India bans wheat exports as heat wave hurts crop, domestic prices soar
Source: CNN
India banned wheat exports on Saturday — days after saying it was targeting record shipments this year — as a scorching heat wave curtailed output and domestic prices hit a record high.
The government said it would still allow exports backed by already issued letters of credit and to countries that request supplies "to meet their food security needs."
The move to ban overseas shipments was not in perpetuity and could be revised, senior government officials told a press conference.
Global buyers were banking on supplies from the world's second-biggest wheat producer after exports from the Black Sea region plunged following Russia's Feb. 24 invasion of Ukraine. Before the ban, India had aimed to ship a record 10 million tonnes this year.
Sri Lanka Should Not Enter into an Agreement With the IMF
Interview with Sushovan Dhar by Eric Toussaint
May 22, 2022
Introduction:
(Janata Weekly) A Sri Lankan delegation will travel to Washington next week to try to secure up to $4 billion from the International Monetary Fund (IMF) and other lenders to help the island nation pay for food and fuel imports as well as stem defaults on its debt. The last time the IMF provided loan to Sri Lanka in 2016, the loan was capped at $1.5 billion and the program ended prematurely after disbursing $1.3 billion. This was at a time when the economy was growing at about 5 percent and tourism contributed a similar percentage of gross domestic product.
However, IMF and World Bank loans have always been surrounded by serious controversy. Critics believe that the World Bank and IMF have systematically lent to states to influence their policies. External debt has been and continues to be used as an instrument to subordinate borrowers. Since their creation, the IMF and the World Bank have violated international human rights covenants and have not hesitated to support dictatorships.
In an interview with Sushovan Dhar, Eric Toussaint highlights the potential risks of an IMF bailout.
Sushovan Dhar: As you know, the Sri Lankan government has announced a default on its debt. What do you think about this?
Eric Toussaint: The Sri Lankan government’s decision to suspend the payment of the foreign debt from Tuesday, April 12, 2022, shows how far it has stumbled. The Sri Lankan working people have been on the streets for more than a week protesting against rising prices and anti-social measures. All members of the government resigned except the fact that the Prime Minister and the President remained in office. It is important to note that the Prime Minister and the President are brothers, which is an important factor in understanding how the political system works in Sri Lanka. It is an ultra-neoliberal government, completely in favour of the interests of big business – both domestic and foreign. It is in an attempt to placate the population and also because there is not enough money left in the state coffers and in the foreign exchange reserves that the government has been forced to suspend payments.
Sri Lanka: Parties Agree to Prune President’s Powers
by P. K. Balachandran
May 29, 2022
Introduction:
(Eurasia Review) Next step will be abolition of the Executive Presidency itself
The crisis in Sri Lanka has two dimensions, economic and political. The grave economic and political problems that are plaguing the country presently, had existed in some form or the other for long, but were continually neglected. The blame for the present economic crisis, marked by shortages of essentials brought about by an unprecedented foreign exchange shortage, is laid at the door of the Executive Presidency, vested as it is with humongous and over-riding powers. President Gotabaya Rajapaksa is paying the price for being vested with absolute power in as much as the main slogan of the protesters is “Gota Go Home”.
Different Perspectives
Following the exposure of the dangers inherent in the all-powerful Executive Presidency, two demands arose: One section sought the abolition of the Executive Presidency and the other sought pruning of its powers. The latter also sought provision of greater powers for parliament and the inclusion of civil society in decision-making.
While the apolitical protesters gathered at Galle Face saw the wholesale exit of the Rajapaksas as “the” answer for Sri Lanka’s ills, the more politically-informed sections wanted structural or constitutional changes. The latter group was further divided into those who wanted the total abolition of the Executive Presidency and those who wanted it retained with reduced powers.
China-Pakistan Economic Corridor And India’s Responses
by Lucio Blanco Pitlo III
May 29, 2022
(Eurasia Review) The China-Pakistan Economic Corridor (CPEC) has become a too-big-to-fail undertaking for both countries. Both Beijing and Islamabad are heavily invested in this flagship program. Its developmental and transformative impact on the South Asian economy is well recognized, while its strategic and geopolitical value for China is undeniable. Despite delays, the pipeline of projects under its banner is likely to be insulated from political turbulence or leadership transition in Pakistan. Prime Minister Shehbaz Sharif commits his country to work with its neighbor in accomplishing agreed projects as his embattled predecessor Imran Khan did.
