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Correspondent

21 August 2024 at 10:20:16 am

Tearful Harvest

Despair once again prevails in Maharashtra’s onion belt as angry farmers have launched protests across Nashik, Sambhaji Nagar and Solapur in wake of onion prices crashing to absurdly low levels. For cultivators who spent months battling erratic weather, rising fertiliser costs and mounting debt, the arithmetic is devastating. At such prices, farmers are unable even to recover transportation costs, let alone repay loans or sustain their households. In the past, Governments in Delhi have risen...

Tearful Harvest

Despair once again prevails in Maharashtra’s onion belt as angry farmers have launched protests across Nashik, Sambhaji Nagar and Solapur in wake of onion prices crashing to absurdly low levels. For cultivators who spent months battling erratic weather, rising fertiliser costs and mounting debt, the arithmetic is devastating. At such prices, farmers are unable even to recover transportation costs, let alone repay loans or sustain their households. In the past, Governments in Delhi have risen and fallen over onion prices. In 1980, soaring onion prices contributed to public anger against the Janata Party government. In 1998, the BJP lost the Delhi Assembly elections amid voter fury over onions becoming prohibitively expensive. Few commodities possess such emotional resonance in Indian politics. Yet there is a cruel irony in India’s onion economy, namely that while consumers revolt when prices rise, farmers suffer when prices crash. Farmers in Maharashtra are demanding procurement at Rs. 32 per kg, while the state government has announced an assured procurement price of Rs. 1,580 per quintal. Leaders of the opposition Maha Vikas Aghadi have openly challenged the Mahayuti government to show where procurement at those rates was actually taking place. Yet the crisis illustrates a larger structural failure that no emergency meeting can fully conceal. India’s onion economy remains trapped in a cycle of volatility. When production dips, governments rush to ban exports, impose stock limits and flood markets with imports to calm urban consumers. But when production surges, farmers are abandoned to market collapses. The result is a deeply distorted agricultural ecosystem where cultivators bear the risks while political actors chase short-term electoral optics. Maharashtra, which accounts for a substantial share of India’s onion production, has witnessed such turmoil repeatedly. The protests of 2018, when farmers dumped onions on roads in Nashik after prices crashed below cultivation costs, should have served as a warning. They did not. Nor did earlier agitations led by the Shetkari Sanghatana in the 1980s and 1990s, which highlighted the asymmetry between urban-centric policymaking and agrarian realities. The present crisis is especially troubling because it strikes at a moment of already fragile rural sentiment. Farmer indebtedness remains acute. Climate variability has made cultivation increasingly precarious while input costs have risen steadily. Against this backdrop, a market collapse becomes a social issue, feeding anger, migration and, in the worst cases, suicides. The answer lies not in episodic procurement announcements or reactive subsidies, but in deeper reforms. India requires better agricultural storage infrastructure, predictable export policies and decentralised food-processing networks that can absorb production gluts. Most importantly, policymakers must stop treating farmers merely as electoral constituencies to be placated during crises. The onion has often moved governments because it affects the urban middle class. But a republic that ignores the tears of those who grow it risks a far deeper reckoning.

Indian Shipbuilding A Must Win Marathon

Shipbuilding

With a coastline of 7500 KM, it is hard to imagine, that for the first 20 years (1947-1967) India had no ‘shipping ministry’. In 1967 a Shipping ministry “coupled” with ROAD transport was established. Since then, this ministry has been on a name changing ride, not once, not twice but six times. In 2009 the “ROAD Transport and Highways” was de-coupled and ‘Shipping’ ministry was formed. Turning point came in 2015 with a clear maritime vision for 2030 and 2047. Ministry was re-christened, aptly to Ministry of “Ports, Shipping and Waterways” in 2020.


Why is Shipbuilding important for a country?

a. A Shipyard becomes an opportunity hub and like a queen bee requires the support of an industrial colony to manufacture machinery and equipment.

b. National Shipyards support fleet renewal needs of the Navy.

c. Contributes to national GDP, increases inflow of FOREX.


Korea shipbuilding is 8% of GDP. Japan’s automobile industry is 2.9% of GDP. India’s shipbuilding a meagre 0.000578% of GDP. In context, India’s pharmaceutical industry, ranked third largest in the world is 1.72% of India’s GDP.


