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. (UPSC 2015)

Declining farm size has made cultivation uneconomic for most Indian farmers. With average operational holding at 1.08 hectares and 86.08% holdings being small or marginal, consolidation through contract farming and land leasing deserves serious promotion, but with safeguards.

• Why promote: Contract farming can assure market access, stable prices, better inputs and technology, and lower transaction costs. Land leasing can create larger operational units, enabling mechanisation, better credit access and use of idle land.
• Risks in contract farming: Weak bargaining power may trap farmers in unfair terms, quality disputes, and monopsony. Companies may exclude the smallest farmers.
• Risks in leasing: Poor land records, insecure tenancy, absentee landlordism and state-level legal variation can make leasing informal and exploitative.

Thus, both should be promoted, but only through transparent contracts, legal tenancy protection, updated land records, strong dispute settlement, and farmer collectives such as FPOs. The aim should be productive consolidation without loss of farmer rights.