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LATEST NEWS UPDATES | From Plate to Plough: Unlock the land markets -Ashok Gulati & Ritika Juneja

From Plate to Plough: Unlock the land markets -Ashok Gulati & Ritika Juneja

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published Published on Aug 19, 2019   modified Modified on Aug 19, 2019
-The Indian Express

High powered commitee for transformation of agriculture should reform restrictive tenancy laws, protect rights of landowners.

Early in its second term, on July 1, the Narendra Modi government constituted a High Powered Committee of Chief Ministers for Transformation of Indian Agriculture. Maharashtra Chief Minister Devendra Fadnavis was appointed the committee’s convenor. The Committee is supposed to submit its report within two months. Its terms of reference (ToR) pertain largely to matters related to agri-markets. This includes reforming the Agricultural Produce and Livestock Contract Farming and Services Act of 2018 and the Essential Commodities Act (ECA) as well as suggesting measures to reinvigorate the e-Nam scheme.

The ToR does talk of quality seeds and farm machinery but the emphasis seems to be on getting the markets right. We welcome this approach. In fact, we have, in the past, argued for the necessity of setting up an Agri-Markets Reforms Council on the lines of GST Council (‘First, the low hanging fruit’ IE, May 27).

However, transforming agriculture in the medium to long run requires fundamental reforms in land institutions as well. This is what is missing in the new committee’s ToR. It may be worth recalling that in its first term, the Narendra Modi government had set up an expert committee on land reforms, chaired by T Haque, which recommended a Model Land Lease Act (2016). The High Powered Committee of Chief Ministers should give urgency to the implementation of this recommendation. Better late than never.

Two fundamental reasons make it imperative that urgency is accorded to the liberalisation of land lease markets. One, the size of the average holding has been declining in India for long.

This raises questions about the economic viability of such tracts, especially since they do not provide a respectable income to farmers. Two, restrictive tenancy laws have generated oral (informal) tenancy that is said to be much higher than formal tenancy in magnitude. This is adversely impacting land-use efficiency.

As per official records (NSSO, 2012-13), only about 10 per cent of agricultural land is under tenancy, down from 20 per cent in 1953-54.

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The Indian Express, 19 August, 2019, https://indianexpress.com/article/opinion/columns/narendra-modi-govt-farmer-crisis-agriculture-reforms-landowners-protect-rights-5915552/


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