Tomatoes and regional connectivity

As the price of tomatoes surged in the Indian market touching nearly Rs 300 per kg in some cities, India made a request to purchase tomatoes from Nepal to deal with the surging prices.

- SMRUTI S PATTANAIK

Such requests for essential items from neighbouring countries during a shortage are not new on the subcontinent. However, such a rise in the price of essential commodities has serious political ramifications, and the elected governments in the region understand that.

In 1998, for example, the price of onion in Delhi cost the Congress government dearly in the assembly election. One has seen in the past how the rise in the price of essential commodities has become a major political issue. While Nepal’s request to provide greater market access also draws attention to the state of cross-border trade in perishable goods, its request to India to lift the ban on the export of non-basmati rice and sugar as the festival season is going to start shortly also reflects the concern regarding the rise in prices of essential commodities and its political impact.

In all these cases, the domestic market dictates the flow of these essential goods, and at times this has been able to address discontent as food inflation adds to anger among the people. In 2020, India’s decision to stop the export of onion to Bangladesh without adequate notice drew the ire of Bangladesh. Addressing a bilateral business summit, Prime Minister Sheikh Hasina said India could have given advance notice to enable Bangladesh to source onions from other countries. In 2019, a similar Indian action forced Bangladesh to import onions from Pakistan, Turkey, Egypt, China and Myanmar.