1.Yen Carry Trade:Yen Carry Trade:

In news:
● On Monday (August 5), major global stock markets saw their steepest drop in
decades. Contributing to the nervous investor sentiment were multiple factors,
including heightened recession risks for the US economy and escalating
geopolitical tensions in West Asia. However, a new global catalyst was the
unwinding of the yen carry trade.

Carry Trade:

carry trade refers to a financial strategy where an investor borrows money from a
country with low interest rates to invest in assets or securities in a country with
higher interest rates.
● This strategy aims to profit from the difference between the low borrowing cost
and the higher returns on investments.
● The carry trade can impact exchange rates and financial markets, and is often
used by investors to leverage interest rate differentials for profit.

Yen Carry Trade:

Overview:
○ Borrow in Japan (low interest rates) and invest in higher-yielding assets
abroad for profit.
○ Popular among global investors seeking higher returns.
● Low Interest Rates in Japan:
○ BoJ kept rates at 0% (2011-2016) and below 0% (-0.10%) since 2016.
○ Resulted in abundant cheap money, encouraging yen borrowing for global
investments.
● Global Impact:
○ Persistent low rates in Japan despite other central banks raising rates
post-Russia-Ukraine war.
○ Borrowed yen invested in countries like Brazil, Mexico, India, and the US.
Changes in BoJ Policy:
○ BoJ raised rates by 35 basis points to 0.25% (mid-March to July 2024).
○ Further 25 basis point increase on July 31st, reversing policy

Unwinding of the Yen Carry Trade:
○ Higher Japanese rates strengthened yen, reducing the value of foreign
assets.
○ Investors began unwinding trades, selling off yen-funded assets.
● Market Impact:
○ Massive global market sell-off on August 5, 2024, leading to sharp
declines.
○ Higher Japanese rates increased yen investment attractiveness, raising
opportunity costs.
○ Resulted in increased market volatility and jittery investor sentiment.

Cotton Cultivation:

In news:
● India’s cotton farming is expected to drop by 10% to 12% this season compared
to last year, according to Cotton Association of India president Atul S. Ganatra.
He attributed this decline to lower crop yields per hectare.
● While the global average yield is 800 kg per hectare, India’s yield is about 480 kg
per hectare. As a result, Indian farmers make ₹90,000 per hectare per season,
while Australian farmers make ₹5 lakhs for the same amount of land.

Importance: Cotton is a vital commercial crop in India, contributing about 25% of global
production. It is often referred to as “White-Gold” due to its economic significance.
Cultivation Areas:
● 67% of India’s cotton is grown in rain-fed areas.
● 33% is grown in irrigated areas.
Growing Conditions:
● Requires a hot, sunny climate with a long frost-free period.
● Thrives in warm and humid conditions.
● Can be grown in various soil types:
○ Well-drained deep alluvial soils (northern regions).
○ Variable-depth black clayey soils (central region).
○ Mixed black and red soils (southern zone).
● Tolerates salinity but is highly sensitive to waterloggin

Major Cotton Growing States

● Northern Zone: Punjab, Haryana, Rajasthan
● Central Zone: Gujarat, Maharashtra, Madhya Pradesh
● Southern Zone: Telangana, Andhra Pradesh, Karnataka, Tamil Nadu
Major reason for Decline:( Pink Bollworm)
Pest: Pink bollworm (Pectinophora gossypiella)
Target Crop: Cotton
Damage:
● Larvae feed on cotton bolls.
● Causes premature boll drop and boll rot.
● Leads to reduced cotton yield and quality.
Due to the pink bollworm, cotton crop sizes have decreased by 35% in the
northern region, 7% in Telangana, and by 13 to 15% in Gujarat.
Apart from pink bollworm infestations, other reasons for reduced cotton crop
sizes include:

Water Scarcity: Insufficient irrigation or erratic rainfall affecting crop growth.
● Soil Degradation: Poor soil health and erosion impacting yield.
● Pest and Disease Pressure: Other pests and diseases affecting cotton plants.
● Climate Change: Extreme weather conditions and temperature fluctuations
altering growing conditions.
● Inadequate Agricultural Practices: Poor farming techniques or lack of access
to modern technology and inputs.
● Economic Factors: Fluctuations in cotton prices or lack of financial support for
farmers.

