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CHAPTER I

INTRODUCTION

1.1 Significance of Agriculture Sector

India has a national bound to agricultural sector. Agriculture promotes

economic development of the country. Though there is excessive dependence on

agriculture and its allied activities the significance of national income mainly on

agriculture is decreasing in India. According to 2011 World Bank data, 14.1 percent

of India's GDP is accounted for by agricultural production. Still the share of

agriculture in GDP is diminishing, agricultural sector continuous to be a significant

contributor to the Indian Economy. With compare to other sectors i.e 30 percent

from industry and 45 percent from service sector, the contribution from the

agricultural sector is low.

The situation is different in the developed countries where agriculture sector

forms a small contribution to the national income. In U.K. it is only 2 percent and in

USA it is only 3 percent. In India it still provides employment opportunities to

nearly 70 percent of the total population. Agriculture in India explains familial

tradition, social relation and gender role. As per the 2012 data, India is home to the

fourth largest agricultural sector in the world. India has an estimated 180 million

hectares of agricultural land with 140 million of which are planted and continuously

cultivated. Thus agriculture plays a significant role in Indian economy even now.

(Agarwal 2003)
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1.2 Role of Agricultural Labour

According to Bright Singh, Labour refers to physical or mental effort of

human being, for which the reward wage is given. In agricultural sector majority of

the people i.e. two third has been engaged because agricultural labourers are

unskilled and semi-skilled. Due to this disguised unemployment exist in the

agricultural sector.

Agricultural labourers form mostly neglected groups of Indian rural

construction. Their income is small and employment is irregular since they are

unskilled and untrained, they have no other employment opportunities. Socially, a

large number of agricultural workers belong to scheduled castes and scheduled

tribes. Therefore they are an oppressed class and both economically and socially

weaker sections of the society. They are not organized and cannot fight for their

rights. Because of all these reasons their economic lot has failed to improve even

after four and half decades of planning. It seems that the planning process has by

passed them (Misra and Misra, 2003).

The alarming characteristics of the rural economy of India have been the

growth in the number of agricultural labourers and farmers involved in agricultural

activities. The situation of unemployment, underemployment and surplus

population are all simultaneously manifested in the daily lives and livings of

agricultural families.

Agricultural labourers obtain low wages, conditions of the work put an

excessive burden on them and employment which they get is extremely irregular.

Dr. Pattabi (1940) told in the Agricultural Labourer‟s Conference that "The

cultivators who spend the day between slush and mud, who work with a starving
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stomach and now with a half appeased hunger who know no rest in storm or

sunshine, who often have no dwelling site which can be called their own, they grow

our paddy but starve. He feeds our milch cows but never knows anything beyond

Kanjee and Water. He digs our wells but must keep off from them when they are

full. He is a continuous hewer of wood and drawer of water for those who make

substantial on his labour and rise to wealth and plenty. His condition is awful and

heart-rending”

It was this condition that led the Agrarian Reforms Committee, 1950 to

observe that “To leave out problem of agricultural labour in any scheme of Agrarian

Reforms as has been done so-far-is to leave unattended a weeping wound in the

Agrarian system of the country.”

Because of the seasonal nature of the agricultural activities and repetition of

failure of monsoons, agricultural labourers are the worst affected. They are

seriously affected from large scale unemployment and underemployment (M.L.

Singh et.al. 1972).

1.3. Definitions of Agricultural Labourers

It is not easy to provide clear and precise definition of agricultural labourers.

It is because of the difficulty in identifying and classifying the general labourers as

agricultural labourers by confining to a particular work or task, in a broad sense

cultivator, their wives and fathers and hired labourers in agricultural sector compose

agricultural labour force.

As per the first Agricultural Labour Enquiry in India (1950-51) agricultural

labourers as those people who are involved in raising crops on payment of wages. It

was enlarged the category to include also those who are engaged in the agricultural
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allied activities like poultry farming, animal husbandry, dairy etc. in the second

agricultural labour enquiry in India (1956-1957).

In the present scenario the above definitions are not found suitable and

adequate. It is not easy to separate working on wages from others because they

usually work for wages only for a part of the year. If the 50 percent of the family

members earns income from agricultural works, they are considered as agricultural

household.

