Impact of Mahatma Gandhi national rural employment guarantee scheme (MGNREGS) on agricultural labour market
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Date
2013
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Department of Agricultural Economics, College of Horticulture, Vellanikkara
Abstract
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) is the flagship programme implemented by the Government of India, assuring 100 days of work for every rural household who are willing to do unskilled manual work. The scheme was initially implemented in February, 2006 and later on extended to all over rural India. The objective of the scheme is to enhance livelihood security of rural households by creation of durable assets. Budget allocation under the scheme during 2011-12 was `40,000 crores. This study analyzes the supply side effects of the scheme on agricultural labour, wages and farm income and provides suggestions for betterment of agriculture. The study was carried out in Palakkad district of Kerala. Multistage purposive sampling procedure was adopted to select the sampling units. The criteria of maximum lead in implementing MGNREGS and maximum area under paddy cultivation formed the basis for selection of block panchayats and grama panchayats. Random selection of 20 beneficiaries and 20 farmers from each grama panchayat was done for eliciting information. In addition, MGNREGS officials, work supervisors and people’s representatives were also chosen, thus making a total sample of 120. Personal interviews and focused group discussions were used to gather data. The data pertaining to the financial year 2005-06 and 2011-12 was compared for deriving the inferences. More than 90 per cent of the total fund was used for works like water conservation and water harvesting, micro irrigation, renovation of traditional water bodies and land development. There is no supply of labour under the scheme in individual land owned by small and marginal farmers during the study period. Regular cultivation practices and individual lands of large farmers are not included under the scheme. The average annual work days of the beneficiaries have increased from 67 to 85 (26.87%) after the implementation of the scheme and their annual income has increased from ` 3,069/- during 2005-06 to `7,568/- (147%) during 2011-12. Mean annual work days of the beneficiaries in agricultural sector had decreased from 65 to 20 and the income of beneficiaries from agricultural works also had decreased from `3116/- to `1810/-. Regression analysis showed that MGNREGS participation and agricultural works participation are inversely related, with a co-efficient of 0.19. MGNREGS wage has increased from `125/- to `150/- per day during the study period (20%). The wage rate for agricultural works is showing an upward trend linked with MGNREGS wage hike. Agricultural wage rate for women workers has registered 200 per cent increase from `50/- to `150/- per day. Though the MGNREGS wage rate is linked with the statutory minimum wage rate of the state, the latter remained unchanged from 2008 (`150/- per day). Total labour requirement for cultivation of paddy has decreased from 82 to 71 man days per hectare (15.5%). Male labour availability has decreased by 50 per cent and women labour availability 60 per cent. Hired human labour component, which accounted for 49.3 per cent of the total cost of cultivation during 2005-06 has fallen to 44 per cent. Functional analysis using the Cobb-Douglas model indicated that the elasticity of production due to labour input has decreased from 1.16 to 1.12. Delay in getting labourers on time and fall in quality of work are perceived as the major constraints by the farmers. Delay in getting payment and over lapping of agricultural and MGNREGS works are the major problems faced by the beneficiaries. Formation of stakeholder group for work scheduling, implementation of one time land development works like field leveling and re-sizing under MGNREGS and utilization of remaining labour days for agricultural works by providing training for machine operations are suggested.
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