India moves to conserve its rare earths, seeks halt to Japan exports

• India is taking steps to conserve its rare earth resources by seeking to halt exports to Japan, aiming to reduce dependence on China and strengthen domestic processing capabilities.

Key Developments:

• IREL, India’s state-run rare earth miner, has been asked to suspend a 13-year-old export agreement with Japan.
• The move follows China’s recent restrictions on rare earth exports, which have disrupted global supply chains.
• India wants to expand domestic mining and processing to build a self-reliant rare earth industry.
• Neodymium, a key rare earth element used in electric vehicle motors, is among the materials affected.

Challenges & Future Plans:

• India has the world’s fifth-largest rare earth reserves but lacks domestic magnet production.
• Japan relies mainly on China for rare earths, but India has been a secondary supplier.
• IREL is awaiting clearances for four new mines to boost domestic production.
• India may not be able to immediately halt exports due to bilateral agreements, but negotiations are underway

Why IREL Wants to Retain Its Rare Earths:

• China’s Restrictions: China has weaponized its rare earth supplies, limiting exports since April 2025, affecting industries worldwide.
• Expanding Domestic Processing: IREL now seeks to boost India''s rare earth ecosystem by investing in local refining and mining infrastructure.
• Awaiting Approvals: To achieve this, IREL is waiting for statutory clearances for four new mining projects that would enhance India’s self-reliance in rare earth production.
• Bilateral Challenges: Despite its intent to halt exports to Japan, IREL’s shipments currently fall under a 13-year-old bilateral agreement, making an immediate halt difficult.

What is carbon pricing?

• The Carbon pricing revenues exceeded $100 billion in 2024, according to a new World Bank report released on June 10. 
• Over half of this revenue generated for public budgets was earmarked for environment, infrastructure, and development projects, representing a slight increase from previous years.
• A Carbon pricing is a policy tool designed to reduce greenhouse gas (GHG) emissions by assigning a financial cost to carbon dioxide emissions. The goal is to encourage businesses and individuals to adopt cleaner technologies and lower their carbon footprints.

Key Insights from the Latest Report on Carbon Pricing

• Global Carbon Pricing Revenue: According to the World Bank''s 2025 report, carbon pricing revenues exceeded $100 billion in 2024, with more than half of these funds allocated to environmental, infrastructure, and development projects.
• Growing Adoption: There are 80 operational carbon pricing instruments globally, with Emissions Trading Systems (ETSs) making up most of the new implementations. Major middle-income economies—including Brazil, China, India, Indonesia, and Turkey—have adopted or are exploring direct carbon pricing.
• Impact on Emissions: 28% of global GHG emissions are now covered by a carbon price, representing economies that account for two-thirds of global GDP. The policy has significantly contributed to emission reductions, especially in power and industrial sectors.

 What is carbon pricing? 

• Carbon pricing is an important policy tool that can be used as part of a comprehensive policy package to decarbonise economies.
• Carbon pricing is an instrument that captures the external costs of greenhouse gas (GHG) emissions — the costs of emissions that the public pays for, such as damage to crops, healthcare costs from heatwaves and droughts, and loss of property from flooding and sea level rise — and ties them to their sources through a price, usually in the form of a price on the carbon dioxide (CO2) emitted.
• A price on carbon helps shift the burden for the damage from GHG emissions back to those who are responsible for it and who can avoid it. 
• Instead of dictating who should reduce emissions where and how, a carbon price provides an economic signal to emitters, and allows them to decide to either transform their activities and lower their emissions, or continue emitting and paying for their emissions. 
•  In this way, the overall environmental goal is achieved in the most flexible and least-cost way to society.
• Globally, carbon pricing instruments are essential tools in the fight against climate change. 
• For example, in the European Union, carbon pricing has played an important role in reducing greenhouse gas emissions, with a 47 per cent cut achieved in sectors covered by the EU Emissions Trading System since its launch in 2005.
• Carbon pricing instruments can be categorised into two main types: compliance mechanisms and voluntary mechanisms. 
• Compliance mechanisms, such as Emissions Trading Systems (ETSs), are typically implemented and managed by governments. They set a cap on emissions and allow entities to trade emission allowances to meet their targets. 
• Voluntary mechanisms, on the other hand, are often managed by independent standards or non-governmental organisations and enable entities to voluntarily offset their emissions by purchasing carbon credits from projects that reduce or remove GHG emissions.
• Carbon pricing now covers around 28 per cent of global GHG emissions, with 43 carbon taxes and 37 ETSs in place. 
• Jurisdictions comprising almost two-thirds of global GDP have a direct carbon price in place and the largest middle-income economies, including Brazil, China, India, Indonesia, and Turkey have implemented or are moving toward implementing carbon pricing.

