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

Amit Kundu

MPRA Paper from University Library of Munich, Germany

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

Keywords: WTO Agreement; Organic Cultivation; Health Security; Living Wage; Employment (search for similar items in EconPapers)
JEL-codes: F13 J28 J43 K31 N55 Q13 (search for similar items in EconPapers)
Date: 2009-04-20
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Published in Modern Indian Economy: Essays in Honour of A .Ghosh; Deep and Deep Publication, New Delhi, India Modern Indian Economy: Essays in Honour of A .Ghosh; Deep and Deep Publication, New Delhi, India.Modern(2010): pp. 398-413

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