Maharashtra Law Lets Tribal Farmers Lease Land to Private Firms for Income
Maharashtra’s new law lets tribal farmers lease land to private firms for agriculture and mining.
In a transformative move for Maharashtra’s tribal communities, the state government is set to introduce a law allowing tribal farmers to lease their land to private entities for agricultural activities or mineral excavation, according to Revenue Minister Chandrashekhar Bawankule. This policy aims to provide a steady income stream for tribal farmers while safeguarding their land ownership rights.
Speaking to reporters in Gadchiroli on September 19, 2025, Bawankule announced, “A law will be brought soon. Under this policy, tribal farmers will be able to lease out their land directly to private parties for agricultural purposes or mineral excavation.” Currently, tribal farmers are prohibited from independently entering lease agreements with private entities, a restriction that has limited their access to private investment. The new policy seeks to remove these barriers, enabling farmers to benefit directly from their land holdings.
To ensure transparency and fairness, lease agreements will involve oversight from the district collector. The minimum lease rent is set at Rs 50,000 per acre annually (or Rs 1,25,000 per hectare), with farmers and private parties free to negotiate higher amounts. Additionally, the policy allows tribal farmers to sign Memorandums of Understanding (MoUs) with private companies for mineral excavation if major or minor minerals are found on their land. Farmers will receive monetary benefits based on the volume of minerals extracted, though specific rates are yet to be finalized.
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Bawankule emphasized the policy’s decentralized approach, stating, “The tribals do not have to come to Mantralaya in Mumbai for the same. The decision can be taken at the district collectorate level.” This streamlined process aims to make it easier for tribal farmers to engage with private entities without bureaucratic delays.
State officials highlighted that the policy is designed to balance economic empowerment with protection against land misuse. Historically, tight regulations have governed tribal land transactions to prevent exploitation, often resulting in procedural delays. The forthcoming law seeks to address these challenges, offering tribal communities a pathway to financial stability while ensuring their ownership rights remain intact.
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