A STUDY ON SOCIO-ECONOMIC CONDITIONS OF

AGRICULTURAL LABOURERS IN VIRUDHUNAGAR DISTRICT-

TAMILNADU

Introduction

Agricultural labour is one of the most important segments of rural population in India

as well as in TamilNadu. In numerical terms, they constitute about one fourth of the total

work force. Their number has been rising faster than the rate of growth of rural population.

Their contribution to rural economy is highly significant. According to 2001 Census, the

total number of agricultural labouerers in Srivilliputtur Taluk of Virudhunagar District,

TamilNadu was 15.17 percent in absolute number it was 1, 05,392 out of which 14.91

percent were males and 15.43 percent were females. By the term agricultural labour we

mean a person who sells his / her labour power to work to another person’s land for wages in

money, kind or a share of the crop. According to the 1991 census definition “a person who

works on another person’s land for wages in money, kind, or share is regarded as an

agricultural labourer. He or she has no risk in cultivation, but merely works on another

person’s land for wages. Agricultural labourers have no right of lease or contract on the land

on which, he or she works” (Census of India, 1991, paper III of 1991, p. 76). Thus, the

census definition clearly excludes tenants as well as marginal farmers and includes only

landless labourers. The definition adopted by us would be broader in the sense that it would

include all those for whom sale of labour power in the agricultural sector is a source of

livelihood.

The living condition and the standard of living of agricultural labourers would mainly

depend upon the income earned by them. It will also depend upon the number of employment
days available in a year. Moreover, it is influenced by their level of consumption and the

degree of their indebtedness. Therefore, in order to judge the standard of living of

agricultural labourers, it is absolutely essential to find out their total income, consumption

and indebtedness.

In the early 1970s it was pointed out by a number of economists (Bardhan, 1984,

1986; Krishnaji, 1971; Jose, 1974) that in spite of the process of planned economic

development having been in existence for quite some time, the agricultural labourers

continued to face a grim situation in most parts of the country. The institutional reforms that

were undertaken during the post – independence period largely ignored them (Joshi, 1975,

1987). Results of the various large scale surveys (e.g. Agricultural and Rural Labour

Enquiries), on important economic variables relating to agricultural labourers, such as wages,

employment etc. revealed that except in few pockets, there had been no perceptible

improvement in their material condition. The performance of six to seven major states

accounting for almost 75 percent of the agricultural labourers in the country had been

particularly dismal in this respect (Bardhan 1984, 1986; Krishnaji, 1971; Jose, 1974; among

others). Thus, the existing scenario did not seem to hold much promise for the majority of

agricultural labourers. However, not every researcher shared the depressing view on the

change in the economic condition of agricultural labourers (e.g. Lal, 1979). Given the nature

of the evidence, based primarily on large scale data systems, there was lively discussion on

the issue relating to the changing conditions of agricultural labourers.

Broadly speaking, the present study hopes to make a modest contribution to the large

and growing literature on the socio-economic conditions of agricultural labourers during the
period since 1980s. However, the present study mainly focuses on the socio – economic

conditions of agricultural labourers in contemporary TamilNadu, where agricultural labours

constitute about one fourth of the total work force. From the survey of existing literature it

appears that very few studies have been undertaken in TamilNadu on this problem, although

there have been quite a good number of studies in other states of India. Since the eighties till

the late nineties vast changes have taken in the rural socio-economic scenarios in TamilNadu

also. A large area has come under the new agricultural strategy. Along with bio-technological

change in agricultural there has been a perceptible increase in agricultural production and

productivity. The new agricultural technology has two types of effect on employment of

labour, viz, labour displacing and labour absorbing effects. Therefore, the pertinent central

question that arises in this context is how the socio-economic conditions of agricultural

labourers are changing under this socio-techno-economic milieu? To get answer to this

question we would like to seek answer to another question. What has been the direction of

change in agricultural wage rates and number of days of employment per agricultural

labourer, which must have effect on income, consumption, and indebtedness of agricultural

labourers in TamilNadu during 1990s and the 2000s? We focus on this question, as wage rate

and employment availability are the most important quantitative factors that determine

material condition of agricultural labourers. However, along with this question we shall also

try to find answer to several other relevant questions for our purpose of findings answer to

the central question.

