PLFS: Govt Must Address Needs of Agri Labour Force Beyond Insurance, Meagre Pensions

As per the 2011 Census, there are approximately 230 million agricultural workers in India out of which 106.8 million are agricultural labourers. These workers constitute a substantial portion of the Indian workforce, demonstrating the country’s dependence on agricultural labour for food production and economic sustenance.

However, this vital workforce often faces precarious working conditions, low wages, and seasonal unemployment.

Compounding these challenges is the increasing trend towards farm mechanisation in India, which, although crucial for boosting agricultural productivity, might lead to job displacement for these labourers. This shift towards mechanisation necessitates the exploration of alternative employment opportunities to ensure the well-being of this crucial segment of the workforce.

This essay argues that moving beyond insurance and pension schemes is essential for holistically improving the lives of agricultural labourers. It is crucial to invest in strategies that empower this workforce through skill development, education, and the creation of diverse employment opportunities, enabling them to transition smoothly into non-agricultural sectors and improve their overall well-being.

Defining Agricultural Labourers

Agricultural labourers are individuals who work on farms or in agricultural activities for wages, rather than operating their own farms. They do not own the land they cultivate nor the tools they utilise. Agricultural labourers provide the manual labour required for various agricultural tasks. They play a critical role in ensuring food security and supporting the livelihoods of millions in rural areas. In India, they represent a substantial portion of the workforce. The 2020-21 Periodic Labour Force Survey reported that 46.5% of people in India are engaged in agricultural activities.

Agricultural labourers are essential to the agricultural sector because they perform tasks vital for food production. These tasks can include:

• Preparing land for cultivation
• Sowing, planting, and transplanting crops
• Maintaining crops through weeding and irrigation
• Harvesting and threshing crops
• Tending to livestock and poultry

While the ongoing shift towards farm mechanisation aims to enhance productivity, it also poses a challenge to the traditional employment patterns of agricultural labourers. This displacement necessitates exploring alternative employment avenues to ensure their continued well-being.

Farm Mechanisation, Falling Labour Demand, Potential Risks

Farm mechanisation is causing a decline in the demand for manual labour in India by replacing human workers with machines for various tasks. This shift is driven by the need for greater efficiency and output in the agricultural sector. The increasing production of crops like grains, cereals, and oilseeds requires faster and more effective harvesting procedures.

Powered machines help meet this need, enabling farmers to reduce costs and increase yields. As per a 2022 report by Parliamentary Standing Committee on Agriculture, Animal Husbandry and Food Processing, 47% of agricultural operations in India are now mechanized, highlighting the ongoing transition. Machines are employed in a wide array of agricultural activities, including seed-bed preparation (ploughing, harrowing), sowing and planting (seed drills), inter-culture operations (weeding, fertiliser application), harvesting and threshing (combine harvesters), and irrigation (tube wells, electric and diesel pumps).

The adoption of farm mechanisation offers several benefits, such as cost reduction due to lower labour expenses and faster task completion. Mechanisation also leads to significant savings in seeds and fertilisers, ranging from 15 to 20%, at a conservative estimate. It enhances productivity through improved operational speed and precision in tasks like sowing and harvesting. Furthermore, it optimises resource utilisation by ensuring the accurate application of seeds, fertilisers, and pesticides, reducing waste and environmental impact. Lastly, it allows for increased cropping intensity and higher yields by enabling farmers to work on larger areas efficiently.

However, this transition to mechanisation poses risks for agricultural labourers who depend on manual work. A study in the West Godavari district of Andhra Pradesh found that a one-unit increase in input costs and machine time led to a decrease of 0.06 and 4.34 units in labour requirements, respectively, demonstrating the direct impact of mechanisation on labour demand.

As machines take over tasks once done by humans, labourers face potential job displacement, unemployment, and lower wages due to an oversupply of labour in the market. Marginal and small farmers, who constitute a significant proportion of India’s agricultural workforce, may struggle to afford or operate expensive machinery, potentially widening the gap between them and larger, more mechanized farms. The displacement of labourers also necessitates finding alternative employment opportunities and providing skills training to facilitate a smooth transition to non-agricultural sectors.

