Fearing loan sharks, Indian workers seek cash aid

Anuradha Nagaraj -

Informal workers in India urged Prime Minister Narendra Modi in a petition on Tuesday to grant emergency financial aid to protect them from loan sharks and labour traffickers as the pandemic erodes their incomes. India is one of the countries worst affected by coronavirus, and a strict lockdown earlier this year took a heavy toll on informal workers, who represent 90 per cent of the nation’s 450-million-strong workforce.

Tuesday’s petition, signed by 1.5 million people including migrant workers, street vendors and home-based labourers, calls for cash handouts of Rs 6,000 ($81) for at least the next four months to help prevent risky borrowing, human trafficking and child labour.

“This assistance will provide liquidity to the vulnerable families below poverty line,” said P Balamurugan, a member of the Tamil Nadu Alliance - a coalition of 100 charities seeking to improve the conditions of garment industry workers.

The petition, which was initiated by the charity coalition, included signatories from 23 Indian states, the organisers said. Asked about the appeal, Principal Government Spokesman K S Dhatwalia said “a slew of measures for all categories of workers” had been announced since the start of the pandemic.

“These initiatives have been updated along the way to meet the needs of people,” he said. Modi’s administration has pledged to spend Rs 35 billion ($463 million) on food for migrant workers and offer them local jobs under a rural employment scheme. But many informal workers fear lacking documentation or a bank account will hinder their access to government aid, and labour rights activists say large numbers have turned to informal lenders often charging high rates of interest. India’s home affairs ministry issued an advisory in July urging state governments to launch anti-trafficking awareness campaigns, amid increasing fears that countless people without work, food or money may fall prey to traffickers.

The petition said the cash aid would act as a “safety net”, minimising hunger and reducing the likelihood of human trafficking, child marriage and child labour among the informal labour force.

“The cash aid will give them access to essential food commodities, medical care, payment of rent, and other supplementary expenses,” it said.

On the opening day of the new Parliament session, MPs from Tamil Nadu and Maharashtra asked the labour ministry for details of migrant workers who had returned home during the lockdown, those who had died during their journeys, and the compensation received by their families.

The ministry said nearly 10.5 million workers had left for home. But on the number that died, it said, “No such data was maintained” and so, the question of compensation “does not arise”.

The lockdown had prompted millions of migrant workers to flee the cities, often on foot, for their homes in the countryside. The magazine India Today had documented details of 238 migrant workers who died while trying to reach home. — Thomson Reuters Foundation