In turn, CPEC’s steady progress will stoke Indian security concerns. CPEC passes by contested Kashmir and will expectedly raise China’s profile in South Asia and the Indian Ocean, especially since the deep-sea Gwadar Port became fully operational last year. The all-weather China-Pakistan partnership that CPEC will cement will also compel New Delhi to strengthen relations with other partners to balance against coalescing rivals.
As CPEC gains more traction, India’s qualms deepen
CPEC is a $62 billion package of projects ranging from transportation, energy, port construction, industrial cooperation, and even social sector development. Beyond building and upgrading the backbone of Pakistani infrastructure, it will also unleash an immense connectivity spillover that will benefit not only the two countries concerned, but also neighboring Afghanistan and Central Asia. Providing access to the sea for these landlocked countries via the Gwadar port can have tremendous benefits for their external trade. Among the completed CPEC projects include the Sahiwal and Port Qassim coal-fired power plants, the Havelian-Thakot section of the Karakoram highway, the Multan-Sukkur segment of the Peshawar-Karachi motorway, a metro line in Lahore and the cross-border fiber optic cable linking Khunjerab and Rawalpindi.
Rolled out in 2013, the 15-year CPEC is a key component of Beijing’s massive Belt and Road Initiative.
The Sri Lanka Economic Crisis: India’s Response
by Akash Chowdhury
June 1, 2022
Introduction:
(Observer Research Foundation) Sri Lanka, a nation of 22 million people, is today facing an unprecedented economic crisis that threatens to undo much of the progress that had been made since the end of the bloody civil war in 2009. Amidst skyrocketing inflation (which stood at more than 21 percent for March 2022), power cuts lasting well over 10 hours, and shortage of essential items—like food, fuel, and life-saving medicines—the crisis appears to have spilled over into newer domains, with the island nation now also confronted with a political crisis wherein so far Prime Minister Mahinda Rajapaksa has resigned amidst violent clashes between pro-and anti-government demonstrators, a caretaker PM been installed, the national emergency declared (including shoot-on-sight orders issued to the military) and dramatic curbs on the use of social media imposed. So, the question that arises is: What are the factors that led to this?
Even though many economists and policymakers point to the pandemic as the principal cause of the problem—linking the fall in earnings from the tourism sector (one of the most significant contributors to Sri Lanka’s GDP) from over US$4 billion in 2018 to less than the US $150 million in 2021 to the drop in the country’s forex reserves—this crisis long been in the making. Between 2009 and 2018, Sri Lanka’s trade deficit swelled from US$5 billion to US$12 billion. In recent years, the economy has had to withstand multiple shocks due to some of the policy measures—drastic tax cuts, downward interest rate revisions, and a ‘disastrous’ plunge into organic farming through a complete ban on imports of all fertilizers and pesticides—adopted by the Rajapaksa government; more recently, it has also had to contend with an unanticipated spike in the import bill caused by inflation on account of the Ukrainian crisis. Amidst all of this, the one event that can be said to have tipped it over the precipice was Sri Lanka’s effective exclusion from the international credit market—caused by a dramatic downgrading of the nation’s credit ratings in the immediate aftermath of the pandemic.
The remaining article includes a discussion of “reasons why India should facilitate a speedy resolution of this crisis and…some ways it can address the challenges” posed by the crisis.
Bharatiya Janata Party Regime is Beginning to Taste an International Fallout of Its Islamophobic Policies by P. K. Balachandran
June 6, 2022
Introduction:
(Eurasia Review) The Islamic world’s overt expressions of revulsion against the insulting remarks on the Prophet made on Sunday by the Bharatiya Janata Party’s spokesperson Nupur Sharma and the head of its media unit in Delhi, Naveen Kumar Jindal, could be an early sign of a decline in the political fortunes of the party.
New Delhi was stumped by the unexpected and coordinated censure from the Gulf States. For the first time, the BJP regime tasted the international fallout of its Islamophobic policies pursued with single-minded devotion since the party came to power in 2014.
The party’s Islamophobia may continue to win votes at home, given its expanding constituency, but it’s international isolation is bound to have a domestic fallout sooner or later. No party in any country can insulate itself from international trends.
New Delhi’s initial official reaction to protests from the Gulf States has been one of denial, shifting the blame for the offensive remarks to “fringe elements” in the BJP. India’s Ambassador in Qatar affirmed that India respects “all religions” and “strongly denounces insults of any religious personality”. The BJP, on its part, suspended Sharma and sacked Jindal.
The government is hoping that the world will believe that the BJP national spokesperson is indeed one of the “fringe elements” and also that it “respects all religions.” This is bound to be viewed cynically because the BJP, with tacit State approval, has been on a sustained campaign to attack, denigrate and marginalize Muslims – India’s largest minority.
