Gujarat to allot wastelands for contract farming

The Gujarat government has decided to allot state-held wastelands to corporates and farmers for contract farming.

A government resolution (GR) on this will be issued soon and thereafter around 39 lakh hectares would be available for contract farming. Around 20 per cent of the state's total area of 196 lakh hectares is wasteland.

Besides petroleum companies, who could grow jatropha, which is a source of bio diesel, corporates involved in agriculture-based commodities and agro processing will also be able to pick up wastelands on offer once the government announces its GR.

Also, companies in the textile sector are likely to grab the opportunity to grow cotton. Currently, the government is working on the terms of lease for handing over wastelands to corporates.

Earlier this month, the Gujarat government had taken the first step towards introducing the contract farming with the state agriculture and co-operatives department issuing a notification allowing industrial houses and trading companies to purchase agriculture produce directly from farmers.

Though the government would act as a 'facilitator' in the process, the purchases will be sanctioned by a government agency ""the Gujarat State Agriculture Marketing Board.

It may be stated in this context that the Gujarat Agro Vision 2010 document, which the state government released in 2000, recommends a review of the Land Tenancy Act and Land Ceiling Act and allowing leasing of land by farmers to non-farmers or corporates for agriculture purposes only. This is necessary to ensure that the farm sector is freed from strict controls.

The proposed GR:
- District level experts committees, headed by the collectors of the respective districts, will recommend wastelands that could be freed for corporate farming.

- State level empowered committee will then notify the land for being handed over to corporates or farmers.

- Maximum land allowed to a single entity or entrepreneur will be 2000 acres for a lease period of 20 years.

- Wasteland of Kutch and Banaskantha districts likely to be freed first.