The document summarizes a study on the impact of MGNREGA (a rural employment guarantee program in India) on agriculture and rural labor markets in the Bundelkhand region. Some key findings include:
- MGNREGA has both positive and negative impacts on agriculture - it increases rural wages but also contributes to agricultural labor shortages during peak periods.
- Most MGNREGA work (90%) is related to agriculture. It functions as a rural labor bank but the labor supply needs to be better organized to support agricultural operations.
- There are significant gaps between available agricultural labor and demand, ranging from 5-68 laborers per hectare depending on the crop. Labor shortage is a major constraint
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Study on-bundelkhand
1. MGNREGA vs Future of Agriculture:
A Study in Bundelkhand Region
Sarda Prasad
Post Doctoral Fellow
Centre for the Study of regional Development (CSRD)
Jawaharlal Nehru University (JNU) New Delhi
2. Outline of Presentation
-Introduction – Overview of MNREGA
-Rationale and Locale of Study
-Agriculture Labour Demand and Supply Gap among the farmers
-Data and Methodology
-Impact of MGNREGA – In Agriculture Labour market
-Inclusion of MGNREGA into agricultural operations for
sustainable agriculture development
-Conclusions and
- Welcome to Your suggestions and comments for further study
3. MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act)
It was launched in 2005 in 200 districts and it spread whole India in 2008.
It is Rights based job for 100 days for BPL family in a year with conditions.
Impact of MGNREGA is negative and positive in agriculture and rural HHs,
and 90 % of MGNRE works are related to agriculture (Jairam Ramesh, 2012).
It is one the main reasons of Agril labour shortage and rural out-migration.
And it is also solution of labour shortage in agriculture and check rural out-
migration.
It has increased wage rate in rural areas due to bargaining power of labour.
It is one of best socio-economic development programmes so far in India
4. MGNREGA ...contd
It is Rural Labour bank in India (SS Acharya, 2011), it should be organized
and regularized for sustainable rural development.
MGNREGA is one of the main source for labour supply in agriculture sector,
and it is one of the solution to overcome labour shortage in rural areas.
We cannot ignore labour shortage in agriculture for sustainable
development. Even would not pre or post pone agricultural operations that is
influencing due to labour shortage in agriculture during peak periods.
5. Rationale of Study
We Need - Food+Fibre+Furniture (Roti+Kapada+Makan)
- Fuel (Bio-gas, Bio-diesel, Oil)
- Fodder & Bio-fertilizer (for & from Animals)
- Medicine (Herbals, Homeo, etc)
-Others beverages and snacks- Alcohal (Vine,
Whisky, Vodka, Rum, Beer), Chips & Kurkure, biscuit and
bread, toast, pickles, sauce& ketchup, Jam& Jelly, etc.
All these are obtaining from Agriculture
Life – Agriculture = Nothing
Indian culture should be Agriculture
6. Agriculture defined as “Growing of crops (group of plants) and
rearing of animals for economic purpose”
Agriculture consists-
Agronomy- crops (Cereals, pulses, oilseeds, millets)
Horticulture- Veg, fruits, flower, aromatic & medicinal, mushroom
Forestry -Production of timber for furniture
Fisheries – Inland and sea
Apiculture – Honey bee
Poultry – Chicken and eggs
Animal Husbandary – dairying, meat production (Mutton, beaf,
beafen, pork, chewan, etc.
7. Agriculture and Labour Relation
In India agriculture is labour intensive rather than capital
intensive (Low chances of mechanization in agri due to land
holding, lack of skilled lab and maintenance cost of machinery)
It is the base of raw materials for Agro-industries
Tremendous business opportunities- through value of
addition of agricultural products.
Value addition increased market value of products and enhance
shelf-life of products through – sorting, grading, washing,
packaging, transporting, storing, etc. of agricultural products.
8. Value addition has 3 elements –
Change the
1-Form of products by Processing
(Chips, pickle, jam, bread, butter,
toast, flour, paneer, papad, etc.)
2-Time of consumption –Storage
3-Place of consumption –
Transportation
All these process required many
labours in each stages of value
addition
9. In both projects- We have found that “Labour shortage is one of the major constraints
in pulse production and adoption of innovation in agriculture”.
