Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Thursday, 3 April 2025

Firms ready to offer internship

 

Article link: Indian companies back PM Internship scheme, but few willing to offer jobs

Extract from the article:

The article discusses how Indian companies are supporting the Prime Minister's Internship Scheme but are hesitant to provide job opportunities to interns.

While the scheme aims to bridge the gap between education and employment by offering internships, the reluctance to convert these opportunities into permanent positions poses a challenge.

The initiative is laudable in connecting young talent with practical work experience, yet the transition to full-time employment remains a critical issue for many companies.

This dilemma reflects a broader trend where companies are eager to engage interns but struggle when it comes to offering them long-term career prospects.

The mismatch between temporary internships and permanent job openings raises questions about the sustainability and effectiveness of such initiatives in addressing youth employment challenges in the country.

My Take:

STIPEND SUBSIDY IS THE ANSWER 

The blog highlights the significance of stipend subsidies in incentivizing internships and apprenticeships. Reflecting on this, one can observe that offering adequate financial support to interns can not only attract more participants but also encourage companies to consider converting these roles into permanent positions. By bridging the gap between temporary engagements and sustainable employment, stipend subsidies could play a crucial role in enhancing the effectiveness of internship schemes.

OF INTERNS AND APPRENTICES 

Delving into the importance of interns and apprentices in the workforce, this blog emphasizes the need for policies that facilitate the transition of temporary roles into permanent jobs.

In the context of the current article on companies backing internship schemes but hesitating to offer jobs, the focus on cultivating a culture that values internships as pathways to employment becomes pivotal.

Encouraging organizations to view internships as stepping stones to long-term careers could address the reluctance witnessed in converting internships into job opportunities.

Call to Action:

To the Indian companies supporting the PM Internship Scheme: Embrace the potential of interns as future assets by creating pathways for converting internships into full-time positions.

By offering sustainable employment opportunities to interns, you not only nurture talent within your organization but also contribute to addressing the larger issue of youth unemployment in the country.

With Regards, 

Hemen Parekh

www.My-Teacher.in

Smart Wearable Device

 

Article link: Scientists develop smart wearable device that mimics human pain response


Extract from the article:

In a groundbreaking development, scientists at Jawaharlal Nehru Centre for Advanced Scientific Research (JNCASR) have created a smart wearable device that emulates the human pain response.

 This innovation has the potential to revolutionize health monitoring by offering real-time insights into an individual's stress levels. The device opens a new realm of possibilities in enhancing human-machine interactions and could pave the way for advanced health monitoring systems.

Researchers believe that this technology could provide invaluable feedback to medical professionals, leading to more personalized and effective patient care.

This wearable device, with its ability to mimic the human pain response, showcases the intersection of cutting-edge technology and healthcare, offering a glimpse into a future where monitoring stress levels and health parameters becomes seamless and efficient.


My Take:

Blog Title: Sound of Devices is Unstoppable - 17 Mar 2023

Reflecting on my earlier blog post from 2023, where I deliberated on the implications of invasive devices on personal privacy, the recent development of a smart wearable device that mimics human pain response resonates deeply.

The shift towards wearable technologies that delve into the realm of health monitoring brings to the fore the importance of maintaining a delicate balance between innovation and ethical considerations.

As we witness the swift progress in soft electronics, it becomes evident that my vision of a future intertwined with IoT-connected health devices is gradually materializing.

The integration of such advanced technologies underscores the critical need for robust regulatory frameworks to safeguard individual privacy in this evolving landscape of health innovation.

The Rise of Telemedicine: How COVID-19 is Fundamentally Changing - May 2020

In light of the current strides in health monitoring through wearable technologies, the convergence of telemedicine and advanced health monitoring systems paints a vivid picture of a healthcare landscape that is continuously evolving.

The incorporation of AI in analyzing and interpreting data from these devices signifies a paradigm shift towards personalized and proactive healthcare solutions.

The smart wearable device discussed in the article not only represents a technological marvel but also embodies the essence of telemedicine's transformative impact on healthcare delivery.

This progress underscores the need for ongoing dialogue and collaboration between stakeholders to ensure that technological advancements align with ethical standards and deliver tangible benefits to individuals seeking quality healthcare services.


Call to Action:

To the researchers at Jawaharlal Nehru Centre for Advanced Scientific Research (JNCASR), continue pushing the boundaries of innovation in healthcare technology.

Collaborate with industry experts and regulatory bodies to ensure that the integration of smart wearable devices aligns with ethical standards and user privacy.

