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Impact of NREGA on Wage Rates, Food Security and Rural Urban Migration in U.P

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Impact of NREGA on Wage Rates, Food Security and Rural Urban Migration in U.P Study no. 135 Publication No. 183 Impact of NREGA on Wage Rates, Food Security and Rural Urban Migration in U.P. Prof. Ramendu Roy Shri Ramji Pandey 2012 Agro-Economic Research Centre University of Allahabad Allahabad-211002 PREFACE NREGA is the largest ever public employment programme visualized in human history. This is really a flagship programme launched by the Ministry of Rural Development, Government of India which touches the levels of rural poor directly. It assists during the time when there is a severe distress in rural livelihood. This Act aims at enhancing livelihood security of households in rural areas of the country by providing at least 100 days of guaranteed wage employment in a financial year to every household wherein adult members volunteer to do unskilled manual work at a statutory minimum wage rate. This Act provides a legally enforceable right that facilitates the rural households to get employment in public works within 15 days of applying for the work. This Act is supposed to fulfill the short term need of casual employment while creating sustainable livelihoods in long terms. Alongwith augmenting wage employment, this Act would strengthen the natural resource management through works that address causes of chronic poverty, recurrent drought and so encourage sustainable development. NREGA has already recorded payment of unemployment allowance to large members of workers in chronically poorly administered areas. This study entitled “Impact of NREGA on wage Rates, food Security and Rural Urban Migration in Uttar Pradesh” is a modest attempt to assess the impact of NREGA on wage rates, food security and rural urban migration in the selected districts of Uttar Pradesh. The main objectives were to measure the extent of manpower employment generated under NREGA, to compare wage differentials between NREGA activities and other wage employment activities, to study effect of NREGA on pattern of migration from rural to urban areas, to find out nature of assets created under NREGA and their durability and to identify the factors determining the participation of people under NREGA scheme. This study reveals that NREGA is the lifeline of the villagers. Almost all the sample households intended that this programme should continue. Wage rates in rural areas have increased considerably after the implementation of NREGA. Food securities among rural poor have gained certainty. This programme had indeed checked the migration of rural - 2 - poor from rural areas to urban and suburban areas. Some policy implementations have been made. This study is about the implementation of NREGA in the districts of Uttar Pradesh. This study had been undertaken by Sri Ramji Pandey Sr. Research Associate of this centre who supervised the investigation, prepared the analytical frame and write-up tables and drafted the report. Field investigation, scripting of schedules, tabulation and compilation of data were done by Sri R.S. Maurya and others. The data entry and manuscript is typed by Smt. Nirupama Nigam, P.A. to Director. I express my deep sense of gratitude to all concerned without whom this study would have not been possible. Any suggestion for improvement in the report will be acknowledged thankfully. I wish to place on record my gratitude to Sri Anurag Yadav, Commissioner , Shri. V.K. Bhagwat, Assist. Commissioner and other officials, NREGA, Uttar Pradesh Lucknow. I am also obliged to DRDA of Saharanpur, Etah, Kushinagar, Barabanki and Allahabad districts for their valuable co-operation in the collection of primary and secondary data and relevant information for the study. I am also thankful to Dr. R. Singh and Shri D.K. Singh, Ex. Sr. Research Officer of the AER Centre, Allahabad University for providing research knowledge in drafting the present report. Comments and suggestions for the improvement of the report are welcome and will be thankfully acknowledged. (Ramendu Roy) Agro-Economic Research Center Prof. & Hon. Director University of Allahabad Allahabad. Date 27.06.2012 - 3 - CREDIT Project Planning & Drafting Shri Ramji Pandey Tabulation & Data Collection Shri R.S. Maurya Data Entry & Mrs. Nirupama Nigam Computer Operations Secretarial Services Mrs. M.R. Kesherwani & Shri S. D. Singh Xeroxing Mr. H.C. Upadhyay - 4 - CONTENTS Pages PREFACE 2-3 CRADIT 4 CONTENTS 5 LIST OF TABLES 6-7 CHAPTER-I Introduction 8-14 CHAPTER-II. Manpower Employment Generated under NREGA 15-81 & its various Socio-Economic Characteristics CHAPTER-III. Household characteristic, their income & their 82-92 consumption Pattern. CHAPTER-IV. Work profile under NREGA, wage structure and 93-98 migration issues. CHAPTER-V. Qualitative Aspects of NREGA Functioning 99-114 CHAPTER-VI. Impact of NREGA on Village Economy 115-126 CHAPTER-VII. Summary and Conclusion 127-139 REFERENCES 140 Annexure 141-142 Summary 143-158 - 5 - LIST OF TABLES