Dynamics of Supply and Demand for Labour in Indian Agriculture

The paper has examined the changes in the rural employment pattern covering agriculture and rural non-farm sectors and their implications for agricultural wages and farm labour availability. The study on role of MGNREGA has revealed that it has impacted both the supply and wage rates of farm labour. The landless households and women have been reported to prefer to work under MGNREGS for a higher wage rate under this scheme than in the market. The rise in wage rates has provided more income to farm labourers but has raised the cost of cultivation. The paper has suggested the mapping of unemployment season vis-à-vis cropping season on the local context. A bottom up planning should be undertaken for preparation of annual plan for MGNREGS emerging from the gram sabha level for mitigating the problem of farmers and labourers. The study has suggested some schemes to address the problems in the agricultural sector. These include: (i) introduction of corporate agricultural system, (ii) improvement in marketing system and introduction of social security; (iii) provision of subsidies for farmers, (iv) implementation of crop insurance system; (v) increase in farm-storage facilities; and (vi) tightening of agricultural credit system.