What is of greater significance is the slipshod way the onion trade is left in an uncontrolled fashion by the government! The party that can assure and deliver the supply of commodities at fair prices will succeed in the ensuing election

Assembly elections are due in five states, including Delhi. But, the high cost of food and the resultant inflation is likely to play a decisive role, particularly in Delhi, Rajasthan and Madhya Pradesh. It looks like Kejriwal will have a field day when he takes on Sheila Dikshit to debate on various issues affecting the aam aadmi!

There has been a public outcry as to why export is allowed of the onions where there is so much shortage in the country itself? Export of onions, controlled via NAFED, has been going on for decades and mostly to the Gulf countries, where millions of Indians toil and remit their hard earned foreign exchange back to India. Cutting off the supplies would not only affect them, but will give the opportunity for our competitors to break into the market.

Already, new comers like Australia, USA and China have made supplies to the Gulf market. In a recent survey that Moneylife carried out, it was found that as against the regular Dh3 to Dh4 per kilo price (Dh1 = Rs17.30 now), the brown onions from Australia and USA were being sold at Dh4.95 and Dh6.95 per kilo. Of course, there are variations in the prices, depending upon the location of the super market or the chain that sells them.

The export price was $650 per tonne in August; after the situation began to worsen in the country, the price was revised to $900 and now, finally, the minimum export price has been raised and revised upward to $1,150 per tonne.

Increasing our export price has serious repercussions in the Gulf market. Pakistan has been one of the fiercest competitors for the Indian suppliers, and when the shortage in the country became unbearable, the government even planned to get some quick supplies from Pakistan and China. How much came from these two sources has not been made public so far, but their quality does not match our taste buds in the country!

In any case, as against one million tonnes in the first half of last year, this year, due to lower production, India has not been able to ship more than 700,000 tonnes. With the high jumps in the minimum export price, our final export figures is likely to fall and it would be a difficult task to regain these markets. We cannot open and close the supply taps at will, just because we are unable to domestic market.

The vagaries of rainfall have affected our supplies once again; this time, it has been excess rainfall in Karnataka and Andhra Pradesh. What is of greater significance is the slipshod way the market is left in an uncontrolled fashion by the government! The growers do not get adequate price for their produce and the maximum benefit is usurped by the middlemen and wholesalers. There is a nexus between the two and it is generally believed that politicians play a vital role in these transactions.

Retail price of onion ranges between Rs60 and Rs100 a kilo. Sadly, the grower does not even get one third of the price.

The party that can assure and deliver the supply of commodities at fair prices will succeed in the ensuing election.

(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)