You are on page 1of 2

Legalising of land leasing

Need for lagalising land leasing:


-There is high fragmentation of holdings due to inheritance laws. Average holding
size per farmer stands merely 1.15 hectares which is un-viable for agriculture.
-Those families who have migrated to cities, do not lease their land due to poor
and ineffective leasing laws that are incapable to protect their land from
usurpation and illegal ownership.
-Farmers, due to lack of security of tenure, give minimal efforts in improving land
resources. This in-turn implies low income for the farmers and lack of
introduction of newer technologies in fields
-Due to lack of effective legislation, most of the land deeds are carried out orally
or remain ill-documented. Cultivators working under such system are deprived of
institutional credit and government benefits.
-Land pooling and corporate farming can be possible only if there are land lease
records properly documented.
In view of this NITI Aayog constituted a 10 member Expert Committee under
the chairmanship of T Haque, former chairman of the Commission for Agricultural
Costs and Prices (CACP) in september 2015:-To review the existing agricultural tenancy laws of states, including hilly states
and schedule areas.
-To examine the distinctive features of land system in erstwhile zamindari,
ryotwari and mahalwari areas.
-To suggest appropriate amendments, keeping in view the need to legalise and
liberalise land leasing for much needed agricultural efficiency, equity,
occupational diversification, and rapid rural transformation.
-To prepare a model agricultural land leasing act in consultation with states.
The expert committee is expected to submit its recommendations by March 7,
2016
Committee held consultations with officials from various States, representatives
of farmers organisations and non-governmental organisations on a model land
leasing law and found unanimous support.
Expert committee has outlined several land leasing reforms
-The removal of adverse possession clause in the land laws of various states.
-Enabling tenants to avail short term credit and other services based on a simple
lease agreement.
-Giving flexibility to the land owner and tenant to decide upon the term of lease,
rent etc.
-Automatic resumption of land on the expiry of agreed lease period.
-Simplifying the procedure for lease termination within the lease agreement
period.
Benefits:
-This would lead to uncultivated land owned by absentee landowners becoming
productive, and
-Also would allow small and marginal farmers to expand their holdings to a viable
size by leasing in additional land.
-Non-viable land holdings, lack of mechanisation leading to unsustainable
production coupled with inadequate irrigation have lately been the cause of
suicide of many farmers. This can be contained to a large extent
-Provide security to the leaser of land due to definite laws
-Provide security of tenure to the tenants encouraging him to make long term

investments in land
-Clear land titles will lead to higher accessibility of credit.
Land bank
A land bank held by a public agency
is being considered in which
interested landowners could deposit
their land parcels for cultivators to
lease land. Under this system, the
public agency acts as an intermediary
and transfers rent from the actual
cultivator to owner while charging a
small fee to cover its costs. This is
expected to permit the consolidation
of operational landholdings, given the
steadily declining size of and
fragmentation of farmland holdings in
the country.
The fears remain on the way of implementation of the land leasing as it may
lead to:
-Revival of the land lord-serf relationship
-High rents leading to exploitation
-May also be used as a disguise for forced and bonded labour
However, if land leasing is properly regulated with adequate set of rules and
safeguards for the tenants, it may prove a boon for Indian agriculture and may
help to correct a multitude of problems like food security, malnourishment etc.

You might also like