ADB INRM Policy Brief No.

16

Emerging Issues in Land Policy

R. S. Deshpande

India Resident Mission Policy Brief Series

Asian Development Bank

India Resident Mission
4 San Martin Marg
Chanakyapuri
New Delhi 110021
Asian Development Bank
Asian Development Bank
India Resident Mission (INRM)
4 San Martin Marg
Chanakyapuri
New Delhi 110021

© 2007 Asian Development Bank

The views expressed in this paper are those of the author and do not
necessarily reflect the views or policies of the Asian Development Bank

Institute for Social and Economic Change, Bangalore, and National Centre
for Agricultural Economics and Policy Research, New Delhi, are the
Implementing Agencies for the thematic cluster ‘Agriculture, Food
Security, and Rural Development.’
INRM Policy Brief No. 16

Emerging Issues in Land Policy

R. S. Deshpande

2007

R. S. Deshpande is Professor, Agricultural Development and Rural

Transformation Unit, Institute for Social and Economic Change,
Bangalore.
Foreword

The India Resident Mission (INRM) Policy Brief Series is sponsored

by the Asian Development Bank (ADB) and is designed as a forum to
disseminate findings from policy research work undertaken on the Indian
economy. The series is primarily based on papers prepared under the
Technical Assistance (TA) ‘Policy Research Networking to Strengthen
Policy Reforms in India’. The main purpose of the TA was to provide
assistance for developing policy research networking capacity, in order
to build support for, and consolidate the reform process. The INRM
Policy Briefs provide a nontechnical account of important policy issues
confronting India.

Tadashi Kondo
Country Director
Emerging Issues in Land Policy
R. S. Deshpande

Land policy was a major developmental issue during India’s freedom

movement, especially following the infamous Deccan Riots. It became a
prominent concern for the peasants to back the independence movement.
The Congress party promised ‘land to the tiller’. Immediately after
independence a committee headed by J. C. Kumarappa was appointed
to look into issues pertaining to land policy. Around that time discussions
on land reform began the world over (UN 1954). Land policy was also
being discussed in the context of agricultural development (Raup 1963;
Warriner 1969). Social justice, political health, expansion of agricultural
output and overall development remain the concerns in the analysis of
land policy (Krishna 1961).
At independence land was concentrated in the hands of a few, with
an extremely skewed distribution, and intermediaries proliferated who
had the least interest in self-cultivation of land. The tenancy contracts
were highly exploitative. Land records were in a dismal shape, causing a
plethora of litigation.
Land policy formulation in independent India has gone through five
phases. Abolition of intermediaries and tenancy reforms formed the
first phase. The second phase, running almost concurrently but making
a major impact, was land ceiling. The third phase involved bringing
uncultivated lands under cultivation. The fourth phase was increased
attention to soil and water conservation. Conservation was achieved
through the Drought Prone Areas Program (DPAP), Desert Development
Program (DDP), and wastelands development initiatives through estab-
lishing a Wasteland Development Authority. A massive program was
also undertaken for watershed development. The current fifth phase of the purview of state governments. At the national level the Department
the policy debate concerns the relevance of some of the land legislation of Land Resources in the Union Ministry of Rural Development has the
and transparency in land records through computerization. There is mandate to address land policy issues.
also thinking on revisiting land policy on the counts of land ceiling, Policy on land reform was for the first time spelt out in the First
marginalization of the landholding size, and opening up the tenancy Five-Year Plan (1951–56). Its explicitly stated objectives were to reduce
market.1 disparities in income and wealth, eliminate exploitation, provide security
Land reform has been seen as a major tool of asset redistribution to tenants, achieve social transformation through equality of status, and
policy for poverty alleviation (Chenery et al. 1970), enhancing produc- enable different sections of the population to participate in development.
tion efficiency through tenant efficiency and small-farm efficiency (Rudra Land reform was seen in terms of community development: reform
1982), agricultural growth (Alesina and Rodrik 1994), and agricultural interventions were meant to provide the means of production to the
capital formation (Raup 1963). Besley and Burgess (1998) claim to poor who lacked either resources or the know-how.
have produced ‘robust evidence of link between poverty reduction and
two kinds of land reform legislation—tenancy reform and abolition of
intermediaries’ (p. 424) but their empirical scoring of the cumulative
Intervention to Deal with Property
land reform scores may be open to question. For example, they assign Rights and Poverty
5.056 to Orissa, 6.139 to West Bengal, 5.444 to Kerala, 4.305 to
Immediately after independence four major policy interventions were
Bihar, 1.861 to Maharashtra, and 2.833 to Karnataka, which appear
thought of as components of land reform. These were (1) abolition of
to be arbitrary weights. Nevertheless, their hypothesis appears sound.
intermediaries; (2) tenancy reforms; (3) fixing of ceiling on landholding;
A clear property rights structure can ensure growth and better distribution
and (4) consolidation of holding. These components were taken up in
of these gains, and provide an impetus to sustainability (Deninger 2003).
different phases as the ground preparation and the political will were to
Of late, policy analysts are insisting on socially desirable land use needing
be built for their wider acceptance (Appu 1997). By 1960, the process
a proper institutional back-up; that underscores the role of government
of legal enactment of the abolition of intermediaries was completed.
(Deninger 2003: 188).
This has been the most successful component of the reform process.
The focus in this paper is on land policy in India in the changing
The major aspects of tenancy reform, enacted between 1960 and
agrarian economy. It also touches upon some related policy goals, such
1972, differed across states. Owing to the diverse and complex nature of
as poverty alleviation, conflict management, sustainable economic growth,
the production relations, no uniform guidelines could be followed for the
and good environmental management.
entire country. However, some broad guidelines were given to the state
governments for incorporating in the state legislation. These included:
Reflections of Land Policy through Five-Year Plans • Security of tenancy to be conferred on the actual cultivator.
• Fair rent to be fixed between one-fourth and one-fifth of the
Article 39 of the Constitution of India deals with the redistribution
of land and land reform. Land administration and land policy is within gross produce.
• Landowners might be permitted to cultivate land for personal
1
Among the consultations on these issues in the last decade were: A National use.
Level Discussion on Comparative Land Reforms Legislation in Different States, • Surrender of tenancy rights with mutual consent.
Lal Bahadur Shastri National Academy of Administration (LBSNAA), Mussoorie; • For some of the area, the landlord-tenant nexus to be ended and
‘Whither Tenancy’, held at LBSNAA,1999; ‘Land Policy and Administration’, the tenant cultivator to be brought directly in contact with the
The World Bank, New Delhi, May 2004. Doubts are also raised about the
state.
process of theorization of land reforms as an institutional tool (Atkins 1988).