Since there is a large gap in literature providing answer to these very significant

questions related to a vast section of the poor and depressed section of rural population in

TamilNadu, we find this point of time, the beginning of the third millennium, very

appropriate to make a socio-economic study on their income, consumption and indebtedness.

However, given the time and resource constraints o an individual researcher we would like to

choose Virudhunagar district, a predominantly agricultural district of TamilNadu, for the

purpose of an in-depth study. The proposed study would be an in depth analysis at micro

level of employment, wages and other factors that affect the income, consumption and

indebtedness of agricultural labourers. However, we shall also use some macro level data

wherever necessary.

We would try to enquire into the above-mentioned questions at two levels. First, we

shall do it at the level of the state, on the basis of the existing literature and the secondary

data available to us. Secondly, by undertaking micro-studies in twelve villages from six-

development blocks in Virudhunagar district of TamilNadu.

Socio-economic condition of agricultural labourers depends upon a number of

factors, e.g., income, consumption, asset holding position, availability of farm and non-farm

employment, wage rates indebtedness etc., are the obvious crucial quantitative factors which

determine their socio-economic condition. In the case of micro study it is possible to take a

look at many of these factors, so as to be able to present a relatively comprehensive picture

with reasonable confidence. This is one of the objectives of the present study. Our study will

make an effort to construct such a picture of the material condition of agricultural labourers,

at about the middle of the first decade of the present century in the selected villages by

focusing on different aspects related to their income, consumption and indebtedness.

Objectives of the study

The major objective of the present study is to analyse the levels of socio-economic

conditions of the agricultural labourers. The aim is to study the sources, composition and

pattern of income, consumption and indebtedness of the agricultural labourers. In addition,

an attempt has been made to study the assets and liabilities of agricultural labourers. We have
classified agricultural labourers under two heads: (i) near landless agricultural labourers and

(ii) marginal farmer-cum-agricultural laboureres. More specifically the objectives of the

study are:

• To study the influence of the selected socio-economic factors on labour union

participation in the study area.

• To compare and contrast the relative share of different sources in the composition of

the total income.

• To analyze the pattern of employment and income among the rural agricultural

households in Srivilliputtur Taluk of Virudhunagar District

• To document the extend of earning and indebtedness prevalent among these

households in the study area

• To study the composition of assets and liabilities of the agricultural labourers.

Methodology

The present study is partly based on aggregated data about the agricultural labourer of

Srivilliputtur Taluk of Virudhunagar District of TamilNadu collected from government and

semi-government sources. But this macro level data and the study based on it cannot provide

proper insight into the real factors existing in Srivilliputtur Taluk. It is micro level study, i.e.,

village level studies that can properly describe the present state of affairs in the rural labour

sector of Srivilliputtur Taluk. In our macro level studies we have given only origin and

growth of agricultural labourer in Srivilliputtur Taluk of Virudhunagar District as well as

TamilNadu. But it cannot answer satisfactorily the question such as – which factors are

responsible for difference in income, consumption and indebtedness of the agricultural

labourers in the Taluk. To obtain answer to such questions it is necessary to make a

comparative analysis of the sources of income, pattern of consumption and indebtedness of

the agricultural labourers at the household level. This in turn calls for field study with

individual household as unit of observation and accordingly a field survey was carried out as

a part of the study in a few selected villages in the Taluk based on random sampling. The

ultimate aim of the field survey is to find out the source, composition and pattern of income

and consumption of the agricultural labourers.

The taluk of Srivilliputtur in Virudhunagar district of TamilNadu is purposively

selected for the study in view of the strong agricultural labour unions existed in this district.

