure AgriFunds, it may have some impact. I Think government lacks long term plans for agriculture funds.

 

Question:

Modi Government had announced the plan to double farmer’s income by 2022. Do you think the government would be able to meet its target in the wake of COVID-19?

 

Answer:

I have repeated it several times that nominally income of farmers doubles every six years without any impact. This is data from NSSO surveys. In 2002-03 the average monthly income of farmers stood at Rs 2115, grew to Rs 6426 by 2012-13—an annual increase of 11.75 %. Which means regardless of massive government efforts, the nominal income has already been growing at the target set by the Modi Government, But actually doubling of real income would take 16 years to double.

And if the government is talking about doubling real income, it needs 20 % increase every year in farmer’s income. This is a real challenge, some good steps have been taken, yet I see no major long term strategy of the Modi Government in this regards.

 

Ends.

Story of an Azad Hind Fauz soldier-- listen what they sacrificed for our Today and Tomorrow. Respect our Freedom & democracy

 PLEASE CLICK THE LINK TO LISTEN TO THE PROGRAMME TELECASTED ON the All India Radio World Service telecasted on August 21, 2019:  https://t.co/0ENsAiSfks?amp=1

All India Radio World Service telecasted on August 21, 2019: http://airworldservice.org/english/archives/96299 

एक आज़ाद हिन्द फौजी की कहानी (गर्व है वो मेरे नानाजी हैं) जिन्होंने हमारे आज के लिए अपना आज कुर्बान किया आज़ादी & लोकतंत्र की इज़्ज़त कीजिये आने वाली पीडियों को जरूर पढायें, आज़ादी अहिंसक आंदोलन से ही नहीं मिली थी कुछ लोगों ने भूखे रहकर भी अंग्रेंजो से लड़ाई लड़ी थी उन्होंने और उनके साथियों ने कई हफ्ते बिना राशन पानी के बर्मा के जंगलों में जंगली फल फूल खा कर, पेड़ों का गोंद और छाल खा कर अंग्रेजों से लड़ाई लड़ी थी

हार जीत मायने नहीं रखती देश के लिए अपना सब कुछ कुर्बान कर के आज के हिंदुस्तान बनाने का सपना देखना बहुत मायने रखते है 

He was not only my maternal Grandfather but was a hero for all his grandchildren. He was a role model to all of us and I remember as a child we used to wear his ‘Fauzi shoes, caps and sing the Azad Hind Fauz song ‘Kadam Kadam Badai Ja’. He used to distribute ‘bhoj’ (sweets) to all of us and cautioned us that in a parade our shoe sound should always be in tune with our brain. Similarly in life, you first use your brain and then take a step.

My Nanaji, (Kunwar) Kashmir Singh Sen joined the Army not because he was looking for a job, but because he strongly believed joining the Army was the best way to help people in distress. As a descent from Suket royal family, he had acres and acres of land in the most fertile area, Bahl in Sundar Nagar. He also had a palatial house to live in the Suket princely state now called Sunder Nagar in Himachal Pradesh. As a child, he had no dearth of money yet be believed in giving part of his pocket money to his fellow poor children.

After his marriage with Krishna Devi Chandel, He was spending most of his time looking after his ‘Jamindari’ and two beautiful children. It was in late 1930es when the Second World War broke and the British Army started a recruitment drive in a princely state that he joined Dogra regiment the British army. After one year of training, he was tasked to fight in Singapore on behalf of the British Army.

His first assignment was in Singapore from where he was temporarily shifted to Miami beach after the Japanese attack on Pearl harbour attack in December 1941. He was probably carrying secret information from one post to another by crossing two dangerous rivers there, his son recalled. Nanaji used to recall how he carrying secret information of British Army with its alley US forces near Penang, which had just joined the Second World War II.

But that was for a very small period. He returned back to Singapore where his battalion had a fierce battle with Japanese forces in Raffles square area. His battalion suffered heavy casualties, more than 300 soldiers died and double of them sustained injuries. Finally, in February 1942, his battalion surrendered unconditionally to Japanese.

