Before 1980s, it was just the opposite—Indian agricultural workers used to come to Tarai region during plantation and harvesting seasons. But with the green revolution in Punjab and Haryana there ensued a great rush among Nepali agricultural workers to move to those two states. Meanwhile workers also started venturing into other Indian states in general for seasonal migration.
A sizable chunk of people from Tarai, including agricultural workers and casual laborers routinely migrate to find employment in India. Yet there is very little information about the earnings made in that country. The family members of these people depend heavily on remittances from such employment. Agricultural workers in Tarai who have found jobs in Haryana and Punjab are aware of the secrets of green revolution. The knowledge can be a great asset to Nepal.
However, in recent years there has been a significant decline in the number of migrant workers going to India from Tarai for employment. The flow has largely been diverted to overseas countries ie countries out of the Indian sub-continent. The overseas countries that are in the reach of migrant workers from Tarai are Saudi Arabia, Qatar, Malaysia, etc. Most cannot afford to go to comparatively affluent places like Japan, the USA, Europe or South Korea where the prospects of earning better income is much higher. Only educated people prefer to go to Europe, America and other economically affluent countries for employment, but their number is negligible.
Presently, most of the rural households in Tarai region have at least one member employed in a foreign country, though an empirical survey on it has never been conducted. But it can be ascertained that the share of migrants from Tarai in comparison to total Nepalis migrants in India is not more than 10 percent or so. Estimates tell us that 3.5 million to 6 million Nepalis are currently working in India.
Interestingly, the district-wise data of Nepali migrant workers show that the largest number of persons migrated to foreign countries from Dhanusha district which is in Tarai. Of the total 75 districts, the share of migrant workers from Dhanusha district is 6.7 percent closely followed by Jhapa (5.28 percent), Siraha (4.78 percent), Morang (4.24 percent), Mahottari (3.97 percent), Nawalparasi (3.17 percent), Chitwan (2.88 percent), Tanahun (2.84 percent), Sunsari (2.73 percent) and Saptari (2.64 percent). More significantly, nine of the top ten districts with the highest number of migrant workers are from different districts in Tarai.
So far, records show us that migrant workers from the Tarai are predominantly male. But now a new trend is developing, particularly among certain sections of the indigenous women such as the Tharu and Rajbanshi communities, who have gone to work in overseas countries.
It can be safely assumed that a significant portion of Nepal’s US $1.5 billion remittance is pumped into Tarai but there is no official record that tells us how much. However, the Report on the Nepal Labor Force Survey 2008 shows that the average per capita remittance amounted to Rs 3,253 in Tarai, Rs 3,718 in the hill and Rs 1,803 in the mountain region.
Larger portions of the hard-earned remittance money in the Tarai region go for consumption expenditure. People often buy consumer items for themselves or for their family members such as radio, TV, mobiles, bicycle, motorcycle, fancy clothes and food. Upon receiving money from overseas workers, the family members’ frequency of visits to the town or district headquarters increase along with money spent on cinemas, restaurants and alcohol— something very alien to traditional ways.
Therefore, savings made by family members of migrant workers after cutting off expenditure is quite low, though no statistics is available on this aspect. At the national level only 6 percent of the total remittance amount is saved. Hence, the capital formation for productive purposes is largely lacking.
More than any other sector, agriculture in Tarai met a major setback due to out migration of population from this region. Because of the labor shortage, the wage rates have increased phenomenally. Also, there has been substantial increase in the prices of manures, fertilizers and agricultural tools. Other infrastructural facilities such as irrigation, rural roads and marketing channels remain to be developed. As such, very less portion of remittance is invested in the agricultural sector. At the national level, only 1 percent of the total remittance amount was invested in the agricultural sector. The case of Tarai might not be much different from the national pattern.
However, a great change can be seen in the lifestyles of people in Tarai due to remittance money. Traditional thatched huts are gradually giving way to concrete buildings. The family members of the migrant workers have better access to food, clothes, education and even health facilities. Dependence on the traditional money lenders or landlords has either substantially declined or come to an end.
Many migrant workers in Tarai have bought agricultural lands traditionally owned by landlords. All this has helped to reduce social inequality, bridge the gap of inequality in income and opportunities that existed in the rural areas. What the government of Nepal could not do for the people of Tarai in the last six decades ie during the post-Rana period, foreign employment has contributed beyond anyone’s expectation in a single decade. This has resulted in sweeping changes in social, cultural and economic life of Tarai in terms of greater access to education of their children, improved health condition due to availability of food and better housing conditions. Foreign remittance is therefore not a completely missed opportunity; it needs to be properly channeled into productive sectors.
‘Remittance will be used for capital formation now’