Subsidy Compulsions

Last week, the inflation reached 8.1% in India.

At this rate, your money in the bank earns a negative rate of interest after taxes. With oil prices spiralling beyond USD 130 and no end in sight for the food crisis, the situation has become very challenging for a government which has to balance a myriad of interests in the run up to the elections next year.

Oil products are highly subsidised in India for the consumer. It is going to be 2 years since the government last raised pump prices. It is a politically explosive issue, with the Communists pushing for maintenance of prices and more subsidies to the government oil marketing companies which are incurring huge losses. These losses work out to approximately Rs 2,800 crores (USD 700M or SGD 1B) per day. Yes, per day, given that oil constitutes the biggest import of India. The government and political parties are fully aware of the implications - they are well educated on the matter. However, when elections are looming, no one wants to take a risk. Inflation was a major factor for the Congress’ loss at the Karnataka polls recently, where the opposition BJP won the elections, almost a majority in what is known to be a strong Congress State.

Similarly, food could become a critical issue for the government. While there are no protests yet on the streets, the rice prices are rising along with vegetable and pulse prices. There is no clear indication of how a steep rise in prices would be managed by the government, when supplies could become a constraint. India has a food surplus, so things may not deteriorate that badly. However, one cannot discount the fact that shelf prices have already started to affect the urban population which constitutes an important, if not decisive component of any election in India.

There is the free market way of doing things - the very “Western” and “IMF” prescription of just go and match world market prices. But, as we saw in several cases around the world, especially in Indonesia, Philippines and Thailand, the IMF ways do not work on the ground. In populous countries like Indonesia, India, and China, apart from political compulsions, there is the matter of poverty and the ability to pay. One out of every 3 Indians subsists below or at the poverty level in India, which is roughly USD 1 to 2 per day. Food and Kerosene are very critical elements of their consumption, and if the government’s free-market approach determines the prices of these goods, the subsistence of over 300 million Indians would be at serious stake. Just think about it.

One can argue about the wastage in the Public Distribution System in India, the lack of efficiency in the Agricultural Infrastructure and Irrigation Systems, the poor condition of the transportation systems leading to high consumption of oil, etc., However, the fact remains that it would take several years with a concerted plan of action to improve all these things - quite a medium-term effect in the best of times, when a democracy has to grapple with coalition politics.

Poor people would need protection from rising prices faster, hence there is no better way than to subsidise oil and food prices. It is not that only India has to implement subsidies - in the U.S. who has not heard about “food bills” ? While like most “free-market” theorists, I am inclined to adopt market-friendly approaches to almost everything in life, it is difficult and impossible not to be able to forecast the deprivations of the poor people in the society. To do so, in a very “capitalistic” way, would distance oneself from the ground realities, and isolate the economics and make it irrelevant.

Well, this does not mean that the government of the day can’t do more to correct the price imbalances. There is a lot which can be done, and which are not being done in India. One is ofcourse, to reduce the dependence on oil by going the whole hog on Nuclear Power - I have written about this topic in the past. The share of nuclear power in India is miniscule, it should reach atleast 15 to 20% of total power generated in the next 10 to 15 years. And, that is possible only if the subject of power is delinked from petty politics. America has come with open arms to help India, having realised the challenges India faces in the matter of power. But, so far, India has not closed the deal and moved on into a new chapter - this is a matter of serious concern.

Government needs to also look at (a) increasing the pump prices of petrol/diesel, while keeping the kerosene price stable ; (b) impose a cess on automobile purchases ; (c) implement car pooling atleast in the metros ; (d) impose severe penalty on oil and food hoarders ; (e) drastically reduce the customs and excise duties on petroleum products ; (f) immediately investigate the leakages in the public distribution system ; and, (g) engage in a public communication exercise to advocate the criticality of reducing oil consumption.

Food has to be subsidised for the poor, there is no question about it, atleast for the next 6 months. All crises pass away eventually, so one could only hope that this crisis would also do so, and do so quickly. In the meantime, it is better to relook at socialist economics, for a change, after some 15 years !

