Current Affairs 02 January 2026

Content

1. Centre’s tobacco tax rejig to take effect from Feb. 1
2. Ancient Marathi literature reveals savannas are not degraded forests
3. Why does India need climate- resilient agriculture?
4. Ikkis: The story of 2nd Lt Arun Khetarpal & the Battle of Basantar
5. Amazonian stingless bees first insects to get legal rights in the world

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Centre’s tobacco tax rejig to take effect from Feb. 1

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Why in News ?

• The Union Finance Ministry has issued notifications to implement a new taxation regime on tobacco products from 1 February 2026 under the Central Excise (Amendment) Act, 2025.
• Key elements include:
  • Revival and revision of excise duty on cigarettes (earlier reduced to a nominal level under GST).
  • Enforcement of a cess on pan masala units under the Health Security and National Security Act, 2025.
  • End of the GST Compensation Cess from 1 February.
  • Revision of GST rates on tobacco products — beedis shifted to 18% (from the earlier 28% slab); other tobacco products moved to a 40% slab.
• The Ministry flagged that cigarette affordability has not declined in the past decade, contrary to global public-health guidance recommending annual real price increases through higher specific excise duties.

Relevance  

• GS-3 (Economy)
  • Taxation, GST architecture, cess vs tax, fiscal federalism, sin-tax economics, price elasticity.
• GS-2 (Health & Governance)
  • Public health policy, NCDs, regulation of harmful products, Centre–State coordination.

Conceptual Foundations 

• Indirect Taxes on Tobacco (Pre-GST vs Post-GST)
  • Pre-GST: Central excise + State VAT + surcharges.
  • Post-GST (2017): GST (12/18/28% slabs), plus GST Compensation Cess; central excise continued only on cigarettes (but reduced to a nominal level).
• Types of Tobacco Taxes
  • Specific excise → fixed per unit (effective for health policy; raises price uniformly).
  • Ad valorem tax → % of price (can be evaded via down-trading to cheaper brands).
• GST Compensation Cess (2017–2022, later extended)
  • Purpose: compensate States for revenue losses due to GST implementation.
  • Funded partly by cess on sin/luxury goods (incl. tobacco).
• Economic Rationale for “Sin Taxes”
  • Correct negative externalities (health costs, productivity loss).
  • Recommended by WHO-FCTC: regular increases in real prices; prefer specific excise.
• Price Elasticity of Demand for Tobacco
  • Low but not zero; higher among youth & low-income users → taxation is an effective control tool.

What Has Changed — Policy Moves from 1 Feb 2025

• Excise Duty on Cigarettes Raised/Restored from nominal levels to a meaningful specific levy.
• Cess on Pan Masala Units brought into force under the 2025 Act.
• GST Compensation Cess Ends from 1 February.
• Re-structuring of GST Rates on Tobacco
  • Beedis: moved to 18% category (from the now-defunct 28% slab).
  • Other tobacco products: shifted to 40% slab.
• Policy Logic Cited by Government
  • Cigarettes have become more affordable relative to income growth.
  • Aim is to align with global public-health benchmarks mandating periodic excise hikes.

Implications — Economy, Health, Governance

• Public Health
  • Likely reduction in initiation and consumption over time, especially among youth.
  • Supports NCD control, lowers long-term healthcare burden.
• Revenue & Fiscal Federalism
  • Higher excise may boost Union revenues; cessation of compensation cess changes Centre–State fiscal dynamics.
  • States may seek alternative revenue sources post-cess.
• Equity & Behavioural Effects
  • Taxes are regressive in incidence but progressive in health gains (larger benefits for poorer households).
• Industry & Supply Chain
  • Possible down-trading to cheaper/illicit products; need strong track-and-trace enforcement.
  • Beedi sector largely informal → compliance and monitoring challenges.
• Trade & Compliance
  • Risk of illicit cross-border trade → requires customs vigilance and FCTC-aligned controls.

Analytical Perspectives 

• Does tobacco taxation balance revenue and health objectives?
  • Compare specific vs ad valorem models; global lessons (WHO-FCTC, Thailand, Philippines).
• Post-GST cess withdrawal and States’ revenue space
  • Options: buoyancy via GST expansion vs targeted sin-tax rationalisation.
• Beedi sector paradox
  • High consumption, low taxation, informal labour → policy trade-offs (health vs livelihoods).

