Tags:
Journalism of Courage
The rising price of onions 8212; a highly political agricultural commodity 8212; is causing public alarm again. The government has, wisely, decided to import onions to bring down its price. Since the government continues to impose restrictions on the import of agricultural items the price of farm products 8212; instead of being perceived as commodities whose prices fluctuate with demand and supply conditions in the market 8212; has become a highly political issue. Their prices need to be depoliticised. Indeed the government does not even have to be set prices. Whenever it interferes with the price of a commodity, people correctly see it as a consequence of government policy.
The canalisation of the import of a commodity requires the commodity to be imported through a government agency rather than by businesses who see a price differential, choose to import it, and thus help control prices. The large orders that need to be placed when a big decision to import a commodity whose import is canalised, often has an impact on world prices. This acts as an argument against the import. There are now rumours about onion prices abroad rising in expectation of India8217;s large import order. Regardless of whether they are true or not, they highlight the problem.