The national commission on labour observes agricultural labour as one who

is mostly unskilled and unorganized and has nothing but physical labour to exist.

Hence major part of the income is derived from wage for work on cultivation.

The population census of India adopted various definitions of agricultural

labour from time to time. Population census 1961 defines that those people were

treated as agricultural labourers who work on other‟s land and who are paid cash or

kind. 1971 censes followed different definition. It distinguished labourers from non-

labourers on the basis of their main work. The secondary work was not taken for

categorising a worker as agricultural or non-agricultural labourers. The census of

India, 1981 classified the workers "as main workers and marginal workers. The main

workers were further classified as cultivators, agricultural labourers, household

industrial workers and other workers. Agricultural labour is a person who worked in

other‟s land for wage in cash or kind or share of product. He has no risk of

cultivator but merely worked for wages. He has no right to lease or contract of land

on which he engaged".

1991 census followed the same definition of agricultural labour. It explains

“A person who works on another person‟s land for wages in money, kind, or share is
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considered as agricultural labourers, they have no work in cultivation but he/she

merely works on another person‟s land for wages. An agricultural labourer has no

right of lease or contract on land on which they work”.

It is one of the major works of the five year plan to make sure the full

employment for workers and better standard of living conditions to all section of the

rural people and in particular to assist agricultural labourer and backward and

scheduled classes to come up to the level of the rest.

1.4 Classification of Agricultural Labourers

Normally agricultural labourers are mostly as socially and economically

downtrodden sections. Agricultural Labourers are divided into four types as

mentioned below:

 Landless labourers who are working in others land

 Landless labourers who are personally independent but who work

exclusively for others.

 Very small farmers with tiny bits of land who devote most of their

time working for others and

 Farmers who have economic holding but who have one or most of

their cultivation and dependents working for wealthy cultivators.

The first group of agricultural workers is in the position of serfs or slaves;

they are also called as bonded labourers. They do not normally receive wages in

cash but are generally paid in kind. They have to work for their owners and cannot

shift from one to another. They have to provide beggar or forced labour. In some

cases they have to offer cash and also supply fowels and goats to their masters.
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Around the other groups mentioned above the second and third are important. The

problem of landless labourers is most serious problem in the rural sector.

The living conditions of agricultural households are still in pathetic

condition. Their economic and percapita expenditure shows that they are the

agricultural labourers living below poverty line. They are not able to get minimum

support to run their families. During the offseason period they have to depend on

cultivators and moneylenders who often exploit them. So majority of the agricultural

labourers are in debts (Mukesh Eswaran, 2009).

1.5 Statement of the Problem

Still, agricultural sector is contributing nearly 10 per cent of GDP to Indian

the economy. From 2011 census it was found that the population of India is

increasing. So the excess population is employed in agriculture and its allied

activities. It shows clearly that the agricultural labour force is also increasing in

respect to population growth. It is also not easy to define the term “agricultural

labour in brief and exact terms'. But it will be helpful to refer to some of the attempts

made by experts in this connection.

To examine the problems faced by the agricultural labourers the definitions

of agriculture are necessary. The First Agricultural Enquiry Committee (1950-1951)

defined that the agricultural labourers are those people who are engaged in raising

crops on payment of wages. The Second Agricultural Labour Enquiry

Committee (1956-57) modified the definition of agricultural labour to include “those

who are engaged the other agricultural occupations like dairy farming, horticulture,

rising of livestock, bees, poultry etc. From the definition it can be clearly

understood about the agricultural labourers.

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Since the size of agricultural labourers household have been large one or big

size the family members are not able to earn adequate income to run their families

due to the monsoon failure and no water flow in river Cauvery causes for

unemployment of agricultural labourers in the study area.

Hence, the area of cultivation is decreased in the study area. Existing current

wage rate is Rs.300 for men and 150 for women is not enough to sustain themselves.

Since agricultural occupation is a seasonal, agricultural labourers are employed.

From other sources, agricultural labourers are employed between 100 to 150 days

only in a year. From other sources agricultural labourers are getting low income.