India’s Carbon Credit Trading Scheme

• In July 2024 the Indian government adopted detailed regulations for its planned Carbon Credit Trading Scheme, a rate-based ETS covering an initial nine energy-intensive industrial sectors. 
• The program will issue carbon credit certificates to covered facilities that outperform an emissions intensity benchmark. 
• A domestic voluntary carbon crediting program is also being developed, which would issue carbon credits for activities and emissions sources not covered by the ETS.
•  On March 28, 2025, India’s Ministry of Power announced the approval of eight crediting methodologies, including for renewable energy, green hydrogen production, industrial energy efficiency, and mangrove afforestation and reforestation.
• CCTS defines the two mechanisms namely, compliance mechanism and offset mechanism. 
• In the compliance mechanism, the obligated entities shall comply with the prescribed GHG emission intensity reduction norms in each compliance cycle of CCTS. The obligated entities which reduce their GHG emission intensity below the prescribed GHG emission intensity shall be eligible for issuance of Carbon Credit Certificates. 
• ln offset mechanism, the non-obligated entities can register their projects for GHG emission reduction or removal or avoidance for issuance of Carbon Credit Certificates. 
• The CCTS is expected to contribute to achieving India’s climate goals in line with the commitments under UNFCCC and its Paris Agreement

Trump’s tariffs and a U.S.-India trade agreement 

• A India’s trade negotiations with the United States are at a critical juncture, with the Trump administration’s tariffs creating significant challenges. The U.S. Court of International Trade (CIT) recently ruled that these tariffs exceeded legal authority, but the decision was quickly stayed by an appeals court, leaving the tariffs in place.

Key Issues:

• Tariffs on Indian Exports: The U.S. has increased steel and aluminum tariffs to 50%, despite previous WTO rulings against such measures.
• Trade Deficit Debate: The U.S. cites a $44.4 billion trade deficit with India but does not account for services trade, which actually gives the U.S. a $35-$40 billion surplus.
• Strategic Concerns: The U.S.-China trade truce and threats of tariffs on Apple’s India manufacturing raise uncertainties about India’s position.

India’s Trade Priorities:

• Removal of Additional Tariffs: Ensuring fair trade conditions for Indian exports.
• Digital Services & Remittances Protection: Preventing tax hikes on Indian digital businesses and money transfers.
• Securing H-1B Visas: Addressing restrictions affecting Indian tech professionals.
• WTO Compliance: Strengthening multilateral trade protections, recognizing WTO rules as key safeguards.
• India must balance its interests carefully, ensuring a trade deal that protects its economic future while avoiding sub-optimal agreements.

The path ahead

• In any trade agreement with the U.S., therefore, a careful balancing of India’s interests is paramount. Any deal would need to ensure the removal of all additional tariffs on India’s exports, allay concerns about retaliatory tariffs on U.S. investments, such as that from Apple in India, and ensure that the proposed OBBB Act’s 3.5% tax on remittances sent from the U.S. does not apply to remittances by Indian citizens.
• India should also seek assurance that there would be no retaliation against India’s digital services taxes. A long-standing concern for India is also the fears and backlash against H-1B visas, used widely by tech companies for their Indian employees. It is critical for a trade deal to address the issue of visas required for services trade.
• It is equally important for both sides to iron out the delivery of cross-border trade in services, which includes aspects relating to data flows and their regulation.
• Above all, any trade agreement that India negotiates with the U.S. needs to be fully aligned with India’s commitments under the WTO. The U.S. disregard for multilateral institutions, notwithstanding, WTO’s multilateral set of rules is the only real safeguard in an uncertain world, and India needs to do much more to preserve its foundations, as committed during its G-20 presidency.
• Finally, India should have the ability to stay out of any sub-optimal deal. Mr. Trump’s tariffs, while painful, are likely to have a short lifespan with the biggest challenge emerging from within the U.S itself.

