CHAPTER IX

 

ECONOMIC TRENDS

              Economic trends are regarded as a measuring rod of economic development. The progressive and dynamic trends bring about fundamental and significant changes in the whole structure of the economy of a region. In short, economic trends are helpful in ascertaining the overall economic progress and growth of a region. Economic progress of a region depends upon a number of factors such as development of natural resources, discovery of new resources, capital formation, population growth, innovations and technological changes, etc. Besides all these factors, population growth also plays an important role in economic development of an area because the human beings are not only responsible for production but are also the final consumers of the produced goods. Whereas labour force makes a positive contribution in the development of the region at the same time a rapid population growth slows down the pace of development.

(a)    Livelihood Pattern, General Level of Prices and Wages and Standard of Living

               Livelihood Pattern.- The economy of the district is primarily agricultural. The majority of the people are dependent on agriculture or subsidiary profession of animal husbandry for their livelihood in the rural areas of the district. According to 1991 Census 85.30 per cent population of the district lived in rural areas. Mansa ranks second in the State having largest chunk of rural population. The Census figures show that a large number of population of the district depends largely upon agriculture for their livelihood.

                The general population on the basis of work has been divided into three broad categories viz. main workers, marginal workers and non-workers. According to 1991 Census, the total population of the district was 5,80,397 out of which 1,84,963 persons were main workers and 13,790 persons were marginal workers. The main workers were 31.86 per cent of the total population. Out of the total main workers of the district, 47.59 per cent were cultivators, 27.13 per cent were agricultural workers, 7.67 per cent were engaged in trade and commerce, 7.60 per cent in other services, 5.57 per cent were engaged in manufacturing, processing and repairs in household industry and other than household industry, 1.93 per cent in transport, storage and communications 1.64 per cent in construction, 0.87 per cent in livestock, forestry, fishing, hunting and plantations, orchards and allied activities and negligible in mining and quarrying.

                 On the basis of economic activity pursued, the main workers are classified into nine industrial categories given in the following table:-

168

 

 

                 To make further improvement in the living standard of the rural people the Government has introduced Unat Gram Scheme and Jawahar Samridhi Yojana. These schemes have envisaged development of the villages with regard to the pavement of streets, construction of phirnis, etc. Upto the year 1999-2000, all the villages have been covered under these schemes.

                 In order to create better living conditions in the urban as well as rural areas, various housing schemes such as construction of houses for the landless agricultural workers in the rural areas, construction of houses for government employees, low income group housing schemes, etc. are being implemented by the Government.

                 Implementation of various housing schemes in the district has improved the texture of the district. The dwellings in the urban areas are pukka. However, there are still kacha dwellings of the economically weaker sections of society in the rural areas. In certain cases houses are provided with a baithak (drawing room) for guests, etc. Cattles are generally kept by the villagers in a separate portion or haveli built for the purpose of keeping cattle. Straw fodder is usually kept in kups (a type of silo) in the fields.                 

               According to the 1991 Census, the total number of occupied residential houses in the district was 94,224. The average number of persons per household was 6.

Prices and Wages

              The comparative study of wages and prices reflect the economic condition of the people belonging to a particular region. The level of prices has a bearing effect both on the real income and standard of living of the people because it is not the money income but purchases therefrom that matter.

               Prices.- Prices are determined by the forces of demand and supply . The impact of prices is felt on the entire economy of a region and is reflected on the levels of living of the people of that region. A steep price rise inhibits growth, distorts all economic calculations, seriously effects the poor and transfers the income from the poor to the rich. It leads to inequality in income and wealth. As a result of this savings and investments get a serious set back and capital formation suffers.

               The trend in the retail prices of the selected commodities in the Mansa District during 1993 to 2000 is given in the following table:-

                       

Serial

No.

Commodities

1993

1994

1995

1996

1997

1998

1999

2000

1

Wheat

  3.47

  3.68

  4.00

  5.06

  5.43

  5.74

  6.15

  6.40

2

Rice

  7.44

  7.63

  7.25

  9.28

  9.46

  9.54

  9.62

  9.90

3

Mung

14.11

14.69

18.08

22.75

23.21

25.08

27.00

25.60

4

Mash

12.79

13.97

25.33

23.54

23.94

23.79

25.00

26.40

5

Gram       Gram      

13.06

15.92

14.46

13.39

14.71

16.63

16.50

 . .