Hence irregular and inadequate income is one of the most important problems faced

by the agricultural labourers. Due to decline in small scale industries, the pressure of

population on land has increased. The increased number of agricultural labourers

made the employer or large farmers exploiting the poor agricultural labourers by

paying low wages. Since there is no labourers organisation, the agricultural

labourers are not able raise their voice for their rights. In the present cultivation

scenario machines are used for ploughing, transplanting, harvesting, winnowing,

packing paddy in bags etc. It leads to unemployment, and this had been ultimately

reduced prevailing wage rate. Properties owned by different categories of

agricultural labourers are diminishing and indebtedness of all the types of

agricultural labourers are increasing. Due to impossibility of repayment of debt

agricultural labourers have been migrating to other states or other big towns. Thus

the agricultural labourers have faced number of problems.

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In this juncture the researcher made an attempt to study the socio economic

problems faced by the agricultural labourers belongs to the agricultural families of

Kabilarmalai and Paramathi blocks of Namakkal districts.

1.6 Objectives of the Study

The researcher formulated the following specific objectives of the present

study based on the research gap found from the review of literature.

 To study the socio-economic conditions of the agricultural labourers in the

study area.

 To examine the value and types of assets possessed by the selected

agricultural labourers of the study.

 To estimate the annual income earned by the selected agricultural labourers

of the study

 To study the pattern of annual expenditure incurred and annual indebtedness

of agricultural labourers.

 To highlight the major problems faced by agricultural labourers in the study

area during the study period.

1.7 Hypotheses of the Study

Based on the above objectives of the study, the researcher formulated the

following hypotheses.

 There is no direct association between number of working days and annual

income of agricultural labourers.

 There is no direct relationship between annual income and standard of living

of the agricultural labourers.

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1.8 Scope of the Study

The present study will useful to the problems faced by the agricultural

labourers. In uplifting the socio economic conditions of agricultural labourers in

rural areas the study is more significant for the policy makers for taking suitable

measures.

Unemployment and underemployment of agricultural labourers are to a great

extent reduced by the new schemes implemented by the government. It was helpful

to change the income and expenditure pattern of the agricultural labourers. Due to

the various measures, presently the number of people living below poverty line has

been reduced to a certain extent.

Through the five year plans central govt. is giving much importance to this

problems. The present study has also helpful to government for paying much

important to the agricultural labourers.

Work for food programme, IRDP, TRTSEM, Employment Generation

Guarantee Scheme, Jawahar Rojgar and MGNREGA Programme etc. have been

introduced by the central government to increase the employment opportunities.

Number of commissions and committees are also established by the

government for identifying the problems faced by the agricultural labourers.

Agricultural labourers should utilise these for their betterment.

In this situation, a micro level study on socio-economic conditions of

agricultural labourers and its impacts on their household is need. Hence the present

study is the much thrust of the study of agricultural labourers‟ socio-economic

conditions in Namakkal district of Tamil Nadu. The results drawn from the present

study will bring to highlight the economic benefits of agricultural labour problems,
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income, expenditure, indebtedness, wage rate, welfare and employment programmes

implemented by the government.

1.9. Limitation of the Study

Based on the objectives of the present study, the primary data were collected

from the selected agricultural labourers of the study area. Majority of the farmers

illiterate and they provide data from their memory. Hence, the data furnished by the

respondents are subjected to recall bias. However the researcher made careful effort

to minimise the bias by cross-checking. The time and other resources available at

the disposal of the researcher necessitated him to confine the study area to a small

compact area, covering sample of respondents. Hence the findings of the study can

be generalised to other situations only with extra care and qualifications.

2.0 Methodology

2.1 Selection of Data

Both primary and secondary data were used in the present study. Cross

section data are also used to cross check the information to reduce the recall bias.

For the collection of primary data, a multi stage stratified random sampling

technique has been used in order to identify the initial blocks consisting of

agricultural labourers, followed by proportionate stratified sampling technique was

used to collect the primary data from the selected sample respondents.

