Solid laws are needed for land ownership

The agricultural sector requires some immediate improvements. One of these is related to making land titles valid to ensure proper security between landowners and those cultivating the land. Providing legal recognition to land titles is necessary to safeguard the interests and rights of landowners and tenants who lease land.

According to the 2018-19 National Sample Survey, fewer than two lakh farmers now own more than 10 hectares of land. While over 85 percent of Indian farmers fall into the category of small and marginal farmers who own less than two hectares of land, the average size of agricultural holdings has decreased to 1.1 hectares.

Due to the lack of formal recognition of the practice of taking land on lease by most small and marginal farmers, they often have to engage in informal arrangements, typically based on unwritten or oral agreements. Such practices lack legal support, and this informal system does not provide landowners with long-term security or incentives for land improvement, such as leveling the land, installing tube wells, or making improvements to problem-ridden land.

Furthermore, many landowners do not lease their lands due to the fear of losing their proprietary rights. In several states, there are legal provisions that transfer ownership of the land to those who have been farming it for a specified period.

As a result, a significant amount of agricultural land remains unused, while it could be leased to someone else. Legalizing land leasing is necessary for various reasons. For example, if this is done, those leasing land on a contract basis could benefit from various government farmer welfare schemes at the central and state levels. Most subsidies, which are usually provided as direct cash transfers, do not reach those who lease land, but rather the landowners.

In addition, the existing land laws in most states are quite restrictive. Many states has almost completely banned land leasing. Some states have set a limit on the lease amount, making the process unattractive. All of these restrictions hinder the development of a healthy land lease market.

The Central government presented an ideal Land Leasing Act to the states, which was prepared by a committee formed by the NITI Aayog in 2016. States were supposed to make improvements or changes to their local laws based on this model. Through this proposal, the aim was to create an environment that safeguards the interests of both landowners and lessees, promoting a more robust land leasing market.

It also included incentives for land improvement measures, with the goal of making the practice of leasing land more economically viable. However, most states did not adopt this model with seriousness.