Prelims-Ready Pointers

• Excise duty on cigarettes continues outside GST (Union power).
• Compensation Cess → designed to offset States’ GST revenue losses; ends from 1 Feb 2025.
• From 1 Feb 2025:
  • Beedis → 18% GST category.
  • Other tobacco products → 40% GST slab.
• Specific excise is considered more effective for tobacco control than ad valorem taxes.

Way Forward 

• Periodic, inflation-indexed specific excise increases.
• Track-and-trace systems to curb illicit trade.
• Differential taxation aligned to harm continuum (discourage smoked forms strongly).
• Health-earmarked revenues for NCD prevention and cessation programmes.
• Support measures for workers/farmers in tobacco & beedi value chains during transition.

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Ancient Marathi literature reveals savannas are not degraded forests

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Why in News ?

• A new study published in People and Nature (British Ecological Society) shows that the savannas of western Maharashtra are ancient ecosystems, not degraded forests.
• Using medieval Marathi literature, oral traditions, archival records, and ecological evidence, researchers trace open tree–grass landscapes back at least 750 years, predating colonial timber extraction.
• The study challenges the prevailing narrative that savannas are the result of deforestation or anthropogenic degradation, and calls for distinct conservation policies that value both biodiversity and local culture.

Relevance

• GS-1 (Geography / Indian Society)
  • Physical geography of biomes, human–environment interactions, cultural landscapes.
• GS-3 (Environment & Ecology)
  • Ecosystem classification, biodiversity conservation, grasslands vs forests, policy impacts.

Basics — Concepts & Foundations

• What are Savannas?
  • Mixed tree–grass ecosystems with open canopies, seasonal drought, and fire–grazing interactions.
  • Characterised by thorny trees, drought-adapted shrubs, perennial grasses, and browsing-resilient species.
• Savannas vs Forests (Conceptual Difference)
  • Savannas → Fire- and grazing-maintained, open, low tree density, grass-dominated.
  • Closed Forests → Dense canopy, shade-tolerant species, fire-sensitive ecology.
• Indian Ecological Terminology (Historical)
  • vana / jāgala → wild, open, drier landscapes (scrub, savanna, grasslands).
  • anūpa → wetter marshes and closed forests.
  • Modern misinterpretation equates vana with “dense forest”, leading to policy misclassification.
• Two Savanna Types in Maharashtra
  • Fine-leaf savannas → drier belts (≤1000 mm rainfall).
  • Broadleaf savannas → wetter belts (≥700 mm rainfall).
  • Both co-occur across the 700–1000 mm rainfall zone.

Evidence Base — What the Study Found ?

• Textual & Oral Records (13th–20th centuries)
  • Sources: ovis, narrative poems, hagiographies, myths across Pune, Satara, Solapur, Sangli, Nashik.
  • Recurrent descriptions of:
    • thorny trees, grasslands, seasonal drought
    • pastoral livelihoods & grazing landscapes
  • Sacred landscapes (e.g., Shinganapur / Kothalāgirī) embed tree species as cultural symbols.
• Flora Identified (62 species)
  • 27 savanna indicators; 14 forest species → strong signal of historic open-canopy ecologies.
  • Key species: Vachellia leucophloea, Senegalia catechu, Capparis divaricata, Butea monosperma, and grasses like Sehima nervosum.
• Functional Traits Indicating Savanna Ecology
  • thick bark, spines, clonal resprouting, fire & grazing tolerance.
• Triangulated with 11 Independent Evidence Lines
  • Archival photos & paintings → sparsely wooded uplands.
  • Colonial revenue records → pasture commons, hay meadows.
  • Hunting logs & bird lists → savanna-specialist fauna.
  • Hero stones → pastoral conflict & cattle raids.
  • Archaeological evidence → blackbuck motifs, grazer remains in Chalcolithic contexts.

Conclusion: Savannas are ancient and persistent ecosystems, not outcomes of recent deforestation.

Why This Matters ? 