This shift can lead to an unstable income for agricultural workers, creating financial uncertainty for rural families who depend on these earnings. Establishing alternative employment options beyond agriculture would provide these families with a much-needed safety net, helping them maintain a stable income even as the agricultural landscape changes.

Importance of Skill Development

To help agricultural workers transition to new job sectors, skill development is key. As traditional agricultural tasks are met with low demands, these workers need training in skills that fit other growing industries, such as manufacturing, construction, or services. Programmes that focus on building these skills would empower agricultural labourers to secure better-paying, sustainable jobs, giving them an opportunity to improve their financial outlook and move beyond agriculture-based income.

Need for Steady Income Sources

A reliable income stream is crucial for the well-being of rural families. When families have a consistent income, they can invest in essentials like education and healthcare, breaking the cycle of poverty and building a brighter future. By fostering employment opportunities outside of agriculture, rural families can reduce their dependence on the land, bringing stability and resilience to rural communities as they adapt to modern agricultural practices.

Schemes: Abundance and Lack

The government has several schemes for agricultural labourers but a good amount of them revolve only around insurance and pension. Insurance is a risk mitigation instrument i.e. it exists to make sure that the person who is insured does not find themselves in worse situation than they are in currently. Pension too supports the current situation rather than helping the person to achieve a better standard of living.

The Indian government has enacted the Unorganised Workers’ Social Security Act, 2008, to provide social security benefits to workers in the unorganized sector, including agricultural labourers. This act mandates the creation of welfare schemes for unorganized workers, addressing life and disability cover, health and maternity benefits, old age protection, and other benefits determined by the Central government.

Several specific schemes fall under this Act:

Aam Admi Bima Yojana (Department of Financial Services)

Rashtriya Swasthya Bima Yojana (Ministry of Health and Family Welfare)

In addition, there are three other schemes by the Central Government that offer coverage to agricultural labourers:

• Atal Pension Yojana
• Pradhan Mantri Jeevan Jyoti Bima Yojana-Life Insurance
• Pradhan Mantri Suraksha Bima Yojana-Accident Insurance

Pradhan Mantri Shram Yogi Maan-dhan Yojana (PM-SYM), launched in 2019, is a pension scheme that provides a monthly pension of Rs. 3,000 to unorganised workers, including landless agricultural labourers, after they reach the age of 60.

Beyond these, other schemes might benefit agricultural labour, but they do not specifically address the loss of employment due to farm mechanisation.

In a reply to a question posed by an MP in Parliament, which asked about details regarding the shift of people from agriculture to other activities, the government did not provide the details of such shift. Instead of a direct answer, the reply talked about unrelated things and concluded by saying that the Government of India has implemented various initiatives and policies to boost economic growth and employment in the country.

The reply listed initiatives aimed at boosting non-agricultural sectors, including the “Make in India” programme, “Start-Up India” initiative, “Pradhan Mantri Mudra Yojana,” and skill development programmes. However, it lacked specific details on how these programs incentivise a shift from agriculture.

This reply also throws light on the fact that the government has been working with scarce data which could affect efficient and effective policy making.

The reason why agricultural labourers need extra protection is because they are deprived of all kinds of resources necessary to get a better life. They are restricted from accessing benefits urbanisation due to lack of capital or skill to move to the city. They are restricted from agriculture due to lack of land etc. Therefore, their lack of resources cannot be solved by placing basic safety nets that barely help them when something bad happens.

A holistic plan-based uplift must be undertaken to ensure that they do not get left out as the process of farm mechanisation begins to pace up. Specific manufacturing hubs that prioritise employment of women, near villages, incentivising the employment of women along with providing standard health and education facilities can be effective.

Only by creating conditions that ensure the improvement in living conditions of agricultural labourers, the goal of restricting unemployment and poverty in rural poor and agricultural labourers can be achieved.

The writer of this article is part of the legal research team of Sabrang India.