“TDB-DST supports Indigenous Trenching Technology

• The Technology Development Board (TDB), under the Department of Science and Technology (DST), has extended financial support to M/s Autocracy Machinery Pvt. Ltd., Hyderabad, for their project on the commercialization of state-of-the-art trencher technology. This initiative aims to strengthen India''s infrastructure and machinery manufacturing capabilities with indigenous trenching solutions, reducing dependence on imported equipment.
• Trenching technology plays a crucial role in laying optical fiber cables, water and gas pipelines, and is essential in sectors such as solar energy, agriculture, and defense. However, existing trenchers in India are largely imported and not optimized for Indian conditions.

Key Benefits of TDB''s Support:

• Reducing import dependency by fully indigenizing critical trenching equipment.
• Boosting exports with trenchers designed to meet international standards.
• Generating employment and skilling in rural and semi-urban areas.
• Empowering MSMEs via localized component supply chains.
• Advancing Atmanirbhar Bharat, strengthening India''s self-reliance in manufacturing.
• Promoting environmental sustainability by ensuring efficient trenching with minimal land disruption.
• Statements from Stakeholders:
• Rajesh Kumar Pathak, Secretary, TDB, emphasized that this initiative aligns with India''s vision of digital and physical connectivity, self-reliance in manufacturing, and smart infrastructure development.
• Founders Ms. Santhoshi Sushma Budhiraju & Mr. Laxman V. expressed gratitude for TDB''s support, highlighting their commitment to providing efficient, sustainable, made-in-India solutions to contractors, farmers, and infrastructure providers.

 Implications of trenching technology in India:

• Trenching technology plays a vital role in India''s infrastructure development and has significant strategic, economic, and environmental implications.
• Here’s how:

1. Strengthening Digital and Physical Connectivity

• Trenching is essential for laying optical fiber cables, water pipelines, and gas lines, which support India''s expanding digital networks and smart city initiatives. Efficient trenching ensures faster broadband penetration, improving communication and accessibility across urban and rural areas.

2. Boosting Indigenous Manufacturing & Reducing Imports

• Most trenchers used in India were previously imported, often ill-suited for local terrain. With companies like M/s Autocracy Machinery Pvt. Ltd. innovating home-grown trenchers—such as RUDRA 100XT, GAJA 200XT, and DHRUVA 100—India is becoming more self-reliant in specialized construction and agricultural equipment.

3. Enhancing Infrastructure Development

• Trenching technology directly benefits sectors like solar energy, agriculture, defense, and public works by enabling precise excavation while minimizing soil disruption. This is particularly crucial in rural development projects where efficient underground infrastructure can improve irrigation, energy access, and transportation networks.

4. Creating Employment and Skilling Opportunities

• The localization of trenching technology empowers MSMEs and supply chains, fostering job creation in manufacturing, engineering, and construction. Rural and semi-urban areas benefit from new skill development programs, ensuring a workforce equipped for advanced infrastructure projects.

5. Advancing Sustainability & Minimizing Land Disruption

• Indigenous trenchers are designed for minimal environmental impact—reducing excessive land excavation, soil erosion, and water table disturbance. This aligns with India''s commitment to sustainable development, balancing infrastructure growth with ecological conservation.

6. Supporting India’s ‘Atmanirbhar Bharat’ Initiative

• By promoting indigenization of critical equipment, trenching technology contributes to India''s vision of self-reliance and global competitiveness in manufacturing.

India–Switzerland Economic Partnership Deepens

• The Union Commerce and Industry Minister Shri Piyush Goyal engaged with Swiss industry leaders in Bern, Switzerland on 9 June 2025 to strengthen India–Switzerland economic cooperation under the recently signed Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA).

