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Switching over to Organic Cultivation and Its Impact on Living Wage and Employment in the Agricultural Labour Market

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  • Amit, Kundu

Abstract

The export performance of Indian agricultural commodities in the post WTO agreement on agriculture is not encouraging. Substantial increase of cost of farming due to steep increase of prices of chemical fertilizers, pesticides and seeds gradually make farming as non-profitable. This also reduces employment generation in agricultural sector. High improper use of chemical fertilizers and pesticides during the time of cultivation also creates different health hazards among the agricultural labourers. In this situation, this paper suggests that switching over to organic cultivation will be beneficial for both the farmer and agricultural labourers. As India is now enjoying few comparative advantages in exporting organic agricultural commodities, cultivation through organic method with bio-pesticides can help the Indian farmers to penetrate in vast global market mainly in developed countries and can sell the product at premium price. The organic cultivation will also give sufficient health security to the employed agricultural labourers, which is an important part of social security of these unorganized workers. Switching over to organic cultivation, will help the farmers cum employers to offer lower living wage to each employed labourers without violating social security norm of these unorganized workers and can generate sufficient employment in the agricultural labour market which ultimately will increase further if the developed countries following WTO agreement reduces tariff rates at the time of importing organic food products

Suggested Citation

  • Amit, Kundu, 2009. "Switching over to Organic Cultivation and Its Impact on Living Wage and Employment in the Agricultural Labour Market," MPRA Paper 25557, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:25557
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    References listed on IDEAS

    as
    1. Bliss, Christopher & Stern, Nicholas, 1978. "Productivity, wages and nutrition : Part I: the theory," Journal of Development Economics, Elsevier, vol. 5(4), pages 331-362, December.
    2. Pitt, Mark M & Rosenzweig, Mark R & Hassan, Md Nazmul, 1990. "Productivity, Health, and Inequality in the Intrahousehold Distribution of Food in Low-Income Countries," American Economic Review, American Economic Association, vol. 80(5), pages 1139-1156, December.
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    More about this item

    Keywords

    WTO Agreement; Organic Cultivation; Health Security; Living Wage; Employment;
    All these keywords.

    JEL classification:

    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • N55 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Asia including Middle East
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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