And another finding was – Human labour cost was higher than other input cost in
cost of cultivation of pulse crops, even pulse crop require lesser no. of labour
14. Table 3: Labour demand and supply gap in Bundelkhand region, 2011
Crop
Agriculture
Form*
Farmer
Hired lab/
Ha (Av) Gap
Paddy 149 54 95
Sorghum(Jowar) 56 41 15
Black gram(Urd) 76 37 39
Green Gram(Moong) 42 37 5
Red Gram(Arhar) 65 37 28
Sesmum (Till) 89 21 68
Wheat 42 59 -17
Maize 151 na na
Ground nut (moong falli) 168 na na
Cotton 268 na na
Sugarcane 502 na na
15. Labours requirement for Field Operations for cultivation
1 Manuring/composting (10-20 tonnes/ha) 9 Disease management
-Loading and deloading Mechanical
-Spreading Chemical
2 Field preparation 10 Harvesting
By plough Manual
by tractor Harvester/Combine
3 Improved varieties 11 Threshing
4 Sowing/Transplanting Manual
Line sowing Thresher
Spreading Bullock paddling
Transplanting 12 Cleaning of grain/Seed
Tractor/Cultivator Benower
5 Irrigation (If delayed, 5% yield reduced per day) Hand cleaning
Flooding 13 Packaging
Check basin/bunding/furrow In container
Sprinkler/drip in packet/bag
6 Weeding (2 to 4 @15 days interval) 14 Storing
Manual Storage/Dumping
Mechanical Bags
Chemical Containers
7 Fertilizer and quantity (A,B,C,D) 15 Marketing
Basal application Local market
Folliar application/Spreading Distance market
Liquid application (With irrigation water) National/Internal market
8 Insect pest control 12-15 Post harvest management
Mechanical Value addition
Chemical
16. Both are processor and monitor of agriculture
Cultivator –Manager or supervisor
&
Agricultural Labour- Actor
17. Source: Census of India
Cultivator - if he or she is engaged in cultivation of land owned or held from
Government or held from private persons or institutions for payment in money, kind
or share.
Cultivation includes effective supervision or direction in cultivation.
Cultivation involves ploughing, sowing, harvesting and production of cereals and
millet crops such as wheat, paddy, jowar, bajra, ragi, etc., and other crops such as
sugarcane, tobacco, ground-nuts, tapioca, etc., and pulses, raw jute and kindred
fibre crop, cotton, cinchona and other medicinal plants, fruit growing, vegetable
growing or keeping orchards or groves, etc.
Cultivation does not include the following plantation crops - tea, coffee, rubber,
coconut and betel-nuts (areca).
Agricultural Labourers- A person who works on another person's land for wages
in money or kind or share is regarded as an agricultural labourer.
She or he has no risk in the cultivation, but merely works on another person's land
for wages. An agricultural labourer has no right of lease or contract on land on
which She/he works.cost of cult wheat.doc
18. Fig 1: Main Agriculture Work Participation rate (%) 2001 and 2011 in Indian State
Source: Census of India, 2001 and 2011
0.00
5.00
10.00
15.00
20.00
25.00
ANDHRA…
MAHARASHTRA
TAMILNADU
KARNATAKA
CHHATTISGARH
GUJARAT
MADHYA…
BIHAR
WESTBENGAL
TRIPURA
ORISSA
PUNJAB
UTTARPRADESH
HARYANA
JHARKHAND
MEGHALAYA
KERALA
RAJASTHAN
ASSAM
UTTARANCHAL
SIKKIM
MIZORAM
MANIPUR(Excl.…
ARUNACHAL…
JAMMU&…
GOA
NAGALAND
HIMACHAL…
India
T _2001
T _2011
19. Fig 2: Main Agriculture Work Participation rate (%) 2001 and 2011
Source: Census of India, 2001 and 2011
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
Punjab Haryana UP India
F_2001
F_2011
M_2001
M_2011
T _2001
T _2011
20. Fig 3: Main Cultivator work participation rate (%) 2001 and 2011
Source: Census of India, 2001 and 2011
0.00
5.00
10.00
15.00
20.00
25.00
Punjab Haryana UP India
F_2001
F_2011
M_2001
M_2011
T _2001
T _2011
21. Type of Agriculture Labour
1- Permanent Labour- Employed whole of the year or for six month
2-Causal Labour- for certain periods
3-Contract labours- for harvesting, sowing, weeding, etc.
