The Battle for India’s Waistline

November 19, 2013, 9:23 AM

The Battle for India’s Waistline

SAPTARISHI DUTTA

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With its before and after shots of dramatic weight-loss, the latest election poster from India’s main opposition, could, at first glance, pass for a Slim-Fast ad.

The youth wing of the Bharatiya Janata Party, known as Bharatiya Janata Yuva Morcha, posted the picture on its Facebook page showing an obese man who supposedly slimmed down during the Congress party’s time in office as he struggled to buy enough to eat because of high food prices.The caption on the tongue-in-cheek ad read: “At first, I used to be really fat. I used to be worried all the time because of my weight. Then, I voted for Congress… Along with me, they looted the nation to such an extent that I could not afford food because of inflation. Now, I’ve become slim and trim. Thank you Congress.”

The post got 38,918 ‘likes’ on the social networking site and had been shared by 8,730 people within 2 days.

But it could backfire for BJP, said Prem Shankar Jha, a political analyst and Indian journalist. “It’s the worst ad BJP could ever produce,” Mr. Jha said. “No Indian is going to identify with a fat man,” he added.

India is a country where around 43% of children under five are underweight for their age and 70% are anemic, according to the World Bank. It is also home to 25% of the world’s hungry.

Food is, for these among other reasons, likely to be an important electoral issue as the country heads to the local and national polls, according to S. Chandrasekharan, director of South Asia Analysis Group, a Delhi-based think tank.

The wholesale price index, the country’s main inflation gauge, has been rising since June on the back of higher fuel and food prices. It rose to an eight-month high of 7% in October.

“The middle class will be totally against the government because of high food prices,” said Mr. Chandrasekharan.

The BJP has repeatedly raised the issue of high food prices as a means to attack the government.

A billboard campaign, recently put up across Delhi by the party, shows the price of onions at 100 rupees ($1.6)  a kilogram and tomatoes at 80 rupees a kg, ($1.2) with the caption, “Whenever Congress is in power inflation is backbreaking.”

Onion prices quadrupled from last yearto reach a record price bracket of 90 rupees – 100 rupees in some parts of the capital during October when India’s festive season and demand for the vegetable were at their peak.

To sway voters, the BJP began selling onions at heavily discounted price across India’s capital earlier this year. And the Congress party followed suit.

The main opposition party is aware from the sting of experience that the cost of onions can cost elections. The BJP lost the 1998 Delhi elections partly because of the high price of onions.

Still, whatever Mr. Jha’s opinion of the new ad, he thinks the BJP is right to attack the government’s record on inflation as the country heads to local and national polls. “Nobody remembers 1998,” he said.

It is perhaps worth remembering though, that the Congress party led government introduced and passed a Food Security law earlier this year that guarantees grain at very cheap prices to nearly 70% of India’s 1.2 billion population. A fact that could help it fend off political criticism that it neglects to feed its people.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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