Tuesday, July 28, 2020

COVID-19 and its impact on the Agri Economy of Punjab

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Syed Ahmed Uzair

Article Title

COVID-19 and its impact on the Agri Economy of Punjab

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Global Views 360

Publication Date

July 28, 2020

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Women planting paddy seedlings in agricultural field

Women planting paddy seedlings in agricultural field | Source: Diganta Talukdar via Wikimedia

The COVID-19 pandemic has hit the agricultural economy of the Indian state of Punjab really hard. Punjab’s paddy farmers have traditionally relied on migrant agricultural labourers who are mostly natives of the state of Bihar and Uttar Pradesh. Due to the pandemic, a large number of migrant labourers have returned to their native place causing a massive shortage of farm workers in Punjab.

Its impact became more severe as the paddy transplantation period was already around. Gurbachan Singh, a local paddy farmer told news agency ANI, "There is a shortage of labourers as the government sent back the migrant workers without proper planning."

The shortage of migrant workers forced the farmers to rely more on the local labourers. The local labourers used this opportunity to demand more wages which has resulted in almost doubling the labour cost. The migrant labourers used to charge around ₹2500 per acre for sowing paddy while the local ones were demanding ₹4000 per acre for the same work.

The  village panchayat (Local village council) tried to fix the labour charges of ₹3,000 per acre which did not go down well with local labourers. This caused a dispute which even resulted in a clash between labourers and farmers where the shots were fired as well.

The labour shortage does not appear to be ending soon as most migrant labourers are not willing to come back. Viresh Kumar, a labour contractor from Sonbarsa in Bihar’s Sitamarhi district who supplies workers to paddy farmers in Phagwara, told ThePrint, “Workers from Bihar and UP either don’t want to come back to fields in Punjab or they want farmers or us to bear the cost of bringing them back, which is a very expensive and complex procedure now. Due to the lack of sufficient number of regular trains, the cost of bringing a single migrant to Punjab is around Rs 3,000 to Rs 4,000 per person.”

The shortage of cheap labour has forced the local farmers to start looking for some alternative which could maintain the economic feasibility of farming.also provided some benefit

Agricultural Secretary of Punjab government, KS Pannu noted that some of the farmers have started employing new technology to cope up with the labour shortage. "Farmers have sown paddy at around 5 lakh hectare land with Direct Seeding of Rice technology this year. Some farmers, however, shifted back to the puddling method for cultivation as they could not adapt to the technology," Pannu told ANI.

Manpreet Ayali, a member of Punjab State Legislative Assembly, and a wealthy farmer, says that this labour shortage is a blessing in disguise for the farmers as it would make them more self-reliant, rather than depending on labour for the transplantation season.

The shortage of cheap migrant labour has forced many farmers to cut down the area of paddy cultivation. Experts believe that due to the reduced area of transplantation the groundwater levels might improve in the state which tops the country in over-exploitation of groundwater reserves.

It is still too early to give a definite verdict on the long term impact of the COVID-19 on the agricultural economy of Punjab, but in the short term it is nothing short of a disaster for the local farmers.

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February 4, 2021 5:07 PM

Expat Exodus In The Middle East

The COVID-19 pandemic has hit people and economies worldwide, sparking a global recession and financially destabilising millions of people. In the Middle East, dipping oil prices have only worsened the threat to the economy. Businesses are shutting down, and many are trying to survive by cutting the salaries or laying off of workers. Large segments of the workers in these countries are expatriates, and many have struggled to make ends meet as unemployment soared.

The development of the Gulf countries has always been intertwined with their large expat populations. These workers are often vital to the economy, not just as part of the workforce but also as consumers by enabling successful malls, restaurants and other forms of recreation and tourism. Countries like Saudi Arabia gain valuable non-oil revenue in the form of increased Value Added Taxes (VAT) and by imposing a monthly fee on migrants who want to sponsor family members.

Many of these workers are from developing Southeast Asian countries such as India and Pakistan, and contribute greatly to their home country’s economy in the form of remittances, i.e sending money back home. Those who are facing unemployment or salary cuts are eager to be repatriated, especially since in many Gulf countries visas, rent, and even phone lines are linked to jobs, and expats have little to no social safety nets to fall back on.

Panicked” Indians applying to go back home crashed the Dubai aviation ministry’s website for applications in the process. The consulate says it has received around 200,000 applications for repatriation of expats from as many as 12 countries.

For some, closing businesses are forcing them to go home. For others, the cost of education is the major concern. The Emirates group, Uber’s Middle Eastern counterpart Careem, and hotels are some of the few major employers considering laying off large portions of their staff or reducing salaries.

Dubai has been one of the hardest hit, as expats form an estimated 92% of the population. Dubai based movers estimate that they’re getting up to seven calls a day to ship belongings abroad. It is extremely hard to gain permanent resident status in countries such as the UAE, and the costs of living and education are quite high and often provided by employers, which has made leaving the only option left for many laid-off workers across all fields.

The UAE has tried to offset the damage by granting automatic extensions to expiring work permits, waiving of work permit fees and fines, and providing interest-free loans and repayment breaks.

Meanwhile, governments in Kuwait and Oman are trying to mould the exodus into an opportunity to boost local employment. On the other hand, the Saudi Arabian government has been criticised for not taking enough measures to protect the local workforce.

While the Gulf countries have been trying to decrease their dependence on oil wealth and foreign workforce, it is not something that can be accomplished soon, especially given the great dependence of the Gulf economies on both those factors.

There is still too unavoidable a gap between the current skill of local workers and the training needed to compete with foreign professionals, making it hard to simply employ domestic workers in place of foreign ones. The pandemic, however, might not leave much of a choice.

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