“The disposing off dead soldiers was a big problem for British as well as for Japanese forces… they ultimately dropped them in the ocean… among them were my friends, my juniors, my seniors and enemies from the Japanese army…I learn a hard lesson of my life that there is no enemy or friend after death… it changed my entire course of life…Suddenly I became much more mature,” He used to tell us while narrating his horrifying tales of Singapore war.

His pet dialogue was that an experienced soldier is not the one who carries maximum ammunition, but the one who carries maximum bhuna channe (fried grams) in his pocket. Nanaji always told us that “In a war, it is not the bullet that kills you… but it is hunger which demoralizes.….He had enough bullets but no water or food in the jungles of Singapore….. one by one he and his colleague used to go to jungle.. if lucky they would get some fruits or otherwise they used to eat sweet leaves, natural gums and sometimes even barks from trees and herbs..Drinking water was a big problem..He used collected water from the small stream and store it”. And that is why for the rest of his life he never tolerated wastage of food and water, says his daughter Surjeet Singh Rana. “My father used to tell us jokingly that anyone who would leave food in his plate would be sent to Singapore jungles for a month,” Surjeet recalls.

After the fall of Singapore, he along with 45,000 POWs was sent to POW Camp in Singapore mainly Bidadari. His stay as POW was brief and painful. His eldest son Shamsher Sing Sen, who retired as a revenue officer in the Himachal Government, remembers what his father told him about POW camps. “The food he was given was worse than what we used to sever our cattle. He also suspected that that Japanese probably added some chemicals in their food which caused him permanent stomach pain…After the Singapore imprisonment, he developed stomach pain.. that lasted all his life and ultimately became of the cause of his untimely death in 1985,” his son said.

In Singapore POWs camp, he became very weak due to unhygienic foods and water, many died due to dysentery, malaria, and cholera. It was finally when all POWs adopted the Bidadari resolution and set up the Indian Independence League, he got a chance to serve his motherland.

Nanaji told us his role in the Azad Hind Fauz. He recalled that his job was to distribute the copies of the resolution to soldiers, convince them to join Indian National Army (Azad Hind Fauz) —an armed unit the Indian Independence League, lead by Ras Bihari Bose, and prepare them to get ready for another war… this time with the British Army for India’s independence.

Now they would be using Japanese arms to fight British Army…All the soldiers were given a brief training to use Japanese arms and canons, which slightly different from the British armoury. But then there was a lull for months as the top brass of Azad Hind Fauz could not decide its strategy. It was only after Netaji Subash Chandra Bose took rein of the Indian Independence League in 1943 that Azad Hind Fauz again reenergized itself.

Nanaji recalled the impact of Netaji on the Azad hind Fauz. “Even the local youth started joining INA and we were again busy in giving a crash course to locals to fight against British”. “Some of us were also given the training to fly fighter pilots at Japan’s Imperial Military Academy, and the stage was set for the final battle”.

 He used to get emotional when he remembered his last battle “Chalo Delhi” (March to Delhi). “We all were physically weak due to month-long starvation like situation, but when we fought against the British, we ourselves were amazed at our performance…. Probably because we were fighting for the independence of our country…. Imagine some times were fighting with a ‘bottle of petrol’ (petrol bump) to defeat a British Tank…Though we lost the battle…. But now I can proudly say we did our best,” He told us. He was ultimately captured near Akaran in Burma and imprisoned in Rangoon Jail and later released after independence in 1947.

At home, life was very tough for his wife Krishna Devi. She did not see Nanaji for nine long years and after 1941 was not sure whether he was alive. His eldest son Shamser Singh Sen says there was no communication except a few letters before 1941, people had presumed that he sacrificed his life in the World War-II. He said “In 1947 we were surprised to see him back. He, along with INA jawans, was released at Ner Chowk.. 15 Kilometers from his home,” Shamsher Singh said.

