Increasing incomes of rural poor households by improving employment opportunities either in the farm or non-farm sector was one of the key recommendations during the Policy Dialogue on Rural Labour Markets and Agriculture held on 18 January at the Centre for Economic and Social Studies (CESS), Hyderabad. The event was jointly organized by ICRISAT, CESS and the SR Sankaran Chair on Rural Labour of the National Institute of Rural Development (NIRD).

The dialogue highlighted the need for productivity increases in both rural farm and non-farm sectors, towards increased employment and income opportunities in rural areas. Public investment in rural infrastructure, agricultural technology, and quality education and health facilities appear to be essential requirements for improved productivity of rural labour.

Research institutions were urged to address the tightening labour market during peak production periods through agricultural research and technology development, including improved crop varieties amenable to mechanization.

Among the other topics discussed were the development of small towns in a manner that would have a positive impact on local economic growth and reduce distress migration; the role of road connectivity, public transport, electricity and information technology in increasing non-farm incomes; gender differences in wage rates; and extending social security facilities to all rural labourers.

The dialogue was attended by government officials, researchers from national and international research organizations, representatives from labour organizations, farmer association, nongovernment organizations (NGOs) and community-based organizations (CBOs). Experts from the National Centre for Agricultural Economics and Policy Research (NCAP); Indian Institute of Technology (IIT), Mumbai; University of Hyderabad; Oxford University; Alagappa University; Tata Institute of Social Sciences (TISS), Mumbai and Hyderabad; National University of Educational Planning and Administration (NUEPA), New Delhi; CESS and NIRD took part in the discussions.

The dialogue was chaired by Dr CH Hanumantha Rao, Chancellor, University of Hyderabad and Co-chaired by Dr T Haque, former Chairman, Commission for Agricultural Costs and Prices (CACP). Prof S Galab, Director, CESS welcomed the participants. Keynote presentations on Rural Labour Studies were delivered by Professor D Narasimha Reddy, SR Sankaran, and Dr Cynthia Bantilan of ICRISAT’s Research Program – Markets, Institutions and Policies. Presentations were also made on long-term changes and dynamics in rural labour markets as well as current challenges for agriculture and rural economy, followed by panel and open floor discussions.

Prior to the dialogue, a brainstorming meeting was held at ICRISAT on 17 January with Dr Bantilan (Chair) and Dr Ramesh Chand, Director NCAP, New Delhi (Co-chair) to distil observations on rural markets revealed through an analysis of macro- and micro-level data collected under the Village Dynamics in South Asia (VDSA) project.