Your work has the potential to redefine health monitoring systems and enhance human-machine interactions, setting a new standard for personalized and effective healthcare delivery.


With regards, 

Hemen Parekh

www.My-Teacher.in

Wednesday, 2 April 2025

WAQF : Evolve a Consensus


Dear Members of Lok Sabha – Rajya Sabha :


After a heated debate , Waqf Bill got passed by Lok Sabha , yesterday evening. Today , it will get debated in Rajya Sabha

I listened to the speeches made by a few members – from both the sides – and got an impression that the tone was adversarial . Emphasis was on pointing out “ what was WRONG with the bill “ . No one came forward to say “ Here is how that WRONG can be set RIGHT “   

I thought :

Since everyone ( in and out of the Government ) is swearing by employing AI for better decision making, could our MPs have sought help from leading LLMs ( AIs ) , to tell them , how this bill should get “ Re-worded “ ? If properly requested, could these LLMs have offered a “ compromise “ consensus ?

Following is my attempt at such requests to > Grok > Gemini > ChatGPT

I hope , even as the debate has started in the Rajya Sabha, some members find a few minutes to look this up

 

With regards,

Hemen Parekh

www.HemenParekh.ai  / 03 April 2025

 

Comparison of AI Model Suggestions on Waqf Act Amendments

Provision

Key Changes

Criticism & Concerns

Grok Suggestions

Gemini Suggestions

ChatGPT Suggestions

Power to Determine if a Property is Waqf

Transfers the authority to inquire and determine if a property is Waqf from the Waqf Board to revenue officials (Collectors).

- Critics argue this interferes in religious affairs, reducing Waqf Boards to administrative bodies without decision-making power.
- Assigning this to Collectors raises concerns about their lack of expertise in Islamic law.

 Hybrid Decision-Making Body: Create a joint panel of revenue officials and Waqf Board representatives to determine Waqf status.
- Training for Collectors: Mandate training for Collectors on Islamic law and Waqf principles.

- Waqf Assessment Authority: Establish a specialized authority comprising legal experts, Islamic scholars, and revenue officials.
- Capacity Building: Invest in resources for Waqf Boards to conduct preliminary inquiries.

- Specialized Waqf Tribunals: Form tribunals with members experienced in Islamic jurisprudence and property law.
- Community Involvement: Engage local Muslim communities in the identification and verification process.

Survey of Waqf

Replaces the Survey Commissioner with Collectors to conduct Waqf surveys, to be done per state revenue laws.

- The shift to Collectors is criticized for lacking expertise in Waqf matters, potentially leading to inaccurate surveys.
- Opposition highlights the unrealistic timeline (e.g., six months for registration).

- Specialized Survey Teams: Form dedicated teams comprising revenue officials, Waqf Board members, and Islamic law experts.
- Flexible Timelines: Extend the registration timeline to 12 months.

- Technology-Driven Survey: Implement GIS mapping, satellite imagery, and AI-powered data analysis.
- Community Participation: Involve local communities and Waqf stakeholders in the survey process.

- Digital Record-Keeping: Develop a centralized digital database for Waqf properties.
- Regular Audits: Schedule periodic audits to ensure records remain accurate and up-to-date.

Central Waqf Council Composition

Adds two non-Muslim members to the Central Waqf Council. MPs, former judges, and eminent persons need not be Muslims, but representatives of Muslim organizations, Islamic law scholars, and Waqf Board chairpersons must be Muslims. Two women among Muslim members are mandated.

- Including non-Muslims is seen as an attack on Muslim autonomy, with critics calling it unconstitutional.
- Arguments that non-Muslims lack the expertise to manage Waqf, a religious institution.

- Advisory Role for Non-Muslims: Limit non-Muslim members to an advisory role without voting rights.
- Increase Women Representation: Mandate at least 30% of the Council be women.

- Balanced Representation with Functional Expertise: Retain a majority of Muslim members while including non-Muslims with expertise in finance, administration, and law.
- Specialized Committees: Establish committees within the Council focusing on religious affairs, finance, and legal matters.

- Transparent Selection Process: Implement a clear and transparent process for selecting Council members.
- Regular Consultations: Hold consultations with Muslim community leaders to align Council decisions with community needs.

Waqf Boards Composition

State government nominates members (one each from MPs, MLAs/MLCs, Bar Council) who need not be Muslims. Adds two non-Muslim members, one member each from Shia, Sunni, Backward Classes, Bohra, and Agakhani communities (if applicable), and two Muslim women.