“If you ask me to sum up his personality… I would say he was a great man. He never sided with wrong and told us if you do anything wrong I would be the first person to punish you… and he applied it in letter and spirit throughout his life. He never spared anyone who was wrong whether he was his senior or his child,” his daughter Surjeet Singh Rana says.

When the government asked landlords to donate the tilling land to agriculture labourer, he was the first person to do so happily. “The acres and acres of land in Bahl, which today is to the tune of several hundred crores, was donated to tilling labourers…And since he was left with little money and land, he had to work as a casual labourer to make roads. And later a Chowkidar in Bhakra Beas project in Sundar Nagar, part of which was built on his land,” said his son-in-law K R Thakur, an expert in International affairs, who worked as an editor in Soviet Information Centre.

My Nanaji never regretted that he donated his land or worked as a casual labourer… in fact, he never claimed freedom fighter pension till 1971 when his brother-in-law, Raja Virbhadra Singh, who was then Member of Parliament. Ultimately he reluctantly accepted the pension from the centre and state government as well as Tamra Patra from then Prime Minister Indira Gandhi.

Later when Virbhadra Singh became the Chief Minister of Himachal Pradesh he asked him to avail several benefits but he always refused it politely. “What I have done… it was my duty and I tried to put in my best,” he used to tell his children whenever they insist on taking favours from the government.

Ends.

COVID-19 pandemic proved a boom for Indian organic farmers. India already has the highest organic farmers in the world

With India having the highest organic farmers in the world, it is now planning to strengthen e-commerce platform for them to bridge a gap between the demand and supply of organic produce, which is in demand worlder particularly after COVID-19 pandemic.

Centre and state governments are already assisting clusters of nearly 40,000 organic farmer's clusters. Though organic products were already in demand worldover, the COVID-19 has boost up its demand as people have suddently become very health cautious, admitted a senior officer of the Union Agriculture Ministry on August 14.

"Thanks to COVID-19 pandemic that the demand for ‘healthy and safe food’ has started picking up the world over. Keeping this in view, Centre has started strengthening Organic e-commerce platform for directly linking farmers with retail as well as bulk buyers," he said.

He admitted that the pandemic has created new options to farmers to promote their product digitally. “Infusion of digital technology in a much bigger way has been a major takeaway during the pandemic period and is a welcome norm here to stay, saving in expenses on travel, logistics, etc while not compromising in any way on the quality of information sharing,” he said.

Centre has also organized video conferencing and webinars to outreach farmers with minimum disruption in their works. States mainly from the North East Region (NER participated in a webinar on Integrated Organic Farming models developed by ICAR, for increasing productivity, integrated nutrient and pest management and hence increase in farmers’ income, the Ministry said.

Video conferences are also being arranged to understand the issues being faced by companies engaged in procuring organic products. States and Regional Councils responsible for handholding clusters are trying to help farmers to take new initiatives for direct procurement from the farmers, farmer groups. “The growth in organic farming is showing a new path to farmers to earn more with less investment,” the officer said.

The major organic exports from India have been flax seeds, sesame, soybean, tea, medicinal plants, rice and pulses, which were instrumental in driving an increase of nearly 50% in organic exports in 2018-19, touching Rs 5151 crore, the Ministry said. Modest commencement of exports from Assam, Mizoram, Manipur and Nagaland to UK, USA, Swaziland and Italy have proved the potential by increasing volumes and expanding to new destinations as the demand for health foods increases, it stated.

Centre has been assisting to about 40,000 organic farmer’s clusters under PKVY covering an area of about 7 lakh hectares. MOVCD (Mission Organic Value Chain Development for North East Region ) has brought in its fold 160 FPOs cultivating about 80,000 hectares. Government is promoting contract farming to make these clusters sustainable.  It would help in getting a ready market for the produce and at the same time Industry would also get the desired quality and quantity when required, the Agriculture Ministry said.

The growth story of organic farming is unfolding with increasing demand not only in India but also globally. In a world battered by the COVID pandemic, the demand for healthy and safe food is already showing an upward trend and hence this is an opportune moment to be captured for a win-win situation for our farmers, consumers and the environment, the Ministry said.

