Editorial

The political landscape of Maharashtra is poised at a historic inflection point. As the Nationalist Congress Party (NCP) legislature party meets on January 31 to appoint Sunetra Pawar as its leader, anticipation is building across the state for her possible swearing-in as Maharashtra’s first woman Deputy Chief Minister — a first in the state’s political history.

This development follows the tragic death of Ajit Pawar in a plane crash, which left a sudden void in both the party’s leadership and the state government. Ajit Pawar was not only a towering figure in Maharashtra politics but also the sitting deputy chief minister; his loss has triggered a rapid and emotionally charged transition.

Nomination of Sunetra Pawar — a Rajya Sabha MP and Ajit Pawar’s wife — reflects both continuity and change. On the one hand, the NCP’s move to elevate her signals a desire to maintain stability, uphold internal unity, and preserve the Pawar family’s enduring political influence in western Maharashtra. On the other, her prospective appointment breaks a significant glass ceiling in the state’s governance, bringing fresh symbolic importance to women’s leadership in a domain traditionally dominated by men.

Critics may argue that her rise exemplifies dynastic politics, pointing to her lack of direct legislative experience and her recent electoral defeat in the 2024 Lok Sabha polls. Yet such critique must be balanced against the context of political exigency. At a moment of collective grief and abrupt leadership vacuum, the NCP’s priority has been to ensure governance continuity and reassure alliance partners and the electorate alike.

Chief Minister Devendra Fadnavis’s reported endorsement of Sunetra Pawar’s elevation — contingent on her formal election as the NCP legislature party leader — underscores an accommodation across party lines that is rare in today’s highly polarized politics. Such cooperation hints at pragmatic governance strategies in Maharashtra’s coalition framework.

The forthcoming oath-taking ceremony, anticipated today, will thus not only mark a political milestone but also test the resilience of democratic processes under pressure. Whether Sunetra Pawar’s tenure will be defined by her own leadership or by the shadow of her predecessor’s legacy remains to be seen. What is undeniable, however, is the symbolic moment this represents: a woman at the helm of executive power in India’s most politically vibrant state.

The recent plunge in silver prices on the Multi Commodity Exchange (MCX), from a stratospheric ₹3.8 lakh per kg to around ₹2.9 lakh, has sent shockwaves through the market. This dramatic correction, while startling, is not an anomaly but a potent lesson in the dynamics of commodity trading. The euphoria that propelled silver to record highs has met the sobering forces of global reality: aggressive sell-offs in international markets, relentless profit-booking, and a resurgent US dollar.

The rally itself was built on a fragile consensus—speculative fervor around industrial demand in the green energy sector, perceived as a hedge against inflation, and geopolitical anxieties. However, markets rarely move in a straight line. The "fear of missing out" that drove prices up inevitably gives way to the "fear of losing gains." The trigger for this reversal was a global risk-off sentiment, where investors retreated from perceived risky assets like commodities. As major funds liquidated positions internationally, the domino effect reached Indian shores. Concurrently, the strengthening US dollar made dollar-denominated silver more expensive for holders of other currencies, dampening global demand and exerting downward pressure.

For the Indian investor and industry, this volatility is a double-edged sword. Speculative retail traders who entered at the peak are facing significant losses, a stark reminder that commodities are not for the faint-hearted. However, for physical users, like the solar and electronics industries, a cooling-off in prices could reduce input costs and provide some operational relief. For the broader economy, the crash underscores the vulnerability to external shocks and hot money flows, highlighting the need for robust risk management frameworks among market participants.

This episode serves as a critical recalibration. It separates the speculative chaff from genuine, demand-driven investment. While the long-term fundamentals for silver—its role in electrification and solar technology—remain intact, the crash is a warning against unchecked momentum-driven trading. It reinforces that in commodities, what goes up on speculative wings often comes down under the weight of profit-taking and global macroeconomic shifts. The silver slump is not necessarily a collapse of its story, but a forceful reminder that even the shiniest assets must obey the laws of gravity and market sense. Investors would do well to see this not as a catastrophe, but as a necessary, if painful, return to equilibrium.

• SAS Kirmani