- Nominating non-Muslims and government control over appointments is seen as a direct attack on Waqf autonomy.
- Opposition argues it introduces sectarian divisions (e.g., Shia, Sunni) with “evil intent.”

- Election Over Nomination: Reinstate elections for Waqf Board members.
- Non-Muslim Observers: Make non-Muslim members non-voting observers.
- Sectarian Representation: Ensure sectarian representation is proportional to Waqf properties in the state.

- Hybrid Model of Selection: Retain some nominated positions for expertise (e.g., legal, financial) but introduce a system of elections for most members.
- Community-Based Waqf Committees: Establish local Waqf committees at the district level to assist in governance.

- Merit-Based Appointments: Ensure appointments prioritize individuals with knowledge of Waqf law and administration.
- Periodic Review: Establish a review mechanism to assess the performance of Waqf Board members.

Judicial Authority on Waqf Matters

Waqf Tribunals to be headed by retired judges, but Collectors can pass orders regarding Waqf property disputes.

- Critics argue that giving Collectors judicial power over Waqf matters undermines judicial independence.
- Waqf Boards fear losing control over legal matters related to their properties.

- Independent Waqf Judiciary: Establish independent tribunals exclusively for Waqf-related cases.
- Appeal Mechanism: Allow direct appeals from Waqf Tribunals to High Courts.

- Strengthen Waqf Tribunals: Ensure tribunals have members well-versed in Islamic law.
- Separate Judicial Oversight: Keep revenue authorities out of judicial decision-making.

- Clear Appeals Process: Establish an appellate system where Waqf Board decisions can be reviewed by higher courts.
- Expert Legal Panels: Involve legal experts in Waqf law to assist in tribunal decisions.

Utilization of Waqf Properties

Waqf Boards can lease properties for public purposes, including education, healthcare, and infrastructure projects, without prior government approval.

- Concerns over potential misuse or encroachment by state agencies.
- Critics argue this could lead to the gradual loss of Waqf properties over time.

- Transparent Leasing Mechanism: Set up an independent leasing committee with public disclosures of all agreements.
- Revenue Reinvestment: Mandate that lease revenue is reinvested into Waqf welfare programs.

- Strict Lease Regulations: Impose strong legal safeguards to prevent encroachment.
- Community-Based Oversight: Establish local monitoring committees to oversee leasing decisions.

- Technology for Transparency: Use blockchain-based property management for transparent leasing records.
- Periodic Review of Leases: Mandate periodic reviews to ensure continued compliance with Waqf objectives.

Legal Protection of Waqf Lands

The Act makes encroachment on Waqf property a criminal offense with stringent penalties, but allows the government to acquire Waqf land for national development projects.

- Critics fear this provision could be misused to take over Waqf land under the guise of “development.”
- Waqf Boards have historically struggled to reclaim encroached lands, raising concerns about enforcement.

- Clear Acquisition Criteria: Define strict criteria for government acquisition to prevent arbitrary takeovers.
- Fair Compensation Mechanism: Ensure market-rate compensation for acquired Waqf lands.

- Waqf Land Bank: Establish a digital registry of Waqf lands to prevent unauthorized transfers.
- Independent Adjudication: Require judicial approval before acquiring Waqf land for public projects.

- Waqf Property Protection Authority: Create a dedicated authority to monitor and prevent illegal land acquisitions.
- Public Consultation Process: Mandate public hearings before acquiring any Waqf land.

------------------------------------------------------------------------------------------------------------------------

Provision

Proposed Change

Concerns & Criticism

Grok’s Suggestions

Gemini’s Suggestions

ChatGPT’s Suggestions

Renaming the Waqf Act, 1995

Renames the Waqf Act, 1995, to the Unified Waqf Management, Empowerment, Efficiency, and Development Act, 1995 (UMMEED) to emphasize better management.

- Critics see renaming as superficial without addressing mismanagement and encroachment.
- Opposition claims it’s politically motivated to reshape Muslim community autonomy.

- Clarify Intent in Preamble: Ensure the preamble explicitly states that renaming aims to enhance efficiency, not alter religious aspects.
- Engage Stakeholders: Mandate consultations with AIMPLB and other Muslim organizations before renaming.

- Retain Original Name: Keep Waqf Act, 1995, and introduce a new section highlighting UMMEED principles (Management, Empowerment, Efficiency, Development).
- Create Standing Advisory Council: Include scholars, legal experts, and government officials for ongoing consultation.

- Symbolic Recognition Without Renaming: Keep the name unchanged but introduce a dedicated section explaining UMMEED as guiding principles.
- Ensure Ongoing Stakeholder Involvement: Set up a permanent advisory body with Muslim organizations and legal experts to oversee implementation.