• Ecological Misclassification Problem
  • Policies often treat savannas as “wastelands” or degraded forests → leads to:
    • inappropriate afforestation/plantation drives,
    • biodiversity loss (grassland fauna decline),
    • disruption of pastoral livelihoods.
• Cultural-Ecological Linkages
  • Savannas host sacred groves, pastoral traditions, ritual landscapes.
  • Conservation must integrate local knowledge + biodiversity objectives.
• Conservation Reorientation Needed
  • Manage as distinct ecosystems (fire-grazing dynamics, native grasses),
  • Avoid blanket tree-plantation policies in open landscapes.

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Why does India need climate- resilient agriculture?

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Why in News ?

• Climate shocks, soil degradation, water stress, and rising input volatility are weakening India’s agricultural productivity and farmer incomes.
• A policy commentary highlights the need for Climate-Resilient Agriculture (CRA) — integrating biotechnology, bio-inputs, genome-edited seeds, precision & digital tools, and climate advisories — to safeguard food security while reducing ecological stress.
• Despite initiatives such as NICRA (ICAR, 2011) and the National Mission for Sustainable Agriculture (NMSA), adoption gaps, poor bio-input quality, digital divides, and fragmented policy coordination constrain progress.

Relevance  

• GS-1 (Geography / Society) → climate variability, livelihoods, rainfed agriculture.
• GS-3 (Economy & Environment) → food security, agricultural productivity, biotechnology, sustainable agriculture, climate change adaptation, bio-inputs, resource efficiency.

Concepts & Foundations 

• Climate-Resilient Agriculture (CRA): Core Idea
  • Adapt farming systems to climate variability, extreme weather, and resource stress while maintaining productivity and environmental sustainability.
• Key Components
  • Biotechnology tools — climate-tolerant & genome-edited crops (heat, drought, salinity, pest tolerance).
  • Bio-inputs — biofertilizers, biopesticides, soil-microbiome approaches (reduced chemical dependence).
  • Digital & AI tools — precision irrigation, crop-health monitoring, yield prediction, climate advisories.
  • Climate-smart practices — zero tillage, residue management, SRI, aerobic/direct-seeded rice, diversified systems.
• Conceptual Distinction (Static)
  • CRA ≠ only mitigation → mainly adaptation + risk-proofing agriculture.
  • Linked syllabus themes: sustainability, food security, resource efficiency, technology & innovation.

Why India Needs Climate-Resilient Agriculture ?

• High exposure to climate risk
  • ~51% of net sown area is rainfed; produces ~40% of food → highly vulnerable to rainfall variability and drought.
• Rising frequency of climate extremes
  • Heatwaves, erratic monsoons, floods, pest outbreaks → yield instability and income shocks.
• Degrading natural resources
  • Soil nutrient depletion, groundwater stress, stubble burning, chemical-input dependency.
• Food security & demographic pressure
  • Large and growing population → need stable, climate-proof productivity.
• Environmental health & sustainability
  • CRA reduces chemical load, emissions, and ecosystem damage while preserving productivity.

Where India Stands — Policies, Institutions, Initiatives

• NICRA (ICAR, 2011)
  • 448 climate-resilient villages; demonstrated SRI, zero-till wheat, residue incorporation, climate-tolerant varieties, aerobic/direct-seeded rice.
• National Mission for Sustainable Agriculture (NMSA)
  • Focus: rainfed areas, integrated farming, soil health, water-use efficiency, resource conservation.
• BioE3 Policy (recent)
  • Positions CRA as a biotechnology-led adaptation pathway; promotes genome-edited crops and bio-inputs.
• Market & technology ecosystem
  • Growing bio-input industry; expanding agritech & AI advisory platforms, precision irrigation, crop-monitoring tools.

Key Challenges in Scaling CRA 

• Low adoption among small & marginal farmers
  • Constraints: awareness, affordability, access to technologies & advisory services.
• Quality risks in bio-inputs
  • Inconsistent standards for biofertilizers/biopesticides → distrust, poor outcomes.
• Slow rollout of climate-resilient / gene-edited seeds
  • Uneven State-level distribution; regulatory caution slows diffusion.
• Digital divide
  • Limited access to devices, connectivity, data literacy → weak penetration of AI/precision tools.
• Resource stress outpacing adaptation
  • Soil degradation, water scarcity, rising climate volatility.
• Fragmented policy & institutional coordination
  • Overlaps across agriculture, biotechnology, environment, and rural development → implementation friction.

Why CRA is Strategic for India ?