2 Policy Brief No. 16 Emerging Issues in Land Policy 3

also undertaken for watershed development. The current fifth phase of the purview of state governments. At the national level the Department
the policy debate concerns the relevance of some of the land legislation of Land Resources in the Union Ministry of Rural Development has the
and transparency in land records through computerization. There is mandate to address land policy issues.
also thinking on revisiting land policy on the counts of land ceiling, Policy on land reform was for the first time spelt out in the First
marginalization of the landholding size, and opening up the tenancy Five-Year Plan (1951–56). Its explicitly stated objectives were to reduce
market.1 disparities in income and wealth, eliminate exploitation, provide security
Land reform has been seen as a major tool of asset redistribution to tenants, achieve social transformation through equality of status, and
policy for poverty alleviation (Chenery et al. 1970), enhancing produc- enable different sections of the population to participate in development.
tion efficiency through tenant efficiency and small-farm efficiency (Rudra Land reform was seen in terms of community development: reform
1982), agricultural growth (Alesina and Rodrik 1994), and agricultural interventions were meant to provide the means of production to the
capital formation (Raup 1963). Besley and Burgess (1998) claim to poor who lacked either resources or the know-how.
have produced ‘robust evidence of link between poverty reduction and
two kinds of land reform legislation—tenancy reform and abolition of
intermediaries’ (p. 424) but their empirical scoring of the cumulative
Intervention to Deal with Property
land reform scores may be open to question. For example, they assign Rights and Poverty
5.056 to Orissa, 6.139 to West Bengal, 5.444 to Kerala, 4.305 to
Immediately after independence four major policy interventions were
Bihar, 1.861 to Maharashtra, and 2.833 to Karnataka, which appear
thought of as components of land reform. These were (1) abolition of
to be arbitrary weights. Nevertheless, their hypothesis appears sound.
intermediaries; (2) tenancy reforms; (3) fixing of ceiling on landholding;
A clear property rights structure can ensure growth and better distribution
and (4) consolidation of holding. These components were taken up in
of these gains, and provide an impetus to sustainability (Deninger 2003).
different phases as the ground preparation and the political will were to
Of late, policy analysts are insisting on socially desirable land use needing
be built for their wider acceptance (Appu 1997). By 1960, the process
a proper institutional back-up; that underscores the role of government
of legal enactment of the abolition of intermediaries was completed.
(Deninger 2003: 188).
This has been the most successful component of the reform process.
The focus in this paper is on land policy in India in the changing
The major aspects of tenancy reform, enacted between 1960 and
agrarian economy. It also touches upon some related policy goals, such
1972, differed across states. Owing to the diverse and complex nature of
as poverty alleviation, conflict management, sustainable economic growth,
the production relations, no uniform guidelines could be followed for the
and good environmental management.
entire country. However, some broad guidelines were given to the state
governments for incorporating in the state legislation. These included:
Reflections of Land Policy through Five-Year Plans • Security of tenancy to be conferred on the actual cultivator.
• Fair rent to be fixed between one-fourth and one-fifth of the
Article 39 of the Constitution of India deals with the redistribution
of land and land reform. Land administration and land policy is within gross produce.
• Landowners might be permitted to cultivate land for personal
1
Among the consultations on these issues in the last decade were: A National use.
Level Discussion on Comparative Land Reforms Legislation in Different States, • Surrender of tenancy rights with mutual consent.
Lal Bahadur Shastri National Academy of Administration (LBSNAA), Mussoorie; • For some of the area, the landlord-tenant nexus to be ended and
‘Whither Tenancy’, held at LBSNAA,1999; ‘Land Policy and Administration’, the tenant cultivator to be brought directly in contact with the
The World Bank, New Delhi, May 2004. Doubts are also raised about the
state.
process of theorization of land reforms as an institutional tool (Atkins 1988).

