Kerala   

Government should step in with various steps

Much of the glamour attached socially to those employed abroad comes from the huge financial benefit arising from the exchange rate of the rupee with foreign currencies rather than the enhanced merit of the job holders.

When it comes to the low-paid, skilled, semi-skilled and unskilled workers in the Gulf countries from Kerala, it becomes a real livelihood problem. Government and non-governmental organisations can temporarily give them relief by negotiating with the governments of these countries to increase the remunerations of the workers.

This augmentation should apply especially to those who have put in a few years of service there.

A long-term solution requires the enhancement of their skills and productivity, so that they can get lucrative employment in their home country where job opportunities are steadily increasing, especially in the construction sector.

B.K.S. Nair

Thiruvananthapuram

Thanks to the sluggish U.S. economy and continued capital inflow, the rupee has appreciated sharply against the U.S. dollar.

In the last six months, the rupee has appreciated by over nine per cent against the dollar and over five per cent against the pound and the euro, bringing cheer to importers of oil and high-value capital goods.

There are over 20-lakh emigrant Keralites across the world, with a major chunk working in the Gulf.

Their remittances have kept our economy afloat even when prices of agricultural products were falling.

The steep appreciation of the rupee has caused their remittances to dwindle (close to 15 per cent fall in absolute terms).

This will have a ripple effect in all commercial sectors in districts such as Thiruvanathapuram, Malappuram and Kozhikode. The State government, with the help of Minister of Overseas Indian Affairs Vayalar Ravi, can at least take steps to check fraudulent recruiters, non-payment of salary and other problems to improve the plight of migrant workers.

Reghu P.L.

Thiruvananthapuram

The significant fall in real value of remittances to Kerala by the 19.44-lakh migrant workers during the past year should be brought to the notice of policy makers in Delhi. When the Sensex began to tremble last month, the top authorities were quick to adopt all required policy measures to prevent any further fall. Soon, the market regained its confidence and still continues its bull run.

But nobody in the top echelons of power in Delhi seems to be concerned about the dwindling real incomes of poor Indian migrant workers, sweating it out abroad to keep their families out of the danger zone of hunger and poverty.

If the current trend continues, migrant workers will be compelled to take the reveres migration route.

For a consumerist State like Kerala, the impact of a mass reverse migration will be catastrophic. The present situation can be resolved with a proper mix of short-term policies such as direct relief packages and long-term policies such as introduction of differential exchange rates.

E.M. Thomas

Irinjalakuda

Remittance by Indians working abroad is a major source of foreign exchange; perhaps equal to our export earnings. With the opening up of the economy, foreign exchange inflow and reserves have risen to unimaginable proportions.

With the rupee appreciating against the dollar, the government is finding it difficult to manage the ever rising inflow. It is reported that the RBI has already spent Rs.70,000 crore from its reserve. Exporters are presented with some concessions to set off their loss. But lakhs of ordinary workers, mainly those working in the Gulf countries, and their families over here find no solace from anywhere.

The economy of Kerala is also affected.

It is high time that the State government took up this issue and asked the Centre to compensate these helpless victims

A. Siyavudeen

Thrissur

Forex activities are too varied, and complex to draw clear inferences from such phenomena as currency appreciation; therefore, they may not be indicative of India’s growing economic strength.

Furthermore, the fact that the rupee has appreciated only or mainly against the U.S. dollar and not against other major currencies makes the situation somewhat skewed.

Since it is theoretically possible for remitters to switch to an advantageous currency to safeguard their interests, proper choices will help tide over the trouble. That way, remitters are better off than exporters, many of whom are stuck with the dollar which has been in free fall for months now.

In such situations, the banking industry, instead of being a passive repository of remittances, may play a proactive role, particularly targeting ordinary and small-scale remitters, providing advice and assistance in managing and channelling money.

Banks should use existing tie-ups with their correspondents and other fund managers overseas for this purpose.

Devraj Sambasivan

Alappuzha

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