Key Themes of the Engagement

• Promoting India as a Strategic Hub: Shri Goyal urged Swiss companies to view India as a prime destination for manufacturing, talent, and innovation.
• Encouraging Investment & Collaboration: He invited Swiss enterprises to expand operations in India, leveraging its rapidly growing economy.
• Strengthening Regulatory & Business Environment: Assured Swiss investors of transparent policies, strong intellectual property protection, and a pro-investment framework.

Sector-Specific Roundtables

• Shri Goyal chaired two industry-focused discussions covering:

Biotech & Pharma, Healthcare

• Precision Engineering, Defence, Emerging Technologies
• These sessions emphasized India’s affordability, scale, and innovation ecosystem, presenting opportunities for technology transfer, R&D, and joint ventures.

Strategic Initiatives & Mutual Cooperation

• EFTA Desk at Invest India: Established for assisting Swiss investors in expanding their presence in India.
• Regulatory Harmonization & Mutual Recognition Agreements: To ease trade barriers and facilitate partnerships.
• Engagement with ICAI Switzerland Chapter: Shri Goyal acknowledged their role in strengthening India–Switzerland business ties.

Swiss Industry''s Response

• Swiss leaders expressed strong confidence in India''s economic trajectory, commending:
• India''s vast market, growing middle class, world-class talent pool, and business-friendly policies.
• The potential for joint ventures, scaling operations, and localized production.
• Alignment with India’s developmental priorities in automation, cybersecurity, space tech, and healthcare innovations.

Long-Term Vision

• Many Swiss companies view India as a natural partner and are ready to invest in India''s growth, not just for domestic expansion but to integrate India into global value chains.
• Swiss investments in India are set to grow significantly, driven by the Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA). Here are some key developments:

Major Investment Commitments

• $100 Billion Investment Over 15 Years: EFTA, led by Switzerland, has committed to investing $100 billion in India, focusing on biotech, pharma, precision engineering, automation, and emerging technologies.
• Regulatory Framework Improvements: Swiss officials have emphasized the need for reducing bureaucratic hurdles to facilitate smoother investments.

Sectoral Focus

• Swiss companies are keen on expanding their presence in India’s growing industries, including:
• Biotech & Healthcare: Investments in cancer therapies, cell sciences, and medical technology.
• Precision Engineering & Automation: Expansion in industrial automation, fiber optics, and space technologies.
• Cybersecurity & Digital Security: Strengthening India’s digital infrastructure with Swiss expertise.

Strategic Initiatives

• Swiss Business Enclave Proposal: Minister Piyush Goyal proposed a dedicated Swiss business enclave in India, offering industrial parks, hotels, and educational institutions for Swiss professionals.
• Joint Ventures & Localized Production: Several Swiss firms are exploring partnerships with Indian companies to scale operations and integrate into global value chains.

Trade & Economic Impact

• Preferred Market Access: India has offered customs duty concessions on Swiss exports like watches, chocolates, and machinery.
• Job Creation: Swiss investments have already contributed to over 166,000 jobs in India

Dr. Jitendra Singh Pushes for Global Ocean Pact, Showcases Deep Sea Mission and Plastic Ban at UN Ocean Conference

• At the Third United Nations Ocean Conference (UNOC3) in Nice, Union Minister of Earth Sciences Dr. Jitendra Singh urged urgent global action on ocean health, emphasizing India''s commitment to marine conservation, sustainable fisheries, and deep-sea exploration.

Key Highlights of India’s Participation:

• Deep Ocean Mission & ‘Samudrayaan’ Project: India is set to deploy its first manned submersible by 2026, exploring depths of up to 6,000 meters.
• Single-Use Plastic Ban & Marine Cleanup: India''s ‘Swachh Sagar, Surakshit Sagar’ campaign has cleaned 1,000 km of coastline, removing 50,000 tonnes of plastic waste since 2022.
• $80 Billion Blue Economy Projects: Investments in port infrastructure, fisheries modernization, and ocean-based economic growth.
• Support for BBNJ Agreement & Global Plastics Treaty: India backed the swift ratification of the Biodiversity Beyond National Jurisdiction (BBNJ) Agreement, advocating for a legally binding Global Plastics Treaty.
• Launch of ‘SAHAV’ Digital Ocean Data Portal: A new ocean governance platform promoting transparent, science-driven decision-making.

