Things Could Be Worse, You Could Be Indian

Food inflation running at 14.55%, prevented from importing foreign wheat in bulk by the strictest quarantine regulations in the world. Whilst the government sits on it's supposed stocks of 27 MMT of wheat, which it will only sell if you want to pay well over the market price for it.

And this is a government who got elected on their promises of cheap food for all. Is it just me, or is there something innately immoral about buying USD6.7 billion worth of gold from the IMF whilst the people are starving?

Subsequently smarting at allegations that they are a load of profiteers who are so bent that they can't lie straight in bed at night, the government are now said to be 'considering' lowering their minimum tender price for wheat from a laughable USD292-USD365/tonne to the equivalent of USD240-290/tonne.

Well whoopee do. Considering that they've been 'considering' whether to release any wheat or not for months now, I wouldn't go holding my breath for a snappy decision on that one.

They should try 'considering' that the average Indian on the street can't afford to be paying almost 15% more than last year for his food, and get their fingers out.

Sell their domestic stocks off cheap, what are they there for food security or profit? Failing that, waive the strict import regulations as they did back in 2006. Nobody can seriously tell me that the wheat in the state granaries is better quality than the French or German material that Egypt just bought at below USD200/tonne yesterday.

Meanwhile, the opening day of parliament was adjourned yesterday after angry farmers marched through the streets of Dehli, protesting against low state-set sugarcane prices. The dispute may delay cane crushing in Uttar Pradesh, pushing domestic sugar prices even higher, and could also affect early sowing of wheat, farm leaders said.