UNIT 6
INDIAN ECONOMY
Farm labourers constituting about 23% of whole rural population are existing in sub-human conditions for hundreds of years . They need been exploited and ill-treated by the landlords. Till the dawn of Independence nothing was actually done to enhance their lot. Under the Indian Constitution, everyone will need to tend civil right in education, employment, etc.
Further the Constitution demands that the govt shall be helpful to those sections of the society which are weak and backward. The govt has special responsibility for improving the economic conditions of the farm labourers.
Further, in lately , increased farm production through better agricultural organisation and management has become a requirement . How can this be fully realised unless the farm workers are given a far better treatment? it's during this context the development of the agricultural labour has assumed a special significance.
Agricultural labour could also be divided into two categories:
(i) Landless labourers, working for others;
(ii) Small peasants with little or no land but who devote much time working for others.
In category
(i) of landless labourers, there are some who are attached permanently to some estates and when the latter are sold away, the labourers are passed on to the new owners. They are doing not normally receive wages in cash but are generally paid in a similar way . They need 10 labour for his or her masters and can't shift from one to a different .
They have to supply ‘beggar’ or forced labour. The Kamay in Bihar, the Pannaiyal in Tamil Nadu , the Colis in Maharashtra, the Shalkari in M.P., the Charkar in Orissa etc., are landless labourers of category no.
(i) they're almost slaves. But this sort is gradually declining. The foremost common type is those landless workers who are independent permanently but work exclusively for them.
Some data are available regarding the amount of farm labour. The second Agricultural Labour Enquiry conducted in I960, stated that agricultural labour families constituted nearly 25% of all rural families. Quite 85% of the agricultural workers are casual and independent serving any farmer who is willing to interact them and only 15% of agricultural labourers are attached to specific landlords.
The number of surplus manpower within the family is indeed very small. Quite 50% of the farm workers don't possess any land. Even the remainder of them own only little or no of land and are landless labourers. Most farm workers belong to the depressed classes which are neglected for hundreds of years . The low castes and therefore the depressed classes are socially handicapped and that they bad never the courage to say themselves and are like dumb-driven cattle.
The causes operating to cause the expansion of the category could also be broadly up us follows:
(i) High net rate of growth of the population during this country;
(ii) Growth of indebtedness thanks to low income resulting in transfer of land from the tiny owners to the creditors, leading to the previous into becoming agricultural labourers ;
(iii) Displacement of means of subsidiary occupations whereby existence solely on an uneconomic unit of land becomes impossible;
(iv) Growth of absentee landlordism; and
(v) The extension of cash economy to rural areas in replacement of payment in kinds;
(vi) Disintegration of village communities of the pre-nineteenth century;
(vii) Decline of domestic industries and handicrafts;
(viii) Disintegration of the peasantry;
(ix) a severe agricultural depression within the late twenties ; and
(x) other social factors like economic transition through which a number of the criminal tribes and castes are passing
All these led to the emergence of a category of landless labourers within the country.
In this connection Dr. R. K. Mukherjee rightly observes: “Every circumstance which has weakened the position of the tiny holder has increased the amount of agricultural labourers, viz., the loss of common rights within the rural economy, the misuses of collective enterprise, the sub-division of holdings, the multiplication of rent receivers free mortgaging and transfer of land followed by a decline in cottage industries.”
Besides, change in proprietary rights, among the vribal people also bought a few change within the position and converted them from tenants to landless labourers. This went on to the Gonds and Bhils of M. P.; the Korwas of U. P. And therefore the Mundas of Chhota Nagpur.
The economic conditions of agricultural labour are indeed pitiable. They need been getting low wages and leading a particularly miserable life.
(1) Low Social Status:
Most agricultural workers belong to the depressed classes which are neglected for ages. The low caste and therefore the depressed classes are socially handicapped and that they had never the courage to say themselves. They need been like dumb-driven cattle.
