For those leaders of the country who are tearing their hair trying to figure out how to get the economy moving, boost growth, increase investment and create jobs, it would be instructive to look at the plight of the largest economic class in the country – agricultural labourers. Numbering upward of 14 crore, they are the poorest, least paid workers, forced to seasonally work multiple jobs just to survive.

The latest data, collected by the Labour Bureau under the Ministry of Labour (available with the Reserve Bank of India for male workers) shows that over the past five years, wages of male agricultural workers has increased at a shockingly low rate of just Rs.15 per year. (See chart below) That is about 6% per year or 29% in five years.

In August 2022, the last month for which data was available at the time of writing, the wage was Rs.343 per day. Remember that the agricultural workers work only seasonally – as and when there is work in the fields depending on crop cycles. They may get ploughing or transplanting, weeding or watering or harvesting work for 10-15 days at a stretch, then a gap of weeks or months. So, the average wage over the year from agricultural work diminishes to almost nothing if spread out over the whole year.

But the story doesn’t end there. Prices have risen continuously in the same period by about 28%, as shown in the chart above based on the officially estimated Consumer Price Index (CPI) for Rural Labour. That effectively wipes out the meagre increase in wages. In other words, ‘real’ or actual wages have remained stagnant or even dipped slightly.

Caste and Gender Discrimination

The data on wages given above is for male workers. Female workers – which number more in the agricultural labour workforce than in other sectors of the economy – suffer from institutionalised discrimination. For example, in August 2022, while the male agricultural worker gets an average of Rs.343 per day, female workers’ average daily wage is recorded at Rs.271. That’s over 20% less than the male worker. Such differences are present in all the types of work that male and female rural labourers do. There are many types of work that only males undertake, like plumbers, carpenters, electricians, blacksmiths, drivers, etc.

It is noteworthy that some of the lowest paid jobs in rural areas are those which are usually taken up only by the most socially oppressed sections of society, that is, the Scheduled Castes (SC). For example, ‘sweeping and cleaning workers’ were reported to be getting Rs.290 per day (male) and Rs.269 per day (female) on an average, in August 2022. Since a large proportion of agricultural labourers are from SC communities, during the lean season or even on daily basis, they supplement their incomes with doing this work.

Increase Wages to Boost Economy

So, what’s the connection of all this to the economy, investment, growth and jobs? The reason why the economy is in the doldrums is because there is no buying power in the hands of the people. Low wages ensure that people are unable to spend much, barely managing to purchase the most essential commodities or services. This means there is very limited demand in the economy. So, no amount of cajoling or incentives will lure private capital to start expanding productive capacities.

The government, on its part, can possibly spend more but the present dispensation is shackled by its commitment to the neoliberal dogma (like Liz Truss, erstwhile UK Prime Minister) of restricting government expenditure. So, nothing is going to come from their side. The result is that corporate profits are being ensured only by squeezing workers, keeping their wages low and in fact, keeping a reserve army of unemployed so that wages remain depressed. This also means that the terms of trade between urban/industrial sectors and rural/agrarian sectors are highly skewed – resources flow away from rural/agrarian sectors towards urban/industrial sectors.

As long as this stranglehold persists, wages will remain depressed, unemployment will remain rife and profit margins will remain high. The Narendra Modi government may dole out this or that scheme, reluctantly, to give some relief to people and win their votes. But, in the long run, this is not going to work and the misery of the working people is bound to burst out.

If agricultural workers were to get better wages that would help them lead better lives, the whole economy would benefit because the sheer numbers are so big. Any infusion of more buying power in the hands of 14 crore people would decisively boost the economy, create demand, help expand production and help increase employment in other sectors.

Organisations representing agricultural workers have been demanding for long that a comprehensive law covering all aspects of agricultural labourers’ work should be brought in by the government. It is a sign of how deep the neglect of this vast labouring class is, that till this ‘Amrit Kaal’ of 75 years since Independence there has been no legislation for protecting the rights of agricultural workers, providing for dignified wages and working conditions or social security.

Courtesy: Newsclick

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New Delhi: The marginal increase in demand for work under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in September points towards a “much greater level of rural distress”, activists said on Tuesday. According to them, this is so since the rise in demand was recorded despite the Centre attempting to “artificially” suppress it.

Government data showed that household demand and individual categories under the said scheme were up more than 5% in September compared to August this year, The Economic Times reported on Monday.

As per the data, the September demand – which was 16.7 million under the household segment and 20.2 million for individuals – remained higher than the pre-COVID levels, even as the figures for the same month are lower than last year.

Activists said that the demand increment, observed after it fell for the past three consecutive months this year, is worrying, adding that the “real demand” could be much higher.