Have a great weekend,

Cheers,

Vijay Srinivasan
31 May 2008
Mumabi

Fettuccine with Coriander Pesto & Dinner Economics

I was searching for a topic to write about this weekend, really seriously. I went along with the family to the new Oberoi Mall at Goregaon East, and regretted the same midway in the mad traffic. Anyway, we went, got impressed with the amazing mall design, did not do any shopping, and returned after an hour of window-shopping. The crowd was massive (Saturday evening), and well-heeled to be shopping in such a highly branded mall - even more sophisticated than the Inorbit Mall at Malad. We promised to ourselves that we would return for some real serious shopping on a weekday evening (I don’t think I can make it though), combined with dinner when the Food Court eventually opens.

On the way back, we debated the wisdom of going to the famed Inorbit Mall Food Court or just go home. Two things weighed in favour of going home ! One is again the maddening crowd at the Food Court after 8 PM, and that too, on a Saturday evening. The other is the listlessness you get once you have been in traffic for nearly an hour - as the crow flies, the Oberoi Mall is just about 4 Kms from my home, but it took exactly 55 minutes at 6:10 PM to reach the Mall, we only reached after 7 PM ! Amazing, isn’t it ? That’s Mumbai, for most of you who are all back at home in Singapore, or elsewhere (even Delhi, or Chennai). It does take will power to stay on Mumbai roads and not discuss distances or the poor condition of the roads. I am now an expert in averting my eyes off the road (ofcourse I am not driving) !

Well, we got back home eventually, and my wife decided to make Pasta for dinner. It took only about 30 minutes, but we had some great pasta - Fettuccine with Green Coriander Pesto. No cheese this time, but it was absolutely delicious. She also made some red pasta - with Sun-dried Tomato Pesto + Fettuccine ! Again, delicious. However, I liked the Green Pesto sauce the most. This is not the first time, ofcourse, but everytime it is a great meal. And, just look at the economic dynamics. It costs just about Rs 590 to make pasta for 2 adults + 2 kids, with cheese it would come to about Rs 740 only. The same quality of pasta is difficult to get at places like Little Italy, or Inorbit Mall Food Court. And, even if one were to get the same quality for argument sake, the cost would be atleast twice !

So, it was a wonderful dinner, and with some good wine it was even better than what it used to be. Just an amazing and simple dinner. It was really fulfilling !

The economics in India for such stuff, while appealing, does not do well in comparison with developed countries. A bottle of Green Coriander Pesto of 190 Grams from Sacla Italia costs Rs 240 at store shelves in Mumbai, while similar stuff costs only SGD 6 in Singapore (appx Rs 170), the Indian price being 41% more than Singapore price ! The Fettuccine Pasta from Baronia of 500 Grams weight costs Rs 145 in Mumbai store shelves, while the cost in Singapore for similar stuff would be around Rs 114 or thereabouts - 27% more than Singapore price. Ofcourse, the prices at Walmart or Sam’s Club would be lower than the Singapore prices ! Cheese is very expensive in India, my estimate is that cheese costs atleast 60% more in Mumbai than it does in Singapore for comparable quality. Well, another interesting fact about shopping in India for imported stuff like these is the expiry dates of the products - please watch out carefully. Oftentimes, you would find that expiry dates are not more than 3 to 6 months from the “Imported Date”, the manufacturing date is not specified anywhere on the “extra” label that the importers affix on the packing.

Nothing much can be done about such things, except to make the pasta and enjoy it without undue worries. It’s the best you can get anywhere !

Have a wonderful weekend,

Cheers

Vijay Srinivasan
17th May 2008
Mumbai

Workout Combine - A different paradigm

Like most of us, I also used to prefer the air-conditioned precincts of a standard club gymnasium with “Technogym” kind of state-of-the-art machines, most of which many people don’t get to use, or wish to use on a regular basis.

It always feels good to sweat it out in a gym on a treadmill, or lifting weights, or even try out the new-fangled machines which look intimidating at the outset. One gets a “high”, a sense of elation over one’s achievement at the gym and the eventual control over “machines”. There is that reluctance when one thinks of having to “prepare” for the gym and the pressures that the body goes through. However, once the strenuous workout is completed, there is always a great feeling of having accomplished something significant, don’t you feel that way ?

