OIL PALM CULTIVATION IN TELANGANA
TOPIC: (GS3) AGRICULTURE: THE HINDU
Telangana is rapidly expanding oil palm cultivation under the Telangana State Oil Palm Mission. While the crop offers high income and government support, there are rising concerns about water use, environmental impact, and market instability.
Oil Palm Cultivation in Telangana:
- The first oil palm sapling was planted by then Andhra Pradesh CM N.T. Rama Rao in 1986.
- Initially popular in the Godavari delta, the crop spread to Telangana post-bifurcation.
- Early adoption by farmers in Khammam and Bhadradri Kothagudem districts showed encouraging returns.
Why Farmers Are Shifting to Oil Palm:
- Higher Income: Oil palm yields ₹60,000–₹1.5 lakh/acre annually, far higher than traditional crops like paddy.
- Government Support: Subsidies of up to ₹50,918/acre over four years. Guaranteed buyback through government-approved agencies.
- Resilient Crop: Withstands unseasonal rain, hailstorms, and is not affected by monkeys.
Expansion Efforts by the Government:
- Under National Mission on Edible Oils–Oil Palm (NMEO-OP), Telangana aims to increase area from 2.45 lakh acres to 20 lakh acres.
- 246 mandals identified as suitable for oil palm.
- 14 private firms involved, including Hindustan Unilever setting up processing plants.
- Farmers taken on exposure visits to Malaysia and local model farms for training.
Economic and Social Impact:
- Over 1.97 lakh acres brought under cultivation from 2021–2024.
- Tribal and small farmers benefiting through steady income.
- Nalgonda, Suryapet seeing new interest from retired officials, NRIs, and big landowners.
Major Challenges:
- Water Scarcity: Requires 150–250 litres of water per tree per day. Heavy dependence on borewells may strain groundwater in dry regions.
- Labour Shortage: Harvesting requires skilled workers; daily wages go up to ₹1,200 per worker.
- Market Risks: Import duty cuts on crude palm oil may reduce domestic prices. Farmers demand a fixed price of ₹25,000/tonne to ensure profitability.
- Environmental Concerns: Risks to soil health and biodiversity. Monoculture may reduce cropping diversity.
INDIA’S EDIBLE OIL CRISIS
High Import Dependency
- India imports 55–60% of its edible oil needs—over 16 million tonnes annually.
- This costs the country nearly $16 billion in foreign exchange.
Domestic Production Falling Short
- The growth rate of oilseed production is around 1.9% CAGR, which is too slow to meet growing demand.
- Domestic edible oil production covers less than half of the total consumption.
Low Inventories and Import Spikes
- Early 2025 saw edible oil imports at a four-year low, causing stock levels to drop sharply.
- In May 2025, palm oil imports increased by 84%, while overall vegetable oil imports rose by 33% to replenish stocks.
Impact on Inflation
- Retail inflation in edible oils touched 15.6% in January 2025, contributing significantly to food inflation.
- Prices of certain oils like coconut oil increased by nearly 40% in the past year.
Government Measures
- The government is promoting crop diversification from cereals to oilseeds.
- Schemes like National Mission on Edible Oils–Oilseeds (NMEO-OS) and Oil Palm (NMEO-OP) aim to boost domestic production.
- In June 2025, customs duty on crude edible oils was reduced from 20% to 10% to control prices.
Conclusion
Oil palm promises a better livelihood for farmers but comes with ecological and market risks. Sustainable practices, fair pricing, and strong infrastructure are essential to make it a long-term success.
IMPACT OF ISRAEL-IRAN CONFLICT ON INDIA’S OIL SUPPLY AND EXPORT COSTS
TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU
Rising tensions between Israel and Iran have triggered a sharp rise in global crude oil prices. This situation may raise inflation in India, disrupt oil supply routes, and increase export costs significantly.
What is the Israel Iran conflict
- A military strike by Israel on Iran has heightened geopolitical tensions in West Asia.
- Global crude prices surged by nearly 8% in one day due to fears of supply chain disruptions.
India’s Oil Dependency
- India depends on imports for about 80% of its crude oil needs.
- Though direct oil imports from Iran are currently limited, any global price increase impacts India’s import bill.
- Crude prices rising globally means higher fuel costs domestically, contributing to inflation.
Strait of Hormuz:
- About 20% of the world’s oil passes through the Strait of Hormuz, between Iran and the Arabian Peninsula.
- Tensions or blockades in this route may disrupt oil flow from Iraq, Saudi Arabia, and UAE—India’s key suppliers.
Impact on Indian Exports
- If the Suez Canal or Red Sea route is blocked, ships would need to detour via the Cape of Good Hope.
- This detour adds 15–20 extra days of shipping time per vessel.
- Export shipping costs could rise by 40–50%, especially in sectors like engineering goods.
