The rent to be paid for the premises must be decided by the owner and the tenant, provided that the agreed rent for the last monthly rent calculated over two years is increased by 5% and that the third year is increased by the consumer price index over the corresponding three years. The proposed legislation will also have a negative impact on contract farming and the direct purchase of products by farmers. As soon as companies have access to leased land, they will engage in corporate farming instead of caring for hundreds of small and medium-scale contract and non-contract farmers for their raw materials or other products. It simply means accumulation without expropriation. The bill was necessitized by the evolution of agricultural relations in recent years, which transformed the concept of traditional leases into an essentially commercial one. Punjab has seen the light of a booming agricultural market, covering a quarter of the total area. It is common knowledge that leasing takes place on a large scale in Punjab, although illegally or informally. Punjab is also known for reverse rent, where, unlike most other countries in India, large and medium-scale farmers rent land to marginalized and small farmers, who then become landless workers. According to a recent study by H.S. Shergill (2019), the average size of the tenant country, including its own country, was twice as large (17 Acres) as the average land ownership of the pure owner (8 Acres). In addition, on average, 48% of the area of the rental holding was on leased land.

In addition, 82 per cent of the leased area was for those who each owned more than 10 hectares (those who are officially designated as medium or large owners in India); These farms accounted for 55% of the total area of the state. Small and cross-border farmers rented only 5% of the total rent area. It is significant that 83 percent of tenants had tractors, 78 percent had electric pipe wells and 56 percent had permanent employees. The bill allows tenants/tenants to use the lease to benefit from credits. It states that, without creating a charge on the land, the lessee has the right to take out harvest credits or loans from a bank, cooperative or other financial institution to carry out agricultural and related activities. The bill, Punjab Land Leasing and Tenancy Bill, 2019, prepared by the Return Commission headed by Justice SS Saron (retd), paves the way for the legalization of the leasing of agricultural land for a period of less than one year to a maximum of 15 years. Once in force, the bill aims to make land leases mandatory. In the event of the death of the tenant, his heir is the tenant or may withdraw from the contract until the end of the agricultural year after payment of the rental indemnity. . . .