Mahatma Gandhi National Rural Guarantee Act Scheme (MGNREGA)-Proposed revision

At a governing Council meeting of NITI Ayog, the government announced the formation of a sub-group of chief ministers to propose ways of linking MGNREGA with agricultural activities. This sub-group was formed to broadly discuss the bold initiative of Doubling the Farmer's income. This sub-group was headed by Madhya Pradesh Chief Minister Shivraj Singh Chauhan. 

About MGNREGA-

To fulfill the dream of Mahatma Gandhiji to make villages self-sufficient, Ministry of Rural Development came up with MGNREGA scheme in the year 2006. The main objective of the program is to provide for the enhancement of livelihood security of the rural household by ensuring a legal right for at least 100 days of unskilled wage employment to willing adult members.
MGNREGA envisages creation of productive and durable assets. The assets will contribute to the economic and ecological development of rural areas. For this local needs and aspirations of villages need to be taken into the account. MGNREGA scheme is fully funded by National Employment Guarantee Fund. The ratio of wage to input is 60:40.

Beneficial for farmers-

The sub-group formed praises this step unanimously. There was a common perception that the benefit of MGNREGA's fixed wage earning should include the marginal farm laborers as well. 
The committee is also discussing to utilizing MGNREGA projects  for agriculture mainly for pre-sowing and post-harvesting period. Therefore, wider choice of state-specific interventions both for pre-sowing and post-harvest to further improve the thrust on incomes, water conservation and waste to wealth.

A harmful step-

A section believes that linking MGNREGA scheme for farm sector would not solve or even contribute in any significant way to reduce farmer's income. It is believed that the success of MGNREGA scheme is because of its intent to generate alternate source of employment, thus reducing the dependency of marginal farmers on large farmers for their livelihood. Therefore, using MGNREGA fund to pay for wages of laborers working in the field of big farmers will greatly reduce the poverty reduction impact of the scheme. 
The MGNREGA provides rural laborers choice to work in farms, if they want. But the linking would limit the bargaining power of these laborers. In addition, the most distress section of farmers come from marginal and small farmers. These farmers rely mostly upon the family laborers and paying family members would have no impact on the poverty reduction. 
There is a growing belief that the convergence of two schemes would have their own issues in Indian scenario. The proposed linking would make MGNREGA to work in collaboration with agricultural departments and our administrative structure is not tuned for this kind of coordination. In addition, the fund allocation is being shifted from Gram Panchayat level to the district level. Now, there are chances of inequitable distribution of funds among different rural areas in the same district. 

Way Forward-

 It is true that schemes like MGNREGA should have some direct benefits for the farm sector in India. It could be an important source for government, if used for supporting agricultural demands. It can be done  both by supporting agricultural livelihood and by investing in much needed rural infrastructure, which could help in maintaining sustained agricultural productivity. The idea of linking pre sowing and post- harvest farm activity with MGNREGA is also an innovative step. But the real change would come only with honest political motivation.  

Multiple Choice Question-

Q. Which of the following is/are true regarding MGNREGA scheme?
1. It is a scheme regulated by the Ministry of Employment and Labor Relations.
2. The scheme introduced in the year 2006.
3. The scheme envisages to provide 100 days employment to unskilled laborers within a  limited distance.
i. Only 1
Ii. Only 1 and 2
Iii. Only 1 and 3
Iv. None of the Above
Answer is iv.

Hint-- - The scheme comes under Ministry of Rural development. Hence the correct options are 2 and 3. 
 
Mains- MGNREGA is an evergreen topic for UPSC mains GS -3 .
 
 Q.  MGNREGA scheme plays an important role, both from labor as well as rural economic development perspectives. Analyse the objectives and recent developments associated with it. 
 
Hint- It’s a very general question. We need to talk about the scheme first and try to include all the important points associated with it. In body try to examine the objectives and how the scheme causes hike in agricultural laborers and farm commodity price hike. Then move directly over the issue of linking MGNREGA with farm sector and try to write both benefits as well as harm and then conclude with some positive way forward.

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