Saturday, February 12, 2011

MGNREGA - a cause for price rise?

Mahatma Gandhi National Rural Employment Scheme - one of the flag ship programs initiated by UPA II now makes serious troubles in the economy. I don't know how many of are aware about this stark but alarming fact. Some experts and economist were addressed the issue recently in few discussions. In the midst of the debates regarding Minimum Wage for MGNREG workers, the amount pump through MNREGA creates serious issues and strong repercussions in our economy. The reality is that the much attracting project and it easiness tempts the rural people to move away from the farms and agriculture fields and forced to clutch on developmental works, cleaning, construction etc. This trend caused a bad impact on agriculture sector that triggered a diminishing trend in  production. The MNREGA raised the liquidity and it gradually affected the economy as price rise, food shortage and inflation. While labor shortage is disturbing agriculture sector in one side, inflation affecting the economy on other side. We have noticed that food inflation  was the most devastating among the inflationary trend. Andhra, West Bengal, Kerala etc. has shown a tremendous dip in food production.The case of Kerala is most worst while considering the width of gulf between demand and consumption.

So what our Government should do is that instead of unplanned works of MGNREG, it should design an action plan which can enhance the agriculture production and its should monitor with the newly designed IT technology. The statement of Chidambaran recently in a function at Kerala, he called up for a shift from agriculture sector to industrial sector. I think this will create an impact like adding oil on fire. Not only the Indian but also the whole globe will face a huge crisis of food shortage in immediate future. And preserving something- not for the future but for today id a need of this hour. Hope let;s expect an yet another green revolution and it should be organic to say GO GREEN.

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