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India's decision to

allow commodity

exports backed

NEW DELHI: Political analysts on Tuesday defended the Indian government's decision to turn a cold shoulder to the election watchdog and allow exports of cotton, sugar and wheat just before national polls.

The federal Election Commission had expressed concern that the announcement could have a bearing on general elections which start on Saturday by favouring the fortunes of the ruling Congress party.

But analysts said the decision reflected economic realities and would have no bearing on the polls, which end on May 30.

"The work of the government cannot be suspended. This is the business of the government and it has got nothing to do with elections," said political analyst B.G. Verghese.

Earlier this month, Prime Minister P.V. Narasimha Rao's government, pressed by several states, sought the Election Commission's permission to allow cotton exports to shore up prices and growers' income.

The Election Commission, which has taken an unusually active role in setting ground rules for the polls, barred the government from authorising cotton exports, saying such a decision could influence voters.

But last Wednesday the high court in the southern state of Andhra Pradesh, a major cotton producing region, said the commission had overstepped its powers and directed the government to attend to growers' needs.

The government wasted no time and on Thursday authorised the export of 200,000 bales of cotton. Each bale weighs 170 kg.

It followed up on Friday by allowing the export of 300,000 tonnes of sugar and one million tonnes of wheat.

More than two thirds of India's population of 920 million live in rural areas and earn a living through agriculture.

Replenished by eight consecutive good monsoons, India has bulging stocks of rice, wheat, sugar and cotton.

The Election Commission did not quibble with the government's decision to authorise exports just before polls.

"The High Court has taken a certain decision and the commission will respect that decision," Deputy Election Commissioner Subhash Pani said.

Pran Chopra, an analyst with the Centre for Policy Research, said the commission was wrong to ask the government to halt cotton exports.

"I do not see how it would benefit a particular party. A variety of states like Gujarat, Andhra Pradesh, Haryana and Maharashtra are involved," Chopra said. "When there is a glut in the market we need to send it out."

Verghese said farmers could not be made to suffer during elections. "We tend to go overboard and see a thief under every bed," he said.

The Election Commission has been criticised by some politicians for keeping a tight rein on campaign spending and curbing the use of loudspeakers and graffiti.

"There is no election connection" in allowing sugar exports, said M.S. Marathe, managing director of the National Federation of Cooperative Sugar Factories.-Reuter