PAWAR SLEPT WHEN ONION PRICES WERE ON FIRE

 

Pawar slept when onion prices were on fire

What was Union Agriculture Minister Sharad Pawar doing in the winter chill of November when onion prices were getting red hot? Had he worked and applied his mind on the clear and loud signals that had emanated from the agricultural fields in his home State Maharashtra, from Gujarat, Rajasthan and states in the north, the aam admi would have been spared another (remember 1998?) year-end ordeal of having his or her meal without onions.

There are two reasons for onion prices touching a whopping Rs 90 a kg in the retail market: Unseasonal rains and export licences. In both the cases, Pawar is to blame.

While Pawar cannot be faulted for the unseasonal rains that lashed Maharashtra, Gujarat and Rajasthan just when the onion crop was being harvested, he had enough and more time to step in and forecast a shortage. Just look at this: the unseasonal rain lashed onion crop-growing regions in late October. The overall damage to the crop was pegged at 35 per cent in Maharashtra, 50 per cent in Gujarat, 25 per cent in Rajasthan and 40 per cent in Madhya Pradesh.

It did not need rocket science or crystal ball gazing to predict a huge shortfall in market arrivals of onion in late November that would result in prices shooting northward in December. Pawar had the whole of November to step in and take preventive measure. But he just slept over a looming crisis.

I correct myself. He did not sleep; he was busy issuing licences for export of onion. Yes, export of a commodity that was in short supply!

According to The Indian Express, export permits, in the form of 'No Objection Certificates (NOCs)', issued for November were over 35 per cent more than the numbers issued in October, despite clear warnings of cyclonic rains in October-end and erratic rainfall in November in onion-producing states, by the National Horticultural Research and Development Foundation (NHRDF). The figure for November, in fact, was 60 per cent more than the number of export permits issued in November last year (when India had a normal crop).

So, while the writing on the wall was clear - that there would be a huge shortfall in market arrivals of onions -- the Agriculture Ministry was busy issuing NoCs to exporters. And where did the onions grown in India go to? The markets in Pakistan! While Pakistan importers got onions at around Rs 16-Rs 20 a kg, they are now laughing all the way to the bank while exporting onions to India at Rs 60 a kg!

Even the cyclone or the erratic rains did not come all of a sudden. The weather office had done a forecast of these erratic phenomena early on. India has one of the best early warning systems in weather forecasting, thanks to a series of remote-sensing satellites launched by ISRO. But in this case, either the Agriculture Ministry did not call for the weather data or just ignored it.

Had Pawar been more active, the onion crisis could have been averted.

This is not the first time that the humble onion is making the aam admi cry. Twelve years ago, the onion brought down a government. According to The Indian Express, in the winter of 1998, bad weather had affected the kharif onion crop, bringing down the annual produce from 42 lakh tonnes to 36 lakh tonnes. The scarcity and the consequent rise in prices -- up to Rs 20 per kg wholesale and Rs 50 on retail in Mumbai and Delhi -- were blamed for the debacle of the BJP and its allies in the Assembly polls in four states. The NDA government banned the export of onions, but probably too late. The ban was lifted when the UPA wrested power.

The government seems to be a bad learner of the lessons on winter onions. And this is not the first time that Pawar is found wanting. Almost the same story was played out during the sugar crisis. No wonder, there is a disconnect between the aam admi and the system.

Are you listening Rahul Gandhi? Are you listening Mr Prime Minister? But what action can be taken against the NCP boss? Nothing except a routine letter from the Prime Minister's Office. And the aam admi like you and me will have to bear the brunt of a ministry that is best known for its inaction.

Source: India Syndicate