6

Massar

12.71

13.68

17.00

24.00

22.63

23.33

26.50

27.80

7

Potatoes

  3.93

  3.96

  4.03

  5.10

  4.13

  7.44

  4.29

  3.00

8

Onion

  6.15

  6.50

  5.45

  5.50

  6.25

17.96

  7.00

  5.80

                                                  (Statistical Abstracts of Punjab 1993 to 2000)

            Wages.- Wages are the remuneration paid to a worker in lieu of the work done by him. In the early days especially in the agricultural sector wages were determined by the customs and traditions. The wages to the agricultural labourers and artisans were generally paid in cash, sometimes for some special work paid in kind. But with the passage of time, the payment of wages in cash has become more and more prevalent especially in the case of industrial and other non-agricultural labourers. Wages has shown a rising trend since Independence. In order to safeguard the interests of the workers the Government has fixed the minimum wages of industrial workers under the Minimum Wages Act.

           The rates of wages fixed for Class IV Government employees working in different offices in the Mansa District, as on 1 September 2000 are given in Appendix 1 on pages 178.

            Standard of Living.- On account of many industrial units in the district some change in the livelihood pattern is reflected. Both prices and wages on the whole have been rising during the recent years. As usual, the rate at which prices have gone up has over run the rate at which wages have increased. In other words, the relative positions of prices and wages have not remained constant and there has been a greater rise in prices than in wages. The effect of these fluctuations is obvious. The value of money has been constantly on the decline, adversely affecting the cost of living of the people and in turn their standard of living.

              The general standard of living of the middle class of the society is very much higher. Even the common man is maintaining a standard of dress and house, because he finds many opportunities to get employment. Another method to judge the standard of living of the people is to survey the income and expenditure of various people engaged in different occupations. The size and composition of the family, its tastes and preferences also determine the standard of living.

                The Economic and Statistical Organisation, Punjab conducted a survey* during 1995-96 regarding the family budgets of selected cultivators in the State with bullock-operated, tractor-operated, as well as semi-mechanised holdings. The study regarding the semi-mechanised holdings has been included in the survey first time during the agricultural year 1994-95. During the survey, the family budgets of eleven peasant proprietors having bullock-operated holdings, fifty five peasant proprietors having tractor-operated holdings and fifty five peasant proprietors having semi-mechanised holdings were studied. The aim of the survey was to find out the return accruing to the cultivators and to find out the extent to which the goods consumed were produced in the farm and purchased from outside.

                Survey regarding the family budgets of 11 bullock-operated cultivators in the State does not contain any family  from the Mansa District.

                The survey of bullock-operated cultivators revealed that on an average a peasant proprietor’s family having bullock-operated holdings in Punjab spent 40 per cent of its income on food, 18 per cent on housing, 9 per cent on clothing, 6 per cent on fuel, 5 per cent on miscellaneous, 4 per cent each on medicine, social, amusement and luxuries, 3 per cent each on travelling and lighting and 2 per cent each on education and religion.

                During 1995-96, the families of three villages (tractor-operated) viz. Burj Rathi (Tahsil Mansa), Dariapur (Tahsil Budhlada) and Mian (Tahsil Sardulgarh) in the Mansa District were selected for the survey.

              The findings of the tractor-operated cultivators survey pertaining to income and expenditure are given below:                                                                                                                                                        

Name of the                Net income from all sources        Net expenditure              Surplus/Deficit

family/ village                            (Rs)                                          (Rs)                              (Rs)

Burj Rathi                              2,02,693                                   93,273         + 1,09,420

Dariapur                                  93,419                    68,866        +    24,553

Mian                                       3,30,962                              1,21,257                   + 2,09,705

               The above figures show that the families of all the three villages had surplus budget.­­­­­­­­­­­­­­­­­­­­  The goods consumed by the families in these villages were as under:                                                                   

                                                                                                                                                   

Name of the family/ village

Total expenditure    (Rs)                                                     

Supplied by the farm    (Rs)                                                      

Percentage

Purchased from outside    (Rs)

Percentage

     

Burj Rathi

    93,273

35,405

37.96

57,869

62.04

Dariapur

    68,866

24,973

36.26

43,893

63.74

Mian

 1, 21,257

49,177

40.56

72,080

59.44

             The  survey  also  revealed  that on an average, a peasant proprietors

(tractor-operated) family  in Punjab spent  43 per cent  of its income on food,

* Information supplied by Economic and Statistical Organisation, Punjab, Chandigarh

18 per cent on housing, 8 per cent on clothing, 5 per cent on social ceremonies, 4 per cent each on fuel, travelling and miscellaneous items, 3 per cent each on education, lighting, medicine and amusement and luxuries and 2 per cent on religion.