Economic Impact on India
- Inflation risk: Higher oil import costs may raise prices across sectors in India.
- Gold price surge: Investors are turning to gold amid global uncertainty; prices have exceeded ₹1 lakh per 10g.
- Investor behaviour: Gold is seen as a safe asset during conflicts, leading to increased demand and price jumps.
STRAIT OF HORMUZ
- Strategic Location: The Strait of Hormuz is a narrow waterway between Iran and Oman, connecting the Persian Gulf to the Arabian Sea. It is one of the world’s most important chokepoints for global oil trade.
- Global Oil Supply: About one-third of the world’s seaborne oil passes through this strait. Any disruption here affects global energy prices and can create economic instability worldwide.
- Geopolitical Tensions: The strait often sees tensions between Iran, the U.S., and Gulf countries. Iran has threatened to block the strait during conflicts, which makes it a key area in international security and maritime strategy.
Conclusion
The Israel-Iran conflict may indirectly affect India’s economy through oil price volatility, disrupted trade routes, and rising inflation. Strategic planning and energy diversification are essential to reduce long-term risks.
PRELIMS PRACTICE QUESTION
The Strait of Hormuz, a strategically vital waterway, lies between which of the following countries?
- Iraq and Iran
- Saudi Arabia and Qatar
- Iran and Oman
- UAE and Bahrain
Answer: C
Explanation:
- The Strait of Hormuz is a narrow passage that connects the Persian Gulf with the Gulf of Oman and the Arabian Sea.
- It separates Iran (to the north) and Oman (specifically its exclave Musandam, to the south).
- It is one of the world’s most important oil chokepoints.
AIR INDIA AHMEDABAD CRASH & AVIATION SAFETY CONCERNS
TOPIC: (GS2) INDIAN POLITY: THE HINDU
A tragic crash of Air India flight AI171 in Ahmedabad on June 12, 2025, killed over 300 people. The disaster has sparked serious concerns over India’s aviation safety, training, and regulatory mechanisms.
Crash of Air India
- The crash involved a Boeing 787-8 “Dreamliner” shortly after take-off.
- Only one passenger survived; it marked the first total loss of this aircraft type globally.
- Experts cite technical, environmental, and procedural lapses as possible causes.
Regulatory and Safety Failures
- India’s aviation oversight bodies, like DGCA and AAI, are often run by generalist bureaucrats rather than aviation experts.
- Political interference and corruption often weaken safety audits and accident reviews.
- ICAO norms are violated, such as identifying crew publicly before inquiry completion.
Training & Operational Lapses
- The flight’s captain was a Line Training Officer—raising questions on co-pilot readiness.
- Mistakes like failure to retract landing gear indicate poor cockpit coordination.
- Decline in overall pilot training standards across airlines due to weak enforcement.
Suspected Causes of the Crash
- Likely bird hit caused engine damage or compressor stall.
- Possibility of foreign objects on the runway, like in the 2000 Concorde crash.
- CCTV showed landing gear unretracted, possibly indicating distraction or power loss.
Infrastructure & Zoning Issues
- The aircraft collided with a high-rise building, showing lack of enforcement on airport zoning.
- “No Objection Certificates” for nearby buildings are often cleared without proper safety checks.
Past Aviation Disasters in India
- Major crashes include: 1990 (Bangalore), 2000 (Patna), 2010 (Mangaluru), 2020 (Kozhikode).
- In all cases, systemic reforms were delayed or ignored.
Reforms & Corporate Response
- Tata Group, which owns Air India, has initiated the Vihaan.AI roadmap for transformation.
- Appointed a Head of Group Safety and launched internal quality initiatives.
- International teams are aiding crash investigation for transparency.
Conclusion
This incident highlights deep gaps in aviation safety, from poor training to regulatory oversight. Strengthening institutional accountability, ensuring expert leadership, and enforcing global safety norms are crucial to protect lives in India’s fast-growing aviation sector.
RUSSIA’S MILITARY ECONOMY SLOWS AMID SANCTIONS PRESSURE
TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU
Russia’s military-driven economic growth is slowing down after three years, with rising inflation and falling oil revenues. Ukrainian President Zelenskyy is urging U.S. President Donald Trump to impose fresh sanctions on Moscow for rejecting ceasefire efforts.
Russia Ukraine conflict:
- Since the 2022 invasion of Ukraine, Russia’s economy was kept afloat mainly through heavy military spending.
- However, signs of slowdown are emerging due to budget strain, weak oil prices, and the threat of new Western sanctions.
Surge in Military Spending
- Government spending has surged by 60% since before the war.
- Military expenditure alone accounts for 9% of Russia’s GDP, as per President Putin.
- Other economic sectors are either stagnant or declining, according to experts.
Economic Indicators of Slowdown
- GDP growth dropped to 1.4% in the first quarter of 2025, from 4.1% in 2024.
