Migrants spend Rs 26k crore per year in Kerala: NGO disputes CM

Shihab Pareliy, a representative of the NGO Athidhi Welfare Forum, said migrant workers are part of every major sector, except taxis, buses and government offices.
Image used for representational purposes only.
Image used for representational purposes only.(File Photo | Express)
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THIRUVANANTHAPURAM: Chief Minister V D Satheesan’s recent remark in the Kerala assembly that migrant workers spend just a small share of their income in the state, that too mostly towards buying wheat flour, groceries and liquor, has been disputed by a non-profit working for the workers’ welfare.

Migrants spend at least Rs 26,100 crore in the state every year including on housing, transportation, food and others, Benoy Peter, executive director of the Centre for Migration and Inclusive Development (CMID), told TNIE.

“Though there is no official data on the amount of money they spend in Kerala, studies have found that the workers shell out at least one-third of their income here,” Benoy said, adding that the CM’s remark could have been a “misunderstanding”. “

The statement that migrant labourers are drawing off a major revenue source sends a wrong message,” he said. “The Kerala economy itself is largely supported by remittances from Gulf countries. How can we expect those working here not to do the same? When a key political figure like him makes such a statement, it only helps reinforce existing xenophobia against the labourers,” Benoy told TNIE.

He, however, appreciated the CM’s use of the term ‘migrant workers’ rather than ‘guest workers’, as the latter promotes a sense of othering. He hailed Satheesan’s announcement of initiating a study on migrant remittances, saying it will also reveal the challenges faced by the workers.

According to the ‘In-migration, Informal Employment and Urbanisation in Kerala’ report, sponsored by the State Planning Board and released in August 2021, Kerala was projected to have a migrant population between 45.7 lakh and 47.9 lakh by 2025.

‘There are govt schools that run only because of migrant kids’

Even at the modest end of the scale 45 lakh migrant labourers working on a daily wage of Rs 800 for 22 days a month and 10 months a year and afteraccounting for the money they sent back home, the state stands to gain a revenue of over Rs 26,000 crore, he said.

Benoy said only half of migrant labourers in Kerala get accommodation from their employer. “The rest end up paying rents that eat into a major chunk of their salary. The not-so-rush-hours before 9am of public transport system became peak commercial time because of these labourers. Understanding the demand, interstate bus services to their home states like Odisha are also active today from Kerala,” he said.

Shihab Pareliy, a representative of the NGO Athidhi Welfare Forum, said migrant workers are part of every major sector, except taxis, buses and government offices.

“Though the CM’s remark is right to an extent, the public perception that migrants are not at all spending any money stems from Malayalis’ aversive attitude towards them.

Migrant workers are spending money in almost every field that Malayalis are, including food and clothing. Many are now settled here with families; there are even government schools that run only because of migrant students,” he said.

1/3rd of income

  • Benoy Peter, CMID executive director, says migrant workers spend one-third of their income in Kerala

  • While Malayalis prefer shopping online, the labourers prefer purchasing items directly from shops, contributing to state’s economy, he says

  • Many still do not know how to make payments online. So, they approach shops for anything from mobile recharge to sending money to their families back home

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