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

Ethiopia's Proposed Dam on the Nile: Will it bring shared benefits or cause war among Ethiopia, Egypt and Sudan?

The longest river in the world, the Nile,  spans a distance of over 4000 miles, passing through large parts of Africa including Tanzania, Rwanda, Ethiopia, Sudan and Egypt, to name a few, and finally emptying into the Mediterranean Sea.

The Nile is a lifeline for Egypt, Ethiopia and Sudan, whose mutual relation took a beating when Ethiopia proposed to build the Grand Ethiopia Renaissance Dam (GERD). The proposed dam would make Ethiopia the biggest exporter of electricity in Africa and give a boost to its growing economy.

However, this project invited furious responses from Egypt as Nile is deeply connected to the history of the country since ancient times. Also about 95% of Egyptian population resides along the banks of the Nile and are heavily dependent on the river for sustaining their livelihood. Building the large reservoir will deplete the water resources of Egypt which will threaten their livelihood.

The Nile is experiencing pernicious effects of escalating population and climate change and the United Nations has projected that it is expected to cause immense water scarcity by 2025. “We’re worried. Egypt wouldn’t exist without the Nile. Our livelihood is being destroyed. God help us” says Hamed Jarallah, an Egyptian farmer.

This 5 billion-dollar project was initiated in 2011, is capable of producing a whopping 6000 megawatts of hydro power and has a reservoir capacity of 74 billion cubic metres. This dam is projected to annually contribute over a billion dollars to the Ethiopian economy. It is alleged that Ethiopia has already started filling the reservoir despite the protests from other countries.

In 2015, Ethiopia, Egypt, and Sudan signed a ‘Declaration of Principles’ which called for the equal water distribution. Despite more than five years of negotiations, these countries are still not able to reach mutually acceptable agreements. Earlier, Sudan supported Ethiopia’s dam proposal as it was promised adequate electricity at a cheaper cost. However, the failure to reach a conclusive agreement led it to oppose Ethiopian dam. Sudan has already gone ahead and notified the United Nations Security Council (UNSC), the dangers its people will face via a letter advocating them to step in.

Al-Sisi meeting President Trump | Source: The White House via Wikimedia

When Egypt made a demand for GERD to release around 40 billion cubic metres of water every year, Ethiopia denied this suggestion while Sileshi Bekele, minister for water, irrigation and energy, called the volume of water ‘inappropriate’. Finally, in 2019, Egyptian President Abdel Fattah al-Sisi turned towards U.S President Donald Trump to settle this long dispute. “The Ethiopian side does not want an agreement and has not offered an alternative” says Egyptian minister Mohamed Abdel-Ati as Ethiopia retracted from the US-led conciliation over GERD.

Secretary Pompeo Meets with Ethiopian Foreign Minister Gedu | Source: U.S. Department of State via Wikimedia

Ethiopia further provoked Egypt when Ethiopian Foreign Minister Gedu Andargachew tweeted that Ethiopia will have “all the development it wants” from the river and that the Nile is theirs. This was a strong posturing which sparked whispers of an apparent war between Egypt and Ethiopia. If it escalates into a war involving the military then Ethiopia might succumb to the powers of the Egyptian army. However, according to Sisi, military intervention is unlikely to take place as he believes negotiation is the best way to arrive at a viable agreement.

As these three countries march ahead in their task to find a middle ground, they should focus on ideas which would include potential for a ‘shared economic advantage’ and also include organizations like the World Bank which can provide financial backing for improvement purposes in such regions.

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