“Much of the demand under MGNREGA has been artificially suppressed as adequate funding is not allocated to the scheme at the start of the financial year, which eventually leads to a situation wherein the demand-driven nature of the scheme is not honoured,” Nikhil Dey, founder-member of the NGO Mazdoor Kisan Shakti Sangathan told NewsClick over the phone.

“This year is no different,” he claimed, adding, “the real demand could be much higher since funds to multiple States are also delayed.”

To be sure, in response to a question in August this year, the Union Ministry of Rural Development (MoRD), which monitors the implementation of the jobs scheme in association with the state governments, informed the Rajya Sabha that West Bengal had received no funds from the Centre under MGNREGA for 2022-23. The reasons cited include the absence of social audits to ensure transparency in the implementation of the scheme.

However, West Bengal is not the only state where at the end of the second quarter of the financial year, funds under MGNREGA are delayed. Released by the Centre in four tranches, these funds were delayed in at least four other states, including Kerala, Telangana, Himachal Pradesh, and Chhattisgarh, among others, as The Hindu reported last month.

Rural workers and social activists campaigning to press for increased budget allocation to MGNREGA have underlined in the past how lack of funds leads to wage delays which, subsequently, results in an “erosion of confidence” among the job-seekers under the scheme.

“Despite all of this, the month of September recorded an increase in demand, which only shows that there is a much greater level of rural distress within the country than what the Centre is ready to accept,” Dey said on Tuesday while further raising questions over the labour market stability.

Incidentally, the Union Finance Ministry cited the drop in month-on-month work demand under MGNREGA – the lowest in August in this fiscal – to claim that the unemployment rate in the rural areas was possibly reduced.

NewsClick had reported earlier on how this claim didn’t go well with the activists, who pointed to the figures published by the Mumbai-based Centre for Monitoring Indian Economy (CMIE), which showed that rural unemployment in August had surged – registering 7.7% in the country.

Though the unemployment rate in rural areas has fallen to 5.84% in September due to increased labour participation, the latest data show.

Meanwhile, on Tuesday, Anuj Goyal, a researcher with Peoples’ Action for Employment Guarantee (PAEG), demanded that the Centre announce additional budget allocation for MGNREGA to meet the work demand in the coming months. As per the scheme, at least 100 days of wage employment in a financial year is provided to at least one member of every rural household whose adult members volunteer to do unskilled manual work.

In their pre-budget note this year, the PAEG had calculated that the minimum required budget for MGNREGA for 2022-23 fiscal should be close to Rs 2.64 lakh crore, as against Rs 73,000 crore, which was announced by the Narendra Modi – led Central government.

“Despite soaring demand for employment, provisioning for MGNREGA remained significantly less over the past years,” Goyal said, adding, “rural workers continue to bear the brunt due to inadequacy of funds.”

Courtesy: Newsclick

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One of the most widely discussed rural initiatives from India has been the National Rural Employment Guarantee Act (NREGA) which provides a guarantee of employment in various tasks of rural development. While it can provide very genuine benefits to workers and peasants while carrying out highly useful tasks ( like water conservation), in practice its implementation has been increasingly marred by less than adequate budget allocation resulting in availability of much less than legally assured employment, low wages and long delays in payment of these wages.

During September 21-23 several demonstrations, rallies and public meetings involving NREGA workers and their organizations are being held in various parts of India. This mobilization is taking place on the basis of a call given by NREGA Sangharsh Morcha, (NSM) , a collective that works with NREGA workers across the country. According to the NSM around Rs. 2800 crore ( one crore=10 million) are pending from the central government for this financial year and Rs. 1984  crore from the previous financial year. The budget allocation was so inadequate that nearly 77% got spent in the first five months of the financial year.

NREGA workers have suffered much due to long delays in getting wages which go against legal provisions. Following the 3-day protests the NSM will be submitting a memorandum to the government for important reforms at implementation levels.

NREGA enacted about 16 years back was widely regarded as a very important achievement of the UPA/Congress government. At a time of the state withdrawing from such responsibilities in many countries, this was seen internationally too as a very important initiative, particularly in the Global South.

The initial response of the NDA/BJP regime towards NREGA was discouraging, but better counsel prevailed and realizing its importance this was continued. During COVID its importance was particularly acknowledged by almost everyone in terms of its ability to provide an important means of survival in very difficult times when so many migrant workers were returning to villages in desperate conditions. Increased allocation for NREGA became a very important component of the special COVID package announced by the government in financial year 2020-21.

As a result the NREGA allocation peaked to Rs. 111,000 crore this year. There was demand as well as expectation that the increased 2020-21 allocation will be retained but this was reduced to just Rs. 73,000 crore. As anticipated, this led to extreme problems of unmet demand and delayed wages, causing much distress.

