2023-12-22 01:04:28
The Indian general elections will take place in spring 2024, but they are already having an impact on global prices. For Prime Minister Narendra Modi, who is seeking a third term, the priority is the fight against inflation which influences voters’ choices, in particular food inflation.
From our correspondent in Bangalore,
To win elections in India, it is better to prevent the price of onions from soaring. We even speak of the onion war to designate this link between politics and the bulb, popular in all kitchens. As the country’s most important elections approach, it is in full swing.
On December 7, India decided to ban onion exports, at least until next April. Its price per kilo on the domestic market was, at the beginning of December, around 60 rupees, around 80 euro cents, compared to 30 rupees a year ago.
Southeast Asia and Africa affected
The resulting drop in prices has relieved consumers, but not farmers… Nor India’s neighbors who depend enormously on its production. In Bangladesh, a kilo has risen to 200 rupees. The South Asian country, alongside Nepal, has officially asked India to make an exception.
The halt on onion exports comes on top of similar Indian government restrictions on rice, sugar and grains. However, India plays a central role in the dynamics of world markets: last year it was the world’s leading exporter of rice.
But in recent months, India has decided to stop its exports of broken rice and then of non-basmati white rice. Direct consequence: rice prices reached their highest level in 15 years in August and remained 24% above average in October.
Priority to the internal market
According to several experts in finance and agri-food, the Indian authorities will continue to favor the internal market until the elections. Especially since climate change has once again affected agricultural production this summer. Now is not the time to make a profit, the Ministry of Consumer Affairs ruled on Monday, asking rice producers to lower prices as quickly as possible.
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