Well, I have been doing gym stuff for a fairly long time, though inconsistently over the past couple of years. I do not regret it though. While it is good to go to the gym, there are other equally good ways to burn off those unwanted calories. The key trick, or technique, here is to achieve uniformity, consistency, and discipline with an iron hand.

I have devised a way that is suitable for me, others need to check out for themselves or develop their own way to beat the flab and maintain a healthy feeling right through the days, weeks, months and years. There are four components :

a). Brisk Walk every alternate day for a minimum distance of 2.5 Kms - the walk has to be fast paced, relentless, non-stop, and really brisk with a straight frame and good walking shoes. You have to feel a pain at the calves after a few rounds (I walk along a circular path in a garden), and start sweating - the temperature in summer is 30 deg even at 6 AM, and that adds ! But, should not relax and keep walking. Jogging is not advisable for people with any kind of back problem.

b). Yoga every alternate day - this needs to consist of atleast 10 minutes of stretching exercises, and 20 minutes of “Surya Namashkar”, or Sun Worship, followed by relaxation (”Sarvasan”). This exercise is a proxy for the cardio work-out at the gym. However, there is a right way to do Yoga, and then, there are many wrong ways. One has to work real hard, preferably under a Yoga Teacher, to develop the right way. There are many more Yoga exercises which would surely help, but the above is the minimum for time-crunched executives.

c). Good food habits - again, time discipline matters here - reduce amount of rice intake as much as possible, go for wheat, green vegetables, baked chicken, fish, et al. Again, the food design is to be undertaken by the respective individual and should not be compromised at the drop of the hat - I mean, at the sight of succulent kebabs ! You are what you eat, as the scholars say, so some serious attention is necessary.

d). Lots of fresh fruits - the minimum is one apple per day, but the minimum won’t do in the case of fruits - one should add banana, dark grapes, papaya, pomegrenate, pear, kiwi fruit (if you can find it), berries and dry fruits like figs. And, certain nuts like pistachios, almonds, etc., help a lot - not in large quantities though.

(c) and (d) require intense examination of oneself, one’s food habits, consultation with family doctor, reading up of available best-sellers (!) on food, and other inputs. It would take time to settle on something suitable. However, (a) and (b) require immediate implementation - ofcourse, if one is happy with the gym, then there is no issue - just do it everyday !

I do occasionally go to the gym these days, but I am no longer enamoured of those “Techno Gym” equipment ! The idea has been to stay healthy and fit, not to get those six-pack abs !!

Have a wonderful weekend,

Cheers.

Vijay Srinivasan
10th May 2008
Mumbai

Rice’s Rice

I am sure that the readers are following the debate around the rising food prices and inflation. Rice has become a global discussion point around any table talk, including the United Nations. The matter of rice scarcity and prices has even warranted a special cover story in the Time magazine (”Asia’s Rice Crisis”, issue dated 21 April 2008).

While I am not an economist or a political scientist, it is intriguing to note how politicians and governments, apart from aid agencies and the United Nations, handle the matter under inflationary pressures. Media is no less a culprit, sensationalizing the headlines with unintentional taglines attributed to heads of state.

Stating that due to economic advancement, Indians and Chinese are demanding better nutrition and more food, is the ultimate hogwash one would have heard ! This is notwithstanding the fact that India is a net exporter of rice !! And, to just assume that so far Indians and Chinese have not been eating rice in enough quantities, and the sudden increase in rice prices is due to their urgent demand for more rice, or even better quality rice, is simply ludicrous and does not reflect intelligent analysis of the situation.

No wonder politicians of all ilk are jumping up and down at the United States, and the unfortunate, though largely unintentional statements made by the Secretary of State, Condoleeza Rice, and President George W Bush. But, politics is just politics - not much meat, or rice in it !

One has to scan the horizons towards the east to figure out what is going on really.

Rice prices are going up not because India imposed export taxes on Basmati rice, but more because South East Asian countries, led by Thailand, are entering into a cartel to rake in the benefits of higher demand, much like what OPEC has been doing with increasing oil prices. It is not the right thing to do, but there are few exporters of rice in the world, and Thailand is the biggest of them all. It could set the prices in the market.

