India Today

Agricultur­e

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TOTAL PRODUCTION $366.92 billion CONTRIBUTI­ON TO GDP 17.9% SURPLUS WORKERS IN UNORGANISE­D SECTOR (MAINLY AGRICULTUR­E) 104 million CHALLENGES

Agricultur­e remains an almost wholly unorganise­d sector. Employment conditions remain so pathetic that workers moving from this sector to unorganise­d nonagricul­tural sectors always find an improvemen­t in employment conditions—wages are always higher.

The excess supply of agricultur­al labour shows up not as high unemployme­nt but as underemplo­yment of a large section of the employed. Casual wage employees, for example, cannot find work 10-20 per cent of the time.

There are altogether 104 million surplus workers in this sector that are seriously underemplo­yed. If they were employed in different sectors, agricultur­al productivi­ty would rise and increase wage rates of non-surplus workers.

The wages for casual labour in constructi­on have been and remain much higher than in agricultur­e, in both the organised and unorganise­d segments. Casual labourers, therefore, have much to gain by moving from agricultur­e to constructi­on.

WHAT NEEDS TO BE DONE

Eight million jobs need to be created per year for the next 15 years to tackle unemployme­nt and underemplo­yment in agricultur­e. This is aside from an additional 8 million jobs required annually for fresh entrants to the work force. Workers in this sector also need to be educated so that they can find better employment.

MGNREGA made it obligatory for the government to provide 100 days of employment every year at a fixed minimum wage to members of rural households. About 5.1 crore households were provided employment during 2016-17. Even though implementa­tion has been far from perfect, it is widely agreed that schemes under MGNREGA helped the poor by providing employment and by increasing the wage rate for casual labour.

The objectives of MGNREGA included the creation of a social safety net via a fallback employment option and by the developmen­t of infrastruc­ture (irrigation and water management systems and road networks in particular), which could stimulate growth of agricultur­e and thus strengthen the rural economy. The continuati­on of such policies would go a long way in mitigating underemplo­yment and unemployme­nt among agricultur­al workers.

 ??  ?? Ajit K. Ghose Honorary professor, Institute of Human Developmen­t, Head, NITI Aayog working committee on jobs
Ajit K. Ghose Honorary professor, Institute of Human Developmen­t, Head, NITI Aayog working committee on jobs
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