Deputy Speaker of Lok Sabha: Election, powers,
history and current tussle

Context:

The INDIA bloc is competing for the Deputy Speaker position, which is
typically given to the Opposition and has been vacant since June 2019.
● Following a rare contested Speaker election in the Lok Sabha, the
Opposition is aiming to elect a Deputy Speaker from among its members in
the upcoming Budget session. The ruling coalition, the National
Democratic Alliance (NDA), has not yet agreed to this request.
● Before the Speaker election, Leader of Opposition Rahul Gandhi stated,
“The entire Opposition has expressed their willingness to support the
government for the Speaker’s post, but tradition dictates that the Deputy
Speaker role is typically allocated to the Opposition.”

Traditionally, the Speaker and Deputy Speaker are elected from different parties,
except during the early years when Congress was the only major party. After the
Emergency in 1975, as opposition to Congress grew, the Deputy Speaker position
was predominantly held by an Opposition party, including Congress at various
times.

Deputy Speaker Election:

According to Article 93 of the Indian Constitution, Lok Sabha members can elect
the Speaker and Deputy Speaker “as soon as may be,” without a specific
timeframe.

2. The Speaker sets the election date, and members are notified through a bulletin,
   with voting conducted via ballot paper.
3. Deputy Speaker election date fixed by Speaker of the Lok Sabha.
4. Like the Speaker, the Deputy Speaker serves until the Lower House is dissolved
   and can be removed by a resolution supported by a majority. If the Deputy
   Speaker ceases to be a member, they must vacate the office.
5. Members can elect a new Deputy Speaker when the position becomes vacant.
6. In terms of precedence, the Deputy Speaker ranks tenth, alongside the Deputy
   Chairman of the Rajya Sabha, Union Ministers of State, and members of the
   Planning Commission.

Deputy Speaker’s Duties and Powers:

According to the Rules and Procedures of Parliament, the Deputy Speaker
assists the Speaker in the Lower House’s functions and presides over
proceedings when the Speaker’s post is vacant.

2.If appointed to a legislative committee, the Deputy Speaker automatically
becomes its chairman.

3. Unlike the Speaker, the Deputy Speaker can participate in debates and vote as
   an elected member while the Speaker is presiding. When presiding, the Deputy
   Speaker can also vote in case of a tie.
4. By convention, neither the Speaker nor the Deputy Speaker sponsors bills or
   resolutions or table questions.
5. The Deputy Speaker’s salary comes from the Consolidated Fund of India and is
   not subject to a vote.
6. In the Speaker’s absence, Article 95 allows the Deputy Speaker to preside over
   sittings, maintain order, and ensure discipline in the House. While acting as
   Speaker, the Deputy Speaker can censure and suspend members, as well as
   adjourn the House when necessary.
7. Under Article 96, when the House is debating a motion to remove the Deputy
   Speaker, which requires a fourteen-day advance notice, he cannot preside over
   the proceedings. However, he can vote in the initial instance of the resolution but
   cannot cast the deciding vote in case of a tie.

Modi government and Deputy Speakers :

The first Modi government restored tradition by electing BJP’s Sumitra Mahajan
as Speaker and AIADMK’s M. Thambidurai as Deputy Speaker from 2014 to
2019.
● However, after receiving a larger mandate for a second term, the second Modi
government chose not to elect a Deputy Speaker, marking a first for a newly
elected Lok Sabha.
● The Opposition, particularly the Congress, labelled the absence of a Deputy
Speaker as “unconstitutional.”
● Party general secretary Jairam Ramesh pointed out that the current government
differs greatly from Nehru’s, which unanimously elected a critic, Akali Dal MP
Hukam Singh, as Deputy Speaker.
● The Modi government argued there was no “immediate requirement” for a
Deputy Speaker and claimed it did not obstruct House proceedings.