Bangladesh fire: Over 40 killed, hundreds injured in depot blast
Source: BBC
A fire and a huge explosion have killed at least 44 people and injured hundreds more at a storage depot near the city of Chittagong, Bangladesh.
...
It is thought that chemicals were stored in some of the containers.
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The fire broke out at around 21:00 local time (15:00 GMT) on Saturday and hundreds of firefighters, police and volunteers quickly arrived on the scene.
As they tried to extinguish the blaze a huge explosion rocked the site, engulfing many of the rescuers in flames and throwing debris and people into the air.
Sri Lankan students demand government resign over crisis
Source: AP
By ERANGA JAYAWARDENA
COLOMBO, Sri Lanka (AP) — Thousands of students from state universities marched in Sri Lanka’s capital on Monday to demand the president and prime minister resign over an economic crisis that has caused severe shortages of essential supplies and disrupted people’s livelihoods and education.
The students say President Gotabaya Rajapaksa is responsible for the economic crisis, the worst since independence in 1948, and that Prime Minister Ranil Wickremesinghe, who took over the position a little more than a month ago promising to end shortages, has not delivered on his pledges.
Sri Lanka is nearly bankrupt and has suspended repayment of $7 billion in foreign debt due this year. It must also pay back more than $5 billion every year until 2026. Its foreign reserves are nearly gone and it is unable to import food, fuel, cooking gas and medicines. A lack of fuel to run power stations has resulted in long daily power cuts.
In recent months people have been forced to stand in long lines to buy fuel and gas, and the country has survived mostly on credit lines extended by neighboring India to buy fuel and other essentials.
Sri Lankan economy has 'completely collapsed', leader says
Wednesday 22 June 2022
Sri Lanka's Prime Minister Ranil Wickremesinghe has said the country's economy has "completely collapsed", leaving it unable to pay for essentials such as oil imports.
It follows months of shortages of food, fuel, and electricity, and the realisation that even the credit lines from neighbouring India that have sustained the country so far will not be enough.
Mr Wickremesinghe told Sri Lanka's parliament: "We are now facing a far more serious situation beyond the mere shortages of fuel, gas, electricity and food.
"Our economy has completely collapsed - that is the most serious issue before us today."
Mr Wickremesinghe said that the state-owned Ceylon Petroleum Corporation is $700m (£572m) in debt, adding: "As a result, no country or organisation in the world is willing to provide fuel to us.
In India a Mosque Can’t Be Turned into a Hindu Temple. Period. The Law Says So. by Nitya Ramakrishnan
June 19, 2022
Introduction:
(Janata Weekly) On television debates and elsewhere, it is being said that the Places of Worship Act, 1991 (1991 Act for short) will not apply to the ongoing Gyanvapi mosque cases because of an exception clause in its Section 4. Such a suggestion cannot seriously be made by anyone who has cared to read the 1991 Act, which is all of 8 sections.
Every mosque is a ‘place of worship’ as defined by Section 2(c) of the 1991 Act. Any conversion of any mosque by anyone at all into a place of worship of a different religion is forbidden by Section 3. This prohibition admits of no exception, and its violation is a criminal offence entailing a jail term. The exceptions listed in Section 4, which are discussed later, do not affect Section 3. So, the Act applies to every place of worship.
The status of the Gyanvapi mosque as a Muslim place of worship is a plain fact that has been recognised by courts and not open to question.
Can there be any doubt that a bid to set up Hindu idolatry within the mosque is a bid to change a Muslim place of worship into a Hindu one? Whatever has the effect of changing a mosque into a temple is forbidden conversion – whether it is sought to be done on the basis of the mosque’s history, or in the guise of title suits, or rights of faith, or upon the discovery of an artefact or architectural relic. A suit to enforce what is forbidden by law cannot be maintained. Section 3 alone will suffice for courts to dismiss any suit of that nature.
Section 4: A special provision for places of worship existing at Independence
Parliament was aware of the clamour to resurrect temples destroyed centuries ago by now destroying mosques in their stead. So, it made additional provision to end all possible avenues for agitating real or perceived historical wrongs of that nature.
Concerns grow that India is ‘back door’ into Europe for Russian oil
Sun 26 Jun 2022
The huge blue and red hull of the SCF Primorye came into port at Vadinar, western Gujarat, India, earlier this month. The 84,000-tonne oil tanker, built in 2009 and sailing under the Liberian flag, had arrived from the port at Ust-Luga, a settlement in Russia near the border with Estonia.