Mode of payment in Agriculture Work
-Share of the crop (Kind) -for harvesting and sowing/transplanting (for
permanent/Contract and (Most of them prefer)
-Cash wage – casual
22. Reasons of Labour shortage
and
Increasing Wage rate in Agricultural work
Both are cause and consequence of each other
23. Main Reasons of Labour shortage in Agriculture
Rural out-migration
MGNREGA
Disinterest of rural youth and farmers
Political influence on labour- SP and BSP in UP
Wage differential and duration and nature of agriculture work
Available labour not accessible- due to various factors
Reasons for Higher Wage rate in Agricultural work
-Labour shortage - Supply and Demand factor
-MGNREGA Wage rate – Income/earning factor
-Migrant households – Time factor (Remittances influence)
24. Reasons of Labour shortage Total
Out-Migration 65.8
MGNREGA 71.7
Lack of interest in agriculture work 62.5
Total (N) 360
Statement Total
1 When did labour shortage start
Don't know but for 20 year 63.6
1990 36.4
2 Acute labour shortage start
From last 20 years 68.9
1990 9.7
1992 0.6
2006 20.8
Total (N) 360
Table 4: Reasons of Labour Shortage in Rural Areas, 2011 in Bundelkhand region
Table 5: Labour shortage began in rural areas, 2011
Decisions??
Should
MGNREGA
stopped to
overcome
agriculture
labour shortage?
or
It should be
continue for
sustainable rural
development
25. Labour prefer Non Agriculture Work
Socially and Psychologically agriculture work considered as
inferior profession as-
1- Low scope of skill development
2-Less scope for promotion and better prospectus
3-There is no fixed hours of work
4-The work is irregular –Rush and Less in different periods
5-Some worker do day and night
6-Not permanent
7-No social security measure, no compensation, no pension, no health
allowance
(Chhina, 1998)
26. Relationship changed between Labour and Landlords
According to a high caste farmer who owns a large amount of land
“Labourers are now working according to the movement of the clock. They do
not bother whether the work is finished or not. In case we do not pay for the incomplete
work they threaten to go to the police and file a case against us”.
“The SCs were not coming to us for agricultural as well as non-agricultural work,
even if we offer them higher wages sometimes. Earlier they were working as bonded
labour but they try to also ignore us now-a-days”.
An old high caste person stated that
“We cannot afford labour during the peak periods because of higher wage rates
demanded by the labour (more than Rs. 150 per day) and if we hire labour at this wage
rate then our cost of cultivation is higher than the returns from the field. Our sons,
daughters and daughter in-laws are now working in the field, who never went out
from home. This is very painful for us to see”.
27. A group of youth workers (of SC) mentioned that
“We are working for that (particular) farmer, because he provides breakfast, tea,
pan masala, and bidi/cigarette. He is also flexible about work and gives wages on time.
He respects us, never forces us to work, and has a caring and helpful nature. He lends
money without interest whenever we need. He never threatens or cheats. And we don’t
want to work high caste farmers those have cheated, discriminated in past to our fore-
father under gun point. Even we don’t want their work, if they show their attitude. We
know our rights, well aware about the laws of discrimination against us”.
The agricultural work cannot be pre or post-pone and all the agricultural work
started at the same time for each farmer. Hence, all the farmers required labour at
the same time, and it increased higher agricultural labour demand.