(2) Unemployment and under-employment:
Unemployment and underemployment are two important factors liable for low income and consequently low economic position of the agricultural labour in our country. The farm workers don't have continuous work.
It has been estimated by the Second Agricultural Labour Enquiry that on a mean an agricultural laborer finds employment for about 197 days during a year and for the remainder of the year he's idle. Aside from under-employment there's also unemployment in rural areas. Lack of continuous work is liable for low income and consequently low living standard of farm workers.
(3) Paucity of Non-agricultural occupation:
Another important factor for the low wages and poor financial condition of the farm labourers is paucity of non-agricultural occupation in rural areas. For one thing, the growing population pressure is increasingly felt in rural areas and therefore the number of landless labourers is steadily on increase.
For another, the absence of the other occupation in rural areas and lack of inter-regional mobility are liable for worsening the population pressure ashore . It follows that the financial condition of the labouring classes are often bettered by the supply of supplementary jobs.
(4) Unorganised, Illiterate and Ignorant Workers:
Urban workers in industries are organised in trade unions and that they are ready to secure high wages. Farm workers are illiterate and ignorant and sleep in scattered villages. Hence they might not be organised in trade unions.
In urban areas workers could organise themselves and it had been convenient for political parties to require interest in union activity. This is often almost difficult just in case of Agricultural labour. Accordingly, it's difficult for them to bargain with the landowners and secure high wages.
(5) Indebtedness Farm workers are heavily indebted:
Normally, the agricultural labourers borrow from the landowners under whom they work. Naturally, they're forced to simply accept lower wages from them.
Sometimes, the workers might not have their own houses, or if they need their own houses, they'll have constructed them ashore contributed by the landlords. For this also, the workers feel obliged to the landlords. Thus heavy indebtedness may be a basic factor of poor financial condition of agricultural labourers.
Thus the agricultural labourers are getting very low wages and need to sleep in a miserable sub-human condition partly due to factors beyond their control and partly due to their inherent poor bargaining power.
Many suggestions are put forth for the development of farm workers which are as follows:
(1) Abolition of Agricultural Slavery:
According to our Constitution the practice of slavery in any form isn't permissible. Agricultural slavery which exists in many parts of India will need to go. Agrarian serfdom which has been hip for hundreds of years cannot go so easily.
This is so because the workers are helpless, ignorant and illiterate. Education of the agricultural masses and better opportunities are a number of the remedies for the removal of the system of agricultural slavery. When the lower classes are sufficiently educated and made aware of their rights, they're going to fight certainly against slavery.
(2) Minimum Agricultural Wages:
Measures should be taken, to reinforce the wages of farm workers. Unless this is often done it's impossible to boost their financial condition . Farm workers are getting very low wages except in Punjab. Minimum Wages Act has been passed in most of the States. There are limitations in properly enforcing them. Minimum legislation alone isn't sufficient but steps should be taken to enforce it.
(3) Provision of Land:
The basic difficulty is that the majority of our agricultural labourers don't have any land of their own. To enhance their condition, the landless workers should be given land. a method is to allot to them the newly reclaimed land. Differently is to redistribute the prevailing land among all people either on a voluntary basis or by employing a specific amount of compulsion.
Ceiling of landholding serves this purpose. The Bhoodan movement is additionally one among the methods by which those that possess land, contribute voluntarily for those that don't possess any land. Another method is co-operative farming. The landless labourers can improve their lot only through acquiring land.
(4) Co-operative Fanning:
The measures suggested above will help in promoting the economic conditions of farm workers but the last word solution probably lies within the creation of co-operative system during which all per sons including this labor , will have equal rights. The differences between the massive and little farmers will need to go and similarly the landless labourers who are affected by numerous handicaps will need to be delivered to the extent of all others.
(5) More and Fuller Employment:
Because of seasonal characters of Indian agriculture, the farm labourer don't have full-time employment. Both intensive cultivation and extension of irrigation are considerably required to extend agricultural work. There'll be double cropping and employment are going to be available for the entire year.
