Punjab unveils Farm Stay Policy to boost rural tourism

The Punjab government has introduced its Farm Stay Policy-2026, aiming to create new income opportunities for farmers by promoting rural tourism and allowing agricultural landowners to develop regulated farm-based accommodation facilities for visitors.

Under the new policy, farmers will be permitted to set up small-scale homestay units on their farmland where tourists can experience village life, local culture and agricultural activities. The government believes the initiative will strengthen the rural economy, generate jobs for youth and women, and provide farmers with an additional source of income beyond traditional agriculture.

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Officials said the policy is designed to encourage sustainable tourism while preserving Punjab’s cultural identity. Tourists visiting such farm stays will be offered activities linked to rural life, including tractor rides, bullock cart journeys, horse riding, visits to dairy farms, fish ponds and participation in farming-related work.

According to the guidelines, a farmer must own at least one acre of land to establish a farm stay. Construction will be permitted on only 10 per cent of the total land area, while the remaining portion must remain open and connected to agricultural use. The policy allows a minimum of two rooms and a maximum of nine rooms, with a cap of 18 guests at a time. Buildings cannot exceed two storeys or a height of nine metres, and the owner or family members must reside on the property.

The government has also simplified the registration process. Tourism Department Secretary Kumar Amit said registrations will be completed online through the FastTrack Punjab portal. Farm stays will initially receive registration for five years, followed by renewals in blocks of three years. Authorities said certificates will be issued within 21 days if documents are found complete.

Officials stated that applicants will not require separate No Objection Certificates (NOCs) or Change of Land Use (CLU) permissions to start operations. Electricity connections will be provided at domestic tariff rates, while existing borewells and water sources on farms may be used for guests.

To improve hospitality standards, the government plans to provide training through hotel management institutes. Farm stay owners and at least three employees will receive professional guidance in hospitality management, while organic farming projects may receive additional support.

The policy also includes financial incentives. The state government has proposed a subsidy of up to 10 per cent on investments made for farm stay projects, with a maximum limit of Rs 5 crore. In addition, 75 per cent reimbursement of SGST has also been promised to eligible operators.

Authorities said environmental safeguards have been incorporated into the policy. Farm stay operators will be required to install septic tanks or bio-digesters and will not be allowed to discharge untreated wastewater into open areas or canals. Waste segregation and composting of wet waste will be mandatory, while solar energy and biogas systems will be encouraged through incentives.

The Tourism Department said it would help promote registered farm stays through tourism campaigns, online travel platforms, influencers, and by facilitating visibility in films and web series.

The policy also mandates that details of foreign guests must be shared with authorities within 24 hours through prescribed forms to ensure security compliance.

However, the initiative has also drawn criticism from environmental groups. Public Action Committee member Kuldeep Khaira expressed concern that the policy could gradually lead to the commercialisation of Punjab’s fertile agricultural land.

Khaira alleged that projects being introduced today as “farm stays” could eventually transform into luxury resorts, party venues and large-scale private tourism hubs. He warned that unchecked commercial activity on agricultural land could affect rural culture and create environmental pressure in ecologically sensitive areas.