2 Policy Brief No. 16 Emerging Issues in Land Policy 3

 • Disabled persons, defense personnel, and such exemptions to be unlike earlier. Thus, the tenant cultivator’s production efficiency might
provided. be higher than that of the owner cultivator. Sixth, in a concealed
• The term personal cultivation to be clearly defined if land were tenancy the tenant faces a major hardship in accessing credit, technology,
to be resumed for cultivation. and product market.
• Correctly record tenancy and abolish oral tenancy altogether. The National Commission on Agriculture stated that under the present
man-land ratio tenancy could not be banned (GOI 1976: 160). Expe-
In many states the dominant landlords took advantage of the exemp-
rience has also shown that this ban is hardly effective. Can we, therefore,
tion granted to personal cultivation. The national policy recommended
consider opening the tenancy market? Can, for example, a large land-
that actual residence of the owner/member of his family must be an
holder lease in land from small and marginal farmers? Can a noncultivator
essential condition for personal cultivation. Maharashtra and Karnataka
rent land for cultivation or other purposes? What should be the tenancy
additionally required that the principal source of income should be
policy for lands owned/operated by weaker sections?
from the produce of the land. In some other states the right to resump-
tion also inversely related to the landlord’s economic status. Definitions
of family holding, economic holding, and basic holding, the time limit Land Ceiling
for resuming cultivation, and the consequences of not cultivating also
differed across states. The landholding pattern during the 1940s and ’50s was extremely
Tenancy is prohibited in a few states and free in some others. Gujarat skewed. About 53% of the land was held by about 8% large farmers;
has made leasing out land an offense punishable with a fine of Rs 1000; 28% of submarginal and marginal holdings owned about 6% area.
but covert tenancy prevails. Prohibition of tenancy gave rise to reverse Land ceiling was considered essential for three economic compulsions.
tenancy and concealed tenancy. It is recorded that 15–25% tenancies First, the existence of an inverse size–productivity relationship suggested
in the country are illegal and covert. NSS data show that small and economic gains in small holdings. Second, large holders of land left
marginal farmers hold more than 80% of the leased land. Since the large fallows. Third, a large proportion of the population was land-
tenancy is oral they only have a tenuous hold on the land. based poor who, if provided with land as an economic resource, could
In the present context, tenancy could be viewed as a mechanism of earn their livelihood.
resource adjustment, access to credit institutions and credit system, State legislation more or less conformed to the national guidelines in
sharing of risk and entrepreneurship, and avoiding transaction costs. fixation of the ceiling limits and distribution of surplus land. A few
For these reasons, a poor cultivator may lease out. It is seen from the significant issues featured after the 1970s phase of land reform. The very
1990-91 agricultural census that most of the tenancy contracts are on process of enacting the law in two phases allowed sufficient time to the
the basis of fixed money rent and share of produce. large holders to adjust their size of holding. During this phase ‘Benami
Six significant changes have been witnessed in the land lease market holding’ emerged and proliferated. This was also facilitated by the
in the last thirty years. First, where leasing is legal the lease period has pathetic conditions of land records.
been shortened. Second, landlord’s supervision of the leased land has The National Commission on Agriculture held that any attempt to
increased for fear of tenant occupancy. Landlord–tenant relations have lower the ceiling might create further uncertainty among the middle
become stronger in terms of resource sharing and cost sharing. Third, and large farmers and undermine production (GOI 1976: 162). Demo-
the landowner’s investment has increased substantially due to techno- graphic pressures were certain to reduce the size of holding in the top
logical inputs. Fourth, rent has been regulated in a few states. Where brackets; at the bottom this pressure would lead to marginalization of
tenancy is covert the landlord fixes the rent anywhere between 50 and holdings.
85% of the produce. Fifth, the tenant identifies himself with the land,

4 Policy Brief No. 16 Emerging Issues in Land Policy 5

 • Disabled persons, defense personnel, and such exemptions to be unlike earlier. Thus, the tenant cultivator’s production efficiency might
provided. be higher than that of the owner cultivator. Sixth, in a concealed
• The term personal cultivation to be clearly defined if land were tenancy the tenant faces a major hardship in accessing credit, technology,
to be resumed for cultivation. and product market.
• Correctly record tenancy and abolish oral tenancy altogether. The National Commission on Agriculture stated that under the present
man-land ratio tenancy could not be banned (GOI 1976: 160). Expe-
In many states the dominant landlords took advantage of the exemp-
rience has also shown that this ban is hardly effective. Can we, therefore,
tion granted to personal cultivation. The national policy recommended
consider opening the tenancy market? Can, for example, a large land-
that actual residence of the owner/member of his family must be an
holder lease in land from small and marginal farmers? Can a noncultivator
essential condition for personal cultivation. Maharashtra and Karnataka
rent land for cultivation or other purposes? What should be the tenancy
additionally required that the principal source of income should be
policy for lands owned/operated by weaker sections?
from the produce of the land. In some other states the right to resump-
tion also inversely related to the landlord’s economic status. Definitions
of family holding, economic holding, and basic holding, the time limit Land Ceiling
for resuming cultivation, and the consequences of not cultivating also
differed across states. The landholding pattern during the 1940s and ’50s was extremely
Tenancy is prohibited in a few states and free in some others. Gujarat skewed. About 53% of the land was held by about 8% large farmers;
has made leasing out land an offense punishable with a fine of Rs 1000; 28% of submarginal and marginal holdings owned about 6% area.
but covert tenancy prevails. Prohibition of tenancy gave rise to reverse Land ceiling was considered essential for three economic compulsions.
tenancy and concealed tenancy. It is recorded that 15–25% tenancies First, the existence of an inverse size–productivity relationship suggested
in the country are illegal and covert. NSS data show that small and economic gains in small holdings. Second, large holders of land left
marginal farmers hold more than 80% of the leased land. Since the large fallows. Third, a large proportion of the population was land-
tenancy is oral they only have a tenuous hold on the land. based poor who, if provided with land as an economic resource, could
In the present context, tenancy could be viewed as a mechanism of earn their livelihood.
resource adjustment, access to credit institutions and credit system, State legislation more or less conformed to the national guidelines in
sharing of risk and entrepreneurship, and avoiding transaction costs. fixation of the ceiling limits and distribution of surplus land. A few
For these reasons, a poor cultivator may lease out. It is seen from the significant issues featured after the 1970s phase of land reform. The very
1990-91 agricultural census that most of the tenancy contracts are on process of enacting the law in two phases allowed sufficient time to the
the basis of fixed money rent and share of produce. large holders to adjust their size of holding. During this phase ‘Benami
Six significant changes have been witnessed in the land lease market holding’ emerged and proliferated. This was also facilitated by the
in the last thirty years. First, where leasing is legal the lease period has pathetic conditions of land records.
been shortened. Second, landlord’s supervision of the leased land has The National Commission on Agriculture held that any attempt to
increased for fear of tenant occupancy. Landlord–tenant relations have lower the ceiling might create further uncertainty among the middle
become stronger in terms of resource sharing and cost sharing. Third, and large farmers and undermine production (GOI 1976: 162). Demo-
the landowner’s investment has increased substantially due to techno- graphic pressures were certain to reduce the size of holding in the top
logical inputs. Fourth, rent has been regulated in a few states. Where brackets; at the bottom this pressure would lead to marginalization of
tenancy is covert the landlord fixes the rent anywhere between 50 and holdings.
85% of the produce. Fifth, the tenant identifies himself with the land,

