NEW DELHI: Farmers in Punjab are having to fork out more for their farmhands this sowing season. Their regular supply of cheap labour from Bihar seems to have dried up. The Bihari worker is finding employment at home as the state government has ramped up its spendings on development activities.
The increased economic activity in the state is a story that is beginning to attract attention as the first real evidence becomes visible. Bihar���s economic growth has become a moment of crisis for other states, who have for long fuelled their growth on the backs of the low-paid Bihari workers.
The Bihari construction workers from Nasik must be having the last laugh. In February, Raj Thackeray���s Maharashtra Navnirman Sena attacked Bihari workers and drove them out of Nasik. Little did Mr Thackeray know that these workers, many employed in the construction sector, weren���t going to return.
With the conditions in their home state improving, the workers from Bihar no longer needed to risk life. The end result was that Nasik���s construction business landed in a tight spot on account of scarcity of workers.
Bihar���s economy is turning around, and it is no longer merely in the realm of government documents. The changes are now becoming visible on the ground. And the turnaround is impacting other states as well. In Punjab, small farmers are finding that the traditional Bihari farm labour is no longer easily available.
It would seem that the Bihar is no longer the obvious choice for cheap labour. Last year, farmers in Punjab and Haryana paid their migrant farmhand Rs 500 to Rs 600 per acre for the season. This year, the farmers had to hike the rates by as much as 50%, in a bid to attract farm labour.
This will push up the input cost of paddy. The state government has been saying that the MSP announced by the Centre is far less to meet the increased cost of production.
The Bihari labourers, who would have travelled beyond the state for low paid work, are finding work within the state and will venture out only if the pay is worth it.
Road works in the state could explain the story. In the first two years in office, the JD(U)-BJP government has spent Rs 4,722 crore on roads, both rural and PWD roads. Contrast this figure to Rs 366 crore spent by the RJD government in its last year in office on PWD roads and none on rural roads.
This year, the Bihar government proposes to spend Rs 3,000 crore on roads alone. An increase in investment by as much as 800%. More roads, means more jobs besides better connectivity and greater economic activity.
It is not just roadworks that are receiving attention. The state has also been ramping up its spend ��� plan expenditure for the current year has been set at Rs 13,500 crore, while last year (2007-08) it was at Rs 10,400 crore.
Compare this to the average plan layout in the RJD regime, which was at Rs 2 ,000 crore with the spend never exceeding Rs 1,500 crore. Pumping in thousands of crores of funds into the system mean a flurry of construction work ��� roads, schools, hospitals.
Exact figures of how many Bihari workers have chosen to remain in the state is difficult to procure, much of the information is anecdotal. It would seem that local block level officers find that many of those who habitually migrated for work are staying on even if the earnings are marginally lower.
The rise of employment opportunities is the most important reason which explains why Bihar is no longer exporting cheap labour. Other factors that have helped include investment in education and health.
There has been a marked improvement in the utilisation of funds in social sector efforts like universalising elementary education���the state ability to use funds increased from 48% to 78%. The states��� primary healthcare centres are now functional.
From an earlier average of 39 patients a month, these centres now cater to as many as 150 patients a day. The Bihari labourer is no longer treated with disdain, he is a valued and sought after worker. No longer does a trip back to Bihar for Chhat means loss of job.
Which would explain why Surat millowners recently asked the Bihar���s deputy chief minister Sushil Kumar Modi to appeal to Bihari workers to return to Surat after Chhat and Durga Puja.
The increased economic activity in the state is a story that is beginning to attract attention as the first real evidence becomes visible. Bihar���s economic growth has become a moment of crisis for other states, who have for long fuelled their growth on the backs of the low-paid Bihari workers.
The Bihari construction workers from Nasik must be having the last laugh. In February, Raj Thackeray���s Maharashtra Navnirman Sena attacked Bihari workers and drove them out of Nasik. Little did Mr Thackeray know that these workers, many employed in the construction sector, weren���t going to return.
With the conditions in their home state improving, the workers from Bihar no longer needed to risk life. The end result was that Nasik���s construction business landed in a tight spot on account of scarcity of workers.
Bihar���s economy is turning around, and it is no longer merely in the realm of government documents. The changes are now becoming visible on the ground. And the turnaround is impacting other states as well. In Punjab, small farmers are finding that the traditional Bihari farm labour is no longer easily available.
It would seem that the Bihar is no longer the obvious choice for cheap labour. Last year, farmers in Punjab and Haryana paid their migrant farmhand Rs 500 to Rs 600 per acre for the season. This year, the farmers had to hike the rates by as much as 50%, in a bid to attract farm labour.
This will push up the input cost of paddy. The state government has been saying that the MSP announced by the Centre is far less to meet the increased cost of production.
The Bihari labourers, who would have travelled beyond the state for low paid work, are finding work within the state and will venture out only if the pay is worth it.
Road works in the state could explain the story. In the first two years in office, the JD(U)-BJP government has spent Rs 4,722 crore on roads, both rural and PWD roads. Contrast this figure to Rs 366 crore spent by the RJD government in its last year in office on PWD roads and none on rural roads.
This year, the Bihar government proposes to spend Rs 3,000 crore on roads alone. An increase in investment by as much as 800%. More roads, means more jobs besides better connectivity and greater economic activity.
It is not just roadworks that are receiving attention. The state has also been ramping up its spend ��� plan expenditure for the current year has been set at Rs 13,500 crore, while last year (2007-08) it was at Rs 10,400 crore.
Compare this to the average plan layout in the RJD regime, which was at Rs 2 ,000 crore with the spend never exceeding Rs 1,500 crore. Pumping in thousands of crores of funds into the system mean a flurry of construction work ��� roads, schools, hospitals.
Exact figures of how many Bihari workers have chosen to remain in the state is difficult to procure, much of the information is anecdotal. It would seem that local block level officers find that many of those who habitually migrated for work are staying on even if the earnings are marginally lower.
The rise of employment opportunities is the most important reason which explains why Bihar is no longer exporting cheap labour. Other factors that have helped include investment in education and health.
There has been a marked improvement in the utilisation of funds in social sector efforts like universalising elementary education���the state ability to use funds increased from 48% to 78%. The states��� primary healthcare centres are now functional.
From an earlier average of 39 patients a month, these centres now cater to as many as 150 patients a day. The Bihari labourer is no longer treated with disdain, he is a valued and sought after worker. No longer does a trip back to Bihar for Chhat means loss of job.
Which would explain why Surat millowners recently asked the Bihar���s deputy chief minister Sushil Kumar Modi to appeal to Bihari workers to return to Surat after Chhat and Durga Puja.
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