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LATEST NEWS UPDATES | Ramesh contradicts FM, says NREGA has positive impacts -Urmi A Goswami

Ramesh contradicts FM, says NREGA has positive impacts -Urmi A Goswami

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published Published on Feb 14, 2013   modified Modified on Feb 14, 2013
-The Economic Times

Rural Development minister Jairam Ramesh has written to Prime Minister Manmohan Singh explaining the positive impact of the rural employment guarantee programme on agricultural production. The note is in response to persistent claims by Finance Minister P Chidambaram and Agriculture minister Sharad Pawar that the rural employment scheme has adversely affected agriculture.

Stressing on the positive impact of the UPA's employment programme, Ramesh has suggested that the Prime Minister call for a discussion on the issue.

"You may recall that on more than one ocassion Agriculture minister and Finance Minister have spoken on the negative impact that MGNREGA seems to be having on the availability of labour for agricultural operations.. You may wish to have this latest note discussed with us at your convenience," the rural development minister wrote.

Ramesh cites improvement in wages, including narrowing of the gender gap, increase in the choice of works for the marginalized, increased agricultural production and productivity, attention to water-related works among the benefits of the scheme.

Queries over growing reverse migration by farm labour from key supplier states such as Bihar, now in the throes of economic revival, impacting on harvesting and sowing operations in the peak agricultural periods in big producer states have been raised time and again in Parliament. In his note to the Prime Minister, Ramesh argues that the rural employment programme has "added to employment opportunities and not substituted them."

While MGNREGA may not be the sole reason, studies have cited anecdotal and circumstantial evidence to prove its significant impact on the gradual withdrawal of unskilled farm labour from agricultural activities in peak season. Drawing on NSSO data, Ramesh argues that the withdrawal from farm labour predates the enactment of the Mahatma Gandhi Rural Employment Guarantee Act. NSSO data indicates that there has been a negative trend in labour force participation in agriculture since 2004-05.

Studies conducted by NSSO also reveal that the rural employment scheme has contributed to reduction in out migration and enhancing bargaining capacity of workers. Additionally increased economic activity in states like Bihar has contributed to drying up of a perennial flow of seasonal migrant farm hands. Increase in non-farm wages, to the tune of 200% of NREGA wages in states like Karnataka, has resulted in a substantial working population particularly the youth moving away from agricultural work. With work options increasing, the cost of agriculture labour has gone up.

Ramesh argues that the majority of the work, nearly 60 to 70% person days in 2010-11 and 2011-12, under the rural employment scheme is generated during the lean agriculture season. "Since MGNREGA's inception the annual average number of persondays per household has never exceeded 54 days. This is indicative of a critical yet small and supplementary nature of this employment. It is hardly likely that such a small proportion of persondays per household would be substituting agriculture employment for the entire year," Ramesh argues.

In his detailed note, Ramesh outlined the positive impact that the rural employment programme has had on agriculture and work opportunities for the marginalized. He said that that the increase in NREGA wage rates can be co-related to the increase in agriculture wage rates. "MGNREGA boost the real daily agriculture rate by arounf 5%. The increase is well targeted in favour of unskilled wages as against skilled wages." He has also referred to reduction in traditional gender wage discrimination.

Ramesh stresses that contrary to the claims of his ministerial colleagues, the fact that NREGA allows for work to be taken up on private land of individual beneficiaries could play a significant role in raising the productivity of small and marginal farmers, "who will then be able to return to farming and will no longer need to depend on the MGNREGA for survival." The minister has described this segment as "untapped potentia;" In 2012-13, 12% of NREGA works were taken up in private lands.

The Economic Times, 14 February, 2013, http://economictimes.indiatimes.com/news/economy/policy/Ramesh-contradicts-FM-says-NREGA-has-positive-impacts/articleshow/18492152.cms


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