• Risk-buffering for farmers → stabilises yields & incomes under climate uncertainty.
• Productivity with sustainability → reduces chemical dependence while improving soil & ecosystem health.
• Tech-led structural transformation → strengthens innovation, agri-value chains, and agri-startup ecosystems.
• Supports national priorities → food security, SDGs, NDC adaptation goals, water & soil conservation.

Way Forward — Policy & Implementation Priorities

• Accelerate climate-tolerant & genome-edited crop deployment with strong regulatory clarity.
• Strengthen standards & certification for biofertilizers and biopesticides; build reliable supply chains.
• Last-mile digital inclusion → climate advisories, AI decision tools, precision farming access for smallholders.
• Financial enablers → climate insurance, concessional credit, transition incentives, outcome-based support.
• Integrated national CRA roadmap (BioE3-aligned) → unify biotechnology, climate adaptation, and agriculture policy for scale & coherence.
• Localised extension & capacity-building → community participation, farmer-producer organisations, region-specific packages.

Prelims-Ready Pointers

• ~51% rainfed area → ~40% food output → high climate vulnerability.
• CRA tools: bio-inputs, genome-edited seeds, soil-microbiome insights, AI-based advisories, precision irrigation.
• Flagship initiatives: NICRA (ICAR), NMSA, BioE3-aligned biotechnology push.
• Key barriers: quality of bio-inputs, digital divide, slow seed rollout, fragmented coordination.

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Ikkis: The story of 2nd Lt Arun Khetrapal & the Battle of Basantar

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Why in News ?

• A recent feature revisits the Battle of Basantar (Indo-Pakistan War, 1971) through the story of Second Lieutenant Arun Khetrapal, the youngest recipient of the Param Vir Chakra.
• The narrative is linked to the film Ikkis, which portrays his courage during one of the most decisive tank battles on the western front of the 1971 war.

Relevance

• GS-1 (History — Post-Independence India)
  • Major wars, national security events, military leadership and heroism.
• GS-3 (Internal Security / Defence)
  • Border security, armoured warfare, strategic geography (Shakargarh Bulge, riverine barriers).

Context & Background

• Indo-Pakistan War of 1971: Two Fronts
  • Eastern Theatre → Liberation of Bangladesh (offensive operations).
  • Western Theatre → Objective was to contain Pakistan and prevent escalation; included key defensive–offensive battles such as Basantar.
• Location
  • Shakargarh Bulge (between the Ravi & Chenab rivers, near Jammu–Pathankot axis).
  • A strategic wedge—if Pakistan broke through, it could threaten Punjab, Pathankot, and access to Kashmir.
• Battle of Basantar (Dec 1971) — Core Idea
  • Indian aim: secure a bridgehead across the Basantar river, block Pakistani armoured thrusts, and hold territory under heavy counter-attacks.

Operational Overview — What Happened ?

• Indian Advance
  • Indian armoured & infantry units crossed the heavily mined Basantar river, creating a bridgehead under intense fire.
• Pakistani Counter-attacks
  • Multiple Patton tank assaults to dislodge Indian forces.
• Role of 2nd Lt Arun Khetrapal (Poona Horse Regiment)
  • Refused to abandon his burning tank, fought on, and destroyed several enemy tanks.
  • Continued firing despite being ordered to withdraw; died in action after disabling another advancing tank.
  • His actions were pivotal in breaking the Pakistani assault and holding the bridgehead.

Decorated Soldier — Key Facts for Prelims

• 2nd Lt Arun Khetrapal
  • Param Vir Chakra (Posthumous) — youngest recipient.
  • National Defence Academy parade ground and gates at IMA, Dehradun & NDA, Khadakwasla named in his honour.

Strategic Significance of the Battle

• Military Significance
  • Prevented Pakistan from penetrating the western sector.
  • Secured the Pathankot–Jammu axis, protecting vital logistics corridors.
• Psychological & Doctrinal Impact
  • Demonstrated armoured warfare capabilities and combined-arms coordination.
  • Reinforced the role of defensive-offensive operations on active borders.
• War Outcome Context
  • Contributed to favourable ceasefire terms on the western front.

Overview

• Shakargarh Bulge as a Vulnerability
  • Natural salient projecting into India → high-value defensive priority.
• Armour vs Armour Battles in South Asia
  • Basantar illustrates terrain–engineering–minefield integration as decisive in tank warfare.
• Role of Individual Leadership in War Outcomes
  • Tactical courage at the platoon level can shape operational success.

