People say MGNREGA work pulls labour away from farms and pushes wages up. Is that true, and how should a farmer adjust?
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MGNREGA gives rural workers a guaranteed wage floor and alternative work, so in some seasons and areas it does make farm labour tighter and pushes the going rate up toward or above the MGNREGA rate. The honest way to view it: the MGNREGA daily wage in your state is effectively the floor that workers compare your offer against, so to attract labour you usually have to match or beat it once their meals or transport are added. Practical adjustments are the same ones that fight any labour shortage: plan and book labour or contractors early, mechanise the most labour heavy operations, choose methods and varieties that need fewer hands, and be a reliable, fair employer people prefer over a worksite. In some states MGNREGA works are timed to avoid the peak farm season, so check your local schedule, you may find labour eases off during your harvest window. Confirm the current MGNREGA rate for your state as it is revised periodically.
In our block the demand is highest in lean months, not at harvest, so it does not hurt me much. I still pay a bit above the scheme rate to keep my regular workers happy.