There is much scope for the fixing of village and rural industries which can make use of the raw materials readily available within the villages and which can provide occupation for the agricultural population. Samples of such industries are sugarcane crushing, cotton finning, production of oils and soaps, brick-kilns, manufacture of paper, etc.
The fixing of small industrial units supported by rural electrification will help farm labour in some ways , as for instance reduction of seasonal unemployment, diversion of surplus labour power to rural industries, reduction of the pressure of population on agriculture, to boost agricultural productivity and also raise wages of farm labour, etc.
(6) structure Programmes:
The fixing of small industries and structure programmes have great importance within the mobilisation of manpower resources in villages and in raising the wages of the agricultural masses and, indirectly, the income of the country.
In this connection the usefulness of structure could also be emphasized. The govt can plan its projects within the rural areas carefully, in order that the workers who could also be unemployed during the off-seasons could also be gainfully employed. Such projects include the development of roads, the digging and deepening of tanks and canals, afforestation etc.
(1) Declaring Serfdom an Offence:
Our Constitution has declared the practice of serfdom an offence. It's abolished agrarian slavery including forced labour by law but it'll take a while before it's removed in practice.
Since 1947, the Centre also because the States have taken measures to extend the wages of farm labour and to enhance their economic and social conditions. They include the passing of legislation to repair minimum wages for farm labour, the removal of disabilities, the ceiling on holdings and therefore the redistribution of land among the landless labourers, etc.
(2) Passing of Minimum Wages Act, 1948:
An important step taken by (the Government is that the passing of the Minimum Wages Act in 1948 under which farm workers will need to be paid a wage . The minimum wages are fixed keeping, in sight the local costs and standard of living, they vary between 66 paise to Rs. 150 per day.
Since conditions in various parts of the country are different and since even within a State the law allows different rates of wages, to be fixed, in practice, it's very difficult to enforce minimum wages effectively. Fortunately, the inflationary situation has pushed up wages for farm workers.
(3) Land Reforms:
Various land reforms are gone by the govt which aim at bettering the economic position of agricultural labourers. As an example , with the abolition of the zamindari system all the exploitation related to the system has been removed. Tenancy laws are passed in most of the States protecting the interests of the tenants and labourers, and enabling them to accumulate the lands they cultivate.
Every State has passed law fixing ceiling on agricultural holdings by which the utmost amount of land which an individual can hold has been fixed by law, the excess lands of rich landowners are to be distributed to the landless labourers, and little peasants.
(4) Labour Co-operatives:
After Independence, efforts are made to encourage the formation of labour co-operatives. These co-operatives, whose members are workers, undertake the contract of govt. Projects, such as, construction of roads, digging of canals and tanks, afforestation, etc.
They provide employment to farm workers during off-seasons and also eliminate that possible exploitation of workers by the private contractors. The essential idea of the movement is commendable. The movement has yet to realize momentum within the rural areas.
(5) Employment Guarantee Scheme:
The Govt. Of Maharashtra has introduced the ‘Employment Guarantee Scheme’ under which any able-bodied person in rural areas can apply for employment to the Collector of his district or to his authorised subordinate official and therefore the latter will provide him employment within 5 kilometres of his place of residence. For this purpose, the govt has got to prepare and confine readiness various structure , like irrigation works, construction , etc.
The rate of wages won't be like to draw in agricultural workers from their normal employment in agricultural operations. This is often a welcome step to supply employment to all or any persons and it's expected that each one other states would introduce similar schemes.
(6) 20-Point Programme:
In July, 1975, soon after the Emergency was declared, the govt introduced the 20-point economic programme including variety of measures to enhance the financial condition of the landless workers and other weaker sections of the community in our villages.
