Prime minister Manmohan Singh on Friday virtually showed his disenchantment with the way the agriculture ministry is tacking the issue of high food prices which reached a flashpoint with the steep rise in retail prices of onions.
Agriculture minister Sharad Pawar, who met Singh as the head of an all-party delegation from Maharashtra seeking compensation for farmers in the state for a severe crop damage, was asked pointedly by Singh as to what were the measures being taken to control the price of onion. Pawar, one of the senior-most ministers in the UPA Cabinet had to explain a bit to the PM, in the presence of fellow politicians from his state.
Later on the day, the Centre announced a Rs 600 crore aid for Maharashtra where unseasonal rains wreaked havoc causing damage to crops spread over 11.46 lakh hectare and affecting nearly 29 lakh farmers.
Meanwhile, retail prices of onions on Friday eased further to Rs 50-60 a kg on account of concerted government actions but other staple kitchen items?tomato and garlic?continued to remain high. Sources say that the rising onion prices have become yet another source of tension between allies Congress and the Nationalist Congress Party (NCP) headed by Pawar. Sources in the Congress said that the party is upset by the fact that the assessment that unseasonal rains in the onion growing belt in Nashik, Maharashtra was going to affect the crop had been with the agriculture ministry for sometime, but nothing was done.
?Not just that, export licenses for onions were given out as late as September, and 35% higher than last years levels. When you anticipate a shortage, then why give out export licenses?? asked a senior Congress leader.
The exchange between Pawar and Singh reflected the deep worry which has gripped the Congress on the issue of onions and its rising prices. Pawar is on record saying that it would take at least six weeks for prices to stabilise.