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 5:11 PM

Neom: The Futuristic town coming up in the Arabian desert

Ever since Mohammed bin Salman, popularly known as MBS, became the crown prince of Saudi Arabia in 2017 at a young age of 32 year, he has been working on twin objectives of liberalising the conservative laws of the country and diversifying its oil based economy.

In the last 2 to 3 years Saudi Arabia has done away with religious enforcers, allowed women to drive, loosened the strict clothing norms for women, reopened the cinema and other entertainment events by scaling down many of its ultra conservative rules and regulation.

File:Mohammad bin Salman (2018-06-14) 01.jpg
Mohammad Bin Salman | Source: Russian Presidential Executive Office via Wikimedia

On the economy front, MBS has started many projects to lessen the dependence on oil, of which Neom is the centerpiece. NEOM is a technologically advanced mega-city being built from scratch in the sands at the coast of the Red Sea and is considered to be the dream project of MBS. This magnificent city, will take about $500 billion to complete and be thirty three times the size of New York City. This project will make the country a technology hub, attract international tourists, and will reduce Saudi Arabian economy’s over-dependence on oil.

Neom will boost some of the features which are today seen only in some sci-fi movies. It will employ cloud seeding technology to bring rain in the desert town, display an artificial moon, and use flying taxis for intra city travel. The town will have some functional autonomy which include relaxed laws for women and tourists.

Three of the biggest consultancy firms of the world, Boston Consulting, Oliver Wyman and McKinsey & Co, were roped in by MBS in 2017, to bring his vision of Neom to life. “This is a challenge. The dream is easy but making it come true is very difficult” MBS said.

While the entire project is slated to be completed in 2025, the international airport is already constructed at Neom. Phase-1 of the project was supposed to be completed in 2020, however it was delayed due to the oil price crash and COVID-19 pandemic. “All of these projects will be delayed. It's not paused; it's continuing more slowly” said Ali Shihabi, a Washington-based analyst on the Neom advisory board.

Abdul-Rahim Al-Huwaiti, protestor who was shot dead | Source: MENA Rights

Saudi Arabia has done a wonderful job of letting the imaginations run wild to come up with an idea and start implementation, there are few downsides as well. The area where Neom is being built is home to the Huwaitat tribe who have to relocate elsewhere for the construction to take place. While most of the tribe members agreed to move on, few were not willing to do so. Abdul-Rahim Al-Huwaiti was one such member who actively resisted and criticized the government in videos posted on youtube. He was unfortunately shot dead by the government forces during an operation to clear his house in April, 2020 giving a blot to this wonderful project.

There are still some obstacles in the ‘perfect’ project of modernising Saudi Arabia. “The main project risk probably is the potential lack of large private investors. The local and international private sector will want to hear a lot more detail than what has been published to date” said Steffen Hertog, a leading scholar on Saudi Arabia, pointing out that a lot of clarifications and work is still required.

There is still time before this magnificent town rises to its full glory on the coast of the red sea in Arabian desert. We are eagerly waiting to see the flawless execution of a grand vision of Saudi Arabian crown prince Mohannad bin Salman in the form of the modern marvel, Neom.

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