This block was purposively selected based 60 on the co-existence of union and non-union

labourers. From the selected block was randomly selected. In each village a sample of 15

union labourers and 15 non-union labouers were contacted for collecting information

pertaining to the study. Therefore totally 60 members of agricultural labour union were

contacted thus making the sample size to 120. The study was conducted during the month of

June-July and the reference year for the study was 2009-2010. Simple percentages and

averages were worked out to analyse the general characteristics of the samples. Moreover, a

Probit regression was run to understand the influence of socio-economic factors like age,

education, consumption expenditure and income from non-agricultural activities had on

agricultural labour union participation. In this study a probit model of the type

Ii=β0+ β1Age+ β2Edu+ β3Conexp+ β 4+Inagr+Ui

Where,

Ii-The unobservable utility index which determines the presence or absence of labour union

participation

AGE- Age of the labourer (years)

EDU- Educational status of the labourer (No. of. years)

CONEXP-Consumption expenditure of the labour household (Rupees)

INAGR- Income from non-agricultural activities (Rupees)

β0- Intercept and β1, β2,β3, & β4 are the respective coefficients.

Selection of Area for Field Study

There are five blocks have been chosen randomly for the study and each block there

were 100 households questionnaire collected from the respondents in Srivilliputtur Taluk of

Virudhunagar district. We classified the blocks in three strata according to their level of

development. These strata represented highly developed, moderately developed and less

developed blocks respectively. After then two blocks were selected randomly from each

strata i.e., altogether five blocks have been chosen which we believe, mostly represent the

entire taluk.

From each block one revenue villages and from each village 100 households have

been selected for field study, i.e., 50 households for near landless agricultural labourer and 50

households for marginal farmer-cum-agricultural labourers. Altogether we selected 500

households from the categories of near landless agricultural labourers, marginal farmer-cum-

agricultural – labours.

Tools and Techniques of Data Collection

Data have been collected by the researcher through questionnaire by personal

interview with the relevant respondents. Data on farm and non-farm employment and wages,

other sources of income, consumption level and pattern, indebtedness, asset holding position,

education, health etc. have been collected. Various books, journals, bulletins, articles,

reports, documents etc. have been consulted together for relevant data and information.

Well structured questionnaire is used which contains production, productivity,

income, labour employment and wages, mode of cultivation etc. Replies to questions of this
cultivator questionnaire have helped us to compare and tally the replies to some of the

questions given by agricultural labourers. This schedule of questionnaire was finalized after

a number of tests and checks in the field.

A Brief introduction about the Evolution of Agricultural Labourers

Historically, socio-economic power was concentrated in the hands of powerful

persons in slaveholding age in the hands of feudal lords in feudal period and in the hands of

capitalists in the age of capitalism. Mencher (1983) quotes N. Sastri to trace casual references

in the inscriptions we can dimly perceive the existence of a class of hired day-labourers who

assisted in agriculture operation on the estates of other people and received a daily wage,

usually in grain. There was no clear line of division between the absolutely landless agrarian

labourers and the small peasant hiring himself out in his spare time..... In several instances a

gift of land for same public purpose.....Is found to include some proportion set apart for the

residences of the families of labourers engaged in its cultivation, such labourers were not

peasant proprietors by any means, and were nearer the class of hired labourers than tenants;

they were entitled to the use of house-site near enough to the place of their work and to get

wages fixed in advance, the proceeds of their labour on land on which they worked.”

The ‘varna’ system of earlier times was a mechanism of social differentiation among

the masses. The socio-economically advantaged and subjugated groups also denote primitive

process of class differentiation. In many places, the working people have been identified by

various names. For example, as Raj mentions; at the bottom of the hierarchy were the

communities at the periphery of Hindu caste structure such as Pulays, who generally supplied

labour for the more arduous-operation involved in cultivation (like ploughing, weeding and

harvesting of land under paddy) and were in effect aggressive slaves.

 Saradamoni (1980) has also talked about the slow Pulays; “Pulayas in the beginning

of the 19th century did not have a life of their own. They never worked or earned a living for

themselves. Their entire life was dependent on the master. They did not even own their

children. They begetted children so that the master could have a continuous supply of

workers. Naturally they did not make decisions or plans either for themselves or for their

children. Their time was wholly their master’s and they had no particular hours, which them

either for rest or for prayer.”

