Introduction
In a bid to address rural unemployment and manage surplus food stock, the Indian government is contemplating a novel approach: providing rice as part of the wages for workers under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). This initiative comes in response to overflowing granaries and increasing distress in rural areas due to job shortages.
Current Situation and Proposal
The government's Food Department, under the Consumer Affairs Ministry, has proposed to the Rural Development Ministry to consider using rice as part of the compensation for MGNREGA workers. This would mean that a portion of the daily wages, which currently range between ₹234 and ₹374 depending on the state, could be paid in rice. For instance, a worker entitled to ₹300 per day might receive ₹200 in cash and the equivalent of ₹100 in rice.
Decision-Making Process
Discussions are ongoing, and a final decision is expected soon. This move is anticipated before the assembly elections in Haryana, Maharashtra, Jharkhand, and Jammu & Kashmir, where such policies can have significant electoral implications. MGNREGA, established in 2005 and renamed in 2009 to honor Mahatma Gandhi, aims to provide 100 days of guaranteed employment to rural households willing to undertake unskilled labor.
Rationale Behind the Proposal
The central government currently faces a significant surplus of rice, totaling 14 million tons. This surplus arose from restrictions on rice exports imposed last year to curb domestic price hikes. Measures included a ban on non-basmati rice exports, a 20% export duty on parboiled rice, and a minimum export price for basmati rice. These actions were taken to stabilize domestic prices but have led to excess stock, which incurs storage costs.
Implementation and Alternatives
If approved, the proposal would likely see a hybrid payment model, combining cash and rice. Full payment in rice is considered impractical due to the cash needs of rural workers. The number of person-days under MGNREGA has risen from 2.93 billion in 2022-23 to 3.05 billion in 2023-24, reflecting increased demand for employment in rural areas amid a lack of urban job opportunities.
Besides using the surplus rice in MGNREGA, the government could explore other avenues, such as selling the rice under the Open Market Sale Scheme via e-auctions to states needing additional supplies. Karnataka, for example, has pledged free rice to its residents and may purchase from the central reserves. Alternatively, the surplus could support the Prime Minister's Garib Kalyan Yojana, extended for another five years.
Conclusion
As the government deliberates this innovative wage policy, it aims to strike a balance between managing surplus food stock and addressing rural unemployment. The outcome of these discussions will significantly impact both the agricultural sector and the rural economy.
Post a Comment