Formation of Waqf

- Only a person practicing Islam for five years can declare a Waqf.
- Removes ‘Waqf by User’ (properties recognized as Waqf through long-term public use).
- Ensures Waqf-alal-aulad does not deny inheritance rights, including for women.

- The five-year rule is restrictive and excludes genuine donors.
- Removing ‘Waqf by User’ might invalidate historical Waqfs like Bengaluru Eidgah ground.
- Women’s inheritance rights may conflict with certain interpretations of Islamic law.

- Modify Five-Year Rule: Reduce to two years or allow a formal declaration of intent to follow Islamic principles.
- Grandfather Clause for ‘Waqf by User’: Allow existing Waqf-by-user properties to continue under one-time verification by the High Court.
- Clarify Inheritance Rights: Ensure Waqf-alal-aulad follows Islamic law under expert interpretation.

- Tiered Declaration Framework:
Tier 1: Large Waqfs follow stricter criteria.
Tier 2: Small, community-based Waqfs have a simpler process, with local Waqf committee verification.
- Document and Preserve Waqf by User: Register existing ‘Waqf by user’ properties rather than abolishing them.

- Flexible Eligibility Rule: Instead of a fixed five-year rule, introduce a self-attested declaration with community verification.
- Structured Verification for Waqf by User: Rather than removing the concept, establish a process where historical usage is reviewed by a neutral panel.
- Mediation Committee for Disputes: Set up an expert panel of Islamic scholars and legal professionals to resolve inheritance-related ambiguities.

Government Property as Waqf

- Any government property identified as Waqf will cease to be Waqf.
- The Collector determines ownership disputes and updates revenue records if deemed government property.

- Critics argue this gives excessive power to the government, risking arbitrary reclassification of Waqf properties.
- Historical claims (e.g., Surat Municipal Corporation building) may be nullified, causing unrest.

- Independent Oversight Committee: Create a neutral review body (Muslim scholars, legal experts, revenue officials) to examine disputed Waqf properties.
- Appeal Mechanism: Allow Waqf Boards to challenge Collector’s decision in High Court within 120 days.

- Burden of Proof on Government: The government must prove that a property is not Waqf before reclaiming it.
- Multi-Level Review Process: Introduce a special tribunal for Waqf property disputes.

- Transparent Review Mechanism: Ensure a multi-tiered process where decisions are reviewed at district, state, and national levels before final reclassification.
- Historical Preservation Requirement: Properties with longstanding Waqf claims should undergo a historical assessment before any ownership change.

----------------------------------------------------------------------------------------------------------------------------

Provision

Proposed Change

Concerns & Criticism

Grok’s Suggestions

Gemini’s Suggestions

ChatGPT’s Suggestions

Composition of Tribunals

- Replaces the requirement of a member knowledgeable in Muslim law with a current/former officer of joint secretary rank.
- Chairman must be a current/former District Court judge.

- Removing Islamic law experts undermines the Tribunal’s ability to adjudicate Waqf disputes per Muslim law (PRS India, 2024-08-07).
- Opposition argues this dilutes the religious character of Waqf governance (The Hindu, 2025-04-02).

- Retain Islamic Law Expert: Reinstate the requirement for a member with expertise in Muslim law to ensure decisions align with Islamic principles.
- Judicial Training: Provide mandatory training on Waqf and Islamic law for Tribunal chairpersons, ensuring informed adjudication.

- Specialized Waqf Tribunals: Establish dedicated Waqf Tribunals with the following composition:
1. A judicial member (retired High Court judge or senior District Judge).
2. A member with expertise in Islamic law and Waqf jurisprudence.
3. A member with expertise in property law and administration.
- Continuous Legal Education: Mandate ongoing legal education and training for all Tribunal members, focusing on:
1. Recent developments in Waqf law.
2. Islamic jurisprudence.
3. Best practices in dispute resolution.

- Hybrid Tribunal Composition: Ensure a balanced tribunal with:
1. A senior judicial officer (District Judge or above).
2. A Waqf law expert (scholar in Islamic law or a legal expert specializing in Waqf).
3. A neutral administrator with governance experience.
- Periodic Review of Tribunal Decisions: Introduce a legal review mechanism where Tribunal decisions are assessed annually for consistency with legal and religious principles.

Appeal on Orders of Tribunals

Removes the finality of Tribunal decisions, allowing appeals to the High Court within 90 days.

