Growth pull, not MGNREGA push
During the 11th Plan (2007-12), farm wages rose at an unprecedented pace, registering an average annual growth of 17.5 per cent in nominal terms, and 6.8 per cent in real terms. Labour accounts for about 30 per cent of the cost of production in much of crop agriculture. Thus, rising farm wages have increased the cost of production in agriculture across the board.
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