January 14, 2026 - Dinamani Newspaper -
Tit bits
1.
Farmers with more than 350 tractors staged a Parliamentary blockade in the
French capital, Paris, against the EU's new trade deal.
(i)
The European Union will finalize a trade agreement with the countries of the
South American 'MERCOSUR' confederation of Brazil, Argentina, Bolivia, Paraguay
and Uruguay.
(ii)
If the agreement comes into force, agricultural products from those countries
will be imported into Europe at very low prices. This would reduce the income
of French farmers and seriously affect their livelihoods.
(iii)
Farmers marched with hundreds of tractors along the famous Champs-Élysées road
in Paris, demanding to block the deal. Crossing the river Seine towards
Parliament, the farmers raised slogans demanding immediate Government action to
ensure food security in the country. The rally, which took place under police
protection, completely disrupted traffic on major roads in Paris.
(iv)
Government's position: Responding to the demands of the farmers, Government
Spokesperson Maud Bregeon promised that the Government would soon announce new
schemes to benefit the farmers.
(v)
French President Emmanuel Macron strongly opposes the deal. However, the
agreement is expected to be signed on Saturday in Paraguay, with the support of
most European countries, including Italy.
2.
In order to condemn the Iranian Government's suppression of the people's
protest against the regime, US President Donald Trump has announced that an
additional 25 percent tax will be imposed on all countries that have trade
relations with the country.
(i)
With 2,000 people dead amid the protests, the sudden tariff announced by the US
is expected to be a new crisis for Iran.
(ii)
Central Government sources said that India will not be affected much by the US
President's imposition of tariffs.
(iii)
In this regard, the sources said, 'Iran is not even among the top 50 countries
with which India trades. India's trade with Iran last financial year was worth
$1.6 billion (roughly Rs.14,450 crore). This was just 0.15 percent of India's
total trade in that financial year. India's trade value with Iran is expected
to decline further in the current financial year due to some economic reasons.
(iv)
While India trades with the country to a limited extent, trade in food and
pharmaceuticals is predominant. Therefore, India will not be greatly affected
by Trump's current tariff decision.
(v)
It is noteworthy that due to the economic sanctions imposed by Trump, who was
the President of the United States in 2019, India stopped purchasing crude oil
from Iran.
3.
According to data published by the European Institute, India is third in the
list of countries importing Russian crude oil. Earlier, India was ranked
second.
(i)
Reliance Group and Central Government oil refiners have reduced Russian crude
oil imports, according to a report released by the Centre for Research on
Energy and Clean Air (CREA). Countries were ranked in the report as on December
last year.
(ii)
It further stated that: China continues to be the top importer of crude oil
from Russia. China imports 6 billion euros worth of crude oil. China accounts
for 48 percent of Russia's total export earnings.
(iii)
Turkey imports 2.6 billion Euro of Russian crude oil after China. India ranks
third with crude oil imports worth 2.3 billion Euros. Of this, India imported
1.8 billion Euros of crude oil, 424 million Euros of coal and 82 million Euros
of petroleum products.
(iv)
While India imported crude oil worth 2.6 billion Euros last November, it
decreased significantly in December. This was attributed to Reliance Group's
Jamnagar Refinery and Central Government oil refineries reducing imports of
Russian crude oil.
(v)
USA imposed economic sanctions on Rosneft and Lukoil, accusing them of
providing excessive revenue to Russia in the war in Ukraine.
(vi)
As a result, Reliance Group, Hindustan Petroleum Corporation (HPCL),
HPCL-Mittal Energy Company, Mangaluru Refinery and Petrochemicals Company,
which imported and refined crude oil from these two companies, drastically
reduced their imports.
(vii)
India, the third largest importer of crude oil globally, continues to be
followed by other Russian companies that have not been sanctioned by the US.
Last year, the US imposed a 50 percent tariff on Indian goods, accusing it of
importing too much crude oil from Russia.
4.
US Secretary of State - Marco Rubio
5.
India has surpassed China to become the world's largest producer of rice. There
is no doubt that this has strengthened India's food security. It cannot be
denied that the consistent record production of rice and wheat, which are the
main agricultural products of Indian farmers, has been made possible only
through strong Government support.
(i)
The long-standing demand that farmers should not rely solely on rice and wheat
cultivation but should prioritize alternative crops remains unfulfilled. This
is due not only to the farmers but also to the Government's policy decisions.
(ii)
The Minimum Support Price, along with assured procurement, has established rice
and wheat cultivation as highly profitable crops. Government support,
irrigation facilities, grain storage facilities, and input credit facilities
all guarantee the cultivation of rice and wheat.
(iii)
The lack of price guarantees, market support, and post-harvest infrastructure
for alternative crops such as pulses, oilseeds, millets, and maize encourages
farmers to opt for rice and wheat cultivation, which offers more incentives and
guaranteed profits.
(iv)
There is no disagreement that rice and wheat cultivation are essential for food
security. It is also true that India's achievement of becoming a country that
exports large quantities of these grains to the global market through excessive
production has, in a way, increased the nation's international standing. At the
same time, we fail to realize that along with the benefits from rice and wheat
cultivation, we also face many hidden losses.
(v)
In particular, the excessive use of irrigation water for rice cultivation
severely impacts Groundwater levels. The carbon dioxide emitted by rice and
wheat crops contributes to global warming. We are also facing challenges such
as declining soil fertility and increased input costs due to the increased
cultivation of rice.
(vi)
While the achievements in rice production and the increased area under wheat
cultivation are superficially pleasing, we must view them with caution.
Agriculture should not be limited to increased production and exports alone. An
Agricultural policy that restricts farmers to one or two crops is not
constructive. Government schemes will only be farsighted if they aim to
increase the cultivation of other crops, including pulses, oilseeds, millets,
and maize.
(vii)
Due to the guaranteed yield and procurement of rice and wheat, it is not easy
to attract farmers involved in these crops to cultivate other alternative
crops. Without providing guaranteed procurement, a reliable market, and storage
facilities to protect their produce, it is impossible to change their mindset.
If they do not switch to alternative crops, not only the nation but also these
farmers themselves may face the consequences.
(viii)
42% of the Indian population is engaged in agriculture; it provides employment
to 46% of the workforce. However, the contribution of the agricultural sector
to India's GDP is only 5%. According to the NABARD report, the average monthly
income of agricultural families is Rs.13,663. Of this, the income from
agriculture is only Rs. 4,476. The rest comes from other jobs and occupations.
(ix)
Population growth has reduced the land holdings of farming families, making
them less profitable and unsuitable for agriculture. In 1971, the average farm
size of an Indian farmer was 2.28 hectares, but by 2021, it had decreased to a
mere 0.74 hectares. As a result, most farmers are unable to cultivate
profitably and secure their livelihoods.
(x)
India faces the risk that most agricultural land will become fallow if
cooperative farming or corporate agriculture does not emerge. With input costs
and inflation rapidly increasing the prices of agricultural products, we are
moving towards a situation where farmers will have to seek alternative
professions or, tragically, take their own lives.
(xi)
In 1991, 60% of the population in China was engaged in agriculture, compared to
63% in India. China has reduced this to 22%, while in India, it remains at 42%.
Agriculture dependent on subsidies is not something to be proud of. India's
Agricultural policy must now guide the sector towards profitable farming and
the cultivation of all types of crops.