Vishwajeet Chakraborty, a small entrepreneur, increased the wage of his labourers by 10 per cent this year. And yet, half of his work force did not turn up to work.
About a year ago, his finger papad unit in Mana, about 20 km from Raipur, employed 25-30 workers. Now he has to manage with only 15 workers, forcing him to shut down one shift.
Chakraborty is not the only one feeling the heat of the labour crisis in Chhattisgarh. Most small and medium enterprises (SMEs) are struggling to get workers, who are developing an addiction for staying at home instead of reporting for work.
It’s the subsidised rice scheme launched by the Chhattisgarh government early last year that is responsible. With people living below the poverty line (BPL) getting a kilo of rice for just Rs 3 under the scheme, labourers prefer to stay in the villages rather than come to the city to work.
During the monsoon, production in Chakraborty’s Krishna Food Products comes to a halt. “For four months, labourers return to their villages and come back in November,” Chakraborty said. But after last November most of the labourers did not turn up.
In all, 20 workers from Sashkhol and Suklibhata villages of Deobhog block—about 200 km from Raipur—were coming for work. But this season, only eight came back. “When I enquired, they told me that the workers do not want to work, as they were getting rice at a subsidised price that had relieved them of the need to come miles to earn,” Chakraborty added.
Though the impact of recession was minimal on food products, Chakraborty had to close one shift. “This has led to a loss of 800 kilos of production per day,” he said. Other SMEs in the area, he said, are facing a similar problem.
What is worrying entrepreneurs is the fear of bigger labour crises ahead. While the Chhattisgarh government has announced it will reduce the price of subsidised rice from Rs 3 to Rs 2, the Congress party has said in its election manifesto that it will give rice and wheat to BPL families at Rs 3 a kilo if voted to power.
The BJP has also announced in its manifesto that it will provide a kilo of rice for Rs 2 to BPL families if the party comes to power in the Lok Sabha elections.
“Every political party is under-estimating the situation and one cannot imagine what the scene can be in the next two years,” said Anil Nachrani, president of Chhattisgarh Sponge Iron Manufacturers Association. The state could plunge into a serious labour crisis and the worst sufferers will be SMEs.
In the medium and big industries, workers are on a roll, Nachrani explained. It is SMEs that engage workers on daily wages. “Because of the rice scheme, the flow of labour from the rural areas has completely stopped,” he conceded.
According to Nachrani, the full impact will not be seen immediately, as most units have cut production following the slowdown. “Once the units start full production, more workers will be required and then the impact of the crisis will be realised,” he said.
