Draft policy aims to ease leasing of agricultural land

Tenants to have access to credit without affecting ownership; Legislation expected to figure in a 3-day meet of agri ministers on Jan 17; Committee expected to submit its report by March

The Centre is working out ways to promote legalisation of land leasing, to ensure tenant farmers have access to institutional credit, insurance and disaster compensation without affecting the landowner title.

A model Land Leasing Act being drafted could allow such use of land for agriculture without restriction. The legislation - seen as the first big land reform after the Narendra Modi government failed to drum up consensus on amendments to the Land Acquisition Act, 2013 - is expected to figure in a three-day meeting of state agriculture ministers in Sikkim from January 17, to be inaugurated by the Prime Minister.

A session has been devoted to the model leasing law and states will provide inputs on its formulation. Land being a state subject, the Centre can at best convince the states to adopt a model to bring in uniformity.

A committee constituted by the NITI Aayog and led by the former head of the Commission for Agriculture Costs and Prices (CACP), Tajmul Haque, on Friday held a meeting with farmers' organisations and state and civil society representatives on the broad framework. The committee is expected to give its report by March.

"Landowners should have no fear of losing their rights because of leasing and the law will provide full safeguards," Haque told Business Standard. He said landowners would have full security and tenants would derive benefits and facilities from the government through a legally binding agreement.

Much of the compensation after a natural disaster, insurance claims, as well as other benefits, are usually cornered by landowners because tenancy laws in states are vague. This also harms consolidation of farms and deters widespread mechanisation.

According to an earlier study by Haque, 57 per cent of leased farmland in the kharif season and 54 per cent in the rabi season do not have tenurial security. The committee has identified seven major points to base the draft land law upon. These include removal of the clause of adverse possession of land in the laws of various states because it creates fear among owners over leasing land for long periods.

"Today, leasing is done in all manner and the old model of rich owner and poor tenant does not exist. It is best left to market forces and individuals to decide whether they want to legalise tenancy. The bureaucracy has not been able to properly record ownership; to expect them to record leases is far-fetched," said NC Saxena, a former secretary of the Planning Commission.

BROAD FRAMEWORK OF THE MODEL ACT

• Make land leasing legal
   
• Remove adverse possession clause from laws of states. (Adverse possession creates fear among owners, as a tenant may claim title if he keeps possession of the land for a specified period of time)
  

 

Facilitate access to short-term credit and crop insurance based on a simple lease agreement for tenants
 

Terms of lease to be determined mutually by owner and tenant
 

Allow automatic resumption of land on expiry of agreed lease period without requiring any minimum area criteria. (In some states, the criteria stipulates a minimum area to be left to the tenant on expiry of the lease to protect his future)
 

Rent (amount) to be agreed to by landowner and tenant
 

Lease to be terminated within lease period by giving an advance notice of one crop season or one crop or grounds like non-payment of rent, use of land for purpose other than what was agreed upon, lease harms the land, legal framework of leasing is not farmer-friendly and both parties are not benefiting