Since there is no evidence of rising rice (average median-quality rice) prices in the Indian market, the Government of India could help the world by increasing rice exports without any undue taxes. Rice is the staple food of three-fourths of the world population, and the matter should necessitate an urgent get-together of the world’s rice-consuming countries to demand equitable pricing till the crisis is over. Alternative use of arable land for bio-fuels need to be relooked at. There are many reasons why food prices are rising, and it would not be right for the developed nations to get into fist fights with developing countries on what they perceive to be increased consumption - which anyway, is none of anyone’s business, to start with.

Time to meet, put the intelligent unemotional heads together, and thrash out an amicable solution for the benefit of the masses.

Cheers

Vijay Srinivasan
4th May 2008
Mumbai

Little Italy Review

The family went for a dinner last evening at “Little Italy” restaurant newly opened inside the Croma Showroom at Malad. There were couple of strong recommendations from friends about Little Italy chain, they seemed to have enjoyed the cuisine at Juhu and Andheri outlets. So we went, but instead of going to Andheri or elsewhere, decided to go to the nearest one at Croma, just 0.5 Km from our home.

The ambience of the first floor of Croma was excellent - I saw four restaurants - all new. There is a children’s timezone-kind of playground as well. We decided we would try all these restaurants eventually. But for the moment it was Little Italy. It was a nice restaurant, very much like the upscale ones in Singapore. The interior decoration and ambience was classy, but the best surprise was the Menu. In India, the restaurateurs communicate their knowledge and emphasis via the Menus - I have seen several good and tough ones, but the Little Italy one beat them all. There were pages and pages of items, some of which I have never heard or seen all these years. I had to assume that my knowledge of Italian food is not that good enough, though it has remained our favourite food for the past many years.

We ordered some delectable mocktails, and the food. While the starters were good, the main courses were so and so - the fusilli pasta was soggy, with overcooked tomato sauce drenching the pasta and not delivering the expected taste. The margharita pizza was wood fired and good. The only other item worth mentioning is the Zucchini In Carpione starter which was very good. The other items (Siciliana Pasta mentioned above, Pasta Tortellini Del, and Insalata Gennarino salad) neither deserved the price nor the expectations.

The obtrusive handling of diners by the waiters is another pain in India. They are either not trained properly, or have never been exposed to fine dining restaurants. They keep interfering in conversations, and try removing the plates before we are done. It is, well, irritating to say the least.

We did not order any desserts, though the menu items appeared good on paper.

Little Italy is yet another example of trying to tap ignorant peoples’ fascination for all things “phoren”. What they sorely missed out is that the crowd who is going to choose Little Italy, unfortunately for them is mostly an educated, well-travelled, well-heeled group. The thing which would surely upset these folks is a soggy pasta, even taking the most elementary of the Italian dishes cooked in homes all around.

To continue this story, I cooked fusilli pasta tonight, and it simply turned out to be far superior to the one at Little Italy ! The crowning delight was when my kids ate the food quietly, and then clapped in appreciation ! The recipe is secret and will be discussed sometime in the future !!

Have a wonderful weekend,

Cheers

Vijay Srinivasan
18 Aug 2007
Mumbai

Wine Comparison

My wife is very fond of New Zealand’s Marlborough Region wines, especially the Chardonnay.

So I picked up a bottle of Hunter’s 2004 Chardonnay at Dubai Airport recently. This is a wine I am also fond of, having spent sometime evaluating Chardonnay and Sauvignon Blanc brands in Singapore and elsewhere. While I am primarily interested in red wines, the white offers some enchanting complement to specific food types, and in a hot place like Mumbai it is more preferable with hot Indian food as well !

The Hunter’s Chadonnay has a strong ripe fruit flavour and is wholesome when held in mouth for a moment longer than necessary. It is yellowish gold in colour, and has excellent after taste. I loved the wine so much that I had two glasses of it at one go, beyond my usual one glass-at-a-time policy. There was also strong endorsement of the wine from my wife who is always a light drinker with subtler tastes than me. She enjoyed it as well thoroughly.

