Decreased Demand for Work Seen in Key June Quarter for Rural Jobs Scheme

Demand for work under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) eased slightly in the key June quarter compared to the previous year, despite monthly fluctuations, showcasing the uncertain nature of an industrial recovery.

Person-days generated under the scheme amounted to 1.11 billion in the first quarter of the current fiscal year, compared to approximately 1.14 billion and 1.16 billion in the corresponding quarters of FY23 and FY22 respectively, according to a rural development ministry analysis. Experts attributed the decline to the suspension of MGNREGS work in West Bengal due to alleged fund diversion.

However, the delayed kharif crop sowing in many parts of India due to erratic monsoons somewhat slowed down the migration of workers to the agricultural sector in June and prevented a more significant decline in work demand under the flagship rural job scheme, experts added. The June quarter often contributes to over half of the annual person-day generation, as agricultural activities remain subdued during this period.

In addition, the summer season is the ideal time for implementing various work programs, including constructing water bodies, under the MGNREGS. According to preliminary data compiled by the ministry, approximately 118.57 million individuals opted for work under the scheme between April and June, representing a 0.8% decrease compared to the previous year.

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