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Thousands of supporters of a key party in India's ruling coalition marched through the eastern city of Kolkata on Monday to denounce double-digit food inflation, the latest sign of unease among the government's partners before critical state elections.
"We will not accept skyrocketing prices," read a giant banner at the 4,000-strong rally organised by Trinamool Congress, whose support Prime Minister Manmohan Singh depends on for a majority in parliament. Trinamool has its power base in West Bengal state whose capital is Kolkata.
The party has pledged to stage a rally in New Delhi on Wednesday against a 4.5 percent rise in petrol prices imposed by state-run oil firms, the second increase in about a month. India battled double-digit inflation through most of 2010, the highest rate of any major Asian economy. Spiralling food and fuel prices have damaged voter confidence in the government led by the Congress Party and highlighted stresses in the multi-party coalition.
Some of Prime Minister Manmohan Singh's allies, such as Trinamool Congress and the DMK party, which underpin the coalition's majority in parliament, face a tough fight in local elections due by May. High prices could affect the Congress party's prospects in state elections, and if its allies fare poorly as well it would put the coalition under strain. Trinamool is not expected to abandon the coalition, but is trying to distance itself from price increases ahead of the West Bengal vote, in which it hopes to dislodge the communist government, in power for three decades.
"We are concerned and we demand that we should be consulted while taking steps like increasing petrol prices," Trinamool leader Sudip Bandopadhyay told Reuters. "High prices is a burning issue and we cannot let the poor be hurt like this." The party holds 19 seats and is a key constituent of the coalition, which has a majority of just 16 in the 545-member parliament.
A recent poll showed voter discontent with Congress party would result in a loss of 40 seats in a general election, threatening its majority and damaging its ability to form a working coalition government. The DMK party also said on Monday it feared being punished by voters in local elections in southern Tamil Nadu state over high food prices. "Definitely we are concerned, and whichever government is in power will be held responsible. That is why we have expressed our concerns to the (federal) government," said DMK spokesman T.K.S Elangovan. Elections are also due over the course of the year in Kerala in the south and Assam in the north-east.

Copyright Reuters, 2011

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