We decided last evening to have a competitive tasting of Hunter’s with one of the best Indian White - the Chantilli from the Chateau Indage Vineyards. The chilled Chantilli and its close competitor, the Sula, have been my favourites - but my preferred one has always been Chantilli Sauvignon Blanc. The Sula is very light and very easy to drink, but lacks the strong fruit flavours and acidity of the Chantilli. In most bars and restaurants, one gets only the Sula and then the reds from Grover Vineyards. I am always surprised when I see the wine selection at restaurants in Mumbai - not good enough even for India, definitely not world class. Ofcourse, people here would tell you - why don’t you go to the Indigo in South Mumbai ? But that is a good 2 hours drive, and one would expect an emerging world financial centre to have easy access to India’s best wines. There are hardly three or four good vineyards with established brands in the whole country anyway.

We liked both wines (Hunter’s and Chantilli), but in the test the obvious winner was the Hunter’s. There was just no doubt. It had a more elegant finish, was better matured, and was superb in its overall impact. Chantilli probably scored something like a 70 while Hunter’s was more like 88. Given the recent nature of the Indian wine industry, 70 is a good score for any Indian wine, I guess.

Well, I am sure the Sahyadri Valley can one day reach the stature of the Marlborough Region of New Zealand.

Good wine on a dull evening is one of the best experience one can have. I am not going to reveal what food I had - I would let you guess that.

Have a wonderful weekend folks,

Best Regards

Vijay Srinivasan
23 June 2007
Mumbai

Some Pics for the Previous Post - Open Top Bus Ride and All Stir Fry

DSC01517, originally uploaded by vjsri99.

This is a very old Church located close to the place where one starts the Open Top Bus Ride.

DSC01514, originally uploaded by vjsri99.

This is the Asiatic Society Building - missed the name on the top of the building. Reminds one of European architecture.

DSC01501, originally uploaded by vjsri99.

This is the Revolving Chinese Restaurant “Pearl of the Orient” on top of the Ambassador Hotel - not recommended for the food, except for the first-time experience of having dinner in a revolving restaurant.

DSC01509, originally uploaded by vjsri99.

“Flora Fountain” area - again reminds one of an elegant European City in the night. Will appear different during daylight though.

DSC01507, originally uploaded by vjsri99.

Another view of Flora Fountain.

DSC01481, originally uploaded by vjsri99.

Elegant European architecture in the heart of Mumbai - could not get the name of the building.

DSC01524, originally uploaded by vjsri99.

“Self-selected” and “Live Cooked” Chinese food at “All Stir Fry” restaurant of Gordon Hotel - strongly recommended.

DSC01535, originally uploaded by vjsri99.

Again, a view of the food at “All Stir Fry”.

Cheers

Vijay Srinivasan
6 April 2007
Mumbai

All Stir Fry at Gordon House

Today we again decided to venture out on a long trip to South Mumbai. Being Saturday, it was a bit easier but we still took approximately 100 minutes to reach Marine Drive area where we decided to stop at the Cafe Coffee Day for a quick coffee and snacks. The idea today was to go on the Open Top Bus Tour of MTDC (Maharashtra Tourism Development Corporation) and have dinner at “All Stir Fry” restaurant - though that was not the original plan. We had planned to have dinner at the famous Indigo or Cafe Basilico at Colaba, but both declined the reservation saying that they were completely sold out !

The Open Top Bus Tour was interesting - it’s a one-hour journey around the landmarks of Colaba, Nariman Point and Churchgate. We had to save our precious heads from the branches of the trees lining the roads, and we were warned to keep our heads down below. I did not see the point of the Open Top Bus Service when the sole purpose seemed to be to get the bus to break the tree branches and in the process, get some tourists injured. Completely reckless and laughable to say the least. While watching the heads, I did click some photos. Due to a technical hitch in the uploading software, it has not been possible to show off those photos. These will be uploaded soon !

The highlight of the evening was the dinner, ofcourse, at the quaintly appointed Gordon House Hotel behind Regal Cinemas at Colaba. We went to this fabulous “All Stir Fry” restaurant inside the hotel. It was excellent food. Great selection of a la carte - both Thai and Chinese. We went for the selection of dishes to be cooked in front of us with special sauces. It was absolutely delicious.

Have a great weekend, more stuff soon.

Best Regards

Vijay Srinivasan
31 March 2007
Mumbai

Mainland China at Lokhandwala

The family wanted Chinese food of some authentic variety and so we went to the Mainland China Restaurant located at Lokhandwala area of Andheri West last weekend, a distance of approximately 4 Kms from where we live. This is the second such restaurant that we tried out in Andheri.

