Punjab Approves Farm Stay Policy, 2026 to Boost Rural Tourism

The Government of Punjab has approved the Farm Stay Policy, 2026, aiming to promote experiential tourism in the rural areas of the state by converting farms into organised and comfortable tourist stay destinations.

The policy seeks to diversify Punjab’s tourism sector while generating additional income opportunities for farmers and rural communities.

Key Features of the Policy

Under the new framework, farm stays and homestays will have to be officially registered and will receive incentives under the Punjab Tourism & Hospitality Policy, 2026.

Financial Incentives

Registered farm stays will be eligible for several benefits, including:

• Capital subsidy of up to 10% of eligible investment, subject to a maximum of ₹5 crore.
• 75% reimbursement of net State Goods and Services Tax (SGST).
• Financial assistance for energy and environmental audits.
• Full reimbursement for quality and environmental certifications up to ₹20 lakh.

Additional Benefits

The policy also offers:

• Domestic electricity tariff rates for farm stay units.
• Exemption from Change of Land Use (CLU) fees.
• Simplified approval procedures and regulatory clearances.
• Easier access to credit through cooperative banks.
• Marketing and promotional support from the state government.

Focus on Sustainable and Community-Based Tourism

The policy emphasises sustainable tourism and local community participation. To encourage best practices, the Punjab government will institute annual awards in categories such as:

• “Best Sustainable Farm Stay”
• “Best Community-Engaged Farm Stay”

These awards are intended to recognise innovative and environmentally responsible rural tourism initiatives.