Bhopal (Madhya Pradesh):
Madhya Pradesh quadruples land compensation for rural farmers in historic policy shift
To ensure development projects are not hampered by land acquisition issues in rural areas, the state cabinet on Wednesday decided to grant four times the market rate as compensation. The decision comes into effect immediately.
Briefing the media at Samatva Bhawan in the CM House, Chief Minister Mohan Yadav termed it a historic decision that would accelerate development. CM Yadav said farmers have been made partners in progress and the move would ensure judicious land acquisition. The rule applies to all development projects in rural areas with immediate effect.
The State government had earlier formed a sub-committee comprising ministers Tulsiram Silwat, Rakesh Singh and Chaitanya Kasyap to study policies in other states, discuss with stakeholders and make recommendations. The decision to provide four times the compensation stems from the committee's report.
The move will enable farmers to receive higher compensation for agricultural land acquired by the Central and State governments for key projects such as railway lines and dam construction. Yadav said while many projects were previously stalled due to acquisition issues, work will now move smoothly. He clarified that urban areas will remain under urban compensation rules while rural areas will follow the new rural formula.
Yadav informed that in 2014, Madhya Pradesh was declared in "sector 1", following which double compensation was being paid. However, this often required additional packages to be cleared. He noted that higher compensation would help displaced farmers procure land elsewhere. From 2023-24, compensation worth Rs 16,000 crore has been given to 55,530 farmers.
Regarding procurement, the Chief Minister said that although wheat export is currently negligible, the government continues to procure the grain to support farmers. He admitted that due to a shortage of jute, polythene bags are being used for procurement. He added that crop production has doubled in the state this time, and the government is seeking a quota increase from the Government of India.
New Compensation Norms
- Multiplier: Increased to 2.0 for rural areas.
- Total Payout: Four times the market rate.
- Legal Framework: Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Rules 2015.
- Applicability: Immediate effect on all rural development projects.
Wheat Procurement Update
- Production: Output has doubled in the state this year.
- Packaging: Polythene bags used due to jute shortage.
- Centre's Help: State seeking increased procurement quota from the Government of India.
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