Rising onion prices sting India

[t_co]

BBC News - Rising onion prices sting India

The Indian economy is facing one of its worst crises in a decade and while that is worrying the political and economic fraternity, what is worrying ordinary Indians is the price of onions.

On Sunday, a truck on the Delhi-Jaipur highway was hijacked by robbers. Its precious cargo? Forty tonnes of onions.

People here eat their way through 15 million tonnes of onions a year. Almost every dish uses it, whether cooked in a curry or eaten raw as an accompaniment to a meal.

A month ago, one kilogram of onions would have cost about 20 rupees (20p; 30 cents). Since then, the price has gone up nearly five-fold, costing up to 100 rupees and stinging everyone in India.

 

[t_co]

For India's Inflation Crisis, See Onion Prices - Businessweek

India's perennial battle with inflation is enshrined in a humble staple: the onion. On July 15, the nation's commerce ministry reported that the price of onions had shot up 114 percent since June 2012. Consumer price inflation rose 9.9 percent in the 12 months through June—the biggest jump among the BRIC nations. It was 6.7 percent in Brazil, 6.9 percent in Russia, and just 2.7 percent in China.

 

[redragon]

That is why I think the subsidizing foods plan is very difficult to be executed. This bill has increased the burden on Indian foreign reserve, and turned into an accelerator for depriciation of Rupee, which in return fueling the inflation, it will be a negative circular. The depreciated rupee is not strenghening the export capability in at least short term (2-3) yrs. so this short term will be extrimely difficult for average indian.

 

[t_co]

That is why I think the subsidizing foods plan is very difficult to be executed. This bill has increased the burden on Indian foreign reserve, and turned into an accelerator for depriciation of Rupee, which in return fueling the inflation, it will be a negative circular. The depreciated rupee is not strenghening the export capability in at least short term (2-3) yrs. so this short term will be extrimely difficult for average indian.

If what you say is right, and these macroeconomic effects do pan out, then the food bill could very well be the undoing of the Congress Party. 搬起石头，砸自己脚

 

[redragon]

Well, I can only say that is the by-product of democracy. In order to get re-elected, politician intended to do some window dressing with no consideration regarding possible down fall.
However, democracy is an untouchable doctrine in India, Indian will never accept any claim regarding the flows of democracy.

 

[t_co]

Well, I can only say that is the by-product of democracy. In order to get re-elected, politician intended to do some window dressing with no consideration regarding possible down fall.
However, democracy is an untouchable doctrine in India, Indian will never accept any claim regarding the flows of democracy.

Well, one could say that the 4 trillion RMB stimulus package in 2008 was a similar handout from the CCP to its 'key stakeholders' (SOEs and the construction/real-estate/local-government cash nexus) in a time of need.

Every system has its special interest groups. The trick is to create a system that keeps its eyes on the larger goal instead of becoming captured by them. In China, that means having a strong Party Center or Chairman that can outmuscle special interest groups when necessary. In India, it means having a PM/ruling party who can win elections without needing to buy votes or beg third parties to form coalitions.

Of course, the 'creation' of such phenomena is a misconception; such arrangements usually only occur as a happy accident, and are the exception, rather than the norm, in any government.