India ranks first in number of organic farmers and ninth in terms of area under organic farming. Sikkim became the first State in the world to become fully organic and other States including Tripura and Uttarakhand have set similar targets. North East India has traditionally been organic and the consumption of chemicals is far less than rest of the country. Similarly the tribal and island territories are being nurtured to continue their organic story.

In a bid to assist farmers to adopt organic farming and improve remunerations due to premium prices, Centre govenrment had launched two dedicated programs namely Mission Organic Value Chain Development for North East Region (MOVCD) and Paramparagat Krishi Vikas Yojana (PKVY) in 2015 to encourage chemical free farming.

With the simultaneous thrust given by the Agri-export Policy 2018, India would now emerge as a major player in global organic markets. The major organic exports from India have been flax seeds, sesame, soybean, tea, medicinal plants, rice and pulses, which were instrumental in driving an increase of nearly 50% in organic exports in 2018-19, touching Rs 5151 crore. Modest commencement of exports from Assam, Mizoram, Manipur and Nagaland to UK, USA, Swaziland and Italy have proved the potential by increasing volumes and expanding to new destinations as the demand for health foods increases.

Certification is another important element of organic produce to instill customer confidence. Both PKVY and MOVCD are promoting certification under Participatory Guarantee System (PGS) and National Program for Organic Production (NPOP) respectively targeting domestic and exports markets. The Food Safety and Standards (Organic Foods) Regulations, 2017 are based on the standards of NPOP and PGS. The consumer should look for the logos of FSSAI, Jaivik Bharat / PGS Organic India on the produce to establish the organic authenticity of the produce. PGS Green is given to chemical free produce under transition to ‘organic’ which takes 3 years.

About 40,000 clusters are being assisted under PKVY covering an area of about 7 lakh ha. MOVCD has brought in its fold 160 FPOs cultivating about 80,000 ha. For these clusters to become sustainable, it is important that henceforth market led production starts in a contract farming mode, so that there is a ready market for the produce and industry also gets the desired quality and quantity when required. This is being pursued in right earnest with bulk buyers including the phtyo extracts industries. The commodities with highest potential include ginger, turmeric, black rice, spices, nutri cereals, pineapples, medicinal plants, buckwheat, bamboo shoots, etc. Supplies have started from NER including for Mother Dairy from Meghalaya, Revanta Foods and Big Basket from Manipur. Number of instances of farmer groups setting up markets in RWAs and selling directly is increasingly becoming common especially in Maharashtra and Karnataka where fresh organic produce is lapped up by the urbanites and farmers get a better bargain with no intermediaries. The presence of aggregators is imperative to bring about economies of scale for the small and marginal farmers. Hence the concept of market led One district - One product is being encouraged, as also development of more clusters in the vicinity of bigger towns where the appetite for organics will be much more.

When the pandemic struck India, access to quality food was as high on priority for the country as much as health. Advisories to States on supporting direct marketing in order to decongest mandis led to number of States issuing orders and amending legislations, thereby opening up market options to farmers. Working within the constraints posed due to disruption in logistics, access to regular markets, decrease in demand, number of States and clusters innovated and converted this crisis into an opportunity. The Green Caravan of Kohima created market linkages from all villages of Nagaland to urban areas for vegetables, handicrafts and handlooms (www.instamojo.com). There was online sale of fruits and vegetables by FPOs in Maharashtra and doorstep delivery in specially designed electric vans in Punjab. Manipur Organic Agency (MoMA) mobilised all the 15 FPCs of MOVCD to collect produce and transport to two organic wholesale centers at Sanjenthong and Chingmeriong in Imphal for onward delivery to consumers.