              During 1995-96, families of three villages (semi-mechanised) viz, Ralla Kotha (Tahsil Mansa), Dariapur (Tahsil Budhlada) and Dulowal (Tahsil Sardulgarh) in the Mansa District were selected for the survey.

              The findings of the semi-mechanised cultivators’ survey pertaining to income and expenditure are given below:

Name of the family/village

Net income from all sources

(Rs)

Net expenditure

(Rs)

Surplus/Deficit

(Rs)

Ralla Kotha

1,70,489

63,404

+1,07,085

Dariapur

26,960

48,232

- 21,272

Dulowal

1,37,832

77,581

+60,251

              The above figures show that the families of two villages viz, Ralla Kotha and Dulowal had surplus budget, whereas the family of village Dariapur had deficit budget .

              The goods consumed by the families in these villages were as under: 

                                                                                            

Name of the family/ village

Total expenditure(Rs)

 

Supplied  by the farm    (Rs)

Percen-tage

Purchased from outside         (Rs)

Percen-tage

Ralla Kotha

63,404

22,479

35.45

49,925

64.55

Dariapur

48,232

15,608

32.36

32,624

67.64

Dulowal

77,581

25,252

32.55

52,329

67.45

             The survey also revealed that on an average a peasant proprietor’s  (semi- mechanised) family in Punjab spent 45 per cent its income on food, 13 per cent on housing, 8 per cent on clothing, 7 per cent on fuel, 5 per cent on social ceremonies, 4 per cent on miscellaneous items and 3 per cent each on travelling, lighting, medicine, education, religion and amusement and luxuries.                                                    

               The per capita income of a particular district is also an indicator of the standard of living of the people. During 1997-98, the per capita income of the Mansa District at the then current prices was Rs 17,151 as compared to Rs 18,862 for the Punjab State as whole. The district ranked twelfth in the State.

 

(b) Employment Situation

                Employment Exchange.- Established as a Town Employment Exchange on 1 October 1976 at Mansa. It was upgraded to the status of District Employment Exchange on 13 April 1992 on the formation of Mansa District.

               The main functions of an employment exchange are: to register applicants and to provide employment assistance; to impart vocational guidance to the youth and adults to choose a better career; to elicit employment market information; to assess the employment trends, impact of Government plans on the employment situations and to collect employment statistics for the Planning Commission of India.

                The work done by the Employment Exchange, Mansa is shown in Appendix II at page179.

               Employment Market Information Scheme.- This scheme was introduced in the State in 1957-58, and is operated under the Director of Employment, Punjab, Chandigarh. Initially it covered only the public sector, but from 1960-61,it was extended to the private sector also.

                 The aim of this scheme is to watch the trends of employment in the State so as to make available to the Government and to the Planning Commission, information on the periodical expansion and contraction of employment in various industries and occupations in each district and in the State as a whole. The information, thus, collected is also utilized to assist the Government in determining the location of certain industrial training institutes and the trades to be taught therein. It enables the Government to assess the impact of development plans on employment.

               Under this scheme, the employment exchange is responsible for collecting regular information about the employment situation in the private as well as in the public sector. All establishments in the public sector and selected establishments in the private sector engaged in non-agricultural activities are asked to give details regularly about the number of persons they are employing, the vacancies that have occurred and the type of persons they find to be in short supply. The information is collected from all establishments in the public sector and those employing 25 or more persons in the private sector under the provision of the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959, which makes it obligatory on them to submit it to the local employment exchange. Information from smaller establishments in the private sector is, however, collected on voluntary basis. The information, which is processed at the district level, is finally tabulated at the State and National level respectively to know precisely the employment potential at these levels.

               The changes in the volume of employment both in private and public sectors in the district as on 31 December 1992 to 31 December 2000 has been given in Appendix III at page180.

               Vocational Guidance Scheme.- The scheme is jointly operated by the Directorate General of Employment and Training, Union Ministry of Labour and Employment, and Directorate of Employment in the State. The Ministry of Labour and Employment, through the Director of Employment Exchanges is responsible for the general policies and procedure, which are devised in collaboration with the State Governments through the National Working Group of the Employment Services. The State Directorate of Employment administers the service through the employment exchanges and coordinates with the guidance service of the Education Department (Director Public Instructions, Secondary) of the State Government. The aim of the scheme is to provide vocational guidance and employment counseling to the school leavers and fresh entrants to the labour market and to help them to choose vocations in accordance with their interests, aptitude and ability.

