28 Dec AGRICULTURAL LAND LEASING GS- 3 AGRICULTURAL MARKET

AGRICULTURAL LAND LEASING- Today Current Affairs

Land leasing is a commercial agreement in which the user or lease acquires the right to use the land in lieu of a certain amount of payment in the Indian context, given the low investment in agriculture,fragmented  land holding any change in the occupational structure in rural areas, there is a need to bring reforms in agricultural land leasing.

Present land holding status: The Hindu Analysis

1. The average size of farm holdings declined from 2.3 hectares in 1970-71 to 1.08 hectares in 2015-16.

2. The share of small and marginal farmers increased from 70 % in 1980-81 to 86% in 2015-16.

3. The average size of marginal holding is only 0.38hectares (less than one acre) in 2015-16.

4. The shrinking size of farms is a major factor responsible for low income and farmer distress.

5. The viability of marginal and small farmers is a major challenge for Indian agriculture.

Need for land leasing: The Hindu Analysis

1. The meagre returns farmers get from fragmented land holdings prevent mechanisation and investment in agriculture and its profitability.

2. Fear of losing land prevails amongst the farmers due to the absence of long term tenancy laws and hence land leases are limited to one year.

3. Lack of confidence in renewal of tenancy has led to zero incentive for capital investment in agriculture.

4. With growth in the manufacturing and services sector, the occupational structure of rural areas has changed which has further resulted in an increased number of  fallow land.

5. There is a need to bring the informal land lease market under the Ambit of regulation.

6. In the informal tenancy, tenants are often exploited due to lack of legal security and high rents.

7. Further, consolidation of land holding can accrue large benefits and Hence can help in reducing Agrarian distress.

Benefit of Land leasing: The Hindu Analysis

1. It will attract investment in terms of capital, machine and other inputs.

2. Small land holders can be largely benefited, as after leaving their land, they can be engaged in other occupations and hence can diversify their source of income.

3. Corporatization of farming could go a long way in bringing much needed reforms in the agriculture sector.

4. Industries can also benefit with reduced cost of land acquisition.

5. Fear of loss of land titles can also be allayed as the lease agreement can be negotiated after the expiry of his tenure.

Concern: The Hindu Analysis

• It will prevent redistribution of land through transfer ownership as people will prefer leasing instead of selling.

• Land leasing will promote absentee landlords.

• Corporatization of farming creates fear that entities with big pockets will control agriculture by taking large pieces of land on lease.

Way forward

1. Land leasing needs to be complemented by several other factors to address the problems faced by agriculture.

2. Modernization and digitisation of land records will reduce litigation related to the land leasing and land pooling.

3. There needs to be an establishment of an independent regulator for the resolution of disputes.

4. Modernization of the agriculture market along with the standardization of lease agreement.

5. There is a need to enhance credit and insurance facilities for agriculture.

6. Transformation of agriculture as a business-cum- livelihood activity so that investments are plan based on long term strategies and hedged from market and environmental risks.

7. Awareness and education among the rural population among the benefits of land leasing so that they can diversify their means of livelihood, an agriculture sector can also benefit as a whole.

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plutus ias daily current affairs 28 December 2021