The spurt in farm credit by commercial banks, including regional rural banks, has interestingly not led to any let-up in distress in the agrarian economy -- a mystery that continues to baffle academics, policy planners and, more recently, bankers Last week, a clutch of bankers and policy wonks gathered in Bangalore to review recent trends in farm credit. On the face of it, credit to the farm sector is on an...

-The Hindu Business Line   The Rural Development Minister, Mr Jairam Ramesh's proposal to amend the law on minimum wages to permit a lower wage for employment under the rural jobs scheme (Mahatma Gandhi National Rural Employment Guarantee Act or MGNREGA) makes practical sense. The Karnataka High Court ruled recently that wages set under MGNREGA cannot be independent of the MWA. Effectively, it means there can be no such thing as an...

-PTI   Union Minister for Rural Development Jairam Ramesh today refuted the charge that National Rural Employment Guarantee Act (NREGA) had caused labour shortage in sectors like agriculture and construction. Ramesh said that there was a deliberate attempt to spread propaganda discrediting NREGA. "The scheme has increased agricultural wages, reduced distressed migration in some parts of the country and created community assets particularly water conservation structures. Of course, there is room for improvement," the...

Real wages in the hinterland have stagnated despite zooming economy While the economy has zoomed along at an average of 7.2% of GDP in the last decade, real wages in the hinterland have stagnated. You would imagine that after a decade of impressive economic growth averaging around 7.2 per cent, rural populations would be beneficiaries to this story. However, wage patterns considered over the last ten years show that real wages (wages...

-The Business Standard Yes, it will help combat the acute shortage of farm labour, but it goes against the Act’s core principles. Devinder Sharma  Food and agricultural policy analyst The crisis in agriculture has worsened and it is directly proportionate to the spread of MNREGA Isn’t it strange? The Mahatma Gandhi Rural Employment Guarantee Act (MNREGA), which was primarily designed as a radical and novel response to combat rural poverty, is actually hitting the very...