2015 · GS Paper 3 · Q3 · 12 marks
In view of the declining average size of land holdings in India which has made agriculture non-viable for a majority of farmers, should contract farming and land leasing be promoted in agriculture? Critically evaluate the pros and cons.
In short
Contract farming and land leasing should be promoted, because they restore the scale that 1.08-hectare holdings lack, but only with safeguards against buyer power and tenant insecurity. NITI Aayog's Model Land Leasing Act, 2016 lets owners lease land without losing title.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 293 words
Idle land put to work
NITI Aayog's Model Land Leasing Act, 2016 keeps title with the owner, so migrant owners can rent fallow plots to active farmers.
Assured price
A buy-back price shifts market risk to the sponsor, as in PepsiCo's tomato and potato contracts in Punjab and Suguna's broiler contracts in Tamil Nadu.
Technology and credit
Sponsors supply seed and extension, while a recorded lease opens Kisan Credit Cards and insurance to tenants, as Andhra Pradesh's 2011 loan eligibility cards attempted.
Unequal bargaining
PepsiCo's 2019 suits against Gujarat potato growers over the FL-2027 variety showed a buyer's power over farmers.
Rejection and exclusion
Buyers reject produce when prices fall and prefer larger growers, so marginal farmers lose unless an FPO aggregates them.
Concealed tenancy
Kerala bans leasing and other states restrict it, so oral tenants miss PM-KISAN and insurance while owners fear losing land.
This model answer is indicative and the model can make mistakes; please verify key facts independently.
Practise this question
1Get the answer sheet
Sized for this question.
2Write your answer
Timed, by hand.
3Get it marked
Your score and what to fix.
This chapter in the exam
Land Reforms in India7 questions
Asked in 7 of 14 sittings since 2013
- 2024What were the factors responsible for the successful implementation of land reforms in some parts of the country? Elaborate.
- 2023State the objectives and measures of land reforms in India. Discuss how land ceiling policy on landholding can be considered as an effective reform under economic criteria.
All 7 questions, sorted by sub-topic, with model answers and practice.
Question from the official UPSC Civil Services (Main) Examination 2015 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.