Ludhiana: The Punjab government has launched the Farm Stay Policy-2026, introducing a new rural tourism model aimed at increasing farmers’ income and strengthening the village economy. Inspired by Himachal Pradesh’s successful homestay concept, the policy will allow farmers to convert part of their agricultural land into farm stays for tourists.
Under the new policy, tourists visiting Punjab will be able to experience village life, local food, traditional culture and agricultural activities while staying on farms. The government believes the initiative will create new employment opportunities for women and youth while giving farmers an additional source of income beyond traditional farming.
According to the policy, farmers interested in setting up a farm stay must own at least one acre of land. Construction will only be permitted on 10 percent of the land, while the remaining 90 percent must remain open and agricultural in nature.
The government has also fixed clear limits on construction and accommodation. A farm stay must have a minimum of two rooms and can have a maximum of nine rooms. Buildings cannot exceed two floors or a height of 9 metres. Not more than 18 guests will be allowed to stay at a time, and the owner or a family member must reside on the property.
Existing farm stay operators will also have to register under the new policy within 180 days. Failure to do so will result in cancellation of previous registrations.
Punjab Tourism Department Secretary Kumar Amit said the registration process has been kept simple and fully online through the FastTrack Punjab portal. Registrations will initially be granted for five years and later renewed in blocks of three years. Applicants with complete documents will receive certificates within 21 days.
The policy also offers several relaxations to encourage participation. Farmers will not require separate NOCs or Change of Land Use (CLU) approvals for setting up farm stays. Electricity will be provided at domestic rates, and existing borewells or water sources can be used for guests. Authorities will also avoid surprise inspections unless a complaint is received.
To improve hospitality standards, the government will provide training through hotel management institutes. Farm stay owners and at least three employees will receive professional hospitality training. Special support will also be provided to farmers engaged in organic farming.
The Punjab government has further promised to promote farm stays through influencers, travel websites, the Punjab tourism portal and even films and web series to attract domestic and international tourists.
At the same time, the government has made environmental compliance mandatory. Farm stay operators will not be allowed to discharge wastewater into open areas or canals. They must install septic tanks or bio-digesters and follow waste segregation practices. Incentives will also be offered for installing solar panels and biogas systems.
To encourage investment, the government will provide a 10 percent subsidy on farm stay projects, with a maximum limit of ₹5 crore. In addition, 75 percent of SGST will be reimbursed under the policy.
The policy also includes security provisions. If a foreign guest stays at a farm stay, the operator must submit Form C within 24 hours to local authorities.
Registration Process
Fill out the application form on the FastTrack Punjab portal
Upload Aadhaar, land records, photographs and site map
Officials will verify documents and inspect the site
Applicants will get 15 days to fix deficiencies, if any
Certificate will be issued within 5 days after final approval
However, the policy has also drawn criticism. Public Action Committee member Kuldeep Khaira warned that farm stays could eventually turn into large private resorts, luxury tourism hubs and party venues, which may harm Punjab’s rural culture and environment.