FOR a common Indian citizen or an aam admi in our common political parlance the year 2009 has been a frightening nightmare. Prices particularly of the food items have shot up in an unpredicted manner and even daal roti is fast becoming out of reach. Most vegetables and pulses have disappeared from the menu of the common man. Worst hit are the 40 crore poor who live on just fifty rupees a day.

And, at top an insensitive and hard hearted UPA government lead by an economist Dr Manmohan Singh is hopelessly indulging in blame game without setting its own house in order. Agriculture Minister Shard Pawar is emerging as the single iniquitous politician who blames the states for letting the hoarders jack up prices while exporting sugar when the country faced acute shortages and high prices. Most observers note that this as the worst criminal attitude against the public. Whom does the government befool by blaming the states where in some cases the ruling alliance too rules ?

Currently the leftists who are leading protest marching all over the country have demanded an enquiry into the deals struck by the UPA government and adding more food items in the list of items to the public distribution system which otherwise cries for urgent repair.

The return of the United Progressive Alliance (UPA) government to power was billed as the era of welfare government, committed to help the poor and unemployed. But the aam admi will remember the year 2009 for the back-breaking mehngai and the inability of the government to make dal-roti, sabzi and chini affordable for the masses.

The unmatched rise in the price of essential commodities, particularly pulses, sugar, milk and vegetables turned the year bitter for the aam admi. What was irksome for the people was that instead of tackling the situation, the government justified price rise and tried to prepare, as it were, the aam admi for what is to come. By the end of the year when inflation soared to 18.65 per cent (for week ending December 12) there were doom’s day predictions of it becoming worse in the coming year. How would people survive?

The year began with enhanced prices of essentials that were explained away as part of the global price rise scenario. However, as the year progressed, there was no easing the situation in food items and the blame was laid at the door of deficient monsoon that hit 299 districts in 13 states. The effects of deficient kharif monsoon — an estimated 18.8 million tonnes decline in the combined production of rice, coarse cereals and oilseeds — would be felt later or even next year. And, if Rabi does not make good the losses, it could be catastrophic. Although monsoon deficiency averaged at 22 per cent, it is hoped that delayed monsoon activity will help the Rabi (wheat) crop.

Through the deficient south-west monsoon, the sharad Pawar ha and other ministers had assured the nation that foodgrains stocks totalling 233.88 million tonnes were enough to tide over the situation. In fact, towards the last quarter, the government decided to offload wheat and rice in the open market to enhance availability and hold prices. Clearly the country was short in cereals.

The sugar story took a route of its own. Much into the year the government woke up to the fact that sugar production would be 146.8 lakh tonnes in 2008-09. In the previous year it was 263 lakh tonnes. At the height of robust sugar stocks, the government refrained from allowing sugar exports. But when the reports strongly stated about the decline in domestic sugarcane acreage in 2008-09, the government allowed industry to export. Even subsidy was provided. This shows connivance in pushing up the prices. And then in 2009-10 kharif sowing, when there was no great improvement in sugarcane sowing figures and with predictions of sugar output remaining around 160 lakh tonnes this year, the government had to go in for imports of raw and refined sugar. By then, of course, international sugar prices had soared. The price India soared from Rs. 16 two years ago to Rs. 40 a kg currently. This pushed up the prices from tea to all sweets across the country.

As things stand, the Central government has not been able to get on top of the price rise situation but has almost succeeded in tossing the blame on state governments saying that they must take action against hoarding, speculation and diversion from the PDS. Chief Ministers-Budhdeb Bhattacharya [ West Bengal] Parkash Singh Badal [Punjab], Nitish Kumar [Bihar] and Ms Mayawati opposed this, but by and large there is an inexplicable quiet in the polity on this. Only the communists are the only political elements currently hitting the streets.

What is mysterious is the unparalleled rise in the price of vegetables and fruits, even seasonal ones. Gaps between demand and supply are the routine excuses put out by the administrative ministries. In some cases, as in onion prices “local factors” are responsible. But in the case of potatoes, farmers got paid peanuts while in the cities the tuber is selling at Rs 15/kg. Tomatoes continue to be sold between Rs. 22 to Rs. 30/kg. Any study of the market will prove that growers are getting just one fourth to one third of the price of vegetables and fruit and rest is pocketed by the middlemen and traders. They are making quick buck at the cost of the consumers.

Clearly high inflation is the combined and the cascading effect of the last hike in the price of diesel and petrol, the high across-the-board service charges that is levied, and the high percentage (to be raised) of value added tax. Speculation in the futures market is also said to be responsible for the tendency to hoard. The result is that there is no respite for the aam admi and housewives are at their wits end on how to manage the family budget. For the poor and lower middle-class, any medical emergency or children’s education and tuition costs is enough to push them into debt.

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