Tuesday, September 14, 2010

Acts for Rental on Agriculture Lands

In many states of India, the acts on agriculture lands are more supportive for the tenants and not at all supportive for the landlords.

If the agriculture land is given to a tenant, then the landlord would lose most of the powers on that land. Once the land is given to a tenant, the landlord cannot take back the land in many cases. In few states, the landlord can take around half of the land for farming on his/her own. In few other states, the landlord can take even half of the land only if the landlord does not have any other way of earning. If the landlord has to sell the land, then he/she can sell only to the tenant at the government price. There are many other rules like this, which takes all the powers from the landlord and gives full powers to the tenants. Eventhough the rules vary from state to state, but, overall, the rules are in such a way that, the landlord would always be at disadvantage by giving the land to the tenants.

There is another act by which the tenant can get loan from banks by pledging the crop.

All the socialists are very happy with the above acts. They feel like the person who actually does the farming would get benefit out of it. If there is any change in any of the above acts, then all the non-capitalistic parties would oppose to it.

Let's see the reality.

Since, the moment the land is given to a tenant, the landlord loses most of the powers on the land. So, nobody gives the land to a tenant officially. Everyone gives unofficially without any agreement. The tenants take the land just on word.

Since the tenants are not getting the land officially, they cannot get any loan by pledging the crop. Because, officially the crop is owned by the landlord.

The landlords get the loan from the banks for less interest (around 6% per annum). Many landlords take the loan, because the interest rate is very less. The tenants have to go to private lenders and the interest rate would be anywhere from 36% to 60% per annum.

Because of the floods or by any natural calamity, if the crop is damaged, then the tenants who made the agreements and got the loan by pledging the crop would be benefited. Since, nobody is having the official agreement, so, nobody is getting benefit by this.

Whenever there is waive-off of the loans, all the landlords get benefit, but, no tenant. Many landlords are taking the agriculture loans for personal use, and giving the land to the tenants unofficially. i.e., whenever there was waive-off, the actual waive-off was not for the agricultural purposes in most of the cases, but, for the personal uses of the many landlords.

The very simple solution for all these problems is, changing the acts for agriculture land, and not taking any power from the landlord. But, if there is any proposal from any government, then all the non-capitalist parties would oppose to it, and they make it so big issue. Since, in India, everyone including media (except two political parties and the president of another political party) sees capitalism as a crime, even if somebody wants to bring this kind of change, they would face many obstacles in implementing it.

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