After the farmers of Punjab, the industrialists of the state are feeling the heat of the labour shortage caused by reduction in migration by the labourers from Bihar and Uttar Pradesh.
Though winter season is only two months away, skilled labourers engaged in the woollen cloth industries have not turned up. Even the price of dyed yarn has gone up by 100%, adding to the cost and overall production costs have started touching the roof.
Industrialists say the implementation of the National Rural Employment Guarantee scheme in the country has led to this shortage. Earlier, labour used to come from Bihar, some parts of Uttar Pradesh, Bengal , Orissa etc. But now as the employment guarantee scheme has been enforced in the entire country, casual labour that worked on a daily-wage basis has stopped moving from these states to Punjab. The National Rural Employment Guarantee Scheme (NREGS), promises a job to one member of each family in rural areas so it has affected the flow of migrant labourers to Punjab.
?When you can get Rs100 in your own village, why should one move out for work?? says Dashrath, a civil contractor from Bihar. ?If there?s work available locally, what is the point in going to Punjab?? he told FE on Wednesday.
Industrialists say labour shortage was a major factor that had affected the very scales of production and profitability in Punjab. ?We have labourers working on contract. We used to pay them on piece-rate basis. However, this time many skilled labourers in woollen cloth and knitting had not turned up.
Industrialists say that another reason the non-revision of minimum wage by the state government had also told upon the flow of labour hands to Punjab. Neighbouring states including Haryana have better minimum wages for the labour compared to Punjab. In fact Haryana pays highest minimum wages in the country.
Capt G.S.Virk, an entrepreneur from Patiala commented that in a year or two, you will see a major shortage of labour in Punjab.
In Punjab, the minimum wage that an unskilled industrial worker gets is Rs 2,620 per month while in neighbouring Haryana an unskilled industrial worker gets Rs 3586 per month.
Capt G.S.Virk, an entrepreneur from Patiala commented that in a year or two, you will see a major shortage of labour in Punjab.
Brahm Dutt Sharda, president of Punjab Dyeing Association told FE that dyeing units had suffered in particular because these units mainly rely on China for nearly 70 % of their raw material supplies and that country had stopped exports of dye stuffs due to Olympics. As a result of this, dyeing units were forced to rely on domestic supplies, the prices of which increased by over 30 % in the last two months.
He said as a result, prices for dyeing of yarn had increased by about Rs five per kg, those of cotton had increased by Rs 10. An increase in dyeing yarn and cotton are sure to have a bearing on hosiery and knitwear industrial units, he added. Significantly, Ludhiana accounts for more than 50 of total hosiery units in the country.