Indian opposition rally on graft pressures government

Opposition-driven protests  over corruption and high food prices choked parts of India's  capital on Wednesday, heaping more pressure on a beleaguered  government struggling to protect its credibility. 

Prime Minister Manmohan Singh's coalition faces multiple  political crises, including multi-billion dollar graft  scandals and surging food prices that have sapped its ability  to push policies to keep pace with growth of nearly 9 percent. 

About 20,000 supporters of an opposition alliance led by  the Bharatiya Janata Party (BJP) thronged parts of central New  Delhi, bringing to the streets a protest that has seen an  assertive opposition stalling the last parliament session. 

Protesters raised slogans criticising what they said was  the government's failure to curb corruption. Many people,  including women and children, wore garlands of onion to  protest against a sharp rise in the price of the staple. 

"This is the exhibition of public anger, the beginning of  a large nation-wide protest against corruption and inflation,"  BJP spokesman Prakash Javdekar told reporters. 

The opposition has threatened to shut down a February  session of parliament if the government does not agree to a  joint parliamentary inquiry, which has wide power to summon  officials, into a $39 billion mobile phone licence scandal. 

Telecommunications Minister Andimuthu Raja was sacked  because of the scandal. 

Leaders from Singh's Congress party have been linked to  graft during the Commonwealth Games and in seizing prime  property in the financial centre of Mumbai. 

The deadlock in parliament has meant policymaking has  drifted in limbo, economic reforms have been delayed and  leaders including Singh have been accused of neglecting  governance. 

Discontent over food price rises is another headache for  Singh's coalition government, eroding its political capital  from an impressive election victory last year to push reforms. 

Food price inflation has retreated over the past three  months, but at 9.5 percent is a worry for the Congress party  ahead of several state elections next year. 

For instance, retail onion prices have more than doubled  in the past week to 80 rupees ($1.77) per kg. Onions are a  main ingredient in almost all Indian dishes. 

Soaring onion prices have helped dislodge Indian state  governments in the past, and rising food costs often spark  street protests. 

Financial markets have not reacted to the political crisis   but analysts say the opening of the February budget session  in parliament will be a key test.

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