Why Bihar's gain causes Punjab's labour pain


Vikas Kahol | December 22, 2010


Not many people in Punjab are happy with Nitish Kumar's victory in the recent Bihar assembly polls. As Bihar politics was re-scripted in November this year, alarm bells rang for two major sectors in Punjab - agriculture and industry - which form the backbone of its economy.

Reports suggest that distress migration from Bihar - which had already receded during Nitish's last term as chief minister - is likely to decline further.

The prime sectors of Punjab's economy have learnt the lesson that skilled and unskilled hands sustaining them for decades would now head where they have better employment opportunities.

Nitish's second innings has ushered a hope among Bihari migrants to Punjab that there are better prospects back home.

The dividends of the Mahatma Gandhi National Rural Employment Guarantee Act reaped by people in Bihar during Nitish's last term would continue to give them additional purchasing power. The people from Bihar - who would come to Punjab during the non- farming season in their native state - are gradually dumping Punjab which was considered one of the most progressive states in India. The estimates put migrant population in Punjab close to 30 lakh.

One third of the migrants - nearly 10 lakh - are in the industrial city of Ludhiana.

They have been instrumental in making the industry grow.

The helpless industrialists in Ludhiana have long been alarmed of the unnerving decline in migrant labour. But, there was greater discomfort among them after October. A large number of migrants went back to Bihar in October for casting their vote in the assembly elections and celebrate Diwali. Many chose to stay back in Bihar.

This trend has spelt danger for industry in Ludhiana - known as the Manchester of India. The industry has been experiencing severe shortage of labour and the problem is gradually intensifying.

At present it is home to 30 thousand registered and eight thousand unregistered small scale units. Due to labour shortage, they have had to cut their production. Ludhiana also has eight large integrated knitwear factories, roughly six thousand small to medium sized knitwear factories, 10 big hosiery yarn mills and 150 small to medium sized worsted and woolen yarn factories. There are also firms manufacturing bicycles, machine tools, sewing machines, generators, diesel engines, tyres and tubes, and other consumer goods.

J Alandhar - a town synonymous with sports equipment, rubber goods, and auto part industries - is also losing its supremacy due to the shortage of migrants. It is also the world's biggest manufacturer of leather tool pouches and aprons with major American and European customers buying from factories here.

The country's grain bowl is also dependent on migrant farm hands. Punjab is the largest contributor to the central rice pool. It produces nearly 150 lakh tonnes of rice every year bringing 26 lakh hectare under paddy cultivation.

For about three years - the farmers too have been experiencing labour shortage in Punjab during the paddy season.

They are forced to scour railway stations across the state in anticipation of the arrival of migrant labour and lure them with higher wages and comforts including non- vegetarian food, dessert coolers, mobile phones and clothes. Social scientists say that Punjab's economy cannot grow without migrants. A survey by the Punjab Agricultural University had estimated that Ludhiana has more than 10 lakh migrants against its 50 lakh population. About five lakh migrants contribute to paddy cultivation every year. They are hard working and do not form unions. They are not arrogant and are known to take up any job they get.

If Bihar continues to offer better employment opportunities to its natives - which it must - it may be disastrous for Punjab.

Punjab too must wake up and work out a strategy to save its economy. Maybe they can take a leaf or two out of Nitish's book.