In India and other parts of the world the social origin of agricultural workers as a

proletariat class is an outcome of the process of property differentiation, which had its roots

in the class domination by the ruling class. Thus, the social origin is an economic issue,

which could be seen, in various socio-economics structure. This point is highlighted in the

following quote of Mencher. “There were those who were absolutely indigent in the fullest

sense, the landless labourers, members of the depressed castes not only undertook work

considered abhorrent by the caste peasants, such as tannery, scavenging, etc. but were also in

a large measure agricultural workers. Thus Chamars and Dhanuks who had their own

prescribed occupations, worked as agricultural labourers ..... The caste system seems to be

have worked in its inexorable way to create a fixed labour reserve force for agricultural

production. Members of the low caste, assigned to the most menial and contemptible

occupations, could never aspire to he status of peasants holding or cultivating land on their

own”. From the above delineation we get a glimpse of the origin of agricultural workers in

India.

Justification of the Study

The fundamental issues of the study deal with the income, consumption pattern and

indebtedness of agricultural labourers of TamilNadu which has full justification due to

several reasons. Prior to this nobody has done any research work on the subject or akin to

this. In fact this will, perhaps, be the first attempt to deal with and explore in to the various

aspects of the agricultural labourers of Virudhunagar district of TamilNadu.

Moreover, the present study will provide ample scope to realize the real position of

the agricultural labourers in respect of the pattern of their income, consumption and

indebtedness. This will lead us to justify whether their income levels are sufficient enough to

meet the basic expenditure. Generally, there is always a deficit in their income compared to

the required level of consumptions. Therefore, in the present study, suggestions will be made

to make the income and expenditure commensurate by increasing their wages and other

means of income, so that their living standard may be improved. In this way, the present

study appears to be quite justified.

Limitations of the Study

Every investigation and study has certain limitations. Similarly the present study

about the income, consumption and indebtedness of agricultural labourers has certain

limitations of time, study area, sample and other investigation facilities. The present

investigation was conducted in a limited geographical area consisting of particular agro-

climatic and socio-economic conditions of Virudhunagar district of TamilNadu. Therefore,

the finding emanating from the study may not be applicable in all types of socio-economic

conditions of our country. Of course the findings of the present study would be applicable in

Srivilliputtur taluk of Virudhunagar district of TamilNadu and elsewhere having similar

socio-economic conditions while the general conclusions arrived at may be of value of other

spheres subject to adjustment.

Profile of the District

Virudhunagar District is landlocked on all sides with no direct access to the sea. It is

bound on the north by Madurai, on the north-east by Sivaganga, on the east by

Ramanathapuram and on the south by Tirunelveli and Tuticorin districts. Physiographically it

consists of two distinct regions. The eastern slopes of the Western Ghats in Srivilliputtur and

Rajapalayam taluks and the black soil plains of Sivakasi, Virudhunagar, Sattur,

Aruppukkottai, Tiruchili and Kariapatti. Virudhunagar does not have any perennial rivers.

The Vaippar, Arjuna nadi, and Gundar constitute the river network of the District. Numerous

streams and rivulets, activated by the monsoon, feed these rivers. The Mandiri odai and

Girudhamal nadi flow into the Gundar, which irrigates the northeastern region of the District.

The Sengundrapuram odai, Kausika manadi, Uppodai and Mannarkottaiyar are feeder

streams of the Arjuna nadi, which flows through the central portion of the District. The

Kayalkudiyar and Nichepa nadi join the Vaippar, which runs through the southern part of the

District. According to the 2001 census the percentage of literate population in the District is

62.91. The percentage of male literacy is 75.67% and female literacy is 50.17. The total

population of this district is 17, 51,548 out of which 8, 70,820 are male and 8, 80,728 are

females.