Prelims-Ready Pointers

• Battle of Basantar → Western Front, Dec 1971, Shakargarh Bulge.
• Regiment involved → Poona Horse (armoured regiment).
• Award → Param Vir Chakra (youngest awardee).
• Objective → Hold bridgehead across Basantar; repel Pakistani tank counter-attacks.

Way Forward

• Preserve battlefields & regimental histories as military-heritage resources.
• Integrate lessons on combined arms, logistics protection, and armoured tactics in professional military education.
• Use biographies and films to strengthen public awareness of national security history.

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Amazonian stingless bees first insects to get legal rights in the world

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Why in News ?

• A municipal ordinance in Satipo, Peru (Amazon region) has granted legal rights to native Amazonian stingless bees — the first case in the world where insects have been recognised as rights-bearing entities.
• The Declaration of Rights for Native Stingless Bees grants them the right to exist, thrive, restore habitats, live in pollution-free environments, and be legally represented in cases of harm.
• The initiative was led by Amazon Research Internacional (Rosa Vásquez Espinoza) in collaboration with the Earth Law Center, aligning Indigenous ecological knowledge and Rights-of-Nature jurisprudence.

Relevance

• GS-3 (Environment & Ecology)
  • Biodiversity conservation, pollinators, ecosystem services, invasive species, climate impacts.
  • Environmental governance, Rights of Nature, community-based conservation.

Concepts & Foundations

• Rights of Nature — Core Idea
  • A legal-philosophical approach where ecosystems or species possess inherent legal rights, independent of human use-value.
  • Earlier examples:
    • Whanganui River (New Zealand, 2017) — granted legal personhood.
    • Ganga & Yamuna (India, 2017—judicial recognition, later limited in scope).
    • Amazon & Andes jurisdictions — constitutional or municipal nature-rights frameworks (Ecuador, Bolivia).
• What Makes This Case Distinct
  • First time a specific insect group has been recognised as a legal rights holder rather than merely a protected species.
• Who Are Stingless Bees? (Ecology Basics)
  • Ancient lineage of bees; non-stinging, cavity-nesting, highly social species.
  • Keystone rainforest pollinators — pollinate >80% of Amazon flora and crops like coffee, cocoa, avocado, blueberries.
  • Culturally important to Indigenous Amazonian communities (medicine, livelihoods, rituals).

What the Ordinance Recognises 

• Right to exist and thrive
• Right to maintain healthy populations
• Right to a pollution-free habitat
• Right to ecologically stable climatic conditions
• Right to regenerate natural cycles
• Right to legal representation in cases of threat or harm

Implication: Harm to bees or their habitats can be pursued as a legal injury.

Why Protection Was Needed ?— Risk Drivers

• Climate change → heat stress, rainfall disruption
• Deforestation & habitat loss
• Pesticide exposure
• Competition from introduced European honeybees
• Erosion of Indigenous knowledge systems

Significance — Governance, Law, Environment

• Shift from conservation-as-resource to conservation-as-rights
  • Recognises species as moral and legal stakeholders.
• Integration of Indigenous knowledge & modern science
  • Supports biocultural heritage preservation.
• Precedent-setting value
  • Could influence municipal and national biodiversity laws globally.
• Operational Challenges
  • Defining guardianship & representation mechanisms.
  • Balancing economic uses (apiculture, agriculture) with species-rights claims.
  • Monitoring compliance in remote rainforest landscapes.

Prelims-Ready Pointers

• First insects to receive legal rights → Amazonian stingless bees (Peru, Satipo ordinance).
• Key rationale → ecological keystone role + Indigenous cultural significance.
• Rights granted include existence, healthy populations, habitat protection, climate stability, regeneration, legal representation.
• Led by Rosa Vásquez Espinoza (Amazon Research Internacional) with Earth Law Center.
• Pollinate >80% of Amazonian flora and several global crops.

Way Forward

• Strengthen pollinator protection frameworks (wild bees beyond honeybees).
• Integrate community stewardship and traditional knowledge into conservation.
• Promote pesticide regulation, habitat corridors, diversified agro-ecosystems.
• Explore rights-based or trustee-based models for critical ecosystems/species where appropriate.

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