The organic e-commerce platform www.jaivikkheti.in is being strengthened for directly linking farmers with retail as well as bulk buyers. Infusion of digital technology in a much bigger way has been a major takeaway during the pandemic period and is a welcome norm here to stay, saving in expenses on travel, logistics, etc while not compromising in any way on the quality of information sharing. In fact, video conferencing and webinars makes possible outreach with many more in the field, with minimum disruption in their works too and which was not possible in physical meetings. The NER States also participated in a webinar on Integrated Organic Farming models developed by ICAR, for increasing productivity, integrated nutrient and pest management and hence increase in farmers’ income. Video conferences are being held to understand the issues being faced by companies and strengthen the conversations with States and Regional Councils responsible for handholding clusters and in the process new partnerships are being forged for direct procurement from the farmers/farmer groups. 

Natural farming is not a new concept in India, with farmers having tilled their land without the use of chemicals - largely relying on organic residues, cow dung, composts, etc since time immemorial. The philosophy underlying organic farming of integration of the elements – soil, water, microbes and ‘waste’ products, forestry and agriculture is the correct recipe for sustainable use of natural resources, which are coming under severe stress due to ever increasing requirement of food and feedstock for agri based industry. This is also in sync with the Sustainable Development Goal 2 targeting ‘end hunger, achieve food security and improved nutrition and promote sustainable agriculture’.

Hence with greater awareness and capacity building of the producers on compliance with international standards, Indian organic farmers will soon be reinforcing their rightful place in global agri trade.

India initiates deliberation to prepare a roadmap for procurement, financing, storage of COVID-19 Vaccine

Hoping that COVID-19 vaccine is a few months away, India initiated a process for preparing a longterm strategy for procurement of COVID-19 vaccine, availability of financial resources, its storage in Cold storage chains, guidelines for its transportation.

The National Expert Group on Vaccine Administration for COVID-19, chaired by Dr V K Paul, Member Niti Aayog along with Secretarymet as co-chair, met for the first time on Augst 12 and deliberated on conceptualization and implementation mechanisms for the creation of digital infrastructure.

They further discussed various other issues including inventory management and delivery mechanism of the vaccine including tracking of vaccination process with particular focus on last-mile delivery.

The experts also focussed on broad parameters guiding the selection of COVID-19 vaccine candidates for the country and sought inputs from Standing Technical Sub-Committee of National Technical Advisory Group on Immunization (NTAGI).

The group delved on the procurement mechanisms for COVID-19 vaccine, including both indigenous and international manufacturing along with guiding principles for prioritization of population groups for vaccination.

The expert group further discussed the financial resources required for procurement of COVID-19 vaccine and various options of financing the same. Available options in terms of delivery platforms, cold chain and associated infrastructure for the rollout of COVID-19 vaccination were also taken up.

The strategy and follow-up action on all possible scenarios to ensure equitable and transparent delivery of vaccine was deliberated upon. Issues related to vaccine safety and surveillance were taken up and strategy for community involvement through transparent information and awareness creation were discussed.

India’s support to its key neighbours and development partner countries for COVID-19 vaccines was deliberated upon. The expert group discussed that India will leverage domestic vaccine manufacturing capacity and will also engage with all international players for early delivery of vaccines not only in India but also in low and middle-income countries.

The Committee also advised all the States not to chart separate pathways of procurement.

India allows sale of electric Vehicles without batteries

Electric vehicles without Batteries can be registered with RTO  

In a move that would create a new ecosystem for promotion of electric vehicles, Government permitted registration of electric vehicles without pre-fitted batteries. This would bring down the investment cost of electric vehicles and help people and new companies that would offer swappable batteries--a new concept for electric vehicles.

The motive behind the change in the rule is to create an ecosystem to accelerate the uptake of electric mobility in the country. It is time to come together to work Jointly to achieve the broader national agenda to reduce vehicular pollution and oil import bill, said senior officers of the Indian Ministry of Road and Transport, which issued the new guidelines to all states and UTs. "This will not only protect the environment and reduce the oft import bill but also provide opportunities to sunrise industry," he said.