International Shipbuilding Market

The market is estimated to reach around USD 200 billion by 2029, growing at a CAGR of 4.84%. While India is at bottom with 0.07% of world share, behind Philippines 1.5% and Vietnam 1%, however on the positive side, India has done well in taking care of its defence needs, with 37 of 39 Naval ships being built in India yards. Rear Admiral S Shrikhande researching on maritime as a Fellow at Wollongong University, Australia, says “Shipbuilding in India needs both, serious incentivisation and dogged determination and not harping on being a big ship breaking country. That Garden Reach shipyard has a $54 million order for merchant ships from a German owner, is a good sign.”


Were Shipyards of 20th century in Flight mode?

Prominent shipyards in India were built in the colonial period. Mazagon Dock 1774, Garden reach 1884, Hindustan shipyard 1941 to cater to British navy and merchant fleet needs. Cochin shipyard 1972, Adani Katupalli 2013, Reliance Naval and Engineering, Rajula Gujarat 1997 and others have limited capacity, hence a lot more work to do. Capt. Subhangshu Dutt (Singapore) a mariner and now a shipowner, says “GOI should hold hands in any collaboration till the marriage with the foreign entity is reasonably stable. He also suggests that “new shipbuilding sites should be given to existing successful shipyards since they have decades of experience and talent. Consortium of 3 or more parties may also be good idea”.


Shipbuilding GOLD

As per SPLASH report the demand for LCO2 carriers could reach 2,500 ships by 2050. As per other estimates, 40% of global fleet of ships could have wind propulsion by 2050. A surge in such vessels is due to an unparallel waves of decarbonization in the shipping industry. Demand for ships with ‘carbon neutral’ badges, such as Dual fuel, Wind assisted, Nuclear fuel ships, Hydrogen powered ships, Liquified CO2 (LCO2) carrier, is outstripping supply. A must in the ‘bucket list’ of every Shipyard. Pinning down a standard ROI in shipbuilding is not easy, but experts suggest it could range from 4% to 15% for the high demand ‘carbon neutral’ ships. While an LNG new build vessel could cost US$ 250 million upwards.


International collaboration

On China’s shipbuilding success story, Manoj Pandalanghat (Singapore) a mariner and ship owner believes that “China has around 50 active Shipyards. Each have a few large dry docks. In each dock two or more large vessels are built simultaneously. Thus, a single yard is able to roll out 2/3 vessels/month, 36 vessels/year and 50 shipyards roll out 1800 vessels/year”.


China could be a jaldi-5, but India needs a sturdy Mount Fiji. Besides technology, Japanese bring the most important hand baggage of soft-skills and culture, essential for success from keel laying to delivery. Maruti’s is a standing example.


Food for thought for New Delhi

a. Expertise: Hire Naval Architects and shipbuilding experts with current international experience.

b. Government assistance: Land, Financial support, subsidies and timebound clearances.

c. Monitoring: PMO should monitor the first 5 to 10 years till Shipbuilding takes-off on this long-haul flight to destination 2047.


India’s Shipbuilding is expected to grow to $237 billion by year 2047. On a back of the envelope calculations this works out to about 4% of India’s 2047 projected GDP of $ 5 trillion. While cars are driven on roads, however the Ministry of roads and transport has little to do with “Automobile manufacturing”. On a similar note, ‘Shipbuilding’ as an industry has little to do with Ports, Shipping and Waterways, thus it may be worthwhile to consider a separate ‘Ship-building’ wing in the Ministry of Ports, Shipping and Waterways headed by a dynamic cabinet rank minister. Since 2047 targets are stiff and an uphill task, so in all probabilities, the officials in Ministry of Ports, Shipping and Waterways are likely to push beneath the carpet, delays and failures of Shipbuilding with sweet success stories of “Ports, Shipping and Waterways” and if this does happen then India will not only miss the Shipbuilding bus of 21st century but a lot more from a national security and strategic perspective.


(The author is a Shipping and Marine consultant. Member Singapore Shipping Association and empaneled with IMO as a specialist consultant. Views personal.)

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