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LATEST NEWS UPDATES | MGNREGA led to double digit growth in wages annually, exceeding rate of inflation

MGNREGA led to double digit growth in wages annually, exceeding rate of inflation

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published Published on Mar 15, 2012   modified Modified on Mar 15, 2012
-The Pioneer

Hitting at UPA’s biggest flagship scheme Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Agriculture Ministry has criticised the scheme in it’s first ever Agriculture Survey saying that MGNREGA has led to double digit growth in wages annually in the last few years even exceeding the rate of inflation that prevailed during this period.

The Agriculture Survey is compiled by the Agriculture Ministry as a precursor to Union Budget on lines with Economic Survey with directions from the Prime Minster last year considering the importance of agriculture for the country’s economy as more than 50 per cent of the population depends on agriculture for livelihood.

In the report which was presented in Rajya Sabha on Tuesday, Agriculture Ministry reiterated that the evaluation studies carried out it recently have shown that “while MGNREGA has contributed toward water conservation and water harvesting structures, drought proofing and tree plantation, flood control, micro and minor irrigation works and land development, which will have a positive impact on agricultural productivity, it has also led to a substantial increases in the wage rates of agricultural labourers, reduced the availability of labor for agricultural operations and increased the cost of cultivation”.

The report emphasises that there is a steady increase of agricultural wages in all major the States of India post roll out of MGNREGA.

For instance, the annual average wage in Andhra Pradesh for unskilled agricultural labor has increased by 28.6 per cent in 2009 compared to 2008 and further increased by 22.5 per cent in 2010. Similarly in Orissa the wage increase has been 20 per cent in 2009 over 2008 and 30.7 per cent in 2010 over 2009. In Punjab the increase has been 22.2 per cent in 2009 and 20.3 per cent in 2010.

In Tamil Nadu the increase has been 20.4 per cent and 27.6 per cent, respectively, in 2009 and 2010 in comparison to the respective previous years.

The Pioneer, 13 March, 2012, http://www.dailypioneer.com/business/49462-mgnrega-led-to-double-digit-growth-in-wages-annually-exceeding-rate-of-inflation.html


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