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LATEST NEWS UPDATES | Weak monsoon may raise demand for NREGA work-Devika Banerji

Weak monsoon may raise demand for NREGA work-Devika Banerji

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published Published on Jun 30, 2012   modified Modified on Jun 30, 2012
NREGS
Weak performance of monsoon this year has led the government to anticipate a significant increase in demand for work under its flagship ruralemployment guarantee scheme.

The rural development ministry has asked all states to prepare contingency plans and review their estimates of work demand under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

The move is an indication that the Centre is not very certain of monsoon catching up in the crucial agricultural months of July and August

In a letter to all chief ministers on Friday, rural development minister Jairam Ramesh has asked states to send proposals for additional funds under the scheme. "Although most part of the country is forecasted to receive good rains in July-August, in some parts of the country rainfall has been below normal," Ramesh said.

"This may lead to an increased demand for employment under MGNREGA. In this context I would like to assure you on my ministry's fullest support for meeting the challenges that lie ahead," he added.

On Thursday, the meteorological department had said monsoon was below average last week and has failed to progress as much as they should have till June 27. Rains had been 18% below average in the last week of June. Since the beginning of the monsoon season on June 1, rains have been 23% below the long-term average, fanning concerns about agricultural output this year.

Demand under MGNREGA has generally followed the trend of monsoon. The scheme's effectiveness was established during the drought year of 2009-10 when employment demand under it surged by record 61%. Growth in demand for employment decelerated sharply to 19% in the following year 2010-11 that received surplus rainfall.

In 2009-10, the recession-hit year, the scheme was further credited for increasing consumption capacity of rural areas despite drought and economic downturn. During 2011-12 employment demand under the scheme contracted by 6.40% primarily due to normal rainfall and good reservoir levels.

However, analysts have also suggested worsening administrative issues like delayed wage payments might also have hampered work demand under the scheme during the year.

The Economic Times, 30 June, 2012, http://economictimes.indiatimes.com/news/economy/policy/weak-monsoon-may-raise-demand-for-nrega-work/articleshow/14513925.cms


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