- Central Bank projects only 1–2% growth this year.
- Inflation remains high at around 10%, despite recent interest rate cuts.
- Falling oil prices, with Russia’s Urals crude averaging $52/barrel in May (down from $68 in January), have reduced energy income.
Budget and Revenue Pressures
- Russia increased taxes on corporates and high-income individuals to fund the war.
- Still, the 2025 budget deficit is expected to reach 1.7% of GDP, nearly triple earlier estimates.
Call for Sanctions and U.S. Response
- Ukrainian President Zelenskyy is urging Donald Trump to impose tougher sanctions to limit Russia’s war funding.
- Trump’s stance remains unclear, with possibilities ranging from tightening to easing existing measures.
- U.S. lawmakers are considering tariffs on countries buying Russian oil, such as China and India.
Conclusion
Russia’s war-focused economy is showing stress due to falling revenues and rising expenses. Sanctions and oil price trends will play a major role in shaping its future stability.
RETHINKING INDIA’S FREEDOM STRUGGLE: REMEMBERING MARGINALISED HEROES
TOPIC: (GS1) HISTORY: THE HINDU
A recent editorial focuses on lesser-known Indian freedom fighters from marginalized communities, calling for their rightful place in our national memory. It emphasizes the need to preserve the inclusive and democratic values of India’s freedom movement.
Why the Issue Matters
- India’s history often highlights elite leaders, sidelining women, Dalits, Adivasis, and local warriors who played critical roles.
- With rising caste and communal divisions today, inclusive history can foster unity and ethical citizenship.
Unsung Heroes of India’s Freedom Struggle
- Many regional leaders and marginalized figures resisted colonial and social oppression.
- Examples include:
- Rani Durgavati – a Gond queen who fought Mughal forces.
- Uda Devi – a Dalit woman warrior in the 1857 revolt.
- Tribal leaders – Bhil, Santhal, and Munda fighters who challenged British authority.
- Their courage was rooted in dignity, cultural identity, and resistance to injustice.
Need for Inclusive Historical Narratives
- History textbooks often ignore contributions from backward castes and tribes.
- This creates an incomplete picture of India’s freedom journey.
- Narratives must be broadened to reflect democratic, pluralistic values.
Relevance to Present-Day Society
- Inclusive history promotes empathy, civic values, and social justice.
- Helps counter growing caste and religious polarisation.
- History should inspire solidarity and ethical responsibility, not just political pride.
Conclusion:
India’s freedom struggle must be retold through the lens of equality and inclusion. Honouring the bravery of unsung heroes strengthens democracy and instils moral values in future generations.
MERCHANT DISCOUNT RATE (MDR)
TOPIC: (GS1) HISTORY: THE HINDU
The Finance Ministry recently clarified that reports suggesting Merchant Discount Rate (MDR) on UPI transactions are false and misleading.
What is Merchant Discount Rate (MDR)?
- MDR is a service fee that businesses pay to banks and payment service providers for processing digital payments.
- It applies to transactions made via credit cards, debit cards, UPI, and mobile wallets.
Who Receives MDR?
- The MDR is shared among:
- Issuing bank (the cardholder’s bank)
- Acquiring bank (the bank that provides the PoS machine or gateway)
- Card network providers (like Visa, Mastercard, RuPay)
- Payment gateways (like Razorpay, Paytm, etc.)
How MDR Works
- It is typically 1% to 3% of the transaction value.
- MDR varies based on:
- Type of card used (debit or credit)
- Volume of transactions by the merchant
- Average value of each sale
- Merchants sign an agreement with banks or payment providers before accepting cards.
MDR and Business Operations
- MDR is deducted automatically from the merchant’s account during settlement.
- Merchants must factor MDR charges into their pricing and cost calculations.
- As per RBI guidelines, merchants cannot pass MDR charges to customers.
NPCI
NPCI (National Payments Corporation of India) is an umbrella organization set up by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) to operate retail payment and settlement systems in India.
- Established in 2008.
- Developed UPI, RuPay Card, Bharat BillPay, AePS (Aadhaar-enabled Payment System), etc.
- Plays a vital role in promoting digital payments and financial inclusion.
UNIFIED PAYMENTS INTERFACE (UPI)
UPI is a digital payment system developed by NPCI (National Payments Corporation of India).
- It allows people to send and receive money instantly through mobile phones using the internet.
- UPI is linked to your bank account , no need to enter bank details for every transaction.
- You can use UPI apps like Google Pay, PhonePe, Paytm, BHIM, etc.
Conclusion
MDR is an essential part of digital payments, but UPI transactions remain MDR-free for users and merchants, as per current government policy.
PRELIMS PRACTICE QUESTION
With reference to Unified Payments Interface (UPI) and National Payments Corporation of India (NPCI), consider the following statements:
- UPI allows instant fund transfer between bank accounts using only a Virtual Payment Address (VPA), without requiring IFSC or account number.