For the promotion of electrical two-wheelers and three-wheeler vehicles, there are recommendations brought to the notice of the Ministry to delink the cost of the battery (which accounts for 30-40% of the total cost) from the vehicle cost. Vehicles could then also be sold in the market without the battery. This will make the upfront cost of the electrical 2 wheeler (2W) and 3 wheelers (3W) to be lower than ICE 2 and 3W. The battery could be provided separately by the OEM or the energy service provider.

The Ministry of Road Transport and Highways (MoRTH) has written to Transport Secretaries of all states and Union Territories clarifying that vehicles without batteries can be sold and registered based on the type approval certificate issued by the Test Agency.

 Further, there is no need to specify the Make/Type or any other details of the Battery for the purpose of Registration. However, the prototype of the electrical vehicle, and the battery (regular battery or the swappable battery) is required to be type approved by the test Agencies specified under Rule 126 of the Central Motor Vehicles Rules, 1989.

Centre has drawn the attention of the States/UTs to the relevant FORMS under Central Motor Vehicles Rules, 1989. Viz. FORM-21 (Sale certificate), FORM -22 (Roadworthiness certificate issued by the manufacturer) and FORM-22-A (Roadworthiness certificate issued for Motor vehicles where fabrication of the body is done separately), required for the registration of Motor Vehicles under Rule 47 (Application for registration of Motor Vehicles), clearly specify Engine number/Motor number (In case of battery-operated vehicles).

Why this Step:

Nearly 40 % cost of an electric vehicle belongs to Battery. People avoid EVs because (LED ACID) batteries need to be replaced every two years, and LION phosphate batteries are very costly. These batteries require regular maintenance which is not possible for a non-technical person, and any small mistake might lead to damage to the battery. Present experience suggests people avoid EVs because they do not want to take chance with batteries.

In Electric Vehicles, most parts require negligible services compared to petrol/diesel vehicles. If it needs regular services and examination it is batteries. If a consumer is tension-free about the batteries, he would certainly go for EVs.

What it means to a common consumer and EV industry

1) The actual cost of an electric vehicle would reduce. Batteries can be procured from an OEM (original equipment manufacturer) company.

2) The headache of maintaining battery would be with OEM. Indirectly there would be no recurring cost related to the battery.

3) Win-Win game for vehicle owners (for they have no major investment), and batter manufacturing companies (because they would get a regular business)

4) It would generate new employment opportunities all over the country.

5) The power plants whose PLF (Plant Load Factor) has gone down as low as 60 % would increase in turn bring some kind of relief to them and generate power demand in the country.

6) Reduce India's crude oil import Bill as more and more people switch on to EV (Electrical vehicles) from ICs (Internal Combustion Engines).

7) If all goes India may lead the world in EVs and Battery technologies.

Prime Minister Shri Narendra Modi to launch the platform for “Transparent Taxation – Honoring the Honest” on the 13th August 2020.

 Prime Minister will launch the platform for “Transparent Taxation – Honoring the Honest” via video conferencing on the 13th August 2020.

The CBDT has carried out several major tax reforms indirect taxes in recent years.   Last year the Corporate Tax rates were reduced from 30 per cent to 22 per cent and for new manufacturing units, the rates were reduced to 15 per cent. Dividend distribution Tax was also abolished.

The focus of the tax reforms has been on reduction in tax rates and on simplification of direct tax laws. Several initiatives have been taken by the CBDT for bringing in efficiency and transparency in the functioning of the IT Department. This includes bringing more transparency in official communication through the newly introduced Document Identification Number (DIN) wherein every communication of the Department would carry a computer generated unique document identification number.  Similarly, to increase the ease of compliance for taxpayers, the IT Department has moved forward with prefilling of income tax returns to make compliance more convenient for individual taxpayers. Compliance norms for startups have also been simplified.

