Dynamics of Indian Rural Labour Supply: Causes and Consequences of Farm Labour Shortage on Agricultural Development

Indian agriculture is often cited as a classic example for disguised unemployment. Labour abundance, lower level of wages, and need for creation of alternate employment opportunities for a huge section of labour force have always been the central issues of debates throughout the planning period. In the current period, the primary sector has undergone a tremendous change and there are instances of farm labour supply shortages. This contemporary phenomenon is mainly attributed to rural-urban migration and public work inceptions. Especially the MGNREGA has been able to draw a huge labour force, and in the era of transportation and communication revolution, migration is very easy and is a profitable phenomenon as discussed in this paper. This has resulted in driving the rural farm labour wages to newer heights and has also caused a dearth of farm labour. The study concludes that MGNREGA must be implemented in partnership with local farmers in such a way that the local farmers will gain labour supply through MGNREGA, and the State will also share the fiscal burden with the local farmers in season of crops and only in the off season can the State venture into development of local infrastructure, which will consequently aid in sustainable agricultural development.