- While this is seen as a positive step for judicial oversight, the 90-day appeal window is considered too short by some (PRS India, 2024-08-07).
- Critics like Vishnu Shankar Jain argue the Tribunal structure itself remains problematic, as it doesn’t address reclaiming illegally declared Waqf properties (Indian_Analyzer post on X, 2025-03-20).

- Extend Appeal Window: Increase the appeal period to 120 days, giving parties sufficient time to prepare cases.
- Reclamation Mechanism: Introduce a provision for a special High Court bench to handle cases of illegally declared Waqf properties, addressing concerns about historical misuse.

- Structured Appeal Process: Implement a tiered appeal process:
1. First Appeal: To a larger bench of the Waqf Tribunal itself.
2. Second Appeal: To the High Court, with a reasonable timeframe (e.g., 120 days).
- Specialized Waqf Benches in High Courts: Establish specialized benches within the High Courts to handle Waqf property disputes, ensuring expertise and efficient resolution.

- Graduated Appeal System:
1. Tribunal verdicts can be appealed within 120 days.
2. Create a dedicated Appellate Waqf Tribunal with members from the judiciary and Waqf law specialists.
3. If disputes persist, cases may be referred to the High Court.
- Waqf Property Verification Committee: Set up a permanent legal oversight body to review cases where Waqf status is disputed, ensuring historical legitimacy before reclaiming properties.

Powers of the Central Government

- Central government can make rules on registration, accounts publication, and Waqf Board proceedings.
- Empowers the central government to audit Waqf accounts via CAG or a designated officer.

- Opposition leaders like Akhilesh Yadav argue this gives the government undue control, undermining Waqf autonomy (DD News, 2025-03-31).
- Central audits are seen as overreach, potentially leading to political interference (Frontline, 2025-04-01).

- State-Level Oversight: Allow state governments to retain primary audit powers, with central audits only in cases of significant discrepancies, reducing fears of overreach.
- Transparency in Rule-Making: Mandate public consultation with Waqf stakeholders before the central government frames rules, ensuring community input.

- Collaborative Rule-Making: Establish a joint committee comprising:
1. Representatives from the Central Waqf Council.
2. Representatives from State Waqf Boards.
3. Legal experts.
- This committee would be responsible for drafting rules and regulations, ensuring a collaborative approach.
- Independent Audit Oversight: Instead of direct central government audits, establish an independent Waqf Audit Authority comprising:
1. Chartered accountants with expertise in non-profit accounting.
2. Legal experts specializing in Waqf law.
3. Representatives from Muslim organizations.
- This authority would conduct regular audits and report its findings publicly, ensuring transparency and accountability.

- Balanced Regulatory Approach:
1. Central Government may suggest reforms, but State Waqf Boards must approve and implement them.
2. Independent Audit Body: Instead of CAG audits, create a National Waqf Financial Review Committee with members from state Waqf boards, auditors, and legal experts.
3. Public Accountability Portal: Mandate annual financial disclosures on a public website, ensuring transparency without political interference.

Waqf Boards for Bohra and Agakhani

Allows separate Waqf Boards for Bohra and Agakhani sects, in addition to Sunni and Shia boards, if their Waqf properties exceed 15% of the state’s total.

- While this aims for inclusivity, critics like Kalyan Banerjee argue it promotes sectarianism, potentially dividing the Muslim community (LiveMint, 2025-04-01).
- Small sects may lack resources to manage separate boards, leading to inefficiencies (Frontline, 2025-04-01).

- Optional Boards: Make separate boards optional, allowing Bohra and Agakhani communities to opt for representation within existing boards if they lack resources.
- Resource Support: Provide central funding and training for smaller sect boards to ensure effective management, addressing resource concerns.

- Flexible Representation Model:
1. Instead of mandatory separate boards, allow for flexible representation within existing State Waqf Boards, with dedicated committees or sub-boards for Bohra and Agakhani communities.
2. Shared Services and Capacity Building:
- Establish shared services and resource centers at the state or regional level to provide administrative, legal, and financial support to all Waqf Boards, including those representing smaller sects.
- Invest in capacity building programs for all Waqf Board members, regardless of sect, to enhance their skills and knowledge in Waqf management.

- Hybrid Model for Inclusivity:
1. Instead of full-fledged separate boards, create Waqf Administrative Clusters that cater to multiple sects under a unified regulatory framework.
2. Resource Pooling Mechanism:
- Encourage smaller sects to collaborate on shared administrative offices, audit mechanisms, and legal teams.
3. Voluntary Sect-Specific Waqf Governance:
- Allow sects to choose between having an independent board or being represented within a multi-sect State Waqf Board, ensuring flexibility based on resources and community preferences.

