Analysis of the market for the sale of agricultural land in India
The relevance of research:
The agricultural land market is currently non-transparent and complex sectoral structure. Since most of the land in this category is owned by India and its states, which means that this market is highly dependent on government policy and the receipt of subsidies, the implementation of state programs. However, one should not forget about the land owned by private owners, who make a strong contribution to the development of the industrial agriculture industry.
Objectives:
The analysis of the Indian market for the sale of agricultural land is aimed at finding up-to-date information and analyzing the market size, consumers and competitors in the market under study, the changes that occurred in 2017-2019, as well as the forecast and trends in the development of the industry in the long term for the period up to 2024.
Contents:
Part 1. Overview of the Indian market for the sale of agricultural land
1.1. Definition and characteristics of the Indian market for the sale of agricultural land
1.2. Dynamics of the volume of the Indian market for the sale of agricultural land, 2016-2020
1.3. Market structure by type of service provided in India
1.4. The structure of the market for the sale of agricultural land in the Union Territories
1.5. Assessment of current trends and development prospects of the studied market
1.6. Assessment of factors affecting the market
1.7. Analysis of sectoral indicators of financial and economic activity
Part 2. Competitive analysis in the market for the sale of agricultural land in India
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of consumption, sale of agricultural land
3.1. Estimation of the volume of consumption of the sale of agricultural land per capita
3.2. Market Saturation and Estimated Market Potential in India
3.3. Description of consumer preferences
3.4. Price analysis
Part 4. Assessment of factors of investment attractiveness of the market
Part 5. Market development forecast for the sale of agricultural land until 2025
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
Current state of the market
The land resources of India are an important economic factor in the development of the country. The agricultural land market is a complex one to analyze, as the designation of such land in India is a controversial process of reclassification of land suitable for agriculture.
Despite the difficulties with registration and resale of land plots due to the recently changed cadastral code of India and the need for mandatory land privatization, the studied market in India is developing steadily.
Categories of agricultural land
Distribution of agricultural land area by type of ownership, thousand ha (as of 01.2020)
Source: Rosreestr
So, at the moment, 254126 thousand hectares of agricultural land are in the state and municipal property of India, which is 67% of the total area of this category. Including according to Rosreestr:
owned by India - 6222,8 thousand hectares
owned by the state of India - 10724,5 thousand hectares
in municipal property - 16557,9 thousand hectares
While the private sector owns 33% of all land or 127546,5 thousand hectares.
This study focuses on the market of agricultural land sales, due to the fact that land purchase and sale transactions occupy the largest share in the ownership structure - about 40%.
Economic environment
Now, the unstable exchange rate and the consequences of the 2014 crisis, the 2016-2018 exchange rate fluctuations, and the 2020 pandemic are strongly affecting the land market. Price fluctuations in the currency market are immediately reflected in the prices of land plots, thereby reducing demand and the number of buyers who want to purchase or lease agricultural land.
The structure of the market for the sale of agricultural land in the Union Territories
In terms of the number of registered areas of agricultural land plots, the Siberian Federal District is in the lead, showing the largest increase in registered land plots owned by India in 2019, which amounted to almost 550% compared to the previous year. In 2020, an increase in the registration of agricultural land at a level of more than 130% was shown by the Far Eastern, Volga, North-Western and Ural Federal Districts. While the Central F.O. during 2018 - 2020 in lagging positions with an increase of less than 100% annually
Distribution of agricultural land by states of India, thousand ha
Source: Rosreestr
The number of land plots registered in the ownership of India, compared to the previous year, %
Source: Federal Service for State Registration, Cadastre and Cartography
Conclusions on the development of the agricultural land sales market
In the course of the analysis, a tendency was noticed to increase the cost of land, depending on the regional location. So in the southern regions, the average cost of agricultural land increased to 23% in 2029, compared to the previous year. While land plots located in the central regions rose in price by an average of 14%, which led to a decrease in the acquisition of new land in ownership. In addition, there is the problem of an outdated approach to land cultivation - the industry needs to be transformed and improved. The government is now in the stage of actively promoting work on programs for the development and support of agriculture, the introduction of new technologies for processing and land reclamation.
For a more detailed overview of the market and cadastral value of land plots, the dynamics of the market volume, the analysis of consumer demand for agricultural land, we suggest ordering a full-fledged market research.
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