Yes the Lease for Agricultural purpose is permissible under the Transfer of Property Act. 

Section 106 of Transfer of Property Act states that the duration of certain leases in absence of written contract or local usage.—

- In the absence of a contract or local law or usage to the contrary, a lease of immovable property for agricultural or manufacturing purposes shall be deemed to be a lease from year to year, terminable, on the part of either lessor or lessee, by six months' notice

Under Section 107 of TPA 1882 a lease of immovable property from year to year or a term exceeding one year can be made only by a registered document. If the document is not registered then Section 106 of TPA would come into play where  the deed would be treated as from year to year