4 Policy Brief No. 16 Emerging Issues in Land Policy 5

Consolidation of Holding Computerization of Land Records
Recording of land rights and their periodic updating is a prerequisite
During the early 1970s it was felt that one holder may have several
for an effective land policy. This not only eliminates harassment of the
fragments scattered across the revenue villages in the vicinity or at long
farmers but also indirectly contributes towards efficiency. During the
distances in the same village. This was an easy escape from the Land
Seventh Plan in 1987-88 a centrally sponsored scheme on Computer-
Ceiling Act and therefore it was considered necessary that landholding
ization of Land Records (CLR) was introduced as a pilot project in the
of an individual holder should be consolidated in one parcel. The
districts of Gulbarga (Karnataka), Rangareddy (Andhra Pradesh), Sonitpur
legislation was, however, difficult to formulate and did not consider the
(Assam), Singhbhum (Bihar), Gandhinagar (Gujarat), Morena (Madhya
ground reality of caste within the farming communities and local process
Pradesh), Wardha (Maharashtra), Mayurbhanj (Orissa), and Dungarpur
of politicization.
(Rajasthan). Its main objectives were: (1) computerization of ownership
Except Punjab, Haryana, and Uttar Pradesh land consolidation has
and plot-wise details for issue of timely and accurate copy of the Records
not made any impact in the rest of India. Legislative provisions for
of Rights (RoR) to the landowners; (2) to achieve low-cost, easily
consolidation have been made in fifteen states but they provided sufficient
reproducible storage media for reliable durable preservation; (3) to
room to escape. For example, Madhya Pradesh and West Bengal provide
provide fast and efficient retrieval of information, both graphical and
only for voluntary consolidation; similar is the case with Gujarat, Himachal
textual; and (4) creation of a Land Information System (LIS) and database
Pradesh, and Maharashtra. Given the importance and the extremely
for agricultural census. In the Eighth Plan, 323 districts in the country
unsatisfactory results of this program, it is essential to think of an
were to be brought under the scheme. In 1997-98, 177 new project
institutional solution. Contract farming on a crop group basis is one of
districts were to be covered.
the most feasible, if safeguards are provided against the big contractors
The scheme, however, is making slow progress. Some of the opera-
usurping the legitimate benefits due to the small and marginal farmers.
tional problems are: delayed transfer of funds to the implementing
authority; delay in development of need-based software; poor computer
Emerging Issues training facilities for the field revenue staff; nonavailability of private
contractors for data entry; and lack of administrative focus. Computer-
Land Administration ization only involves entering the available land records (without any
Land and agricultural administration are two independent departments effort to correct them) and enabling their printout. More than
in both the central and state governments. While this helps to monitor computerization of land records guaranteeing the title to land should
nonagricultural land use separately from agriculture lack of integration have received priority. It is a common observation in the villages that
creates uneasy administrative regimes. There are a number of departments persons in whose name the land is recorded are either deceased or do
that look into various aspects of land policy and virtually independently. not possess that land. The Planning Commission had appointed a one-
These include land revenue, survey settlement, land administration, man committee on Record of Rights in Land in the 1980s (Wadhwa
land data, and land legislation. 1989). One paper emerged out of this work and, expectedly, no
The Department of Land Resources in the Union Ministry of Rural policy initiatives followed.
Development addresses the issues pertaining to land administration,
Land Surveys
particularly degraded lands, and has a range of programs that set the
national framework. These programs are passed on to the state govern- A cadastral survey was done well before independence. A fresh
ments as guidelines but more frequently as the final design. At the state survey is called for, after five decades of significant changes in the
level there are the Land Development Boards. landholding pattern. It is a tall order. One recent experience of conducting

6 Policy Brief No. 16 Emerging Issues in Land Policy 7

Consolidation of Holding Computerization of Land Records
Recording of land rights and their periodic updating is a prerequisite
During the early 1970s it was felt that one holder may have several
for an effective land policy. This not only eliminates harassment of the
fragments scattered across the revenue villages in the vicinity or at long
farmers but also indirectly contributes towards efficiency. During the
distances in the same village. This was an easy escape from the Land
Seventh Plan in 1987-88 a centrally sponsored scheme on Computer-
Ceiling Act and therefore it was considered necessary that landholding
ization of Land Records (CLR) was introduced as a pilot project in the
of an individual holder should be consolidated in one parcel. The
districts of Gulbarga (Karnataka), Rangareddy (Andhra Pradesh), Sonitpur
legislation was, however, difficult to formulate and did not consider the
(Assam), Singhbhum (Bihar), Gandhinagar (Gujarat), Morena (Madhya
ground reality of caste within the farming communities and local process
Pradesh), Wardha (Maharashtra), Mayurbhanj (Orissa), and Dungarpur
of politicization.
(Rajasthan). Its main objectives were: (1) computerization of ownership
Except Punjab, Haryana, and Uttar Pradesh land consolidation has
and plot-wise details for issue of timely and accurate copy of the Records
not made any impact in the rest of India. Legislative provisions for
of Rights (RoR) to the landowners; (2) to achieve low-cost, easily
consolidation have been made in fifteen states but they provided sufficient
reproducible storage media for reliable durable preservation; (3) to
room to escape. For example, Madhya Pradesh and West Bengal provide
provide fast and efficient retrieval of information, both graphical and
only for voluntary consolidation; similar is the case with Gujarat, Himachal
textual; and (4) creation of a Land Information System (LIS) and database
Pradesh, and Maharashtra. Given the importance and the extremely
for agricultural census. In the Eighth Plan, 323 districts in the country
unsatisfactory results of this program, it is essential to think of an
were to be brought under the scheme. In 1997-98, 177 new project
institutional solution. Contract farming on a crop group basis is one of
districts were to be covered.
the most feasible, if safeguards are provided against the big contractors
The scheme, however, is making slow progress. Some of the opera-
usurping the legitimate benefits due to the small and marginal farmers.
tional problems are: delayed transfer of funds to the implementing
authority; delay in development of need-based software; poor computer
Emerging Issues training facilities for the field revenue staff; nonavailability of private
contractors for data entry; and lack of administrative focus. Computer-
Land Administration ization only involves entering the available land records (without any
Land and agricultural administration are two independent departments effort to correct them) and enabling their printout. More than
in both the central and state governments. While this helps to monitor computerization of land records guaranteeing the title to land should
nonagricultural land use separately from agriculture lack of integration have received priority. It is a common observation in the villages that
creates uneasy administrative regimes. There are a number of departments persons in whose name the land is recorded are either deceased or do
that look into various aspects of land policy and virtually independently. not possess that land. The Planning Commission had appointed a one-
These include land revenue, survey settlement, land administration, man committee on Record of Rights in Land in the 1980s (Wadhwa
land data, and land legislation. 1989). One paper emerged out of this work and, expectedly, no
The Department of Land Resources in the Union Ministry of Rural policy initiatives followed.
Development addresses the issues pertaining to land administration,
Land Surveys
particularly degraded lands, and has a range of programs that set the
national framework. These programs are passed on to the state govern- A cadastral survey was done well before independence. A fresh
ments as guidelines but more frequently as the final design. At the state survey is called for, after five decades of significant changes in the
level there are the Land Development Boards. landholding pattern. It is a tall order. One recent experience of conducting

