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Impact of Mahatma Gandhi national rural employment guarantee scheme (MGNREGS) on agricultural labour market

KrishiKosh

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Title Impact of Mahatma Gandhi national rural employment guarantee scheme (MGNREGS) on agricultural labour market
 
Creator Seenath, Peedikakandi
 
Contributor Prema, A
 
Subject MGNREGS
Mahatma Gandhi national rural employment guarantee scheme
 
Description Mahatma Gandhi National Rural Employment Guarantee Scheme
(MGNREGS) is the flagship programme implemented by the Government of
India, assuring 100 days of work for every rural household who are willing to do
unskilled manual work. The scheme was initially implemented in February, 2006
and later on extended to all over rural India. The objective of the scheme is to
enhance livelihood security of rural households by creation of durable assets.
Budget allocation under the scheme during 2011-12 was `40,000 crores. This
study analyzes the supply side effects of the scheme on agricultural labour,
wages and farm income and provides suggestions for betterment of agriculture.
The study was carried out in Palakkad district of Kerala. Multistage
purposive sampling procedure was adopted to select the sampling units. The
criteria of maximum lead in implementing MGNREGS and maximum area
under paddy cultivation formed the basis for selection of block panchayats and
grama panchayats. Random selection of 20 beneficiaries and 20 farmers from
each grama panchayat was done for eliciting information. In addition,
MGNREGS officials, work supervisors and people’s representatives were also
chosen, thus making a total sample of 120. Personal interviews and focused
group discussions were used to gather data. The data pertaining to the financial
year 2005-06 and 2011-12 was compared for deriving the inferences.
More than 90 per cent of the total fund was used for works like water
conservation and water harvesting, micro irrigation, renovation of traditional
water bodies and land development. There is no supply of labour under the
scheme in individual land owned by small and marginal farmers during the study
period. Regular cultivation practices and individual lands of large farmers are
not included under the scheme.

1
The average annual work days of the beneficiaries have increased from
67 to 85 (26.87%) after the implementation of the scheme and their annual
income has increased from ` 3,069/- during 2005-06 to `7,568/- (147%) during
2011-12. Mean annual work days of the beneficiaries in agricultural sector had
decreased from 65 to 20 and the income of beneficiaries from agricultural works
also had decreased from `3116/- to `1810/-. Regression analysis showed that
MGNREGS participation and agricultural works participation are inversely
related, with a co-efficient of 0.19. MGNREGS wage has increased from `125/-
to `150/- per day during the study period (20%). The wage rate for agricultural
works is showing an upward trend linked with MGNREGS wage hike.
Agricultural wage rate for women workers has registered 200 per cent increase
from `50/- to `150/- per day. Though the MGNREGS wage rate is linked with
the statutory minimum wage rate of the state, the latter remained unchanged
from 2008 ( `150/- per day).
Total labour requirement for cultivation of paddy has decreased from 82
to 71 man days per hectare (15.5%). Male labour availability has decreased by
50 per cent and women labour availability 60 per cent. Hired human labour
component, which accounted for 49.3 per cent of the total cost of cultivation
during 2005-06 has fallen to 44 per cent. Functional analysis using the Cobb-
Douglas model indicated that the elasticity of production due to labour input has
decreased from 1.16 to 1.12.
Delay in getting labourers on time and fall in quality of work are
perceived as the major constraints by the farmers. Delay in getting payment and
over lapping of agricultural and MGNREGS works are the major problems faced
by the beneficiaries. Formation of stakeholder group for work scheduling,
implementation of one time land development works like field leveling and re-
sizing under MGNREGS and utilization of remaining labour days for
agricultural works by providing training for machine operations are suggested.
 
Date 2016-11-29T12:00:30Z
2016-11-29T12:00:30Z
2013
 
Type Thesis
 
Identifier http://krishikosh.egranth.ac.in/handle/1/88079
 
Language en
 
Format application/pdf
 
Publisher Department of Agricultural Economics, College of Horticulture, Vellanikkara, Thrissur - 680 656