12. Impact of MGNREGS on Rural Labour Markets and Agriculture: A Study of Madhya Pradesh

MGNREGS is an opportunity for revitalising agriculture, restoration of ecosystems besides providing livelihood security to the poor and unemployed. It was to assess the impact of MGNREGS on rural labour markets, ascertain the changes in land use, cropping pattern and micro irrigation development in agriculture. The study concluded that for both male and female workers in rural areas, the scheme made a difference in terms of increasing real and money wage rates, especially more rapidly for female workers. During 2004–05 and 2007–08, person days of employment of rural women in public works increased around 4.4 times. There was no gender gap in the wages paid while average wages received in MGNREGS were significantly higher compared to other kinds of work. The impact is direct in terms of higher wages paid to women; indirect in terms of effects on women workers’ reservation wages and bargaining power. The scheme had already positive effects on women workers in rural labour markets and resulted in real wages to rise, gender gaps to come down and open unemployment rates of women to decrease. Irrigation potential improved and the land brought under cultivation has been increased. Besides, the kapildhara wells and field bunding have resulted in improvement in micro irrigation, enabled changes in cropping pattern towards cash crops. Stop dams and check dams across nalas and small rivers enabled recharging of ground water and restoration of ecosystem benefiting all types of farmers while providing immediate irrigation. Public investment accompanied by private investment created assured irrigation.