The Narendra Modi government’s decision to allow its land acquisition ordinance to lapse shouldn’t be seen as a setback for economic reforms. Certain provisions in the ordinance had created misgivings among the farming community — especially the one that did away with the requirement of consent from at least 70 per cent of landowners in case of acquisition for a large swathe of private-sector projects. The timing was significant. The last year and more have been bad for agriculture. Poor monsoons and unseasonal rains/ hailstorms destroying the standing rabi crop in many parts of the country, coupled with a price crash in most commodities, have led to a significant erosion of farm incomes. Under these circumstances, trying to push through contentious amendments to the 2013 law enacted during the previous UPA regime’s tenure — that too by issuing ordinances thrice — only united the Opposition, which lost no opportunity to paint the current government as “anti-farmer”.
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The prime minister’s decision not to re-promulgate the land ordinance is, therefore, welcome — he has said that he did not want to give a handle to those wanting to spread fear or confusion among farmers. It will help the government to cut its political losses and focus on the other big and more urgent reforms like the GST, which cannot happen without the Opposition’s support. Once the fears and suspicions over land acquisition die, the government can also look at fixing fertiliser and food subsidies, while simultaneously ensuring farmers get the benefits from a single national market for their produce and investments in rural infrastructure. As regards acquisition, the fact is, agricultural land in India is overwhelmingly private property. It cannot be taken without some form of consent from the owners, for which they have to be made stakeholders in the projects being contemplated. How this is to be done is better left to the states.