Table No. Title of Tables Page No. Chapter–I Table-I- 1 Sample Design Chapter-II Table-II- 1 An overview of NREGA in Uttar Pradesh Table-II- 2 (A) Employment generated through NREGA and Its various Socio- Economic characteristics (2010-2011) Table-II- 2 (B) Employment generated through NREGA and Its various Socio- Economic characteristics (2009-2010) Table-II- 2 (C) Employment generated through NREGA and Its various Socio- Economic characteristics (2008-2009) Table-II- 3 (A) District –wise Work Completed /Progress under NREGA (No. of Projects) (2010-11) Table-II- 3 (B) District –wise Work Completed /Progress under NREGA (No. of Projects) (2009-10) Table-II- 3 (C) District –wise Work Completed /Progress under NREGA (No. of Projects) (2008-09) Table-II- 4 (A) District –wise Work Completed /Progress under NREGA Expenditure (2010-11) Table-II- 4 (B) District –wise Work Completed /Progress under NREGA Expenditure (2009-10) Table-II- 4 (C) District –wise Work Completed /Progress under NREGA Expenditure (2008-09) Table-II- 5 (A) Social Auditing and inspection of NREGA work during 2010-11 Table-II- 5 (B) Social Auditing and inspection of NREGA work during 2009-10 Table-II- 5 (C) Social Auditing and inspection of NREGA work during 2008-09 Table-III- 6 (a) The NREGA payment processed though banks/post office during 2008-09 Table-III- 6 (a) The NREGA payment processed though banks/post office during 2008-09 Table-III- 6 (a) The NREGA payment processed though banks/post office during 2008-09 Table-III- 6 (b) The NREGA payment processed though banks/post office during 2009-10 Table-III- 6 (b) The NREGA payment processed though banks/post office during 2009-10 Table-III- 6 (b) The NREGA payment processed though banks/post office during 2009-10 - 6 - Table-III-6( C) The NREGA payment processed though banks/post office during 2010-11 Table-III-6( C) The NREGA payment processed though banks/post office during 2010-11 Table-III-6( C) The NREGA payment processed though banks/post office during 2010-11 Table-III-7 (A) Unemployment Allowance paid in lieu of not providing Employment (2010-11) Table-III-7 (B) The NREGA payment processed though banks/post office during 2010-11 Table-III- 1 Demographic profile of the respondents (% of household) Table-III- 2 Main Occupation (% of total man days per hh) Table-III- 3 Household Net Income (Annual) (Rs. Per household) Table-III- 4 Household consumption of food items (Kg. per capita per month) Table-III- 5 Monthly consumption expenditure of sample households Table-III- 6 Variability in consumption and Income Table-III- 7 Determinants of Participation in NREGA at the household level (Logit/Probit function) (Dependent variable: participation in NREGA) Table-IV- 1 The work profile under NREGA (Reference period-Jan-Dec 2009) Table-IV- 2 No. of households completed 100 days of work under NREGA Table-IV- 3 The Activity in which employed under NREGA and the quality of assets created (Reference period-Jan-Dec 2009) (% of hh) Table-IV- 4 Wage Differentials among Different Activities Table-IV-5 Migration incidents recorded during the reference period Jan. -Dec. 2009 Table-V- 1 Assets Holdings of Sample Households Table-V- 2 Borrowings by Sample Households Table-V- 3 Household Strength on Borrowing and other Household Assets Table-V- 4 Qualitative Questions related to functioning of NREGA Table-V- 5 Quantitative related to NREGA Functioning (Percentage of hh) Table-V- 6 Provide Details on the Following Potential Benefits of NREGA (Percentage of hh) Table-V- 7 Quantitative Questions Related to food Security (Percentage of hh) Table-VI- 1 Infrastructure Available within the Village Table-VI- 2 Occupational Structure Table-VI- 3 Wage rates for different activities Table-VI- 4 Prevailing Labour Charges for Agricultural Activities Table-VI- 5 Qualitative Questions on changes in the Villages during last one year Table-VI- 6 Quantitative questions about the functioning of NREGA - 7 - CHAPTER-I I.1 Introduction National Rural Employment Guarantee Act (NREGA) was launched by the Ministry of Rural Development, Govt. of India on September 7, 2005. NREGA is the largest ever public employment programme visualized in human history. This is a flagship programme launched by the Government which touches the levels of rural poor directly. It assists during the time when there is a severe distress in rural livelihood. This Act aims at enhancing livelihood security of households in rural areas of the country by providing at least 100 days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work at a statutory minimum wage rate. This Act provides a legally enforceable right that facilitates the rural households to get employment in public works within 15 days of applying for the work. This Act is supposed to fulfill the short term need of casual employment while creating sustainable livelihoods in long term. Alongwith augmenting wage employment, this Act would strengthen the natural resource management through works that address causes of chronic poverty, recurrent drought and so encourage sustainable development.
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