- NPCI is a for-profit company owned entirely by the Government of India.
- Credit card payments can now be linked to UPI for transactions at merchant outlets.
- UPI operates only during banking hours and does not function on holidays.
Which of the statements given above are correct?
- 1 and 3 only
- 2 and 4 only
- 1, 2, and 3 only
- 1, 3, and 4 only
Correct Answer: A
Explanation:
- UPI allows users to send or receive money using a VPA, eliminating the need to enter bank details or IFSC code.
- NPCI is a not-for-profit company under Section 8 of the Companies Act, promoted by the RBI and Indian Banks’ Association (IBA).
- As per recent updates (2023–2024), RBI has permitted linking RuPay credit cards to the UPI platform for retail payments at merchants.
- UPI functions 24×7, 365 days, even on bank holidays, unlike NEFT.
GLOBAL GENDER GAP REPORT 2025
TOPIC: (GS3) ECONOMY: THE HINDU
The World Economic Forum (WEF) has released the Global Gender Gap Report 2025
Global Gender Gap Report
- Published annually by the World Economic Forum (WEF) since 2006.
- It assesses countries on gender-based gaps, not absolute levels.
- The report evaluates performance across four key dimensions:
- Economic participation and opportunity
- Educational attainment
- Health and survival
- Political empowerment
India’s Performance in 2025 Report
- Overall Rank: 131 out of 148 countries
- Gender Parity Score: 64.1% (Among the lowest in South Asia)
- Education: Score improved to 97.1%, due to higher female literacy and college enrolment
- Economic Participation: Slight rise to 40.7%, indicating better employment parity
- Health and Survival: Improvement seen in sex ratio at birth and life expectancy
- Political Empowerment: Declined from 14.7% to 13.8% female representation in Parliament
Global Highlights
- Iceland remains the top-ranked country, closing 92.6% of the gender gap
- Other top countries include Finland, Norway, and Sweden
- Worst performers include Pakistan, Sudan, Chad, and Iran, with major gender inequalities
GLOBAL GENDER GAP REPORT 2024 VS 2025
- 2024: India ranked 129th
- 2025: Slipped two places to 131st out of 148 countries
Gender Parity Score:
- 2024: Around 64.3%
- 2025: Dropped slightly to 64.1%, showing stagnation in closing the gender gap
Economic Participation:
- 2024: Score was approximately 39.8%
- 2025: Improved slightly to 40.7%, reflecting better access to jobs and income for women
Political Empowerment:
- 2024: Women’s representation in Parliament was 14.7%
- 2025: Declined to 13.8%, indicating reduced female presence in political decision-making
Conclusion
India has made gains in education and health but still needs major improvements in women’s economic and political inclusion to bridge the gender gap.
PRELIMS PRACTICE QUESTION
Which of the following reports is/are published by the World Economic Forum (WEF)?
- Global Gender Gap Report
- Global Risk Report
- Global Financial Stability Report
- Travel and Tourism Development Index
Select the correct answer using the code below:
- 1 and 2 only
- 1, 2 and 4 only
- 2 and 3 only
- 1, 2, 3 and 4
Answer: B
Explanation:
- Global Gender Gap Report – Published by WEF
- Global Risk Report – Published by WEF
- Global Financial Stability Report – Published by the International Monetary Fund (IMF)
- Travel and Tourism Development Index – Published by WEF
EXERCISE SHAKTI
TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU
The 8th edition of Exercise Shakti, a bilateral military exercise between India and France, will take place in La Cavalerie, France from June 18, 2025. This biennial event focuses on strengthening cooperation and joint operational readiness.
Exercise Shakti
- Exercise Shakti is a joint military drill conducted between the Indian Army and the French Army.
- It is a biennial exercise held alternatively in India and France.
- The 2025 edition is being hosted in La Cavalerie, France.
- The previous (7th) edition was conducted in India.
Objectives of the Exercise
- To improve coordination and interoperability in joint military operations.
- To enhance the tactical and operational capabilities in multi-domain and sub-conventional warfare.
- To foster mutual understanding and trust between soldiers of both nations.
Key Features
- Troops from both sides will participate in joint field training exercises and planning drills.
- Soldiers will share best practices, especially in counter-insurgency and counter-terrorism operations.
- The exercise will include simulated combat situations, tactical discussions, and humanitarian operations.
Defence Ties between India and France
- Besides Exercise Shakti, India and France also conduct:
- Exercise Varuna – Naval Exercise
- Exercise Garuda – Air Force Drill
- Exercise Desert Knight – Joint Air Exercise
Significance for India
- Boosts military diplomacy with a key European partner.
- Promotes defence cooperation under India’s strategic partnership with France.
- Helps Indian troops gain exposure to international military practices.