In response to sustained criticism and farmer pushback, the Punjab Cabinet has approved key revisions to the state’s contentious land pooling policy. Among the latest changes is a significant increase in the annual compensation for participating farmers—from ₹30,000 to ₹50,000 per acre. This amount will be paid until development work on the pooled land begins, after which compensation will rise to ₹1 lakh per acre annually, with a 10% increase each subsequent year if development is delayed.
The government also announced that farmers offering even a kanal (around 505.86 sq. meters) of land will now be entitled to a 125-square-yard residential plot and a 25-square-yard commercial plot. For every acre pooled, the return will be a 1,000-square-yard residential and 200-square-yard commercial plot on fully developed land. Farmers can also opt for additional residential space in place of the commercial plot.
A Letter of Intent (LoI) outlining these terms will be issued within 21 days of a farmer agreeing to pool their land. Importantly, farmers can continue agricultural activity until development commences and will retain the ability to take loans against the LoI. The sale and registry of such land have not been frozen, the government clarified.
Chief Minister Bhagwant Mann defended the revised policy, dismissing opposition claims that the scheme would strip farmers of their land rights. He argued that the updated provisions are based on feedback from farming communities and that the scheme aims to promote transparent and planned urban development across Punjab. Mann also criticized opposition parties for allegedly spreading misinformation and attempting to derail the state’s developmental agenda.
Despite these amendments, political opposition and farmers’ unions—particularly the Samyukt Kisan Morcha (SKM)—remain skeptical. Many leaders have accused the AAP-led government of making unfeasible promises, citing financial constraints. Punjab Congress President Amarinder Singh Raja Warring criticized the revised compensation plan as a deceptive strategy, comparing it to “a postdated cheque on a crashing bank,” and warning farmers not to fall for what he termed a “trap.”
As farmer unrest continues and protests escalate, including a planned tractor rally on July 30, the land pooling debate is expected to remain a key flashpoint in Punjab’s political and agricultural discourse.