Until 2017, the Vadinar oil refinery was controlled by Essar – the Indian owner of the Stanlow refinery in Ellesmere Port. Since then a consortium including the sanctioned Russian state-owned oil firm Rosneft and the commodities trader Trafigura, which holds a 24.5% stake, have owned Nayara Energy, which runs the refinery.
The tanker’s arrival came as India ramped up imports of Russian oil. The Asian nation’s willingness to snap up Russian crude at discounts of up to 30% has undermined efforts from the US, Europe and the UK to deplete Vladimir Putin’s war coffers by curtailing imports. Russia raked in $20bn from oil exports in May, bouncing back to pre-invasion levels. Now, concerns are growing that India is being used as a potential back door into Europe for Russian oil supplies,given the surge in imports.
Before the invasion of Ukraine, India’s imports of Russian oil were negligible due to high freight costs. But recently, imports of Russian oil to India have increased. Vadinar’s owner, Nayara, purchased Russian oil in March – just before international restrictions on its exports were introduced – after a gap of a year, buying about 1.8m barrels from Trafigura, Reuters reported.
Increasing Heat Waves Affect Up to Half a Billion People June 28, 2022
Introduction:
(EurekAlert) Climate change is a reality and extremely high temperatures have been reported by India and Pakistan in the spring. In a new scientific journal article, researchers from the University of Gothenburg, amongst others, paint a gloomy picture for the rest of the century. Heat waves are expected to increase, affecting up to half a billion people every year. In turn, they can lead to food shortages, deaths and refugee flows when the heat reaches levels that exceed what humans can tolerate. But this does not have to happen if measures are put in place to reach the Paris Agreement targets, the researchers say.
In India and Pakistan, heat waves with temperatures above 40 degrees in the shade are a directly life-threatening form of extreme weather. In a new article in the journal Earth’s Future, researchers have outlined different scenarios for the consequences of heat waves in South Asia to the year 2100.
“We established a link between extreme heat and population. In the best scenario, we succeeded in meeting the targets in the Paris Agreement, which added roughly two heat waves per year, exposing about 200 million people to the heat waves. But if countries continue to contribute to the greenhouse effect as they are still doing now, clearing and building on land that is actually helping to lower global temperatures, we believe that there could be as many as five more heat waves per year, with more than half a billion people being exposed to them, by the end of the century,” says Deliang Chen, Professor of Physical Meteorology at the University of Gothenburg and one of the authors of the article.
Population growth drives emissions
The study identifies the Indo-Gigantic Plains beside the Indus and Ganges rivers as particularly vulnerable. This is a region of high temperatures, and it is densely populated. Deliang Chen points out that the link between heat waves and population works in both directions. The size of the population affects the number of future heat waves. A larger population drives emissions up as consumption and transport increase. Urban planning is also important. If new towns and villages are built in places that are less subject to heat waves, the number of people affected can be reduced.
With No Fuel and No Cash, Sri Lanka Grinds to a Halt July 4, 2022
Introduction:
(Al Jazeera) Sri Lanka has less than a day’s worth of fuel left, the energy minister says, with public transport grinding to a halt as the country’s economic crisis deepens.
Power and energy minister Kanchana Wijesekera on Sunday said petrol reserves were about 4,000 tonnes, just below one day’s worth of consumption, as queues snaked through the main city of Colombo for kilometres.
The cash-strapped nation on Sunday extended school closures because there is not enough fuel for teachers and parents to get children to classrooms, with most pumping stations being without fuel for days.
Sri Lankan Prime Minister Ranil Wickremesinghe told Al Jazeera last week the petrol shortage will last until July 22 when the next oil shipment is expected. He said a gas deal has been secured which will ensure supplies for the next four months.
“It [fuel shortage] is a big setback to the economy and has caused lot of hardship to people. When we came in, the shortage of dollars actually contributed to this situation. We have been taking steps since then especially to get gas which will be available in the next few days, diesel and furnace oil as well,” he said.
Sri Lanka’s Great Crisis And The Failed Regime Change by Dr. S. I. Keethaponcalan
July 6, 2022
Introduction:
(Eurasia Reveiw) On May 9, Mahinda Rajapaksa met his supporters at the Temple Trees, the prime minister’s official residence, before stepping down. His emotionally charged supporters came out and violently attacked the protesters camped in front of the building. They proceeded to the so-called Gota-Go-Gama and destroyed the protest site igniting a nationwide anti-government riot. The day’s events also ignited the fear that the country could fully or partially drift into military rule. It was against this backdrop Ranil Wickremesinghe, the lone member of the United National Party (UNP) in parliament, was appointed prime minister. He was sworn in on May 12.