-===================================================================

Slowing workforce migration

 

Article link: Slowing workforce migration is one of our biggest worries


Extract from the article:

In a recent statement, L&T Chairman SN Subrahmanyan highlighted the concerns regarding the slowdown in workforce migration, identifying it as a significant issue impacting the industry.

To address this challenge, L&T is actively working on establishing skill training institutes and utilizing technology advancements such as Artificial Intelligence.

Teams within the organization have already developed close to 100 algorithms as part of their efforts to combat the impact of reduced labor mobility on their operations.


My Take:

A. Marketing Revolution - Paul R. Gamble & Alan

"Reflecting on the transition from traditional marketing tactics to a more tech-savvy approach, I find my past insights more relevant than ever.

Back in 2021, I emphasized the importance of leveraging technology to streamline recruitment processes, a concept now echoed in L&T's initiatives to address labor migration woes through technology-driven solutions."


Call to Action:

To L&T Chairman SN Subrahmanyan: Embrace innovation and collaboration to tackle the workforce migration challenge head-on.

Engage with experts in the field to explore holistic solutions that combine skill development, technology adoption, and industry partnerships for sustainable change.


With regards, 

Hemen Parekh

www.My-Teacher.in

Tuesday, 1 April 2025

MSP : a “ Give and Take “ Compromise

 

 

Dear Shri Shivrajsinghji :

{ minister.rd@gov.in  /  contact@shivrajsinghchouhan.net }

 

For past few years , various Farmer Unions have been demanding legally binding guarantees of MSPs for various farm produce  - even though, the Government has been purchasing these crops at MSPs , through tradition

Over the past 3 / 4 years , agitations by farmers have resulted in :

Ø  Blockages of highways leading to total stoppage of traffic

Ø  Loss of life and limbs

Ø  Huge production and revenue losses, for farmers / Govts / Public

I understand, this matter is scheduled for a hearing in Supreme Court today – and a bilateral meeting between the Farmer Unions and the Govt., on 8th April

It is high time , both the parties , in a spirit of “ Give and Take “ , reach a compromise formula soon and move on to a peace-inspired progress towards “ doubling of farm income “ in next 3 years

GIVE ( for the Govt ) :

Ø  Legally binding MSPs for pre-determined crops , using a transparent formula . The structure ( components ) and the logic ( determinants ) of this formula will be pre-agreed by the parties. Thereafter, the formula will use various INPUTS and “ announce “ the MSPs for various crops for each season ( full calculations will be made public , and automatically ) . Once published , this will be binding on the Govt and the farmers. Both the parties to set up a joint “ Commission “ , which will , periodically revise the formula

TAKE ( for the Govt ) :

Ø  The working of the formula will ensure that the TOTAL PAYOUT by the Govt. in any given FINANCIAL YEAR , for purchase of various crops, at the ANNOUNCED MSPs ( for each crop , for each season ) , SHALL NOT EXCEED , a pre-determined % age of Government’s estimated ANNUAL REVENUE BUDGET  for that year.

Ø  In this way, Government will know in advance , the provision to be made for each year , in its revenue budget. This will ensure that the actual govt expenses on this account do NOT exceed the budget figures.

Ø  This fine-tuning will be achieved by the FORMULA , by automatically tweaking the MSP ( Minimum Support Price ) and the MPQ ( Maximum Purchase Quantity ) of each crop so that the SUM TOTAL does not exceed the budget figures.

Ø  This will mean , that neither an MSP , nor the QUANTITY ( that farmers offer for purchase by the Govt., ) of any given crop, are FROZEN .

      Both become VARIABLES In the formula

Now , using this “ Understanding “ as the foundation for a COMPROMISE ( a Win-Win situation for both the parties ) , I submit for your consideration, the following calculations and request you to offer the same ( of course, with modifications suggested by farmers / farm experts / statisticians / Digital Crop Survey / Consumers / Processors etc ) to the Farmers Unions, in your forthcoming meet on 8th April

With regards,

Hemen Parekh

www.HemenParekh.ai  /  www.My-Teacher.in  /  www.HemenParekh.in / 02 April 2025

 

 Updated Automatic MSP Formula with Minimum Procurement Guarantee

Core Idea :

The formula now ensures a minimum procurement guarantee (e.g., 25% of total production per crop) while still capping the total MSP payout at 10% of the government’s revenue budget.

It uses Digital Crop Survey (DCS) data and a software system to dynamically adjust procurement quantities, balancing farmer security and fiscal limits. Surplus management is addressed separately afterward.



