Two ministries concerned with rural development are at loggerheads over running of the government's flagship scheme- the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The agriculture ministry is protesting the way the Rs 40, 000 crore programme is being executed, saying it has increased the burden on agriculture, which is showing just about two percent growth now.   "State-level studies by the Agro Economic Research Centres on wage rate, food security...

In the first high-level red-flag against the UPA government’s flagship Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), Agriculture Minister Sharad Pawar has told Prime Minister Manmohan Singh that while assets created under the NREGA “may or may not have productive use”, the programme was “adversely” impacting the agriculture sector by “drawing out agriculture labourers from agricultural operations”.   In a letter sent to the prime minister late last month, Pawar is...

JANGU, 40, a Dalit labourer in Paraspur village in Gonda district, 120 km northeast of Lucknow, displays his job card in complete disbelief. “My job card was made three years ago and shows three payments. But I was never given any work, so how was the payment made?” he asks, puzzled. The first entry shows a payment of Rs 1,400 but he received a paltry Rs 100. He never went...

Those who see a direct link between wage inflation and the employment guarantee scheme need to think again Rural wage rates have been rising at quite a fast rate in recent months. Farmers have been complaining about their inability to get cheap labour for their farms. Industry, too, has raised the alarm saying that this is squeezing their margins; higher rural wages mean fewer people are willing to work on construction...

UPA’s much-publicised scheme, Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), is not creating labour shortage for agriculture and dairy production alone, but the textile and handloom sectors are also facing the heat on this count. A Working Group report on textile and handloom sectors has noted that the scheme was drawing skilled weavers to ‘unskilled’ MGNREGA. It says that high-end weavers are sticking to the profession, but low-end weavers are...