At the time of Independence in 1947, the agricultural land structure in India had exploitative rent-seeking or revenue-seeking intermediaries. A small number of landholders held a large share of land, and a large number of tenant cultivators existed. Exploitative production relations prevailed too. Different land revenue systems existed within the country. The land records were in bad shape. India was independent in 1947. Post Independence, the land reforms in India tried to resolve the inequality and exploitation prevailing in the agricultural sector. The first phase of Land Reforms, from 1950 to 1972, focused on three main aspects. These included abolition of the intermediaries, tenancy reform, and redistribution of land using land ceilings.

Tenancy Reforms and Redistribution of land had limited success. The land is a subject of state control. The guidelines were communicated to the state governments on Tenancy Reforms. Tenancy in agricultural lands is prohibited in a few states. In a few states, it is allowed for certain categories. These categories are based on physical health criteria, social and marital status, and economic conditions. The reforms resulted in the decline of area under agricultural tenancy. By 1990s, a major share of leasing of agricultural land was through informal leasing due to legal restrictions.

Now, there were arguments for liberalizing and legalization of agricultural land leasing. This was to protect the interests and security of the land owners and the tenants. From 2000 onward, there was documentation on the success of group leasing and other leasing acts. For example, the Kudumbashree Mission in Kerala assisted poor women in leasing land in a group. This was done to create an income source, although the leasing is not legal in Kerala. The Licensed Cultivators Act 2011 in Andhra Pradesh made provision for loans to all licensed tenants.

Considering this background, the Model Agricultural Land Leasing Act was proposed by Niti Aayog in India in 2016. The Act legalizes land leasing in all areas. It ensures security of land ownership rights for landowners. It also provides security of tenure for tenants for the agreed lease period.

The Economic Survey of India 2024-25 highlights the case of Kerala. It showcases how the state implemented the Model Agricultural Land Leasing Act 2016 in an innovative way. The Self-Help Groups (SHGs) lease in land for more than three years for growing horticultural crops. The Agreement is notarized in Gram Panchayat. This makes the lessee group eligible for credit and insurance. The assessments reported improved farm efficiency under such arrangements.

The tenancy reforms in agriculture are crucial. They strengthen the interest of tenant cultivators and also help landowners who can’t cultivate in their own land. Nevertheless, the good changes lie in the way they are practiced at ground level.

(Views are personal. The article is based on the information at https://www.fao.org, https://www.niti.gov.in, and the Economic Survey of India 2024-25.)