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No change in MGNREGA wage rates observed between 2018-19 and 2019-20 for 4 states & 2 UTsNo change in MGNREGA wage rates observed between 2018-19 and 2019-20 for 4 states & 2 UTs
April 18, 2019

Non-payment of MGNREGA wages on time to workers and non-revision of daily wage rates, among other things, have kept the poor away from the programme in many states. When the notified daily wage rates under the Mahatma Gandhi National Rural Employment Guarantee (2005) Act (MGNREGA) for 2019-20 was announced on 26th March 2019, it became clear that the existing wage rates were not revised (viz. as compared to 2018-19) in the states of Goa (Rs. 254), Karnataka (Rs. 249), Kerala (Rs. 271) and West Bengal (Rs. 191). In the Union Territories (UTs) of Andaman (Rs. 250) & Nicobar (Rs. 264) Islands and Lakshwadweep (Rs. 248) too, there is no change in the notified wage rates between 2018-19 and 2019-20. Please check chart-1 for details.      The highest notified MGNREGA wage rate in 2019-20 is noticed for Haryana (Rs. 284), followed by Kerala (Rs. 271) and Nicobar (Rs. 264) Island. The lowest...

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Rural distress is real: Negative monthly growth of real wage rates witnessed in rural areas for 9 consecutive months, starting from November 2017Rural distress is real: Negative monthly growth of real wage rates witnessed in rural areas for 9 consecutive months, starting from November 2017
April 4, 2019

Growth in rural wages not only indicates economic prosperity of the masses, it is also considered important so as to generate effective demand for goods and services, which is produced by various sectors of the economy. When money becomes available in the hands of rural workers due to government spending on programmes such as Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), it generates demand for commodities. The production of commodities generates additional demand for credit, raw material and workers. The wages paid to the newly recruited workers creates further effective demand in the economy for commodities. This process is repeated several times following the initial round of government spending. Thus, an increase in expenditure produces an increase in national income and consumption, which is much greater than what was spent initially and this process is termed as 'multiplier effect' in economics. In short, a rupee of government spending will...

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Growth in Agri GVA deflator shows a declining trend in comparison to growth in other sectoral GVA deflatorsGrowth in Agri GVA deflator shows a declining trend in comparison to growth in other sectoral GVA deflators
March 28, 2019

Recent studies and media reports have confirmed that Indian farmers are facing non-remunerative and sometimes falling prices. A past news alert by the Inclusive Media for Change team indicated deflation in wholesale prices of 8 kharif crops (viz. maize, arhar, moong, urad, groundnut, soybean, sunflower seed and Niger seed) on average between 2016-17 and 2018-19. Based on data analysis, that news alert also demonstrated how the rural areas have witnessed a higher rate of inflation in services (such as health and education) vis-à-vis the rate of inflation in Consumer Food Price Index (CFPI). A similar picture emerges if we check the performance of Agri Gross Value Added (GVA) deflator vis-à-vis other sectoral GVA deflators. After calculating the various sectoral GVA deflators, it could be observed that the year-on-year (y-o-y) growth rate in Agri GVA deflator (an alternative measure of inflation) has fallen over the years during the period from 2012-13...

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PM Fasal Bima Yojana is suffering from low coverage since the last 2 yearsPM Fasal Bima Yojana is suffering from low coverage since the last 2 years
March 13, 2019

The budgetary allocation for Pradhan Mantri Fasal Bima Yojana (PMFBY) as a proportion of total budgetary expenditure has been reduced marginally during the Interim Budget 2019-20. It may have happened because the coverage of gross cropped area under the scheme could not keep pace with the target that was set during the last two years. The Status of Implementation of Budget Announcements 2017-18, which was presented during the Union Budget 2018-19, clearly states that the coverage of the PMFBY would be increased from 30 percent of gross cropped area in 2016-17 to 40 percent in 2017-18, and further to 50 percent in the year 2018-19. Yet when a reply by the Minister of State in the Ministry of Agriculture and Farmers' Welfare dated 7th August, 2018 to an unstarred question (question no. 3398) in the Lok Sabha is consulted, it is learned that the proportion of gross sown area covered...

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Apart from inconsistent data on coverage from different sources, target was not achieved in case of PMKSY-Per Drop More CropApart from inconsistent data on coverage from different sources, target was not achieved in case of PMKSY-Per Drop More Crop
February 28, 2019

How is it possible that we get different figures on area brought under micro-irrigation pertaining to the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)-Per Drop More Crop (PDMC)--a scheme which is implemented by the Ministry of Agriculture & Farmers' Welfare? The dashboard (https://pmksy.gov.in/mis/frmDashboard.aspx) of PMKSY-Per Drop More Crop clearly shows that 11.25 lakh hectare was brought under micro-irrigation in the financial year 2017-18. Please check chart-1. Chart 1: Physical target versus achievement -- PMKSY-Per Drop More Crop for micro-irrigation (in lakh hectares)   Source: Dashboard of PMKSY-Per Drop More Crop (accessed on 13th February, 2019), https://pmksy.gov.in/mis/frmDashboard.aspx --- However, as per a reply in the Lok Sabha (unstarred Question No. 5 for reply on 11th December, 2018) around 10.48 lakh hectare area was covered under micro-irrigation pertaining to the PMKSY-Per Drop More Crop. Kindly consult table-1. The dashboard gives a higher figure on area brought under micro-irrigation (PMKSY-Per Drop More Crop) in comparison to the figure that...

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