A pre tested interview schedule is used for the collection of primary data

from the selected respondents of the study. The scheduled was pre-tested with

reference to the objectives of the study. Selected respondents are individually

interviewed and data pertaining to socio-economic status are collected from the

different groups.
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Secondary data were collected from Namakkal district Agricultural

Department with respect to population of agricultural labourers. Secondary data

related to the present study were collected from various journals, books, reports and

web sites.

2.2 Selection of Study Area and Sampling Design

Namakkal district is selected for the present study. The district area has 2.64

percent of the total area of Tamil Nadu state. The major soil types in this district are

black soil, brown soil, alluvial soil and mixed soil. The major rivers flowing in the

Namakkal district are Cauvery and Thirumanimutharu. The major crops found in

this district are Groundnut, Paddy, Sugarcane, Banana, Cotton, Cumbu, Tapioca,

Ragi, Pulses and Millets. The block is characterised by sub-tropical climate with

moderate temperature. Hence Namakkal district has been purposively selected for

the study. Namakkal district has 15 blocks and 396 villages.

The proportion of workers engaged as agricultural labourer as a whole in the

district is 35 percent which high compared to the state average share of 29.2 percent.

Among the agricultural labourers Kabilarmalai block have the maximum share

among the blocks in the district (44.8 percent) followed by Mohanur (43.5 percent).

Taking into consideration of the percentage of agricultural labourers the researcher

select Kabilarmalai block and Mohanur block purposively for the study.

From the selected two blocks the agricultural labourers are stratified into

three groups viz. Landless agricultural labours (Group A), Agricultural labourers

having tiny bit lands i.e upto 0.5 ha., of lands (Group B) and Agricultural labourers

having small size of lands i.e., 1.5 ha., of lands (Group C). From each groups 10

percent labourers were selected at random giving 500 agricultural labourers in the
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selected two blocks. Table 1.1 shows the selected blocks and the sample size of the

present study.

Table

Sample Size of Selected Blocks of Namakkal District

Kabilarmalai Block Mohanur Block

Group

Male Female Total Male Female Total

80 60 140 70 56 126
A
(53.3) (50.0) (51.9) (53.8) (56.0) (54.7)

45 40 85 40 28 68
B
(30.0) ((33.3) (31.5) (30.8) (28.0) (29.6)

25 20 45 20 16 36
C
(16.7) (16.7) (16.6) (15.4) (16.0) (15.7)

150 120 270 130 100 230

Total
(100.0) (100.0) (100.0) (100.0) (100.0) (100.0)

Source: Computed from Primary Data

The above table clearly shows that the number of selected agricultural

labourers in Kabilarmalai block was 270 in which 150 are male and 120 female

labourers. In Mohanur block the total number of selected agricultural labourers was

230 in which 130 are male and 100 are female. An overall selected respondent was

500 in which 280 are male and 220 are female.

2.3 Period of Study

The period of study is confined to two years 2011-12 to 2012-13.

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2.4 Tools Used

The following tools are used to obtain accurate results from the primary data.

o Percentage

o Ranking Analysis

o Average

2.5 Limitations of the Study

Based on the objectives of the study primary data were collected from

sample respondents in the study area. Most of the agricultural labourers are

illiterate. Hence the information furnished by them is from their memory and

experience. The researcher took maximum effort to minimise the bias by cross

checking. The time and other available resources at the disposal of the researcher

necessitated the researcher to limit the study to a small compact area, covering

sample agricultural labourers. Hence the results of the study can be generalised to

other situations only with extra care and qualification.

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Chapter Design

The present research work has been divided into five chapters.

CHAPTER I: First Chapter is an Introduction chapter. It includes significance

of the study, statement of problem, scope of the study, objectives of the study,

hypotheses of the study, limitation of the study, methodology, period of study

and chapter design of the present study.

CHAPTER II: Second chapter explains the review of literature of the past

studies related to the present study. It also explains the concepts and theoretical

classification.

CHAPTER III: Third chapter furnishes the profile of the study area.

CHAPTER IV: Fourth chapter allotted for the discussion and analysis of the

primary data.

CHAPTER V: Sixth chapter furnishes the summary of results, suggestions and

conclusion.