Three months after Punjab rolled out its ambitious Farm Stay Policy to create an additional source of income for farmers and promote rural tourism, the initiative has received a modest response, with only 35 applications filed so far, of which 21 have been approved.

Launched in May this year and implemented by the department of tourism and cultural affairs, was aimed at encouraging farmers to diversify beyond conventional agriculture while creating new opportunities in rural and experiential tourism.
Mohali has emerged as the frontrunner, accounting for 14 of the 35 applications received under the policy. Ludhiana has received four applications, while Ropar, Amritsar and Fatehgarh Sahib have recorded three applications each.
Of the total applications received, 21 have been approved, 12 are pending with the department, and two have been rejected.
The tepid response, particularly in a predominantly agrarian state, highlights the challenge of translating the government’s policy push into participation on the ground.
While Punjab has sought to position farm stays as a new income stream for farmers, the limited response suggests that awareness about the scheme and the economics of setting up and operating such facilities remain key hurdles.
A senior officer of the tourism department said the policy had witnessed a slow start due to limited awareness.
{{/usCountry}}A senior officer of the tourism department said the policy had witnessed a slow start due to limited awareness.
{{/usCountry}}“It is a slow start as awareness about the policy is still limited. The department will soon launch an awareness campaign to promote the scheme and encourage more farmers to participate,” the officer said, requesting anonymity.
The policy allows farmers owning as little as one acre of agricultural land to establish farm stays, provided farming continues to remain the primary activity on the property. The initiative is intended to supplement farm incomes, generate local employment and offer farmers an alternative revenue scheme by linking agriculture with tourism and rural experiences.
Harkirat Singh Ahluwalia, who runs Citrus County, a luxury agro-tourism retreat near Hoshiarpur, says the previous policy launched in 2008 was simpler and restricted to farmers. “The new policy has broadened eligibility beyond farmers but made the approval process more complex, with clearances required from multiple departments”, he adds.
The policy has also faced a significant legal challenge before the National Green Tribunal (NGT), prompting the Punjab government to narrow its scope and exclude ecologically sensitive areas.
During a hearing before the NGT in July, the Punjab government agreed to exclude forest areas and lands covered under, or delisted from, the Punjab Land Preservation Act (PLPA), 1900, from the ambit of the policy.
Kapil Dev, president of the council of engineers, who challenged the policy before the green panel, said the government’s assurance had substantially altered the policy’s scope.
“The government’s assurance that lands protected under the Punjab Land Preservation Act, 1900, as well as delisted PLPA and forest lands, will remain outside the Farm Stay Policy has stripped the policy of much of its commercial thrust and raises a fundamental question: who is it really meant to benefit?” he said.
“Tourism cannot be promoted by destroying the forests and green landscapes that attract tourists in the first place. The government must ensure complete transparency by disclosing and independently scrutinising any land interests of politicians, bureaucrats or their family members in such environmentally sensitive areas,” he added.