31. Impact of labour shortage in Agriculture
-Change cropping pattern and intensity- low labour intensive crops & monocrop
-Lack of Crop rotation and diversification in agriculture- affect soil fertility
-Field operation change- Cannot pre or post pone time of Agril operation
-Affect quality and quantity of produce- Ignore post harvest management
-Change land market – leased out or remain fallow, may be sold
-Soil fertility degraded- avoid manuring and composting into field
-Others – Reduce milch animals
-Affect health of the farmers and their family member
Now, Only MGNREGA can boost agriculture in the region
32. Locale of Study
Why Bundelkhand for the study, though this region is not
advance in agriculture
Mainly four reasons for choosing this region –
-Highest proportion of rural out-migrant in total population
-Agriculture is main source of livelihood followed
remittances
-Lesser no. of people of this region are aware about the
govt. development schemes.
Another reason is highest level of corruption in MGNREGA
33. Region
Percentage Distribution of Population and Migrants
RTP RTOM RMP RMOM RFP RFOM
Western 33 36 34 30 32 44
Central 17 8 17 8 17 7
Eastern 45 50 43 58 46 40
Bundelkhand 5 6 5 5 5 9
Total 100 100 100 100 100 100
Table 6: Rural Population and rural out-migrants by sex in Uttar Pradesh,
(duration 0-9 years during 1991 to 2001)
Note: RTP=Rural total population, RTOM=Rural total out-migrants, RMP=Rural male
population, RMOM=Rural male out-migrants, RFP= Rural Female population, RFOM=Rural female
out-migrants.
Source: Census of India, 2001
34. District
Percentage Distribution of Population and Migrants
RTP RTOM RMP RMOM RFP RFOM
Jalaun 17 15 18 15 17 16
Jhansi 16 24 16 16 16 29
Lalitpur 13 11 13 7 13 14
Hamirpur 14 7 14 9 14 5
Mahoba 9 11 9 10 9 11
Banda 20 28 20 37 20 21
Chitrakoot 11 4 11 5 11 4
Total 100 100 100 100 100 100
Table 7: Rural Population and rural out-migrants by sex in Bundelkhand region
(duration 0-9 years during 1991 to 2001)
Source: Census of India, 2001
35. Objective
To find out the causes of Labour shortage in Agriculture
To examine the labour required for cultivation of crop.
To list the possible solutions to overcome labour shortage in
agriculture for sustainable development.
Data and methodology
Based on primary data, ICAR Literature and Census
360 farmers have been interviewed from 6 village in two
districts of UP. during May to September 2011.
Qualitative data have been taken through FGDs.
36. Results
Suggestions of the farmer to overcome labour shortage in agriculture-
-Inclusion of MGNREGA Labour in Agriculture: Economic affair
-Introduction of Cooperative Farming: Socio-economic affair
-Mechanization in Agriculture : Economic and technical affair
-Use of family member : Female and children (family cooperation)
-Hiring of labour from out side of village: Geographic factor/migration
Only MGNREGA will be discussed here.
37. How MGNREGA is Feasible in Agriculture
Cannot change agricultural operation (Pre or post pone). Timing of
agricultural work is same in whole geographic area.
MGNREGA can help in Mixed farming- Dairying, Poultry,
piggery, fishery, etc.
Promote mixed cropping- two are more crops at time in same land
Labour intensive cultivation – for more credit, more production
and more employment.
Promote mechanization and scientific farming
Boost income throughCash crop – vegetables, sugarcane, flower,
fruits, etc.
Increase production of milk and milk products
38. Inclusion of MGNREGA in Agriculture
The reports on MGNREGS revision, written by Dr. Mihir Shah, that was
released by Mr. Ramesh, on 22nd February, 2012, mentioned that farmers can get
8 man-days per acre for transplantation and another four man-days for weeding in
2 intervals under NREGA scheme free of cost.
MGNREGA now changed from old practice of “Jab kaam khulega, tab kaam
milega” into “Jab kaam maangenge, tab kaam khulega”.
Those farmers are eligible to get NREGA labours, who would adopt System of
Rice Intensification (SRI) for maximum 3 years in SRI block.
“SRI is an agronomic technique of paddy transplanting in early (8 to 14 days age),
followed by alternate wetting and drying irrigation and mechanical weeding
(Shah, 2012, p79)”.