Key Factors in the Formula :


1.     Total Revenue Budget (TRB)

o    Definition: The government’s total revenue expenditure for the fiscal year.

o    Data: ₹35,02,136 crore for 2023-24.

o    Role: Sets the fiscal ceiling. At 10%, the Maximum MSP Payout Cap (MPC) = ₹3,50,213.6 crore.

o    Why: Ensures the government’s financial commitment is predictable and sustainable.


2.     Maximum MSP Payout Cap (MPC)

o    Definition: The total budget for MSP procurement, capped at 10% of TRB.

o    Calculation: MPC = TRB × 0.10 = ₹3,50,213.6 crore.

o    Role: Limits total expenditure, addressing the government’s concern about runaway costs.


3.     Digital Crop Survey (DCS) Data

o    Definition: Real-time production estimates for each MSP-covered crop.

o    Data: 332.3 million tonnes of food-grains in 2023-24 (specific crop breakdowns assumed for calculation).

o    Role: Provides accurate production data (TP_c) to calculate procurement quantities.

o    Why: Enables precision and transparency, reducing disputes.


4.     Baseline MSP per Crop (MSP_b)

o    Definition: The announced MSP for each crop.

o    Data: Paddy = ₹23,000/tonne, Wheat = ₹24,250/tonne, etc.

o    Role: Guarantees farmers a minimum price, legally enforceable as demanded.

o    Why: Ensures income stability, a core farmer demand.


5.     Total Production per Crop (TP_c)

o    Definition: Estimated production per crop from DCS.

o    Example: Rice = 1200 lakh tonnes, Wheat = 1100 lakh tonnes (hypothetical split).

o    Role: Basis for calculating procurement quantities and potential payouts.

o    Why: Reflects actual supply, critical for allocation.


6.     Minimum Procurement Guarantee (MPG)

o    Definition: A fixed percentage of TP_c that the government must procure at MSP, regardless of budget constraints.

o    Proposal: Set MPG at 25% of TP_c for each crop (adjustable based on policy).

o    Calculation: MPG_c = TP_c × 0.25 (e.g., Rice = 1200 × 0.25 = 300 lakh tonnes).

o    Role: Ensures farmers a baseline income, addressing their fear of partial procurement rejection.

o    Why: Responds to request for a guarantee, boosting farmer trust (e.g., Punjab/Haryana farmers who rely heavily on MSP).


7.     Minimum Payout Commitment (MPC_min)

o    Definition: The cost of procuring the MPG for all crops.

o    Calculation: MPC_min = Σ (MPG_c × MSP_b) across all crops.

o    Example:

§  Rice: 300 × 23,000 = ₹69,000 crore.

§  Wheat: 275 × 24,250 = ₹66,687.5 crore.

§  Total MPC_min = ₹1,35,687.5 crore (for simplicity, only two crops here).

o    Role: Locks in a minimum expenditure, ensuring MPG is met before further adjustments.

o    Why: Guarantees fiscal priority for farmers’ baseline needs.


8.     Remaining Payout Capacity (RPC)

o    Definition: Budget left after fulfilling MPG, for additional procurement.

o    Calculation: RPC = MPC - MPC_min = ₹3,50,213.6 - ₹1,35,687.5 = ₹2,14,526.1 crore.

o    Role: Allows flexibility to procure more if funds permit.

o    Why: Balances guaranteed support with fiscal limits.


9.     Procurement Proportion Factor (PPF)

o    Definition: A multiplier (0 to 1) to adjust additional procurement beyond MPG, keeping total payout within MPC.

o    Calculation:

§  Total Potential Payout beyond MPG , (TPP_x) = Σ [(TP_c - MPG_c) × MSP_b].

§  If TPP_x > RPC, PPF = RPC / TPP_x; else PPF = 1.

o    Role: Scales additional procurement equitably.

o    Why: Ensures fairness across crops while respecting the cap.


10.  Adjusted Procurement Quantity (APQ_c)

o    Definition: Total quantity procured per crop (MPG + additional).

o    Calculation: APQ_c = MPG_c + [(TP_c - MPG_c) × PPF].

o    Role: Finalizes procurement, meeting MPG and maximizing within budget.

o    Why: Combines guarantee with flexibility.


11.  Transparency and Dissemination

o    Mechanism: Software publishes MSP_b,  TP_c,  MPG_c,  PPF,  APQ_c,  and total payout on portals, shared with farmer unions and departments.

o    Role: Ensures trust and accountability.

o    Why: Aligns with your blog’s call for transparency.