India’s Leadership in Ocean Governance

• Dr. Singh reaffirmed India’s commitment to Sustainable Development Goal 14 (Life Below Water) and emphasized scientific innovation and international collaboration as key to reversing ocean degradation. He also announced that Marine Protected Areas now cover 6.6% of India’s Exclusive Economic Zone, contributing to global biodiversity conservation.

What is Deep Ocean Mission (DOM)?

• India''s Deep Ocean Mission (DOM) is a flagship initiative aimed at exploring and harnessing the potential of deep-sea ecosystems while contributing to marine research, biodiversity conservation, and economic growth. At the Third United Nations Ocean Conference (UNOC3) in Nice, Union Minister Dr. Jitendra Singh highlighted key advancements in the mission, including the upcoming deployment of India’s first manned submersible, Samudrayaan, by 2026.

Key Components of the Deep Ocean Mission

Samudrayaan - India''s First Manned Submersible

• Designed to reach depths of 6,000 meters.
• Supports deep-sea mining, biodiversity research, and climate studies.

Marine Resource Exploration

• Focuses on harnessing deep-sea minerals, rare earth elements, and thermal vents.
• Potential to boost India’s strategic self-reliance in critical materials.

Marine Biodiversity & Ecosystem Studies

• Aims to map deep-sea ecosystems, supporting global sustainable ocean conservation.
• Studies microbial biodiversity, which could lead to breakthroughs in medicine and biotechnology.

Technology Development for Ocean Industries

• Advances in underwater robotics, seabed mapping, and deep-sea monitoring systems.
• Supports India’s growing Blue Economy, valued at $80 billion.

Marine Climate Adaptation & Coastal Resilience

• Integrating nature-based solutions for climate resilience.
• Restoration of over 10,000 hectares of mangroves, contributing to carbon sequestration.

Global Significance

• India’s Deep Ocean Mission aligns with global efforts, including the UN Decade of Ocean Science and Paris Agreement climate commitments. It also supports ocean-based carbon capture technologies and sustainable exploration practices.

India''s deep-sea mining potential

• India''s deep-sea mining potential is vast, with significant implications for economic growth, energy security, and technological advancement. Here’s a breakdown of its impact:

1. Resource Potential

• India has been allocated 75,000 sq. km in the Central Indian Ocean Basin (CIOB) for polymetallic nodule exploration, containing 380 million metric tonnes of valuable minerals like copper, nickel, cobalt, and manganese.
• Extracting just 10% of these resources could meet India''s energy needs for 100 years, reducing dependence on imported critical minerals.

2. Economic Impact

• The estimated value of India''s deep-sea mineral reserves exceeds $110 billion, making it a strategic asset for industrial growth.
• Investments in deep-sea mining technology could create thousands of high-skilled jobs in engineering, robotics, and marine research.

3. Energy Security & Sustainability

• Deep-sea mining aligns with India''s Paris Agreement commitments, supporting offshore wind and tidal energy projects.
• The development of underwater oil and gas pipelines could enhance India''s energy diversification and security.

4. Technological Advancements

• India is developing crawler-based mining machines capable of collecting, crushing, and pumping nodules from depths of 5,000–6,000 meters.
• The Matsya-6000 submersible, part of the Samudrayaan project, will enable deep-sea exploration and environmental monitoring.

5. Strategic & Global Positioning

• India''s deep-sea initiatives strengthen its maritime security, ensuring protection of undersea fiber-optic cables, which carry 95% of global internet traffic.
• Competing with China, the U.S., and Norway, India aims to become a leader in sustainable deep-sea mining while balancing economic benefits with marine conservation

Consumer Price Index (CPI) numbers for May 2025

• The Consumer Price Index (CPI) numbers for May 2025 provide insights into inflation trends across rural, urban, and combined categories based on the 2012=100 index base. This dataset, released by the Ministry of Statistics & Programme Implementation (MoSPI), Government of India, helps policymakers, businesses, and analysts understand price fluctuations in essential commodities.

