RETHINKING LEASING RESTRICTIONS UNDER THE KERALA LAND REFORMS FRAMEWORK
February 26, 2026
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ENABLING DIVERSIFICATION AND ENHANCING COMPETITIVENESS IN KERALA’S PLANTATION ECONOMY

D Dhanuraj and Banisha Begum Shaikh at
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Kerala has long been regarded as the “Plantation Enclave of India” (Kerala State Planning Board 2022), with crops such as tea, coffee, rubber, and cardamom occupying nearly 29% of the state’s gross cropped area, with over 10 lakh growers/farmers dependent on these crops for their livelihood. Hence, Kerala’s plantation sector plays a vital role in the state’s economy by supporting employment, rural livelihoods, exports, and ecological sustainability. However, the sector has faced persistent challenges, including declining productivity, rising labour and production costs, market volatility, and climate-related risks. This paper examines the historical evolution, current performance, and structural constraints of major plantation crops in Kerala, with a particular focus on the legal and institutional frameworks governing land use and crop diversification. 

The analysis finds that restrictive land-use regulations, narrow legal definitions of plantation crops, and procedural bottlenecks have reinforced monocropping systems and limited the sector’s ability to adapt to changing economic and environmental conditions. Through crop-wise assessment, comparative analysis with other states and countries, and stakeholder consultations, the study highlights the need for policy flexibility, diversification, mechanisation, value addition, and improved institutional coordination. The paper proposes targeted legislative, institutional, and development-oriented reforms aimed at enabling greater crop diversification, efficient land utilisation, sustainable agroforestry, plantation tourism, and inclusive welfare integration. It argues that transitioning toward a diversified, adaptive, and innovation-driven plantation model is essential to enhance competitiveness, strengthen resilience, and ensure the long-term sustainability of Kerala’s plantation economy.

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Dr D Dhanuraj is the Founder-Chairman, and Banisha Begum Shaikh is the Senior Associate, Research & Projects at the Centre for Public Policy Research (CPPR).

Views expressed by the authors are personal and need not reflect or represent the views of the Centre for Public Policy Research.

 

Chairman at Centre for Public Policy Research |  + posts

Dr Dhanuraj is the Chairman of CPPR. His core areas of expertise are in international relations, urbanisation, urban transport & infrastructure, education, health, livelihood, law, and election analysis. He can be contacted by email at [email protected] or on Twitter @dhanuraj.

Senior Associate, Research & Projects at  | [email protected] |  + posts

With over 5 years of experience as a research professional, Banisha Begum Shaikh specializes in conducting in-depth sectoral evaluation at both national & state level policy research, policy drafting, white paper development, advocacy, implementation and impact assessment across various sectors of the economy.

Banisha's past research work has reached the policy makers desks at central & state levels with several suggestions being reflected in key policy and regulatory reforms.

D Dhanuraj and Banisha Begum Shaikh
D Dhanuraj and Banisha Begum Shaikh
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