With a view providing for resolution of pending tax disputes the IT Department also brought out the Direct Tax “Vivad se Vishwas Act, 2020” under which declarations for settling disputes are being filed currently. To effectively reduce taxpayer grievances/litigation, the monetary thresholds for filing of departmental appeals in various appellate Courts have been raised. Several measures have been taken to promote digital transactions and electronic modes of payment. The IT department is committed to taking the initiatives forward and has also made efforts to ease compliances for taxpayers during the COVID times by extending statutory timeliness for filing returns as also releasing refunds expeditiously to increase liquidity in the hands of taxpayers.

The upcoming launch of the platform for “ Transparent Taxation – Honoring the Honest “ by the Prime Minister will further carry forward the journey of direct tax reforms.

The event will be witnessed by various Chambers of Commerce, Trade Associations, Chartered Accountants' associations and also eminent taxpayers, apart from the officers and officials of the Income Tax Department. Union Minister of Finance and Corporate Affairs, Shrimati Nirmala Sitharaman and Minister of State for Finance and Corporate Affairs, Shri Anurag Singh Thakur will also present on the occasion.

India busts Chinese Hawala racket. Finds records of hawala transactions to the tune of Rs 1000 crore

Income Tax Department conducts a search on- the premises of Chinese citizens involved in hawala

The detention of a Chinese person, who alleged to have managed a fake Indian passport from Manipur is the beginning of 'picking up' on Chinese citizens living in India 'unauthorisedly' and engaged in money laundering in various parts of the country.

If senior officers of the Income Tax Commissioner are to be believed there are several banks officials hand in gloves with 'such Chinese people' in association with the local businessmen or traders to convert black money into White and transfer it to foreign accounts in a legal way.

On August 11, the IT officials raided over a dozen premises in Delhi, Gurgaon and found that more than 40 bank accounts were created in various dummy entities and entered into credits of more than Rs 1000 crores over a 'certain period.

The prime accused, in association with local individuals, opened the fake bank accounts to make hawala transactions through a series of shell entities.

The search operations revealed that  A subsidiary of Chinese company and its related concerns have taken over Rs. 100 crores bogus advances from shell entities for opening businesses of retail showrooms in India, the Income Tax Commissioner said.

Further investigation led to the seizure of incriminating documents in respect of hawala transactions and laundering of money with the active involvement of bank employees and Chartered accountants.

IT officials admitted that Bank employees and Charted Accountants were actively involved in the facilitation of hawala transactions.  It also found pieces of evidence of foreign hawala transactions involving Hongkong and US dollars.

The raids were conducted based on credible information which indicated that a few Chinese individuals and their Indian associates were involved in money laundering and hawala transactions through a series of shell entities. On the basis of this information, it conducted a search action was mounted at various premises of these Chinese entities, their close confederates and couple of bank employees.

Why Chinese Are the Main TARGET?

August 11 raids are just the beginning but not the end. Many more Chinese people living in India 'legally or illegally' and engaged in hawala transactions would be their next target.

According to traders, engaged in trading from China, most of the import from China is heavily underpriced to cut import duties. The government figure of Chinese import is much less than what it is the actual data. "Though the underpricing varies from item to item and situation to situation, however, on an average the underpricing is almost 30 % of the invoice value. This means if we are importing USD 100 million, only USD 70 million would come on government record," said a trader dealing imported Chinese items, requesting anonymity.

Under-invoicing of 30 % is an 'open secret'. Anyone who has an iota of experience of Delhi wholesale Chinese market knows about it. Now how this 30 % invoice value is paid to Chinese exporters?

There are two modus operandie.

A: Bartering of invoice values, Chinese exporters under invoice 30 %, and then he imports goods of the same value from India under-invoicing the 30 % value of exported goods. It is very complicated methods and only big players can do this.

B: The second method is simple and very common. The Indian agent of the Chinese exporters take the under invoice money in cash or kind and transfer it to China through hawala or through these shell companies in the name of services.

How hitting Chinese individuals would help?

Chinese people normally do not trust Indians and they themselves evolve secret ways of hawala transactions. Intelligence agencies even suspect that these 'black money' might be used for anti-national activities in India and funding organisations working to disrupt India's progress. This is an Indirect war against India.

Ends