6 Policy Brief No. 16 Emerging Issues in Land Policy 7

a land survey in a Karnataka district is proving enormously time Land Use Pattern
consuming and may not probably yield the desired results. Land records Land use pattern is an outcome as well as determinant of land
are likely to get further complicated when data about land that hitherto policy. Broadly, four important interventions were made to address
evaded the records become available. Land surveys based on Geograph- land use in addition to the various components of land reform. First, the
ical Information System (GIS) could be the solution: they will also Soil Conservation Program was taken all over the country and a separate
provide repeated assessment and track the land use pattern. department was created to implement it. This was coupled with the
Community Development Program, in order to improve the quality of
Tenancy
land and stop land degradation. Second, Area Development Programs
If agricultural tenancy and renting in land is made legal the majority were taken up for the lagging regions in the country under DPAP and
of the beneficiaries will be small and marginal farmers. At present the DDP. Third, these programs were dovetailed with the Intensive
tenant or the landlord (in a revenue tenancy) has no protection Agricultural District Program (IADP), Tribal Development Program
(Anonymous 1999). Also, the tenant cannot raise capital from financial (TDP), and special schemes for backward districts. During this phase,
institutions. Many farmers who have committed suicide recently had wasteland development activities also picked up as an outcome of the
rented in land, but not being legal tenants, had to borrow from money- Area Development Programs. A Wasteland Development Authority
lenders and could not repay the usurious interest rates (Deshpande was created at the Center. In the fourth phase, watershed development
2003). If tenancy is made legal only an agriculturist should be allowed activities were initiated through the National Watershed Development
to lease in land and agricultural land for that purpose alone. To guard Program (at times merging with the Soil Conservation Program) under
against the weaker sections losing in this process leasing in their land the Ministry of Rural Development as well as through various funding
should be regulated with adequate intervention. agencies, including the World Bank, Danish International Development
It is expected that opening of the lease market will bring in private Agency (DANIDA), Department For International Development (DFID,
investment in agriculture, lack of which has been a major problem. It is UK), etc. All these land development programs had their own impact
possible to keep out imperfections by restricting the upper limit and on land policy.
limiting the lease period to a few years. Sections of the population In the recent past, the Watershed Development Program essentially
losing in this process may have to be seriously considered. includes formation of watershed development committees and self-help
groups which are different from the Panchayat Raj Institutions (PRI)
Marginalization of Size of Holding
structure. The funding agencies insist on these institutions. A conflict
Land fragmentation is taking place faster among the weaker sections. could arise between these institutions and the PRI structure that may
Also, better quality lands are more subjected to fragmentation. Some emerge soon. Therefore, it would be essential to attach the Watershed
states have legal provision of not allowing fragmentation of land below Development Program to PRIs in order to bring sustainability to the
0.5 hectares but it is not implemented strictly. All these point towards program as well as the created institutions.
consolidation of small and marginal farmers, not as was done under One important change taking place in the rural areas is the acquisition
consolidation of landholdings, but to bring them together as one produc- of land by noncultivating urbanites. Corporate bodies across the country
tion unit (through formal or informal cooperation) (Deninger 1995). have been purchasing and holding fertile land for nonagricultural
Group contract farming is an alternative successfully tried in some parts purposes, including speculative purpose. If unchecked, this trend can
of the country, though there have been failures as well. Gherkin, cotton, have severe repercussions on agricultural growth. A related phenomenon
rose, and onion are a few successful examples of contract farming. is agricultural land being put to nonagricultural uses. These two problems
could be tackled by providing an institutional alternative under the
control of the state land use boards. Such arrangement can also monitor

