Agriculture land in Karnataka is the most costly adopted by Telangana, in keeping with a brand new Agri Land Price Index (ALPI) launched for six states, together with the 2 launched by the Indian Institute of Management, Ahmedabad (IIM-A) on Thursday.
The index, a prelude to a nationwide gauge to observe farm land costs, was developed for 107 districts of Andhra Pradesh, Telangana, Karnataka, Maharashtra, Tamil Nadu and Uttar Pradesh, benchmarking land costs for rural and semi-urban areas.
The index is geared toward eradicating uncertainty within the agricultural land valuation.
IIM-A, in collaboration with digital agri-land market place SFarmsIndia, would document and monitor the info of costs of agricultural land in India. The index would act as a dependable supply by way of benchmarking land costs and assist in potential conversion of agricultural land into actual property or for industrial use.
According to Prasant Das of IIM-A, the index would assist the federal government in adopting extra scientific measures for offering compensation for land acquisition apart from serving to monetary establishments in underwriting of mortgage and insurance coverage contracts. It would additionally guarantee visibility in motion of agricultural land costs throughout the nation.
As per the index, 34 districts within the six states are thought of ‘most expensive’ whereas land costs in 32 districts are known as ‘median’ and costs in the remainder of the 41 districts are ‘least expensive’.
According to the samples collected for growing ALPI, common agricultural land costs in Karnataka, Telangana and Andhra Pradesh, are reported at Rs 0.93 crore, Rs 0.81 crore and Rs 0.77 crore per acre, respectively, whereas costs in Uttar Pradesh, Maharashtra and Tamil Nadu are Rs 0.58 crore, Rs 0.49 crore and Rs 0.47 crore, respectively.
APLI based mostly on samples from no less than 18 states will likely be developed within the subsequent one 12 months. This agricultural index is predicted to supply higher illustration of the nationwide context in addition to supply a extra granular index at regional ranges.
“There is a surge in entrepreneurial interest in agricultural land and allied professions, this index will help in project planning,” Das stated. He additionally stated that traders might use info within the index to evaluate the historic danger and return up to now and predict these metrics for the long run to resolve on their funding positions.
Some of the elements recognized for figuring out the agricultural land value embody irrigation services, distance to nearest city or airport and proximity to worldwide airport.
The Misra Centre for Financial Markets and Economy at IIM-A will host the index on its official web site.
The nation has round 200 million hectares of agricultural land and land acquisition for industrial use has change into fairly contentious due to lack of expertise of land costs in rural areas.
Source: www.financialexpress.com”