These measures were:
(i) Speedy implementation of ceiling legislation and distribution of surplus land among landless labourers and little peasants;
(ii) Provision of house sites For landless labourers and conferment of ownership rights of the homes if they need been occupying them for a particular period;
(iii) Abolition of bonded labour;
(iv) Liquidation of rural indebtedness and moratorium on recovery of debts from landless labourers, artisans and little peasants; and
(v) Review of the wage legislation for agricultural labour and introduction of suitable enhancement of minimum wages wherever necessary.
The landless labourers who form 20 to 22% of the entire population are living a miserable existence, with highly inadequate food, clothing and housing. Their wages are low; they're forced to figure for an equivalent landlords for generations; and that they don't own even the huts during which they live.
The landless labourers are indeed the worst exploited section of the community. The 20-point programme was the primary concrete step to ameliorate their financial condition and promote their welfare and attempt was made to implement the programme vigorously. With the approaching into power of the Janata Party at the Centre, the longer term of the 20-point programme has become uncertain. Politics apart, the varied points of the 20-point economic programme are worth implementing.
The Planning Commission have rightly felt that the advantages of the many of the event programmes haven't reached the landless farm labour. They, therefore, have suggested the formation of a board in each State to coordinate all measures proposed for the advantage of farm workers.
The coordination should happen at the extent of a community development block, at the district and at higher levels. Further, the design Commission have decided to line up a Central Advisory Committee to advise the Commission on problems of landless labour generally and on the matter of settling them ashore especially .
The Minimum Wages Act of 1948 strives to secure the welfare of both skilled and unskilled labourers in India. This act of parliament specified the wage limit for several occupations. Its main motive was to make sure that employers cannot exploit them with lower rates. The expansion of a rustic are often measured in terms of the wage rate offered to its workers which may help a rustic in paving its success story within the end of the day .
Introduction
Indian constitution has defined ‘Living wage’ because the level of income which helps the worker in securing a basic standard of living. This further includes comfort, healthiness , dignity, education etc.
It also provides for contingencies which could arise all of a sudden. Fair wage helps in maintaining A level of employment. It even tries to extend an equivalent by considering the industry’s ability in touch this expense.
The Central Advisory Council appointed a Tripartite Committee of Fair Wage during its first session organized in November 1948. This committee devised the concept of wage for preserving efficiency and guaranteeing bare subsistence which may cater to the wants of drugs , education, and luxury .
The wage rate of scheduled employment varies across sectors, regions, states, skillset also as occupations thanks to a difference within the capacity of regional industries to pay, cost of living also as consumption patterns.
It is impossible to urge a consistent rate of an equivalent across India. While rock bottom wage rate has been reported as 38 INR/day in Tripura, the very best is 322 INR/day in Andaman and Nicobar consistent with 2012 estimates.
Browse more Topics under Minimum Wages Act
• Procedure for Fixing and Revising wage
Points to think about within the wage Rate
• The total number of hours that a labourer works during a normal day must comprise of a minimum of one or more interval periods.
• One full day leave should be granted to all or any employees weekly.
• The remaining day’s rate of payment shouldn't be below the overtime rate.
• An employees wage rate should include the respective rates of various work performed by him and for the required number of hours at each task if he's engaged in two or more scheduled employments.
• The appropriate government will appoint inspectors for examining the matter intimately .
• An employer is susceptible to maintain records concerning the work, wages and receipts of employees.
Exclusions From The Minimum Wages Act
• Wages paid to disabled workers and to the dependent family of the employer.
• Un-scheduled industries.
Penalties & Offences
The Central Act treats all violation of the working hours, minimum wages and similar conditions as an offence. These are punishable by penalties which can take the shape of 10000 INR fine or five years of imprisonment.
The appropriate government can appoint a labour commissioner, an officer having experience as a Stipendiary Magistrate judge, Commissioner for Workmen’s Compensation or an officer ranked above a Labour Commissioner for processing the complaints lodged.
References
1. Indian Economy - Rudra Dutt & Sundarram
2. Bhartiya Arthashastra – L. M. Roy
3. Indian Economy – Uma & Kapila