So later in the year the government had to allocate additional Rs. 25,000 crore, taking the total allocation to Rs. 98,000 crore in 2021-22 Thus even the increased or revised allocation this year was lower than the amount spent in the previous year, while the delay in increasing the allocation led to avoidable problems of delayed wages. At the end of the financial year substantial dues of wages, or material payments or administrative expenses remained.

This year at the time of the presentation of budget again a reduction relative to last year’s revised estimate was made by allocating only Rs. 73,000 crore. A calculation made by a monitoring group People’s Action for Employment Guarantee ( PAEG) revealed the very uncomfortable reality that if the same number of people apply for work as in the previous year , this allocation will be adequate to provide only 21 days work in a year, as compared to the legal entitlement of 100 days.

In this context it is also useful to look at the report of the Parliamentary Standing Committee on rural development schemes in mid-March this year. The Parliamentary Committee has mentioned that there was corruption in the implementation of NREGA as well as delays in wage payment. The Committee spoke of lesser money reaching ‘genuine’ workers due to corruption. Another problem mentioned by the Committee related to late uploading of muster rolls which also resulted in delays in wage payment. A lot of problems were related to lack of timely availability of adequate budget.

The rule-based payment system of NREGA is to make the payment within 15 days, and for any delay beyond this there is provision for adding compensatory additional payment but this is seldom given.

Clearly there is urgent need for setting up a proper system of timely wages in NREGA and for ensuring a proper budget for this.

Bharat Dogra is Honorary Convener, Campaign to Save Earth Now. His recent books include Man over Machine and India’s Quest for Sustainable Farming and Healthy Food.

Courtesy: https://countercurrents.org

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Tamil Nadu: Rural agricultural workers staged demonstrations in front of Collectorates in district headquarters across Tamil Nadu on August 1. It was part of the nationwide call with a 28-point charter of demands, including the right to land, food, work and pension.

In some districts including Kanyakumari and Erode, police denied permission to hold the demonstration in front of the district Collectorates and pressurised the protestors to hold it at alternative locations.

In Tamil Nadu, the protest call was given on behalf of five left-leaning associations including the All India Agriculture Workers Union (AIAWU), All India Kisan Sabha (AIKS) and All India Rural Workers’ Union.

As reported by the organisers, more than 50,000 workers participated in the protest. At the end of the protest, the leaders submitted petitions containing the demands to the District Collectors urging them to be sent to the Prime Minister.

The nationwide protest call was against the Bharatiya Janata Party (BJP) led Central government’s multi-pronged attack on workers, specifically on the rural poor.

Women and Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) workers participated in large numbers.

DEMANDS TO STATE GOVT

As part of the protest, agriculture and MGNREGA workers in Tamil Nadu made specific demands from the Dravida Munnetra Kazhagham (DMK)- led state government.

They called for the State government to fix a Minimum Support Price for agricultural produce and to create a separate Welfare Board for farmers. The protestors raised slogans to provide rice and vegetables free of cost through Public Distribution Systems.

Agriculture workers protest in Salem. Image courtesy: CITU Tamil Nadu

The protestors also demanded that public distribution should be strengthened and free grocery packages should be provided like the Left Government in Kerala.

They demanded the State to properly implement the Land Reform Act wherein the surplus land and alienated land should be distributed to the landless poor. They want free house-site pattas to build houses at a cost of Rs five lakh each for people below the poverty line.

Attacks on the downtrodden – tribals, women and minorities – must be stopped immediately, and privatisation of education and healthcare should be abandoned were part of the demands placed.

The protestors demanded the MGNREGA work days be increased from 100 to 200, pay Rs 5,000 as pension for people above the age of 55 and Rs 21,000 as salary to conservancy workers.

In its election manifesto, the DMK promised 150 workdays under the MGNREGA and increase the pay to Rs 300. It also promised that the state government would urge the Centre to extend the scheme to cover municipalities.

OTHER DEMANDS

The overall demands included 300 days of work and a daily wage of Rs 600 for agriculture workers, adequate funds for MGNREGA and paying the dues to workers.

Protest in Tirupur. Image courtesy: CITU, Tamil Nadu

Taking into consideration the recent Wage Commission recommendations, the protestors urged that the daily wages of agricultural labourers should be fixed and implemented in line with the price rise.

The charter of demands also included that all rural workers should be registered with the e-Shram portal- the national database for unorganised workers, and social security schemes should be implemented.

Interest-free loans provided to agricultural labourers through nationalised banks and cooperative banks were also a part of the 28-point demands.

The protestors also urged the union government to immediately withdraw the Goods and Services Tax (GST) tax on essential commodities like rice, wheat, curd etc, and to revoke gas price hikes.

Courtesy: Newsclick

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