8 Policy Brief No. 16 Emerging Issues in Land Policy 9

a land survey in a Karnataka district is proving enormously time Land Use Pattern
consuming and may not probably yield the desired results. Land records Land use pattern is an outcome as well as determinant of land
are likely to get further complicated when data about land that hitherto policy. Broadly, four important interventions were made to address
evaded the records become available. Land surveys based on Geograph- land use in addition to the various components of land reform. First, the
ical Information System (GIS) could be the solution: they will also Soil Conservation Program was taken all over the country and a separate
provide repeated assessment and track the land use pattern. department was created to implement it. This was coupled with the
Community Development Program, in order to improve the quality of
Tenancy
land and stop land degradation. Second, Area Development Programs
If agricultural tenancy and renting in land is made legal the majority were taken up for the lagging regions in the country under DPAP and
of the beneficiaries will be small and marginal farmers. At present the DDP. Third, these programs were dovetailed with the Intensive
tenant or the landlord (in a revenue tenancy) has no protection Agricultural District Program (IADP), Tribal Development Program
(Anonymous 1999). Also, the tenant cannot raise capital from financial (TDP), and special schemes for backward districts. During this phase,
institutions. Many farmers who have committed suicide recently had wasteland development activities also picked up as an outcome of the
rented in land, but not being legal tenants, had to borrow from money- Area Development Programs. A Wasteland Development Authority
lenders and could not repay the usurious interest rates (Deshpande was created at the Center. In the fourth phase, watershed development
2003). If tenancy is made legal only an agriculturist should be allowed activities were initiated through the National Watershed Development
to lease in land and agricultural land for that purpose alone. To guard Program (at times merging with the Soil Conservation Program) under
against the weaker sections losing in this process leasing in their land the Ministry of Rural Development as well as through various funding
should be regulated with adequate intervention. agencies, including the World Bank, Danish International Development
It is expected that opening of the lease market will bring in private Agency (DANIDA), Department For International Development (DFID,
investment in agriculture, lack of which has been a major problem. It is UK), etc. All these land development programs had their own impact
possible to keep out imperfections by restricting the upper limit and on land policy.
limiting the lease period to a few years. Sections of the population In the recent past, the Watershed Development Program essentially
losing in this process may have to be seriously considered. includes formation of watershed development committees and self-help
groups which are different from the Panchayat Raj Institutions (PRI)
Marginalization of Size of Holding
structure. The funding agencies insist on these institutions. A conflict
Land fragmentation is taking place faster among the weaker sections. could arise between these institutions and the PRI structure that may
Also, better quality lands are more subjected to fragmentation. Some emerge soon. Therefore, it would be essential to attach the Watershed
states have legal provision of not allowing fragmentation of land below Development Program to PRIs in order to bring sustainability to the
0.5 hectares but it is not implemented strictly. All these point towards program as well as the created institutions.
consolidation of small and marginal farmers, not as was done under One important change taking place in the rural areas is the acquisition
consolidation of landholdings, but to bring them together as one produc- of land by noncultivating urbanites. Corporate bodies across the country
tion unit (through formal or informal cooperation) (Deninger 1995). have been purchasing and holding fertile land for nonagricultural
Group contract farming is an alternative successfully tried in some parts purposes, including speculative purpose. If unchecked, this trend can
of the country, though there have been failures as well. Gherkin, cotton, have severe repercussions on agricultural growth. A related phenomenon
rose, and onion are a few successful examples of contract farming. is agricultural land being put to nonagricultural uses. These two problems
could be tackled by providing an institutional alternative under the
control of the state land use boards. Such arrangement can also monitor

8 Policy Brief No. 16 Emerging Issues in Land Policy 9

the policy for use of common property resources. The present body on Problems, Policy Pointers, and Implementation
wasteland development can be merged with such a board, with the
state land use board having monitoring and recommendatory powers. Problem Policy Pointers Challenges in
In the debate on land ceiling on one side it is argued that ceiling Implementation
limits do not provide for a viable land size for a family. This is buttressed
by the argument that as there are no limits on investment in other Land titles are pre- • The State should guaran- • Land records are
sumptive and the tee a clear land title. maintained on
sectors, why should an agriculturist face a restriction on increasing the
record keeping is Torrens System may be old and fragile
size of holding. Economically viable size of holding is the crux of the anachronistic. This a helpful device. papers.
present crisis. But given the present political and administrative climate gives rise to litiga- • Improve keeping of land • Implementation
in the country rolling back the Land Ceiling Act is not a viable policy tion, a great portion records. The Planning of a major long-
option. It will certainly be detrimental to the growth of equity in the of it pending in Commission had ap- term project to
agricultural sector and may intensify distress. Where the efficiency of various courts and pointed a committee for systematically
small and large farms is more or less equal, it is necessary to allow size tribunals. this a decade ago but clarify rights in
nothing seems to have land.
of holding which can generate the investible capital in agriculture. This
emerged.
can be achieved through pooling the smaller holdings to form formal/
informal groups of producers (cooperative or informal) and market Land records are ill • Computerize land • The operation is
maintained, causing records. (The scheme has of a massive
their produce jointly, as argued above.
severe hardship to been taken up in selected scale.
the farmers. districts.) • The present state
of land records
poses a further
challenge.
• Nonspecific
nature of the
entry of records
creates a major
hurdle.
• The scheme will
also be difficult to
operate in some
districts due to
the condition of
the land records.
Land records have • Involve private institutions • The funding.
become undepend- for land survey. GIS, sup-
able, as the surveys ported by sample ground
were conducted long checking, provides the
ago. The survey best option.
work is huge and
needs enormous
resources.

10 Policy Brief No. 16 Emerging Issues in Land Policy 11

the policy for use of common property resources. The present body on Problems, Policy Pointers, and Implementation
wasteland development can be merged with such a board, with the
state land use board having monitoring and recommendatory powers. Problem Policy Pointers Challenges in
In the debate on land ceiling on one side it is argued that ceiling Implementation
limits do not provide for a viable land size for a family. This is buttressed
by the argument that as there are no limits on investment in other Land titles are pre- • The State should guaran- • Land records are
sumptive and the tee a clear land title. maintained on
sectors, why should an agriculturist face a restriction on increasing the
record keeping is Torrens System may be old and fragile
size of holding. Economically viable size of holding is the crux of the anachronistic. This a helpful device. papers.
present crisis. But given the present political and administrative climate gives rise to litiga- • Improve keeping of land • Implementation
in the country rolling back the Land Ceiling Act is not a viable policy tion, a great portion records. The Planning of a major long-
option. It will certainly be detrimental to the growth of equity in the of it pending in Commission had ap- term project to
agricultural sector and may intensify distress. Where the efficiency of various courts and pointed a committee for systematically
small and large farms is more or less equal, it is necessary to allow size tribunals. this a decade ago but clarify rights in
nothing seems to have land.
of holding which can generate the investible capital in agriculture. This
emerged.
can be achieved through pooling the smaller holdings to form formal/
informal groups of producers (cooperative or informal) and market Land records are ill • Computerize land • The operation is
maintained, causing records. (The scheme has of a massive
their produce jointly, as argued above.
severe hardship to been taken up in selected scale.
the farmers. districts.) • The present state
of land records
poses a further
challenge.
• Nonspecific
nature of the
entry of records
creates a major
hurdle.
• The scheme will
also be difficult to
operate in some
districts due to
the condition of
the land records.
Land records have • Involve private institutions • The funding.
become undepend- for land survey. GIS, sup-
able, as the surveys ported by sample ground
were conducted long checking, provides the
ago. The survey best option.
work is huge and
needs enormous
resources.