The Conceptual Framework

Our motivation for understanding village studies is primarily due to our interest in

some issue, related to the socio-economic conditions of income, consumption and

indebtedness of agricultural labourers, for which large scale data systems may not be

particularly useful. While providing the possibility of appropriate contextualisation of

quantitative information, the village-studies approach is likely to yield better results when

one is attempting to understand the various economic processes influencing the material
conditions of agricultural labour households, such as the evolution of labour market, the

process of wage formation, the strategies of control used by the employer and the labourers’

responses to it, or more generally the relational attributes underlying a host of economic

variables. We choose to undertake village studies with the hope that such studies would

facilitate a better understanding of some of these critical issues, compared to what the large

scale surveys permit. However, to get a comprehensive and a more complete picture of the

different issues of the phenomenon under study we shall also use state, district, block and

even village level data (to be obtained through Gaon Panchayats). Secondary data will be

collected to compare and tally with the collected primary data.

Outcome of the Research

The increasing vulnerability among the agricultural labourers is inevitable due to

feckless schemes of the governments. This research is a module for attempting the whole

issues of agricultural labouers was done primarily based on both primary and secondary data,

the research analyses the employment generation, income of different categories of labour

and the extend of indebtedness and earning prevalent among rural landless labourers and

agricultural households in Srivilliputtur Taluk of Virudhunagar District of TamilNadu with a

view to understanding their livelihood patterns. In this Taluk—where more than 85 per cent

of the population is rural—a third of rural households constitute landless labour households

which depend completely on wage employment. Another 60 per cent of rural households are

comprised of marginal farmers and small farmers who do not generate sufficient income

from their land. Even small farmers with up to five acres supplement their agriculture with

outside jobs or wage employment. The evidence relating to rural labour households and

agricultural labour households shows an explicit overall decline in employment both for male

and female labour. There is also a decline in the average number of earning members per
household. Clearly, the rural labour households and agricultural labour households in this

state are characterised by low earning, decline in income, low consumption and high debt,

and remedies will have to be found to generate more employment and income. Since

independence, there is a significant improvement in India’s economic and social

development. In the post-reform (sine 1991) period, India has done well in some indicators

such as balance of payments, resilience to external shocks, service sector growth, significant

accumulation of foreign exchange, Information Technology (IT) and stock market,

improvements in telecommunications etc. GDP growth was around 8 to 9% per annum in the

period of 2004-05 to 2007-08. Investment and savings rates were quite high 32 to 36%.

However, exclusion continued in terms of low agricultural growth, low quality employment

growth, low human development, rural-urban divides, gender and social inequalities, and

regional disparities etc. In spite of all, several efforts have been made by both governments

in order to promote livelihoods of the agricultural labourers across in India. Eventually, the

TamilNadu has made remarkable progress in certain sectors of its economy but this had led

to no perceptible improvement in the living conditions of agricultural labourers. There are

some acute poverty persist in the agricultural sector. However, in Srivilliputtur Taluk of

Virudunagar district is having acute poverty among agricultural labourers due to

indiscrimination of wage paid to the labourers, using mechanized practices, cultivation of

single crop due to failure of irrigation facilities and other social factors are highly vulnerable.
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STRUCTURE OF THE THESIS

FIRST CHAPTER deals with an introduction of agricultural labourers in general, statement

of the problem, justification of the study, objectives of the study, research methodology,

research questions and hypotheses, and outcome of the research.

SECOND CHAPTER portrays all relevant Literature with regard to agricultural labourers.

THIRD CHAPTER reveals that the Origin and Growth of Agricultural Labourers in

TamilNadu since 1961. It discusses the delineated trends of growth of agricultural labourers

in TamilNadu since independence along with an analysis of the trends in their level of

income, consumption and indebtedness since 1980s. The chapter is based on secondary data.

FOURTH CHAPTER exhibits the levels and pattern of Income of Agricultural Labourers.

An attempt has been made to estimate the total and per capita income; analyse the

composition of income of different income groups and to compare and contract the

differences across the villages, and to estimate the extent of poverty among the agricultural

labourers.

FIFTH CHAPTER deals the consumption pattern of Agricultural Labourers in Srivilliputtur

Taluk of Virudhunagar District of TamilNadu. It discusses the influence of the selected

socio-economic factors on labour union participation in the study area.

SIXTH CHAPTER deals the Indebtedness of Agricultural Labourers in the study area.

SEVENTH CHAPTER deals concluding remarks based on the whole summary of the entire

chapters and suggested policy issues.