Key Aspects of CPI Data:

• Inflation Measurement: CPI tracks changes in prices of goods and services regularly consumed by households.
• Rural vs. Urban Comparison: The data highlights differences in inflation rates between rural and urban regions.
• Economic Indicators: These numbers influence policy decisions, including interest rates, wage adjustments, and economic planning.
• India''s sector-specific inflation trends for May 2025 reveal key insights into price fluctuations across different industries.
•  Here’s a breakdown:

1. Food Inflation

• Year-on-year food inflation dropped to 0.99%, the lowest since October 2021.
• Rural food inflation: 0.95%, down from 1.85% in April 2025.
• Urban food inflation: 0.96%, down from 1.64% in April 2025.
• Declines were observed in pulses, vegetables, fruits, cereals, sugar, and eggs.

2. Housing Inflation

• Urban housing inflation rose slightly to 3.16%, up from 3.06% in April 2025.
• Housing inflation is calculated only for urban areas.

3. Education Inflation

• Education inflation remained stable at 4.12%, compared to 4.13% in April 2025.

4. Health Inflation

• Health inflation increased to 4.34%, up from 4.25% in April 2025.

5. Transport & Communication

• Inflation in this sector rose to 3.85%, up from 3.67% in April 2025.

6. Fuel & Light

• Inflation in fuel and light dropped to 2.78%, down from 2.92% in April 2025.

7. Inflation Trends Across States

• Among major states with high year-on-year inflation rates:
• Kerala: 6.46%
• Punjab: 5.21%
• Jammu & Kashmir: 4.55%

 95th Meeting of Network Planning Group under PM GatiShakti evaluates key Infrastructure projects

•  The 95th Meeting of the Network Planning Group (NPG) under the PM GatiShakti National Master Plan (PMGS NMP) focused on evaluating key infrastructure projects aimed at enhancing multimodal connectivity and logistics efficiency.

Key Projects Evaluated:

Ahmedabad Metro Rail Project Phase-2A

• Extension of 6.032 km for direct metro connectivity to Sardar Vallabhbhai Patel International Airport.
• Expected to ease congestion, improve travel time, and support urban mobility.

Vadhavan Port Highway Connectivity

• 8-lane access-controlled highway along NH-248S, enhancing connectivity to Vadhavan Port in Maharashtra.
• Supports cargo evacuation, strengthening India’s role in global trade.

Jodhpur Elevated Road Project

• 4-lane corridor from Mahamandir to Akhaliya Chouraha to reduce travel time by 20 minutes.
• Addresses urban traffic congestion and improves regional mobility.
• Multi-Modal Logistics Park (MMLP) Hyderabad
• Located in Medak district, Telangana, spanning 315 acres.
• Expected to handle 19.98 million metric tonnes (MMT) of cargo by 2070.
• Multi-Modal Logistics Park (MMLP) Patna
• Situated in Fatuah Taluka, Bihar, covering 106.19 acres.
• Strategically located to support regional freight movement.

Strategic Impact of the Meeting

• Strengthens intermodal coordination for efficient cargo movement.
• Boosts economic growth through modernized transport infrastructure.
• Enhances connectivity for businesses and commuters, improving supply chains.

Impact of PM GatiShakti on India''s Logistics Sector

• Reduced Travel Time & Operational Costs
• The Ahmedabad Metro Rail Phase-2A will improve urban mobility, reducing transit times for commuters.
• Jodhpur Elevated Road Project will cut peak-hour traffic delays by 20 minutes, easing congestion.

Boost to Trade & Global Connectivity

• Vadhavan Port Highway Project strengthens cargo evacuation and positions India as a top 10 container port hub globally.
• Multi-Modal Logistics Parks (MMLP) in Hyderabad & Patna ensure efficient freight movement, handling millions of metric tonnes (MMT) of cargo annually.

Integration of Rail, Road & Port Networks

• PM GatiShakti promotes real-time data sharing for better intermodal coordination.
• Logistics parks enhance seamless connectivity between highways, rail networks, and air transport.