The Current Government has not indicated whether it will offer the Deputy
Speaker position to the Opposition or one of its allies. However, Congress, TMC,
and the Samajwadi Party have discussed potential candidates and are likely to
nominate SP veteran Awadhesh Prasad, presenting a united front.
Speaker’s Position

As India follows the Westminster model of government, parliamentary
proceedings are led by a presiding officer known as the Speaker.

The Speaker is the constitutional and ceremonial head of the Lok Sabha, assisted by
the Secretary-General and senior Secretariat officers.
In the Speaker’s absence, the Deputy Speaker takes over. If both are unavailable, a
member from the panel of Chairmen presides, but this panel cannot act when the
positions of Speaker and Deputy Speaker are vacant.
Each House of Parliament has its own presiding officers: the Lok Sabha has a Speaker
and Deputy Speaker, while the Rajya Sabha has a Chairman and Deputy Chairman.

Election of Speaker:

The House elects its presiding officer by a simple majority of members present.
Typically, a member from the ruling party is chosen as Speaker, while the Deputy
Speaker is elected from the Opposition.
● However, there have been cases where members not in the ruling party, such as
GMC Balayogi and Manohar Joshi, served as Speaker during the 12th and 13th
Lok Sabha.
● When the Lok Sabha is dissolved, the Speaker remains in office until the first
meeting of the new assembly, where a new Speaker is elected.

Removal of Speaker:

The Speaker manages sessions of the Lower House, maintaining discipline and
decorum among members.
● They set the agenda for meetings, interpret procedural rules, and permit motions
like adjournments and no-confidence votes to ensure orderly conduct.
● The Speaker can also be disqualified under sections 7 and 8 of the
Representation of the People Act, 1951, or resign to the Deputy Speaker. Dr.
Neelam Sanjiva Reddy is the only Speaker to have resigned from office.

Role of the Speaker:
● The Speaker manages sessions of the Lower House, maintaining discipline and
decorum among members.
● They set the agenda for meetings, interpret procedural rules, and permit motions
like adjournments and no-confidence votes to ensure orderly conduct.
● The Speaker also serves as the final interpreter of the Constitution, the Rules of
Procedure for the Lok Sabha, and parliamentary proceedings within the House.

Judicial Provisions:

In the Kihoto Hollohan v. Zachillhu case (1993), the Supreme Court ruled that
a presiding officer’s decision is not final and can be challenged in court. It is
subject to judicial review for reasons such as malafide and perversity.
● In the Nabam Rebia v. Deputy Speaker case (2016), the Supreme Court ruled
that a Speaker cannot decide on disqualification petitions under the
anti-defection law if a removal notice is pending.
● In the Subhash Desai v. Principal Secretary, Governor of Maharashtra case
(2023), the Supreme Court directed the Maharashtra Assembly Speaker to
establish a timeline for resolving disqualification petitions for MLAs.

Pro tem Speaker:

When the Speaker of the outgoing Lok Sabha vacates their office before the first
meeting of the newly-elected Lok Sabha, the President appoints a senior
member as the Pro Tem Speaker.
● The President administers the oath to the Pro Tem Speaker, who presides over
the first sitting and has full Speaker powers.
● Their primary role is to administer oaths to new members and facilitate the
election of the new Speaker. Once the new Speaker is elected, the Pro Tem
Speaker’s office ends.

When the Speaker of the outgoing Lok Sabha vacates their office before the first
meeting of the newly-elected Lok Sabha, the President appoints a senior
member as the Pro Tem Speaker.
● The President administers the oath to the Pro Tem Speaker, who presides over
the first sitting and has full Speaker powers.
● Their primary role is to administer oaths to new members and facilitate the
election of the new Speaker. Once the new Speaker is elected, the Pro Tem
Speaker’s office ends.

Their primary role is to administer oaths to new members and facilitate the
election of the new Speaker. Once the new Speaker is elected, the Pro Tem
Speaker’s office ends.

The Speaker of the Lok Sabha is more than a presiding officer; they play a
crucial role in shaping the House’s operations and balancing power between the
ruling party and the opposition, particularly in coalition governments. Their
decisions can significantly impact the government’s functioning and stability.