Below normal monsoon may force labourers to work in construction sector
If the prediction of below-normal monsoon by India Meteorological Department (IMD) this year turns out to be true then the availability of unskilled and semiskilled labour for construction and real estate sector is likely to increase. Monsoon is the main source of irrigation in agriculture which supports over 50% of the Uttar Pradesh population. Around 84% and 70% of land holding in eastern and western UP regions is below one hectare respectively. This means that the farmers there are mainly marginal farmers. As the wheat harvest season is on, the real estate sector is already facing shortage of labour at present. Projects like Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) of the Centre have also engaged a lot of labours, adding to the shortages.
Uttar Pradesh Real Estate Development Council (REDCO) president S K Garg explains that in case of sub-optimal monsoon, the agricultural labour is idle and jobless. This would increase the supply of labour for the realty sector but the cost of labour is likely to come down due to high inflation. REDCO is affiliated to Confederation of Real Estate Developers’ Associations of India (CREDAI).
Source: Business Standard
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