39. How MGNREGA helps farmers
Regulation of NREGA for Agriculture – Should be Organized for agriculture
List of registered landlord/farmers who need labour
List of job card holders who want to work in agriculture
Some rules for hiring labours and working durations and conditions
Panchayati Raj Institutions (PRIs) should be played role of mediator and
managed list of farmers and card holders.
The farmers need labour during peak period of agriculture, but not regular, so non
agricultural work should stop.
Farmers should not get labour free of cost, but they get some subsidy or monetary
help from MGNREGA fund.
Contd…
40. Wage for NREGA labour for agriculture would be paid by the farmers. Though,
the gestation period of the agricultural input is longer and farmer would unable to
pay wage on the spot. In this case Panchayat should be paid the wage to the labour.
Whenever the farmers would be able to pay, the panchayat should collect it.
In case farmers are unable to pay (the wage) money to the panchayat, except
natural hazards, the panchayat would be authorized to take farmers land as much
equal to the amount of the wage and that land would be leased out to the other
farmers or the labours for a year only.
If the crops would be lost due to natural hazards government should be paid or
provides subsidy to the farmer (crop insurance).
Contd…
41. Panchayat should arrange registration process and maintain records of NREGA
job card holder/labour and labour requiring farmers.
For registration, the farmers should show their land records documents and pay
nominal charge for maintenance for a year.
The farmer should also have to pay some money to the panchayat as security,
according to number of labour demand before hiring labour.
The registered farmer should get labour bank card as labour has job card.
(MGNREGA is Labour bank in rural areas, SS Acharya,2012).
The Panchyat would provide NREGA labour to registered farmers under the
agreement.
42. What type of Agreement should be?
The agreement should not be static in nature, hard and fast rule and regulation,
but it should be need based and mutual understanding of the farmers and labours.
In case the labour is not interested to work any of the registered farmers’ field
panchayat should not be forced to the labour for that, and similarly, if the farmer is
not interested to hire anyone of the NREGA labours then panchayat should not force
farmers to hire that labour too.
Labour and farmers should be mutually interested on each other and respect
each other.
Contd…
43. Farmers (Landlord) should not be insulted to the labour in any forms (physical,
emotional, others) and labour should not be left the work till work would not be
finished (if time not over 8 hrs).
Labour should be paid full wage for a day, if he/she will spend more than 4
hours in the field/house of the farmer, but, if the labour left the work after 4 hours
without consent of the employer (farmer), labour is not eligible to get wage of that
period of work.
Any labour is hired for one day only and he/she is free to choose their employer
next day.
44. Wage Subsidies to the Farmer
Labour prefers NREGA work over agriculture work, because he can earn Rs. 200-
250 per 3 hours by digging of pits (10 x 6 x 1 feet), but they never earn that much wage
from any other work in village.
Farmers are agreeing to pay average Rs. 100/200 per day and rest amount would
be subsidy (Half of existing wage rate).
Farmer can get wage subsidies only for agriculture works.
Farmers can also hire labour from panchayat for other than agriculture works such
as construction work at the same wage rate.
From this agreement, village panchayat should assure to the farmers to avail the
agricultural labour during peak period, and labour to get job with full amount of wage.
45. The government can increase number of days of NREGA work from 100 to 150
Days, because most of the farmers required 30 to 40 labour per ha depending on crop.
That will check distress (Push) rural out-migration.
Monitoring
To avoid corruption and irregularities monitoring is must.
Relationship of “I would hire you” and “you would hire me”.
Labour would be availed to registered cultivators/ farmers only not land lord (Who
leased out his land)
46. Conclusions
Labours prefer NREGA works over agri work because of wage rate, mode of
payment, nature and duration of work.
Sometimes, farmers feel helpless and crying and blaming government policies.
Mechanization in agriculture is an alternate option but it has some limitations
such as cost and its maintenance, accessibility and availability of labour on time for
all categories of the farmers.
Thus agriculture labour shortage cannot be ignored in agriculture and rural
development.
It is government responsibility to providing labours for agricultural works so
that it should not be affected negatively.
MGNREGA labour should be involved in agriculture in subsidised wage rates
for sustainable agriculture (Future of agriculture).