Arvind Panagariya: Win-win on land

The proposed amendment to the land acquisition Act helps both farmers and non-farmers


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Abstract: 

Critics of the proposed amendments to the land acquisition Act of 2013 have conveniently sought to frame the debate in terms of a win-lose proposition. They contend that any benefits to non-farming entities - whether they be school-going children, patients seeking hospital care, households looking for affordable housing, small businesses or large corporations - would be at the expense of the farmers whose land is acquired. But they neglect the fact that the amendments are a win-win proposition.

Underlying the critics' view is the assumption that regardless of the compensation offered, farmers do not want to part with their land. Ergo, any change that simplifies or speeds up land acquisition hurts them.

But is this assumption right? A recent survey published by the non-governmental organisation (NGO) Lokniti offers some answers. According to it, when asked whether they like farming, 28 per cent of the farmers reply outright in the negative. Among the 72 per cent who reply in the affirmative, a whopping 60 per cent say that they like farming because it is their "traditional occupation". Only 10 per cent of them say that farming gives them good income. Most revealingly, 62 per cent of all farmers say that they would quit farming if they could get a good job in a city.