Economic Benefits & Industry Growth

• India’s freight cost reduction goal: Lowering logistics costs from 14% to 8% of GDP.
• Projected investment in logistics infrastructure: Over ₹100 lakh crore under GatiShakti framework.

India vs. Global Logistics Leaders

Logistics Performance Index (LPI) Ranking

• India ranks 38th out of 139 countries in the World Bank’s LPI 2023, improving from 54th in 2014.
• Leading economies like Germany, Singapore, and the U.S. consistently rank in the top 10, benefiting from advanced multimodal networks.

Freight Costs as % of GDP

• India’s logistics costs are 14% of GDP, significantly higher than 8–10% in developed nations.
• The PM GatiShakti initiative aims to reduce costs to 8%, aligning with global standards.

Infrastructure Development

• India is investing ₹100 lakh crore in multi-modal logistics parks, expressways, and dedicated freight corridors.
• Countries like China and the U.S. have high-speed rail freight systems, reducing transit times.

Digital Integration & Supply Chain Efficiency

• India launched Unified Logistics Interface Platform (ULIP) for real-time tracking.
• Germany and Japan lead in AI-driven logistics optimization.

Government approves procurement of summer Moong under PSS

• The Government of India has approved the procurement of summer Moong and Groundnut under the Price Support Scheme (PSS) for the summer crop season 2025–26 in select states to support farmers and boost domestic pulse production.

Key Details of the Procurement Plan:

Summer Moong Procurement:

• A total of 54,166 MT will be procured across Haryana, Uttar Pradesh, and Gujarat.

Groundnut Procurement:

• 50,750 MT will be procured specifically in Uttar Pradesh.

Objectives & Impact:

• The initiative aims to incentivize farmers, enhance domestic pulse production, and reduce India’s dependence on imports.
• Procurement will be handled through Central Nodal Agencies like NAFED and NCCF.
• The government has extended Red Gram (Tur) procurement in Andhra Pradesh by 15 days, up to June 26, 2025.

Long-Term Strategy:

• The Union Budget 2025 has approved the continuation of this procurement model for four more years (until 2028–29).
• Under Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA), the government ensures minimum support prices (MSP) for pulses and oilseeds to protect farmers from market fluctuations.

How PSS Benefits Indian Farmers

• India''s Price Support Scheme (PSS) plays a crucial role in ensuring fair prices for farmers and improving national food security. The government''s approval of Moong and Groundnut procurement for the summer crop season 2025–26 reflects efforts to reduce import dependence and support domestic agricultural growth.

Guaranteed Minimum Support Price (MSP)

• Protects farmers from market fluctuations by ensuring remunerative prices for their crops.
• Prevents distress selling, allowing farmers to recover production costs.

Boosts Domestic Production

• The procurement of Moong in Haryana, UP, Gujarat and Groundnut in UP encourages higher yields.
• Reducing reliance on imports strengthens India’s agricultural self-sufficiency.

Support During Peak Harvesting Periods

• PSS is activated when market prices drop below MSP, helping farmers avoid losses.
• Ensures steady demand, reducing uncertainty in pricing.

Impact on Food Security

• Stable Pulses & Oilseed Supply: Secures nutritional staples for Indian households.
• Lower Price Volatility: Government procurement prevents sharp price spikes.
• Strengthened Supply Chain: NAFED & NCCF ensure efficient distribution to maintain steady availability.

Long-Term Agricultural Strategy

• The Union Budget 2025 extends PSS procurement for pulses until 2028–29, reinforcing India''s commitment to farmer welfare and food security through Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA).

How India’s PSS impacts global trade negotiations?

• India’s Price Support Scheme (PSS) plays a crucial role in global trade negotiations, particularly in discussions related to agricultural subsidies and market access. Here’s how PSS impacts international trade:

1. WTO Compliance & Trade Disputes

• India’s procurement of pulses and oilseeds under PSS has faced scrutiny under World Trade Organization (WTO) rules, with concerns over market price distortions.
• Some countries argue that large-scale government procurement affects global commodity prices, leading to trade disputes.

