Labour shortage hits MP industries, output down by 20%

Indore: A sharp shortage of unskilled and semi-skilled labour across Madhya Pradesh’s major industrial belts, including Pithampur, Mandideep and Dewas, has begun impacting factory output, with several units reporting up to 20% production losses as migrant workers return to their hometowns amid rising living costs, LPG supply disruptions and recent labour unrest in automotive units over wages.

Industry representatives said the labour crunch has intensified over the past few weeks after disruptions in LPG and PNG supplies increased operational stress on factories and worker canteens across industrial clusters. Labour unrest in a few automotive units over wage-related issues also added to the pressure, they said.

Automotive ancillaries, plastics, fabrication, engineering, packaging, pharmaceuticals and other labour-intensive sectors are among the worst hit as industries depend heavily on migrant workers from Uttar Pradesh, Bihar, Jharkhand and Chhattisgarh for shop-floor operations.

“Workers are returning because expenses have increased and industries are also unable to run full-scale operations. Labour shortage has significantly increased this time due to geopolitical issues, high cost of gas cylinders,” said Gautam Kothari, president of Pithampur Audhyogik Sangathan.

Industrialists said several workers started leaving after factory canteens and shared accommodations faced cooking gas shortages and higher expenses. Many industries also reduced overtime and additional shifts due to rising fuel and transportation costs, affecting labour earnings.

“The major issue is getting LPG cylinders for cooking and the very high cost of living for workers staying in industrial areas,” said Shyam Sunder Yadav, president of the Indian National Trade Union Congress (INTUC), Madhya Pradesh.

“Industries working on thin margins and labour-intensive operations are the worst hit. Factory owners have started arranging gas cylinders to help retain workers,” said Harish Nagar, secretary of Palda Industrial Association and a furniture manufacturer.

“We are witnessing 20-30% labour shortage. Every summer labour shortage increases, but this year the situation is more severe,” said Rajeev Agrawal, president of Mandideep Industrial Association.

The labour shortage is not limited to Madhya Pradesh. Industry bodies across states have warned that reverse migration is beginning to disrupt production schedules, shifts and exports, especially in labour-intensive sectors dependent on migrant workforce.
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