               The District Employment Officer, Mansa is responsible for the efficient working and general supervision of the scheme in the district. The functions of a Vocational Guidance Unit are: to provide vocational guidance and employment counseling to youth (boys and girls) and adults (men and women) in groups as well as individually, assist in the placement of youth in institutions or training centers or in entry jobs; follow up and review the progress of guided youth and adults; review the records of applicants on the live register and to give them such guidance as would lead to early and suitable placement; assist other sections of the exchanges improving the quality of registrations and submissions and also to assist in the collection and compilation of up-to-date information on occupations, training facilities; educational sources, employment trends and employment outlook for youth and adults, available scholarships and sources of financial assistance. Its other functions include maintenance of regular information for the use of applicants and visitors seeking information; maintenance of up-to-date library on occupation and vocational literature and educate the public by undertaking publicity measures in vocational guidance principles with a view to encouraging community consciousness. The guidance procedure at an employment exchange, with a vocational guidance unit, consists of group guidance comprising invitational talks, group discussions and invitational talk-cum-group discussions according to the needs of the groups; individual guidance and giving information individually.

               A Vocational Guidance Unit was started in the district in 1992. Since then it has been steadily disseminating occupational information and vocational guidance to the deserving cases, especially to the young student community. Efforts are made to carry the facilities to all corners of the district through career talks in educational institutions.

               The work done by the Vocational Guidance Unit, Mansa from 1992 and 1996 to 2000 is given below:

 Year

Number of individuals provided group guidance

Number of persons given individual guidance

Number of persons given individual information

1992

923

-

508

1996

520

97

675

1997

138

23

276

1998

-

-

-

1999

301

-

371

2000

428

-

797

(Source: District Employment Officer, Mansa)

(c) Planning and Rural Development

Planning

               Planning is necessary to achieve a balanced growth of different sectors of the economy of a region as also in raising the standard of living of the people. It brings about socio-economic advancement of the people by formulating definite schemes, fixing up of targets of progress in various sectors of the economy and is directing efforts to achieve them within a stipulated period of time.

               After Independence, Planning Commission was formed in 1950 and the First Five Year Plan (1951-56) was lunched in 1951-52. So far Nine Five Years Plans and Five Annual Plans have been formulated for the over all development of the country, which includes social and economic uplift of the people. The main objects of these plans have been development of agriculture; to increase industrialization; development of infrastructure facilities; to decrease unemployment; to improve the quality of life of the people; to reduce inequalities in income and wealth and to maintain growth with stability. Under these plans, the state and district plans have been formulated keeping in view the concept of welfare state and implemented through the district administrative machinery, which has been expanded and strengthened from time to time for undertaking the task of development.

Rural Development

               Setting up of Focal Points.- Keeping in view to uplift the standard of living of the rural people, the Punjab Government had started Focal Point Scheme in 1977-78. Under this scheme, a cluster of 5 contiguous villages in each block had been selected to provide basic facilities to effect increase in agricultural production and provide employment to the rural youth. This scheme was discontinued in 1980 and it was revived in 1997-98,under the name Focal Point Programme. The main aim of the programme is to provide basic facilities to the rural people. These basic facilities include shopping complex, purchasing centre, veterinary hospital, civil hospital, bank, godowns, agro service centre, repair of agricultural implements, petrol and diesel pump, patwarkhana, post office, gas agency, etc. In Mansa District, 17 focal points have been developed upto 31 March 2000 these act as growth centers for rural areas.

               Swarn Jayanti Gram Swarozgar Yojna (SGSY).- Launched on 1 April 1999, the programme replaced the earlier self- employment and allied programmes such as IRDP, TRYSEM, DWACRA, SITRA ,GKY and MWS, which are no longer in operation.

               The objective of SGSY is to provide sustainable income to the rural poor. The programme aims at establishing a large number of micro- enterprises in the rural areas, building upon the potential of the rural poor. The main aim of the SGSY is to bring every family to whom it assists, above the poverty line in a period of three years. It is centrally sponsored scheme and funding is shared by the Centre and State Governments in the ratio of 75:25.