2. Impact on Export Competitiveness

• By stabilizing domestic prices, PSS ensures Indian farmers receive fair compensation, but it also reduces export competitiveness in global markets.
• Countries like the U.S. and Australia, which rely on market-driven pricing, have raised concerns about India’s subsidy model.

3. Trade Agreements & Negotiations

• India’s bilateral trade agreements, including India-EFTA and India-U.S. trade talks, often involve discussions on agricultural subsidies.
• The U.S. and EU have pushed for greater transparency in India’s price support mechanisms.

4. Global Agricultural Policy Comparisons

• EU’s Common Agricultural Policy (CAP) provides direct subsidies rather than government procurement.
• The U.S. Farm Bill offers crop insurance and price deficiency payments, contrasting with India’s MSP-based procurement.

5. Future Policy Adjustments

• India is exploring alternative models, such as direct benefit transfers (DBT), to align with global trade norms.
• The government is working on balancing farmer welfare with WTO compliance, ensuring sustainable agricultural trade.

National Conference on Agri Stack: Turning Data into Delivery

• The National Conference on Agri Stack: Turning Data into Delivery, hosted by the Ministry of Agriculture & Farmers’ Welfare (MoA&FW), provided a strategic platform for officials and key stakeholders to discuss the implementation, challenges, and future roadmap for Agri Stack under the Digital Agriculture Mission (DAM).

Key Highlights:

• Enhancing Farmer-Centric Governance: The conference emphasized the importance of linking Farmer Registries with Records of Rights (RoR) to improve scheme delivery and access to personalized agricultural services.
• Digitally Verifiable Credentials (DVCs): The Kisan Pehchan Patra, integrated with DigiLocker, allows farmers to securely share and verify land and crop records, ensuring transparency.
• Strategic MoUs Signed: Agreements with Maharashtra, Kerala, Bihar, and Odisha, along with the PSB Alliance, will enable digital authentication for credit services, reducing paperwork and improving loan access for small farmers.
• Funding Announced: ₹6,000 crore allocated, with ₹4,000 crore for Farmer Registry expansion and ₹2,000 crore for Digital Crop Survey, ensuring states receive financial support for modernizing agricultural systems.
• AI & Remote Sensing for Agriculture: AI-powered crop verification, facial authentication of surveyors, and automated data validation mechanisms aim to improve efficiency and accuracy in agricultural processes.

State-Level Innovations:

• Maharashtra: Farmers enrolled in Farmers Registry, integrating their data with MahaDBT for seamless benefit disbursement.
• Uttar Pradesh: Connected Agri Stack with MSP e-procurement, ensuring smoother transactions for farmers.
• Karnataka: Integrated FRUITS database with banking systems, enabling more accessible credit approvals.

Technology & Farmer Assistance:

• AI-Powered Agri Chatbot: Built using Google Gemini, this chatbot provides farmers with multilingual support for agricultural queries.
• Unified Grievance Redressal Portal: OTP-based login, multilingual options, and audio upload features allow farmers to resolve land-related disputes more effectively.

Agri Stack under the Digital Agriculture Mission (DAM).

• Agri Stack under the Digital Agriculture Mission (DAM) is a data-driven initiative by the Ministry of Agriculture & Farmers’ Welfare (MoA&FW), aimed at transforming Indian agriculture through digital infrastructure and technology

Key Features of Agri Stack under DAM:

• Unified Farmer Service Interface (UFSI) – A system ensuring standardized digital services for farmers across states.
• Integration with Flagship Schemes – Agri Stack connects Farmer IDs with programs like PM-KISAN, PMFBY, and KCC, streamlining benefits and subsidy distribution.
• Digitally Verifiable Credentials (DVCs) – Also known as Kisan Pehchan Patra, enabling secure, DigiLocker-integrated land and crop records.
• Georeferencing & AI/ML Adoption – AI-driven crop identification, remote sensing, and data validation tools improve efficiency.
• MoUs Signed for Credit Access – Agreements with Maharashtra, Kerala, Bihar, Odisha, and the PSB Alliance simplify loan approvals for farmers.
• Grievance Redressal System – A new OTP-based, multilingual grievance portal ensures accessible dispute resolution