The ambience of the restaurant was very good, it looked formal something like the fine dining ones at the Chijmes or Boat Quay in Singapore. I was surprised to find ample parking space dedicated to the restaurant inside the building’s compound, a rarity in Mumbai. We arrived at 7:40 PM, and were apparently the second family to arrive. The restaurant actually started filling up only after 9 PM, which is the usual Indian timing for dinner. So, we enjoyed the attention of the maitre d’s of the restaurant, who were all over us trying to determine our spending pattern.

We eventually ordered Tofu Hainan Style and Sweet & Spicy Chicken as appetizers. Later we realized that there is just no comparison to Singapore, or Hong Kong. The Tofu was not as good, and the Chicken was very oily. We anyway had to show that we are enjoying the appetizers, and quickly progressed to order the main course hoping that what is going to follow would be inifinitely better than what we just had. We ordered Whole Sea Bass, Vegetable Parsley (I could not get Baby Kai-lan which I am very fond of), Chilly Asparagus, and Stirfried Hakka Noodles. To be fair, the Sea Bass was not bad. It did not appear as white as what I would have wished for, but the taste was good. Must be from Mumbai sea !

I realized that in India, they had way too much salt than necessary. The vegetable was not at all good, was overcooked, and did not have the right look. The noodles was all right, but looked very oily - it tasted good though. Mainland China was not even close to a Hong Kong !

Overall, it was not a very bad dining experience, but I realized it is better to temper expectations while seeking Chinese food in India. I know full well that some 5-Star hotels such as the Hyatt and Taj lands’ End have excellent Chinese cuisine, but it is too much trouble driving across Mumbai. I decided to look for better dining options around, it is difficult to forego tastes one has developed over a decade !

Have a fabulous weekend !

Cheers

Vijay Srinivasan
17 March 2007
Mumbai

Breakfast in Mumbai

DSC00321, originally uploaded by vjsri99.

We were really looking for famous, brand-name eateries for a nice South Indian breakfast - a strong recommendation from many people was “Cafe Madras”, located at the Kings’ Circle in Matunga, Central Mumbai. It is a very small place, and what you see above is the entrance, with people waiting to be called in. I saw people arriving in nice cars, couples who had taken a long jog and arriving for a steamy breakfast, good old guys who appeared to be regulars, families, et al.

IMGP0048, originally uploaded by vjsri99.

It appeared to me that the place was always sought after, a place wherein customers came in real hungry for a fulfilling and tasty breakfast, a place which would not dilute its quality for the sake of expansion, an eatery still managed by the original founder or by his son(s) - don’t know, just guessing ! Very oldish English letters on the nameboard reminds me of the seventies in Madurai and Madras !

DSC00324, originally uploaded by vjsri99.

Small tables with people squeezed in ! There were hardly six or seven tables in the ground floor, and around five tables or so in the upper floor (not really the first floor, it looked like they carved out that out as a 0.5 floor due to space constraints !). Quick servings, and quick cleaning up of tables indicated a time-honoured efficiency. The food was tasty - we had idlis, dosas, pasaretta (sounds Italian, but it is an “Adai” with onion chutney inside - absolutely delicious), rava dosa, and vadas. Followed by the tonic-tasting South Indian filter coffee, no lattes here ! There were four of us and we really enjoyed the sharing of food - that was unlike traditional Indian style.

IMGP0052, originally uploaded by vjsri99.

When I came out of Cafe Madras after a hearty breakfast, I saw this small foodshop under a tree ! People were going for this kind of food as well. It appeared to be hot and tasty as well - I did not ofcourse, try it. This is the real India - in India, people eat food very quickly and move on. Whatever is convenient works. Not at all like South East or North Asia, wherein food plays a huge role in the routine life of people.

DSC00327, originally uploaded by vjsri99.

The main circular road outside Cafe Madras is bustling with activity even for a Sunday morning !
Buses, Cars, Auto-rickshaws, Cycles, etc…….Mumbai is indeed a commercial city.

Best Regards

Vijay Srinivasan
24 December 2006
Mumbai