Ajay Kumar
NEW DELHI (Commodity Online): Once upon a time there was a commodity called ‘onion’. It was not traded in any exchanges but adverse climate put it in short supply. The incumbent government felt the pinch and gradually onion consumed some of the government cream portions in some states.

History is repeating all over again. After all a change is as good as a rest. But the commodity this time is Sugar and this is traded in commodity exchanges. To ease the pressure, the government banned it from Futures trading. But being a political commodity, Sugar made leaps and bounds not in its production but in its price.

Trading tips at lowest rates

The UPA, especially union food and agriculture minister Sharad Pawar, a sugar baron himself by many and a sugar supporter by his own standards, is feeling the pinch. As the festivals, one after the other, approaches near, the heart beats of many are on a high decibel. Only that it is not heard in some corridors.

Just as an Englishman's home is his castle, Sugar is close to Pawar. It has now become more closer but only for the worse. The government has put stock limits for big companies, wholesale traders and retailers to curb the hoarding. The free sale sugar sold by millers in the open market is fixed by the government on a monthly basis and the latest step is to provide more sugar at lower prices during the festival season to rein in prices and then pray that the rains continue to lash the sugar growing areas so that the prices cool down.

Everybody wants to go to heaven but nobody wants to die. This seems to be the mantra for the political class in reining in the prices. While remaining in power, no government dares to touch sensitive issues. Agriculture policy of the government is primitive and the only people who benefits are high end farmers with hundreds of acres of land. Small and marginal farmers are always left out of the race. After a series of successful Sugar Years, where India exported a large quantity of sugar, suddenly it has reached a point where it has no option but to import.

Sugar prices have made a jump of over 50% purely due to lower production. And crushing for the current produce will only start in another month from now. The deficit of demand and supply is looming large on the government face and it is evident from the admission of Pawar that only rains can save the government from an ‘onion’ like situation.

Good news is that the weather is with Pawar as monsoon has improved in UP, largest cane growing area and also in Maharashtra, Karnataka and Andhra Pradesh. The expectation by industry is that the output in 2009-10 is expected to reach 16-17 million tones and this is better than what was produced a year back. Question is whether this will be achieved or not.

Pawar, more of a cricketer than politician now, faces barrages of allegations in framing sugar policy that critics say favours some industrial houses. Pawar, though, is unfazed and continues to maintain that the country will come out of this crisis.

But critics doubt his acumen now as he has blundered many a times. First he said drought is not a first time phenomenon in India. Later he commented that rains are on track and then backtracked. His prowess as India’s agriculture minister is now under serious doubt.

India, without doubt, needs a better, visionary and no-nonsense person as agriculture minister. But you can't make an omlette without breaking eggs. The government is too cautious in breaking a Baramati Egg.

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