10 Policy Brief No. 16 Emerging Issues in Land Policy 11

Problem Policy Pointers Challenges in Problem Policy Pointers Challenges in
Implementation Implementation

In many states • Legalize tenancy. • The rural elite Female cultivators • Daughters should have • Difficulties in
tenancy is oral. The • Compulsorily record and dominant have been neglected right on the inherited passing a gender-
weaker partner tenancy. social groups can both due to legal property. sensitive legisla-
(tenant/landowner) exploit legaliza- impediments and • Surrender of such right to tion, as emerged
in the contract tion of tenancy social norms. be registered in the pres- in the Women’s
seldom gets the market. ence of revenue officials. Representation
intended results. • As the better-off bill, may feature
Concealed tenancy farmers are here also.
and reverse tenancy moving out of Neglect and misuse • Give use rights (tenant • The use of such
have become rural areas, land of cultivable waste, rights/pattas) of such lands must be
normal. These are control changes other fallows, and lands to the landless environmentally
more exploitative are taking place public wastelands agricultural laborers, sustainable and
than earlier. and that may have been causing equipping them with should not
cause difficulty in serious environ- know-how and a plan to increase negative
enforcing tenancy mental problems. use such lands econ- externalities.
contracts. omically.
Landholdings are • Revisit the Land Ceiling • The hazard that Forest lands under • Lease out these lands to
rapidly getting mar- rolling back the • Legal implications
Act and locate economic legal ownership of landless agricultural
ginalized both in size land ceiling may and environ-
holdings in different the Forest Depart- workers interested in
and quality of land, strengthen the mental sustain-
regions. ment are degrading bringing them under use.
adding to the exist- land grabbers in ability must be
• Take up land consoli- alarmingly. • As suggested by various
ing stock of unviable the rural areas fully ascertained.
dation to combine frag- committees, tree Pattas
and poor cultivators. must be taken The gains of this
mented holdings as (right to harvest the
The increasing cost care of through policy being
formal or informal coop- produce of the trees)
of cultivation and legal means. usurped by the
erative units. could be granted to the
predominance of • The contracts influential elite
• Changes in the law of forest dwellers.
cash component should help build should be
inheritance could also be
worsens their plight. a sustainable part- prevented.
considered.
• Contract group farming nership. Land-related laws are • Review the entire legal • Land relations
with adequate credit is a numerous and framework governing differ widely
better alternative if stimu- incohesive. land. Five decades of legal across regions.
lated through homogen- expertise and case That will need
eous and contiguous histories should help in careful docu-
groups. designing the system. mentation before
• Agricultural export zones getting on to the
will provide some impetus policy.
in this policy.

12 Policy Brief No. 16 Emerging Issues in Land Policy 13

Problem Policy Pointers Challenges in Problem Policy Pointers Challenges in
Implementation Implementation

In many states • Legalize tenancy. • The rural elite Female cultivators • Daughters should have • Difficulties in
tenancy is oral. The • Compulsorily record and dominant have been neglected right on the inherited passing a gender-
weaker partner tenancy. social groups can both due to legal property. sensitive legisla-
(tenant/landowner) exploit legaliza- impediments and • Surrender of such right to tion, as emerged
in the contract tion of tenancy social norms. be registered in the pres- in the Women’s
seldom gets the market. ence of revenue officials. Representation
intended results. • As the better-off bill, may feature
Concealed tenancy farmers are here also.
and reverse tenancy moving out of Neglect and misuse • Give use rights (tenant • The use of such
have become rural areas, land of cultivable waste, rights/pattas) of such lands must be
normal. These are control changes other fallows, and lands to the landless environmentally
more exploitative are taking place public wastelands agricultural laborers, sustainable and
than earlier. and that may have been causing equipping them with should not
cause difficulty in serious environ- know-how and a plan to increase negative
enforcing tenancy mental problems. use such lands econ- externalities.
contracts. omically.
Landholdings are • Revisit the Land Ceiling • The hazard that Forest lands under • Lease out these lands to
rapidly getting mar- rolling back the • Legal implications
Act and locate economic legal ownership of landless agricultural
ginalized both in size land ceiling may and environ-
holdings in different the Forest Depart- workers interested in
and quality of land, strengthen the mental sustain-
regions. ment are degrading bringing them under use.
adding to the exist- land grabbers in ability must be
• Take up land consoli- alarmingly. • As suggested by various
ing stock of unviable the rural areas fully ascertained.
dation to combine frag- committees, tree Pattas
and poor cultivators. must be taken The gains of this
mented holdings as (right to harvest the
The increasing cost care of through policy being
formal or informal coop- produce of the trees)
of cultivation and legal means. usurped by the
erative units. could be granted to the
predominance of • The contracts influential elite
• Changes in the law of forest dwellers.
cash component should help build should be
inheritance could also be
worsens their plight. a sustainable part- prevented.
considered.
• Contract group farming nership. Land-related laws are • Review the entire legal • Land relations
with adequate credit is a numerous and framework governing differ widely
better alternative if stimu- incohesive. land. Five decades of legal across regions.
lated through homogen- expertise and case That will need
eous and contiguous histories should help in careful docu-
groups. designing the system. mentation before
• Agricultural export zones getting on to the
will provide some impetus policy.
in this policy.

