India’s ruling party seeks to energise workers after state losses

“We realize that rural distress and employment generation are the key issues and we are working on them,” said BJP spokesman Gopal Krishna Agarwal. (AFP)
Updated 14 December 2018
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India’s ruling party seeks to energise workers after state losses

  • The government announces so-called minimum support prices for most crops to set a benchmark

NEW DELHI: Prime Minister Narendra Modi’s ruling BJP will try to canvass and galvanize its activists across India before a general election due next May, after losing power in three heartland rural states, senior leaders said after a meeting on Thursday.
Disgruntled voters blamed the slow pace of job creation and weak farm prices for the Hindu nationalist party’s defeat in the states, two of which it had ruled for three straight terms.
“We realize that rural distress and employment generation are the key issues and we are working on them,” said BJP spokesman Gopal Krishna Agarwal, who attended the meeting. “They’ll have to be tackled, and we will take suggestions from wherever needed.”
The Bharatiya Janata Party’s (BJP) various wings — representing women, farmers, lower castes, Muslims and young members — will all hold deliberations after losses in the supposed stronghold states of Madhya Pradesh, Rajasthan and Chhattisgarh.
“These meetings are aimed at preparing for the 2019 election and spreading the party’s message in various sections of society,” Bhupender Yadav, a BJP national general secretary, said after the meeting, which he said had been scheduled before the state election results came out on Tuesday.
He also announced that a planned national convention would be held in New Delhi on Jan. 11 and 12.
Senior BJP minister Nitin Gadkari told the ET Now business channel on Thursday that the agriculture sector may have been neglected under their government.

JOBS AND FARM PRICES
Agarwal, a chartered accountant who is also a director in a state-run bank, said increasing lending for job-generating small businesses was a key focus, as was enhancing procurement of grain from farmers by government agencies at state-mandated prices so there are no distress sales.
The government announces so-called minimum support prices for most crops to set a benchmark, but state agencies mainly buy limited quantities of staples such as rice and wheat at those prices, restricting benefits of higher prices to only around 7 percent of India’s 263 million farmers, according to various studies.
Following the state election setbacks, Modi’s government is expected to announce loan waivers worth billions of dollars to woo farmers, government sources told Reuters this week.
Agarwal said the party’s loss in Madhya Pradesh, known for multiplying agriculture production under three BJP governments, has reinforced its realization that higher output helps consumers by bringing down prices, but can badly hurt farmers.
“The focus has so far been on consumers, like importing onions when prices shot up,” Agarwal said. “Now we need to look at the producers, not just the consumers.”
He also said there was a case for fiscal stimulus, given that inflation fell to a 17-month low in November. Food inflation sank to a negative 2.61 percent from a negative 0.86 percent in October, according to official data released on Wednesday.


US takes back $100 million from Afghan govt over corruption

Updated 19 September 2019

US takes back $100 million from Afghan govt over corruption

  • Pompeo said the US will still finish the massive project that involves five power substations
  • He blamed the “Afghan government’s inability to transparently manage US Government resources.”

KABUL: US Secretary of State Mike Pompeo says Washington is taking back $100 million intended for an Afghan energy infrastructure project, citing unacceptably high levels of corruption in the Afghan government.
In the harshly worded statement Thursday, Pompeo said the US will still finish the massive project that involves five power substations and a maze of transmission lines in southern Afghanistan. It just won’t be spending the money through Afghan President Ashraf Ghani’s government, blaming the “Afghan government’s inability to transparently manage US Government resources.”
This follows an earlier statement, also from Pompeo, calling for “credible and transparent presidential election” when Afghans go to the polls Sept. 28.
The 2014 presidential election was marred by allegations of massive fraud, as was last year’s parliamentary vote.