Failure
Despite the total lack of parliamentary strength of his own, his appointment was accepted for two main reasons. One, the suffering masses believed that he could effectively resolve the “scarcity”problem. Two, the ruling party knew that Wickremesinghe had the potential to mitigate the strength of the protest. In an essay entitled, Sri Lankan Crisis and Regime Change (Eurasiareview, May 15, 2022), I pointed out that “Wickremesinghe may be acceptable to a part of the resistance as the new prime minister. His experience and the people’s desperation could influence some Sri Lankans to accept him to run the country.” As expected, with the appointment of Wickremesinghe as prime minister, the ferocity of the resistance weakened, and public protest almost disappeared. Therefore, President Gotabaya Rajapaksa’s strategic calculation in appointing Wickremesinghe to lead the government proved effective.
Nevertheless, the two-month experiment with Wickremesinghe as prime minister proved a failure. Prime Minister Wickremesinghe had three significant problems to deal with: (1) resolving the economic crisis, (2) closing the deal with the IMF, and (3) mitigating presidential power through the 21st Amendment to the Constitution.
Further extrtact:
Gotabaya Rajapaksa…would not mind sacrificing Ranil Wickremesinghe… He does not want to lose any powers vested on him currently by the Constitution. He also does not want to step down as a “failed president.” Gotabaya Rajapaksa seems determined to complete his term and step down at the end of 2024. The only consolation prize the people received from him was the promise that he would not contest for a second term. Therefore, Sri Lanka seems to be moving towards another stalemate after July 9.
Sri Lanka: Protesters storm President Gotabaya Rajapaksa's residence
By Alys Davies & Simon Fraser
BBC News
24 minutes ago
Thousands of protesters have stormed President Gotabaya Rajapaksa's residence in the capital of Sri Lanka.
Demonstrators from all over the country marched to Colombo demanding his resignation after months of protests over mismanagement of the country's economic crisis.
Reports say he has already been moved to a safer location.
The country is suffering rampant inflation and is struggling to import food, fuel and medicine.
Thousands of anti-government protesters travelled to the capital, with officials telling AFP news agency that some had even "commandeered" trains to get there.
Sri Lanka’s President Rajapaksa to Step Down on July 13
July 9, 2022
Introduction:
(Al Jazeera) Sri Lankan President Gotabaya Rajapaksa has agreed to step down next week, the country’s parliamentary speaker, Mahinda Yapa Abeywardana, has said.
The announcement came hours after protesters stormed the president’s official residence to vent their anger over the country’s severe economic crisis. Protesters later broke into Prime Minister Ranil Wickremesinghe residence in the capital Colombo and set it on fire.
“To ensure a peaceful transition, the president said he will step down on July 13,” Abeywardana said in a televised statement.
Rajapaksa will remain as president until Wednesday to ensure a smooth transfer of power, Abeywardena said.
Vakanai wrote: ↑Sat Jul 09, 2022 10:01 pm
I'm not Indian and haven't looked into their politics - is this a good or bad development?
For Sri Lanka, which is a separate country from India, this may be masked as a mark of success in the likeness of a popular uprising. However, in the larger scheme, this will simply add to the inertia of destabilization and act to ensure continued chaos as it's unlikely his replacements will last long themselves. The rise of terror is to be expected.
As for India, when it comes to Indian administrations, this is more unwelcome evidence that they will have to contend with an increasingly unstable and wild element in their regional sphere. For Indian nationalists, however, this may incite hopes that a potential reclamation of another part of historic Greater India could be on the horizon.
Sri Lanka Hopes to Install New Government After Day of Chaos and Rage by Aanya Wipulasena
July 10, 2022
Extract:
(Al Jazeera) Prime Minister Ranil Wickremesinghe, who assumed the post only two months ago, also offered to resign to allow an all-party interim government to take over.
Rajapaksa, 73, has urged people to allow a peaceful transition of power, which he plans to supervise before quitting office.
…
A meeting of the leaders of the political parties is scheduled on Sunday, with opposition politicians claiming they have the parliamentary majority to form an interim government.
“We need a change. This is not the way we deserve to live. The leaders are responsible for what has happened to this country,” K Chandra, a demonstrator, told Al Jazeera.
Following the resignations of the president and the prime minister, Parliament’s Speaker Mahinda Yapa Abeywardena is expected to take over as acting president as per Sri Lanka’s constitution.
