Rural India has been witnessing slowdown:

  • Rising prices of agricultural inputs, landholding size decreasing, non-availability of water, soil suitability and pest management.
  • Small and marginal farmers face a greater burden of debt
  • Large fall in food prices
  • The income of landless rural population is hardly enough to cover its consumption requirements.
  • Clime change impacting the monsoon.
  • Decline in land available for agriculture and its diversion for non-agricultural use.
  • More than 50% of people in rural India do not own land and have to depend on manual labour.
  • Sub-optimal utilisation of MSP.
  • Green Revolution caused regional and other disparities.
  • All these factors create a narrow window of economic benefit for the marginal farmer.
  • Data shows that over the years, MGNREGA wages have increased only in nominal terms with no increase in real wages.