Problems of Agricultural Labor in India and Solutions

Presentation by Juliana Chakungliu NK - EWIF

 (Oranges in Tamenglong, Manipur)

1. Define Agricultural Labor

• An agricultural laborer is a person hired to work in the agricultural industry.
• This includes work on farms of all sizes, from small, family-run businesses to large industrial agriculture operations.
• The farmworker may or may not be related to the individuals who own or run the farm, but his or her job entails a more formal relationship than a family member or neighbor who might do occasional chores on the farm.
• Depending on the location and type of farm, the work may be seasonal or permanent.
• Seasonal, or migrant workers, are often low-wage workers, who may or may not be working in their region of origin.
• Permanent workers may have a particular set of skills or educational background that allow them to earn higher wages, and are often found on farms where there is year-round production, such as on dairy farms.
• Farmworkers usually earn a wage; however, the work can be done on a volunteer basis or for educational reasons.
• Many programs exist that facilitates the placement of volunteer farmworkers on specific types of farms.
• Additionally, farms may offer apprenticeship or internship opportunities where labor is traded for the knowledge and experience gained from a particular type of production.

2. Agriculture in India

1. Today, India ranks second worldwide in farm output. Agriculture and allied sectors like forestry and fisheries accounted for 16.6% of the GDP in 2009, about 50% of the total workforce. The economic contribution of agriculture to India's GDP is steadily declining with the country's broad-based economic growth. Still, agriculture is demographically the broadest economic sector and plays a significant role in the overall socio-economic fabric of India.
2. India's agricultural economy is undergoing structural changes. Between 1970 and 2011, the GDP share of agriculture has fallen from 43 to 16 percent. This isn't because of reduced importance of agriculture, or a consequence of agricultural policy. This is largely because of the rapid economic growth in services, industrial output, and non-agricultural sectors in India between 2000 to 2010.

3. Problems faced by Agricultural Labor in India

1. Excess Supply – there are no accurate estimates of work forces as most of the activity and persons involved is unorganized and unreported. However the number of persons to work on and feed off a holding is very high.
2. Seasonal Employment – varying weather patterns – drought, floods, heat cold cause an unreliable productivity.
3. Backward classes SC ST – farmers usually come from a less privileged class and hence are mostly un-educated and do not have benefits of respect of the society.
4. Small farm land holdings – which result in a lack of economies of scale.
5. Limited subsidiary occupation – alternate revenue streams from other activities are not available to farmers.
6. Heterogeneous – issues and problems have regional variations.
7. Migration to other occupations – the more educated and efficient work forces are migrating to other forms of employment, leaving weaker work forces in the agricultural profession.
8. Indebtedness – money is borrowed from exploitative private money lenders. Borrowings spiral and the ability to pay back is limited. There is a need for agro finance, micro-finance, cooperative banking and financial products to suit farmers needs and longer term payback schedules.

4. Solutions

1. Effective implementation of the minimum wage act – this would go a long way in the development of quality work forces in agriculture in India.
2. Development of Agriculture - multi-cropping – for better utilization of land and resources
3. Subsidiary revenue streams - Alternative employment opportunities - rural village infrastructure, rural industry, food processing, agro tourism, and outdoor sports (golf as in Thailand - farmers + golf caddies)
4. Formation of peasant unions – to combat problems such as those which loan sharks create
5. Cooperatives / Self Help Groups (SHG) – for better technology, training, funding, marketing and economies of scale
6. Debt management – financial products and services and advice for farmers
7. Recast of ownership – property laws and holding patterns with a better quality of ownership registration & records
8. Development of cattle wealth – more productive cattle – yielding more milk per day
9. Irrigation development – water problems are immense and better water management by superior irrigation, drip irrigation and so on will help
10. Marketing & distribution – middlemen eat away a farmer’s profits. Cooperative and rural markets would help to bring the farmer closer to the end consumer thus eliminating agent commissions, which are very large.
11. Organized work force – better training, coordination and managed work forces for efficiency.
12. Agricultural insurance – in event of natural problems, floods, drought, firs, pest problems etc. insurance would help the farmers survive.
13. Entrepreneurship development – coach farmers to become entrepreneurs. An entrepreneur is the best possible strategist.

 (Juliana is a first year MA student in Economics at Pune College. She made this presentation at the college on 15.03.13. She is a Naga from the Tamenglong District of Manipur and works on North East Development work from our Pune Office. She can be contacted at pune@eastwestinterconnect.org.in)