Onion Prices Trouble BJP Government

It may sound silly, but the sharp increase in price of onion is a major problem for the Bharathia Jantha Part (BJP) government in India. This issue may adversely affect the prospects of the party in the coming state elections. BJP government is all out to control the onion prices before the states go to polls in November end.

The prices of onion has gone to the unheard level of Rs 60 per kilo. This makes it beyond the reach of the common man. Onion prices has become a major issue in the election campaigns in the four states. The chief ministers of these states have been pressurizing the central government to take immediate measures to control the prices.

The party is at a disadvantage in two poll-bound states where it controls the levers of power. While in Delhi, even the hard-core supporters are doubting the ability of the party to renew the lease over the state, poll predictions point to a rout in Rajasthan. Although the Center had announced several pre-poll sops in Rajasthan, BJP leadership themselves suspect a setback in the state. The Delhi government, which is at the receiving end of a major assault, tried to sell onions at Rs 15 per kilo through all the 225 Mother Dairy outlets across the Capital from October 9. Even this did not succeed.

As part of the price control measures, the cabinet committee on prices has decided to put onions on the open general license (OGL) list. This means that onions can be imported by any person on payment on the customs duty fixed for the product. Sources in the government said that the imported onions along with the fresh crop, which is due now, will bring down the prices of the commodity to more acceptable levels.

The decision of the Cabinet committee is being looked upon as a political decision since several chief ministers like the Delhi chief minister, Mrs. Sushma Swaraj, have been clamoring for this decision since they feel that the price of onions will be an issue during the forthcoming elections of the state. Mrs. Swaraj had, in her first press conference after taking over as CM, said that she had taken up the issue with the Center and was confident of the decision being taken. The finance ministry had, however, opposed this move stating that it was not the government's job to import onions.

It is not only the rise in prices of onion that is making the BJP government worried. The price of all commodities are on the rise. The annual rate of inflation continued its upward march and touched 8.69 per cent for the week-ended September 26, from 8.55 per cent a week ago. A sustained increase in the prices of food products, especially vegetables and edible oils, pushed up the inflation to its second-highest level in the last three years. Inflation rose by 0.14 percentage points to 8.69 per cent (provisional). It was at a record low of 3.47 per cent in the corresponding week last year.

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