Sex Workers Fall Into Financial Distress in Second Covid Wave

Advisories to provide ration go unheeded, as women fall prey to vicious cycle of debts.

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Over 90 per cent of sex workers in Andhra Pradesh, Chhattisgarh, and West Bengal have been hit by a financial crisis, a recent survey conducted by Vimukti, a community-based organization of sex workers and survivors of trafficking, and ‘HELP’, a human rights organization, has revealed. These women make up 90 per cent of the total 500 women surveyed in the three states.

The study finds that these sex workers have been sucked into debt traps, wherein they have taken loans from multiple MFIs (Micro Finance Institutions) and private money lenders, primarily by often taking a new loan to pay an existing one. This has lead to increased debts and deeper poverty entrenches. The survey was part of multi-state survey across West Bengal, Chhattisgarh and Andhra Pradesh on the economic impact of lockdowns on the survivors of human trafficking and sex workers. Vimukthi’s data is based on 500 sex workers from the Prakasam, Guntur, and Krishna districts of Andhra Pradesh.

The Covid-19 pandemic has had a brutal impact on all people. Sex workers being the most marginalized, are often alienated by the general public, as well as by policymakers. As a result, they were worst affected by the pandemic outbreak. Sex workers across India have been urging the central and state governments to support them in these difficult situations.


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A study published in Sage[1] reveals that there are almost 20 million sex workers in India. Of these, 120,000 sex workers in Andhra Pradesh have been on the brink of starvation for the past 1.5 years. To cope with the loss of livelihood and income, they resorted to borrowing loans from private money lenders with high-interest rates. However, their plea to the government for access to rations, medicines, and welfare did not meet any response. Their situation is the worst amongst unorganized/informal women workers.

The National Human Rights Commission had issued an advisory directing state governments to provide dry rations, financial assistance, transportation facilities, masks, and sanitisers to sex workers, along with access to reproductive health services and counselling to deal with anxiety. The NHRC also stated that all rights and entitlements available to ‘workers’ of India may be extended to sex workers, through an explicit advisory to this extent. The Commission proposed developing a one-year support plan for sex workers who would be unable to work, even after the lockdown ends, in consultation with them and based on their needs. Such a support plan could offer options for employment for them and their dependents. However, even months after the advisory was first issued, there has been little progress in its implementation. The Hon’ble Supreme Court of India, in September 2020, had instructed all state governments (while responding to a criminal appeal no. 135/2010 filed in a case between Buddhadev Karmaskar Vs West Bengal and others) to distribute free ration to the sex workers along with the benefits provided to all other categories of beneficiaries during lockdown period under COVID relief support services.

However, the report found several gaps in policy implementations. According to the survey that collected data from 142 sex workers in Andhra Pradesh, it found:

During the first wave of COVID, a total of 116 sex workers took loans, of which 99 per cent are still indebted to money lenders and are continuing with their debts. They borrowed on an average of Rs. 52, 350, from a minimum of Rs 5,000 to a maximum of Rs 4,30,000.

Of a total of 142 people, 70 per cent were found to be in debt. Some of them even took more loans during the second wave of the pandemic. Loan amounts in this period ranged from Rs 5,000 to Rs 5,50,000. The debt amounts were spent on food and Covid- treatment in private hospitals, since treatment in a government hospital was inaccessible to many.

As per the assessment, 21.92% are in Low Risk, 74% are in Medium Risk, 4.08% are in High-risk categories. The loan amount was fairly high in the second wave, with the highest being 4,30,000/-. The interest rate also ranged between 15 to 20% per month.

Contrary to public perception, which argues that sex work offers more income than other forms of informal labour, the survey seems to indicate that the sex workers in AP have little or no savings and live on daily subsistence. “For their families and their children, this is the only means of survival,” Mehrunnisa, the state convener of the Vimukti, said. Most sex workers who participated in this survey had children below 18 years, ageing parents, or other family members who are dependent on regular medication.


Also Read : Analysing the Status of Human Trafficking in Andhra Pradesh

“I am worried about the increasing amount of debt at a time when I am unable to effort rations for my family. I have weathered many storms. But this time, I do not see any solution to the increasing distress that we are in,” said Pushpa, a member of Vimukthi.

The second wave of Covid-19 induced lockdown has brought thousands of such sex workers in Andhra Pradesh to absolute desperation. Many like Pushpa take loans to find a way out of this crisis without any means of repayment. The debt, thus, keeps mounting. Entire families are rendered destitute in this vicious cycle of loans, interests and repayments.

Prostitution took a severe hit from March to October in 2020. There was no option other than taking loans from private money lenders against high interest since sex workers are often denied loans from banks or any other state agencies. After October 2020, the number of customers increased gradually. The second wave of Covid-19 resulted in a total fall in sex work, who again resorted to loans to survive the period. This happened before they could pay back the loans they took earlier.

As per the AP State AIDS Control Society’s statistics, as of Jun 2020, the state of Andhra Pradesh has nearly 1,20,000 sex workers registered under their targeted intervention. As per the directions of NHRC and Supreme Court, 75% of the sex workers have been provided with free ration up to December 2020. But this is only the case for women with ration cards. No relief has been provided to sex workers during the second wave by the central or state government.

Co-Convenor of Vimulti, A. Bhanupriya stated Rs 500/ month was deposited as cash compensation to the Jan Dhan accounts of women by the union government. However, only 10% of sex workers in the state have a Jan Dhan account. Bankers have refused to convert their saving accounts into Jan Dhan accounts, and have denied the opening up of new Jan Dhan accounts for sex workers.

Meharunnisa feels, “Even though we are in such extreme difficulties, the government seems unconcerned and apathetic. Vimukti had initially requested the AP government to include sex workers under the Nava Ratnalu scheme (nine government welfare schemes), like all other disadvantaged groups in the society, but that too has not been heeded thus far.”

(About the authors: Ram mohan Nimmaraju (ex – Journalist) an activist at HELP organisation and member of Leadership Next consortium, who has been working with survivors of human trafficking and exploitation in their journey for access to justice, rights, entitlement, participation and empowerment.
Ms.Meharunneesa and Bhanupriya, are survivor leaders of the VIMUKTHI and member of Indian Leadership Forum Against Trafficking (ILFAT). Vimukthi is a collective of more than 1000 Sex workers & survivors of human trafficking and gender based violence. They are one of the fighters in the frontline and involved in grass root level intervention and policy advocacy)