Rural Jobs schemes : A trying time ahead

Monsoon rains have played truant this season resulting serious repercussions in across the various areas of economy. It is  just not  food and water scarcity but the job loss in farm and non-farm activities which is actually thickening the plot of problems. Job shortage would definitely increase the demand for the government’s rural job guarantee interventions i.e. the ubiquitous Mahatma Gandhi National Rural Employment Guarantee Scheme. 

Agriculture, the primary job machine of Indian rural milieu has already come to a cranking halt. Kharif crop would only be a partially success due to deficient rains in granary of India. A good part of the areas may remain unsown in Maharashtra, Karnataka, Gujarat and western Rajasthan. The month of August and September won’t be getting their normal quota of rain due to EL NINO. One must not forget that a failed monsoon will also affect the sowing Rabi crops as well, due to dearth of irrigation water and less humidity. Moreover a failed monsoon puts an unprecedented pressure on the ground water, which must be carefully conserved and rationally used by all. Farmers in very few irrigated areas like Punjab and Haryana are asked to use ground water for paddy cultivation instead of water-reservoirs, clearly explains the grave situation.  

The prices of food products have already begun to move up. The prices spiral will be difficult to contain as shortfall in kharif crops don’t seem to be made up so easily. Prices of oilseeds and pulses are all set to skyrocket while festival season is just round the corner. Dearth of fodder will also hit milk supply as well and food inflation may get even worse. Govt is considering to impose stockholding limits on food items such as pulses and cooking oil to check hoarding and rein in prices but this won’t be enough as Inflation is already at a very high level even before the drought sets in. 

Indian economy is no doubt in a difficult situation. The Govt. is already reeling under the pressure of providing subsidized food to below-poverty line families. States have started pressing for drought relief packages and farm debt waivers. This may further worsen the budget management.   Drought and Inflation are double whammy for rural poor as they lose job and purchasing power in sync. This is the time when they look towards govt schemes for a real support.  High inflation and dwindling jobs are likely to stay for a longer period. It is a tough task for the government to prove the competence of its corruption-ridden, abominable scheme machinery. This is probably the first litmus test for efficacy of much hyped MNERGS.

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