A high-level committee appointed to examine introduction of minimum support price (MSP) for non-timber forest produce has recommended that a central agency be constituted to fix MSP for the produce collected by tribals and the price be fixed keeping in mind wages paid under National Rural Employment Guarantee Act (NREGA), transportation cost, value addition to the produce and local market prices. The committee, which was appointed in August last year...

The forthcoming budget is unlikely to propose a steep hike in allocation of funds for the government's flagship rural welfare scheme despite a sharp increase in the Wage Rates under it. The finance ministry is likely to allocate only 42,000-45,000 crore for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), a government official told ET. The scheme will have an opening balance of about 10,000 crore, the official said. This precludes...

There are many critics and sceptics with respect to the Mahatma Gandhi National Rural Employment Guarantee Scheme, which came into being because of political pressure that managed to overcome quite strenuous opposition from some of the most influential policy making circles. It is likely that much of this criticism is not really because of the declared reasons, like fiscal costs (which are thus far very little) and potential leakage. Rather,...

The Mahatma Gandhi National Rural Employment Guarantee Act, UPA’s flagship aam admi scheme, turns five on Wednesday. However, more than 30% of the rural India working under the right-to-work act would continue to receive wages below the guaranteed minimum as per the minimum wages act. On January 14, the ministry of rural development issued a notification revising the Wage Rates under the MNREGA from Rs 100 per day to between...

The Planning Commission has said that states will have to bear the additional burden if the minimum wages notified by them are higher than that fixed by the Centre for work under the employment guarantee Act. In the case of rich "states that can afford very high minimum wages, the central government reimbursement will be limited", Planning Commission deputy chairman Montek Singh Ahluwalia told reporters. For a state where minimum wages are...