Why are the wages for farm labourers in Palampur less than minimum wages?

Solution:

Though the minimum wage fixed by the government for a farm labourer is Rs 60 per day, farm labourers in Palampur get paid much less, about 35 to 40 rupees a day. The reason for this is the competition for work among the agricultural labourers in the village. Knowing that supply is much more than the demand, they themselves agree to work for wages that are lower than minimum wages. The large farmers too exploit this condition of excess supply, and force labourers to work for low wages. The use of modern agricultural implements like tractors, threshers and harvesters also reduces the amount of agricultural labour required. This further intensifies the competition among the labourers looking for jobs.