12 Policy Brief No. 16 Emerging Issues in Land Policy 13

Problem Policy Pointers Challenges in References
Implementation
Alesina, A. and D. Rodrik (1994), ‘Distributive Policies and Economic
Shrinking of agricul- • A difficult terrain, since Growth’, Quarterly Journal of Economics, Vol. 109, pp. 465–90.
tural land base and any administrative fiat to Anonymous (1999), Proceedings of the National Workshop on ‘Whither
land being used for prevent the farmer from Tenancy?’ 24–25 September, Lal Bahadur Shastri National Academy of
nonagricultural uses. changing the land use or Administration and Institute for Human Development, Mussoorie.
Productive land is transfer the land will Appu, P.S. (1997), Land Reforms in India: A Survey of Policy, Legislation
going out of agri- impinge on his funda- and Implementation, New Delhi: Vikas.
culture. Nonculti- mental rights. Atkins, Fiona (1988), ‘Land Reforms: A Failure of Neo-Classical
vators have acquired Theorization?’ World Development, 16(8).
land in peri-urban Besley, Timothy and Robin Burgess (1998), ‘Land Reform, Poverty
and rural areas for Reduction and Growth: Evidence from India’, The Quarterly Journal of
speculative purposes. Economics, May.
Chenery, H., M. S. Ahluwalia, C. L. G. Bell, and Jan Bowen (1970),
Land use boards at • Strengthen them. Policy
Redistribution with Growth, Sussex: The World Bank and Institute of
the state level have should be directed
become toothless Development Studies.
towards locating proper
institutions. Deninger, Klaus (2003), Land Policies for Growth and Poverty Reduction,
institutional framework to
New York: The World Bank and Oxford University Press.
get these issues incor-
Deninger, Klaus (1995), ‘Collective Agricultural Production: A Solution
porated in a broader
for Transition Economy’, World Development, 23(8).
policy frame.
Deshpande, R. S. (2003), ‘Current Land Policy Issues in India’, Land
Reforms, Special Edition, Rome: Food and Agricultural Organization.
GOI (Government of India, 1976), National Commission on Agriculture—
Part XV on Agrarian Reforms, New Delhi.
Krishna, Raj (1961), ‘Land Reform and Development in South Asia’, in
Walter Frochlich (ed.), Land Tenure, Industrialization and Social Stability:
Experiences and Prospects in Asia, Wisconsin: The Marquette University
Press.
LBSNAA (Lal Bahadur Shastri National Academy of Administration, 1993),
Comparative Land Reforms Legislations in Different States, Mussoorie: Land
Reforms Unit, LBSNAA.
Raup, Philip M. (1963), ‘The Contribution of Land Reforms to Agricultural
Development: An Analytical Framework’, Economic Development and
Cultural Change, XXI(1).
Rudra, Ashok (1982), Indian Agricultural Economics: Myths and Realities,
New Delhi: Allied.
UN (United Nations, 1954), Progress in Land Reforms, New York:
Department of Economic and Social Affairs, United Nations.
Wadhwa, D. C. (1989), ‘Guaranteeing Title to Land: A Preliminary Study’,
Economic and Political Weekly, XXIV(41), 14 October: 2323–34.
Warriner, Doreen (1969), Land Reforms in Principle and Practice, Oxford:
Clarendon Press.

14 Policy Brief No. 16 Emerging Issues in Land Policy 15

Problem Policy Pointers Challenges in References
Implementation
Alesina, A. and D. Rodrik (1994), ‘Distributive Policies and Economic
Shrinking of agricul- • A difficult terrain, since Growth’, Quarterly Journal of Economics, Vol. 109, pp. 465–90.
tural land base and any administrative fiat to Anonymous (1999), Proceedings of the National Workshop on ‘Whither
land being used for prevent the farmer from Tenancy?’ 24–25 September, Lal Bahadur Shastri National Academy of
nonagricultural uses. changing the land use or Administration and Institute for Human Development, Mussoorie.
Productive land is transfer the land will Appu, P.S. (1997), Land Reforms in India: A Survey of Policy, Legislation
going out of agri- impinge on his funda- and Implementation, New Delhi: Vikas.
culture. Nonculti- mental rights. Atkins, Fiona (1988), ‘Land Reforms: A Failure of Neo-Classical
vators have acquired Theorization?’ World Development, 16(8).
land in peri-urban Besley, Timothy and Robin Burgess (1998), ‘Land Reform, Poverty
and rural areas for Reduction and Growth: Evidence from India’, The Quarterly Journal of
speculative purposes. Economics, May.
Chenery, H., M. S. Ahluwalia, C. L. G. Bell, and Jan Bowen (1970),
Land use boards at • Strengthen them. Policy
Redistribution with Growth, Sussex: The World Bank and Institute of
the state level have should be directed
become toothless Development Studies.
towards locating proper
institutions. Deninger, Klaus (2003), Land Policies for Growth and Poverty Reduction,
institutional framework to
New York: The World Bank and Oxford University Press.
get these issues incor-
Deninger, Klaus (1995), ‘Collective Agricultural Production: A Solution
porated in a broader
for Transition Economy’, World Development, 23(8).
policy frame.
Deshpande, R. S. (2003), ‘Current Land Policy Issues in India’, Land
Reforms, Special Edition, Rome: Food and Agricultural Organization.
GOI (Government of India, 1976), National Commission on Agriculture—
Part XV on Agrarian Reforms, New Delhi.
Krishna, Raj (1961), ‘Land Reform and Development in South Asia’, in
Walter Frochlich (ed.), Land Tenure, Industrialization and Social Stability:
Experiences and Prospects in Asia, Wisconsin: The Marquette University
Press.
LBSNAA (Lal Bahadur Shastri National Academy of Administration, 1993),
Comparative Land Reforms Legislations in Different States, Mussoorie: Land
Reforms Unit, LBSNAA.
Raup, Philip M. (1963), ‘The Contribution of Land Reforms to Agricultural
Development: An Analytical Framework’, Economic Development and
Cultural Change, XXI(1).
Rudra, Ashok (1982), Indian Agricultural Economics: Myths and Realities,
New Delhi: Allied.
UN (United Nations, 1954), Progress in Land Reforms, New York:
Department of Economic and Social Affairs, United Nations.
Wadhwa, D. C. (1989), ‘Guaranteeing Title to Land: A Preliminary Study’,
Economic and Political Weekly, XXIV(41), 14 October: 2323–34.
Warriner, Doreen (1969), Land Reforms in Principle and Practice, Oxford:
Clarendon Press.

14 Policy Brief No. 16 Emerging Issues in Land Policy 15

 ADB INRM Policy Brief No. 16

Emerging Issues in Land Policy

R. S. Deshpande

India Resident Mission Policy Brief Series

Asian Development Bank

India Resident Mission
4 San Martin Marg
Chanakyapuri
New Delhi 110021
Asian Development Bank