Example Calculation (Simplified)


  • TRB : ₹35,02,136 crore.

  • MPC : ₹3,50,213.6 crore.

  • Crops: Rice (1200 lakh tonnes, ₹23,000/tonne), Wheat (1100 lakh tonnes, ₹24,250/tonne).

  • MPG : 25%.

    • Rice: 1200 × 0.25 = 300 lakh tonnes; ₹69,000 crore.

    • Wheat: 1100 × 0.25 = 275 lakh tonnes; ₹66,687.5 crore.

    • MPC_min = ₹1,35,687.5 crore.

  • RPC

  • ₹3,50,213.6 - ₹1,35,687.5 = ₹2,14,526.1 crore.

  • TPP_x :

    • Rice: (1200 - 300) × 23,000 = ₹2,07,000 crore.

    • Wheat: (1100 - 275) × 24,250 = ₹1,99,562.5 crore.

    • Total = ₹4,06,562.5 crore.


  • PPF

  • RPC / TPP_x = 2,14,526.1 / 4,06,562.5 ≈ 0.528.

  • APQ_c :

    • Rice: 300 + (900 × 0.528) ≈ 775 lakh tonnes; ₹1,78,250 crore.

    • Wheat: 275 + (825 × 0.528) ≈ 710 lakh tonnes; ₹1,71,925 crore.

    • Total = ₹3,50,175 crore (within MPC).

Surplus Management Suggestions

For crops not procured (e.g., 425 lakh tonnes of rice and 390 lakh tonnes of wheat in the example), surplus management is critical to prevent price crashes. Here are some suggestions :


1.     FPO-Led Market Linkages


o    Suggestion:

o    Leverage Farmer Producer Organizations (FPOs) to connect surplus to processors and exporters, as highlighted in the webinar initiative (Hindu BusinessLine, March 27, 2025). For example, Mother Dairy’s pilot to procure 15,000 tonnes of mustard from Rajasthan FPOs shows a scalable model.


o    How: Government can fund FPOs to aggregate surplus, process it (e.g., mustard oil), and sell under brands, reducing middlemen (your blog’s critique of APMC inefficiencies).


o    Why: Raises farmers’ income by bridging the production-marketing gap, as emphasized in the webinar.


o     

2.     Private Sector Partnerships

o    Suggestion:

o     Incentivize companies (e.g., Mother Dairy, ITC) to buy surplus at market rates or slightly below MSP, with tax breaks or subsidies.


o    How: Create a “Surplus Absorption Fund” (e.g., ₹500 crore, inspired by oilseed buffer corpus ideas) to subsidize private purchases, ensuring farmers don’t distress-sell.


o    Why: My earlier blog stresses private players’ role post-farm laws repeal; this aligns with that vision.

o     

3.     Export Promotion

o    Suggestion: Subsidize export of surplus crops (e.g., rice, pulses) via FPOs or cooperatives, targeting demand in Asia/Africa.


o    How: Use DCS data to identify exportable surplus, offer freight subsidies, and streamline certification.


o    Why: Reduces domestic oversupply, stabilizing prices, and echoes your blog’s call for market-led solutions.

o     

4.     Value Addition Clusters

o    Suggestion: Establish 600+ value chain clusters (per National Oilseeds Mission) to process surplus into products like oil, flour, or feed.


o    How: Fund FPOs/cooperatives to set up units, as Mother Dairy plans with mustard, scalable to other crops.


o    Why: Turns surplus into profit, aligning with the webinar’s processor linkage goal.

o     

5.     Public Distribution System (PDS) Expansion


o    Suggestion: Distribute surplus grains/oilseeds via PDS, as my earlier blog suggests reviving edible oil in PDS (discontinued in 2002).


o    How: Procure beyond APQ_c if storage allows, distributing at subsidized rates to vulnerable families.


o    Why: Manages surplus while addressing food security, a dual win.


Feasibility and Alignment


  • Minimum Procurement Guarantee:

The 25% MPG ensures farmers (especially in Punjab/Haryana) a safety net, addressing protest concerns. It’s fiscally viable (₹1,35,687.5 crore is ~39% of MPC in the example).


  • Surplus Management:

FPO-led initiatives and private partnerships reflect the webinar’s focus on sustainability and my earlier  blog’s push for market reforms over government monopoly.


  • Software:

Automates all calculations, publishing results transparently, fulfilling the desirability of an undisputable system.

 

My Earlier 42 Blogs / E Mails on this subject :

Ø  My Agriculture Related Blogs ( up to 02 Jan 2025 )