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By:

Kaustubh Kale

10 September 2024 at 11:37:15 pm

Fast Today, Prosper Tomorrow

AI Generated Image Navratri is a time when devotion, self-control, and celebration come together. For nine days, people across the country observe fasting, prayers, and rituals with discipline and faith. But beyond the spiritual significance, Navratri also carries valuable lessons for our financial lives - especially in how fasting and sacrifice mirror the principles of investing. Fasting as discipline When we fast, we consciously give up indulgence. It is not just about avoiding food; it...

Fast Today, Prosper Tomorrow

AI Generated Image Navratri is a time when devotion, self-control, and celebration come together. For nine days, people across the country observe fasting, prayers, and rituals with discipline and faith. But beyond the spiritual significance, Navratri also carries valuable lessons for our financial lives - especially in how fasting and sacrifice mirror the principles of investing. Fasting as discipline When we fast, we consciously give up indulgence. It is not just about avoiding food; it is also about training the mind and body to resist temptation. The same applies to investing. In a world full of instant gratification, whether it is the latest gadget, a fancy car, an expensive lifestyle or a luxury holiday, real wealth creation requires the discipline to sometimes say, “not now.” Just as fasting strengthens willpower, disciplined investing strengthens our financial health. Sacrifice for a greater good Navratri fasting involves small sacrifices today for spiritual growth tomorrow. In investing too, we often have to sacrifice some short-term pleasures to secure long-term prosperity. Choosing to invest a bonus instead of spending it entirely, or increasing SIPs using a portion of every salary increment instead of allocating the entire increase towards expenses and new liabilities, may feel like a sacrifice initially. But these small decisions, repeated over many years, can accumulate into significant future wealth and financial security. This is the very essence of delayed gratification. Patience and consistency Navratri fasting is not observed for just one day. The discipline continues throughout the nine days. Similarly, investing is not about one lucky trade or one successful investment. Wealth creation requires staying the course month after month and year after year through regular investing, sensible asset allocation and the power of compounding. There will inevitably be periods when markets test our patience. But just as discipline during Navratri is maintained throughout the festival, financial discipline must continue through both good and difficult market conditions. Balance and moderation Fasting during Navratri is not about starving. It is about moderation, restraint and mindful eating. Investing too should not be about extremes, neither reckless risk-taking nor excessive conservatism. A well-planned portfolio spread appropriately across assets such as equity, debt and gold can provide both growth and stability. Just as moderation keeps the body healthy, balance helps keep our finances resilient. The bigger picture Ultimately, Navratri fasting is also about purification of the body, mind and soul. Investing, in its own way, requires purification of financial habits: moving away from impulsive spending, unnecessary liabilities and short-term thinking towards purposeful saving and wealth creation. This Navratri, as you observe your fast with devotion and discipline, also resolve to bring the same qualities into your financial life. After all, both fasting and investing ask us to give up a little today in pursuit of something greater tomorrow. (The author is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

Tearful Harvest

May 27
2 min read

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.

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