agriculture sector subsidy & food processing section 2 MCQ Questions & Answers Detailed Explanation

Answer: (b)

As a lot of states in the post-independence period restricted leasing of agricultural land, it has started hurting agricultural productivity.

Central Government got a model act drafted on land leasing by an expert panel under the NITI Aayog in April 2016 and has forwarded it to States to implement it.

Important features of the model Act:

1. The model law enables tenant farmers and sharecroppers to avail bank credit, crop insurance and disaster relief benefits.
2. The model law will allow consolidation of farmland so that small plots of land that are economically unviable can be leased out (using tractors and farm equipment is not economically viable for small plots of 2-3 acres). Large operational holdings will reduce the cost of cultivation and increase the profitability of farming.
3. The duration of the lease and the consideration amount will be decided mutually by the owner and the tenant.
4. There will be no ceiling on the amount of land that can be leased out or consolidated as the state wants market forces to determine the size of operational holdings.
5. Under the new law, land can also be leased out for allied activities like livestock or· animal husbandry for a maximum period of five years.
6. The Model Act proposes a quicker litigation process in case of disputes, by suggesting recourse through criminal proceedings and special tribunal. The dispute settlement will be taken up at the level of the Gram Sabha, Panchayat and Tehsildar and are kept outside the jurisdiction of courts.