              SGSY is holistic programme covering all aspects of self- employment such as organisation of the rural poor into self help group and their capacity building, planning of activity clusters, infrastructure build up technology, credit and marketing. In establishing the micro-enterprises, the emphasis under SGSY is on the activity cluster. For these 4-5 key activities have been identified for each block based on the resources, occupational skills of the people and availability of markets.        

               Under this programme a uniform subsidy at the rate of 30 per cent of the project cost, subject to a maximum of Rs 7,500 is provided. But for SCs, it is 50 per cent and Rs10, 000 respectively. For a group subsidy it is 50 per cent of the project cost subject to a ceiling of Rs 1.25 lakh. Loan is arranged by the District Rural Development Agency from the banks. Under this scheme 50 per cent assistance is required to be provided to the SCs, 40 per cent to women and 3 per cent to handicapped.

               In Mansa District, 44 Self Help Groups were formed under the scheme, which utilised Rs 28.02 lakhs during 1999-2000. The groups undertook economic activities like dairy, ban making, handloom, bullock carts, etc.


 


                                            APPENDIX  I                         (Vide page 171)

Rates of Pay Fixed for the Class IV Government Servants Working in the Mansa District, as on 1 September 2000

Serial No.

Class of Labourers/Workers

Rates of Pay                  (Rs)

 

Per Day

Part- Time

Per Month

1

Ser  Server, Dak Runner, Dak Munshi, Mochi, 

  Assistant Cook, Ferryman, Boatman, Pankha Coolie

  (Adult), Chowkidar, Sweeper, Beldar, Khansama, Mali,

  Mate, Safai Sewak, Mali-cum-Chowkidar, Cook

  knowing continental dishes, Cook knowing overseas

  dishes, Khalasi, Survey Khalasi, Gang Khalasi, Hospital

  Cook, Frash,Telephone Peon,Belda( Boy or Minor),

  Ttailor with sewing machine, Man with mule/ horse,

  Peon-Chowkidar, Machineman, Chainman, Sweeper-cum-

  Chowkidar, Woman Labour, Store Coolie, Bridge

  Jamadar, Cycle Repairer, Masalchi, Water Carrier-cum

  Assistant Cook, Trollyman, Bulldozer Mechanic,Tractor

  Plumber, Fisherman with boat, Fisherman without net,       iW     White Washerman, Bhishti, Livestock Assisant, Ukilled bour,  Labour, Typewriter Mechanic, Crane Operator, Barber,              tock   Stock Assistant  in diary, Assistant- Milk Recorder,

  Auto Fitter -cum- Plumber, Ticket Verifier, Waiter,

  Hammer Man.

70.85

230.43

1,843.50

2

Semi-Skilled (Worker), Bulldozer Operator,

Junior Mechanic, Cook Incharge

71.85      

233.43

1,863.50

3

Blacksmith   I st Class

73.85

238.43

1,913.50

 

                     2nd Class

70.85

230.43

1,843.50

4

Tractor Plumber, Bulldozer, Helper

73.85

240.43

1,923.50

5

Painter          Ist Class

74.85

243.43

1,943.50

 

                     2nd Class

70.85

230.43

1,843.50

6

Policeman     Ist Class

74.85

243.43

1,943.50

 

                     2nd Class

70.85

230.43

1,843.50

7

Clerk-cum-Typist, Senior Mechanic

74.85

245.43

1,963.50

8

Foreman ITI

75.85

246.43

1,968.50

9

Conductor, Patwari

75.85

246.43

1,973.50

10

Skilled Worker (Upper)

75.85

248.43

1,983.50

 

                          (Lower)

75.85

235.43

1,883.50

11

Fitter, Turner, Welder, Pump Driver,

GeneratorElectrician, Steno-typist, Donkey

man (with Donkey) ,Stenographer

77.85

253.43

2,023.50

12

Special Foreman

79.85

259.43

2,068.50

13

Driver for Heavy Vehicle

81.85

265.43

2,123.50

14

Driver for Light Vehicle

77.85

253.43

2,023.50

15

Work Munshi/Work Supervisor

95.85

311.43

2,493.50

16

Carpenter  I st Class

90.85

315.43

2,523.50

 

                 2nd Class

88.85

290.43

2,323.50

17

Mason       I st Class

90.85

315.43

2,523.50

 

                 2nd Class

88.85

290.43

2,323.50

(Source: Deputy Commissioner, Mansa)

 

 

 

 

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