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Tenant farmers in Telangana struggle amid soaring lease costs, policy gaps: Survey

The study, conducted by the Kaulu Raitula Gurtimpu Sadhana Committee, covered 1,816 tenant farmers across 57 villages in 22 districts.

Published Jun 10, 2026 | 1:23 PMUpdated Jun 10, 2026 | 1:23 PM

The Committee warned that nearly Rs 25,000 crore in annual farm support flows to non-cultivating landowners while actual cultivators bear risks.

Synopsis: Tenant farmers in Telangana face mounting distress as lease rates soar to ₹14,936 per acre and access to government schemes remains blocked. A survey of 1,816 farmers found only 22.8% received subsidized urea, 0.7% got disaster relief, and none accessed crop loans. With debts up to ₹10 lakh, farmers demand recognition under the 2011 Act.

A comprehensive survey of tenant farmers across Telangana has exposed the deepening crisis faced by cultivators who lease land, revealing soaring lease rates, exclusion from government schemes, and mounting debt burdens.

The study, conducted by the Kaulu Raitula Gurtimpu Sadhana Committee, covered 1,816 tenant farmers across 57 villages in 22 districts.

It found that 36 percent of farmers in Telangana are tenants, most from BC, SC, and ST communities, yet remain outside the ambit of crucial state support systems.

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Key Findings

  • Lease Rates: Average lease cost has surged to Rs 14,936/acre, with peaks of Rs 53,000/acre.
  • Land Holdings: Average leased area rose to 6.7 acres, up from 5 acres in 2022.
  • Demographics: 47.2 percent BC, 26.9 percent SC, 13.9 percent ST, 4.2 percent Muslim, and 7.5 percent OC. SC tenants hold the smallest parcels.

Exclusion from support systems:

  • Urea Subsidy: Only 22.8 percent accessed subsidized fertilizer; most blocked by landowner OTP requirements.
  • Crop Procurement: Just 6.8 percent of cotton and 20 percent of paddy sold under tenant names; many forced to sell under others’ names with steep commissions.
  • Disaster Relief: Despite 85 percent reporting crop loss, only 0.7 percent received compensation directly.
  • Crop Loans: Tenants remain excluded, relying on private loans at 24–36 percent interest, with debts ranging from ₹2–10 lakh.

Financial losses compared to MSP (per 5-acre tenant)

  • Cotton: Rs 64,400
  • Paddy: Rs 40,350
  • Maize: Rs 87,800
  • Soybean: Rs 53,120

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Tenant farmers’ demands

  1. Immediate implementation of the 2011 Land Licensed Cultivators Act with Loan Eligibility Cards (LEC).
  2. Uniform recognition across schemes, linking benefits directly to tenant bank accounts.
  3. Legislative changes only after consultation with farmer organizations, avoiding mandatory landowner signatures.

The Committee warned that nearly Rs 25,000 crore in annual farm support flows to non-cultivating landowners while actual cultivators bear risks, leading to debt traps and suicides.

Despite promises by the current government to implement the 2011 Act, tenant farmers say little has changed. “We want access to fertilizers, disaster compensation, and crop procurement at MSP — not charity, just recognition,” one farmer said during the survey.

Summary Report English – Tenant Study

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