The Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission Gramin (VB-G RAM G) Bill proposes a 60-day pause on rural employment works during peak sowing and harvesting seasons. This measure, notified in advance by States, aims to ensure adequate farm labour availability.
This Bill seeks to replace MGNREGA, which has faced criticism for contributing to agricultural labour shortages. Concerns about this issue have previously been raised by former Agriculture Ministers as well.
While MGNREGA is often credited with tightening rural labour markets, it has not resulted in a significant increase in wages. Labour Bureau data covering 25 occupations across 20 States show that India’s rural wage growth for male workers ranged between 3.6% and 6.4% annually over the past decade.
During four of the ten years (2015-16, 2019-20, 2021-22, and 2022-23), nominal rural wage growth lagged behind consumer price inflation, indicating a decline in real wages. Real wage growth exceeded 1% only in the year 2017-18. Notably, agricultural wages grew faster than overall rural wages in eight out of ten years, while non-farm rural wages only surpassed agricultural wages in 2015-16 and 2019-20.
Despite the introduction of MGNREGA, agricultural wages have barely kept pace with inflation, showing no significant surge over the past decade. The data imply that rural wage growth remains modest and often stagnates when adjusted for inflation.
A key factor contributing to slow rural wage growth is the substantial rise in women’s participation in the rural workforce. According to the Periodic Labour Force Survey, rural female Labour Force Participation Rate (LFPR) rose from 24.6% in 2017-18 to 47.6% in 2023-24, almost doubling in seven years. This expansion significantly increases the labour supply.
The Economic Survey 2023-24 attributes this rise in female participation to government welfare schemes such as Ujjwala, Har Ghar Jal, Saubhagya, and Swachh Bharat. These initiatives have reduced women's unpaid household burdens by improving access to LPG, water, electricity, and sanitation.
The data challenges the notion that MGNREGA has led to a widespread labour shortage. Increased female participation, particularly in nearby agricultural work, may have offset the workers drawn into MGNREGA. While farmers experience seasonal labour shortages, attributing these solely to MGNREGA requires stronger ground-level evidence.
Policy discussions have considered aligning MGNREGS better with farm cycles. This includes temporary work suspensions during peak seasons or allowing MGNREGS activities on private farms for specific agricultural tasks. While some farmers attribute labour shortages to MGNREGS, evidence suggests deeper structural issues in agriculture and the availability of better work options for rural labourers.
Q1. What is the VB-G RAM G Bill?
Answer: The VB-G RAM G Bill proposes a 60-day pause on rural employment works during peak sowing and harvesting seasons to ensure adequate farm labour availability.
Q2. How has MGNREGS affected rural wages?
Answer: MGNREGS has tightened rural labour markets but has not led to significant wage increases, with many years of wage growth lagging behind inflation.
Q3. Why has women's participation in rural labour increased?
Answer: Increased women's participation is attributed to government welfare schemes that have reduced unpaid household burdens and improved access to resources.
Q4. What are the alternative causes of farm labour shortages?
Answer: Low farm wages, poor working conditions, rural out-migration for better-paying jobs, and increased bargaining power due to MGNREGS contribute to labour shortages.
Q5. How can MGNREGS be better aligned with agricultural cycles?
Answer: Policy discussions suggest temporary work suspensions during
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