Agricultural Land Market Transactions in Chhattisgarh : A Case Study

In the newly born state of Chhattisgarh a large number of land buyers have become actively engaged in the villages located along the national highway and at the periphery of Raipur city, the capital of Chhattisgarh to purchase prime agricultural land. In view of the fast emerging land markets after the formation of the state, it is imperative to understand the role of market and non-market forces in transaction of prime agricultural land for non-agricultural uses and transactions within the agriculture sector. This study is an attempt in this direction. The study has been conducted in the Jora, Labhandi, Serikhedi and Dharampura villages of Dharsiwa block in Raipur district of Chhattisgarh state. These villages are located on both sides of Mumbai-Raipur-Kolkatta National Highway No.6 and are in the close periphery of the Raipur city. Two-stage least square technique of simultaneous equation system has been used to estimate demand and supply relationship in land market. Total owned land of seller and the price of land have been reported as the two important determinants of supply relations in land sale market. Similarly, the ownership of total owned land of buyers and non-farm income of buyer are major determinants of demand for agriculture land. Also, distances from National Highway, revenue grades and land sold under distress have been found important factors. The linear trends in land sale and land prices have indicated that area of the land for sale has increased year after year. Prices of land have also increased year after year. The most important factors which have forced the farmers to sell out their lands have been identified as functioning of aggressive land market forces, extremely poor capital base of the farmers, desire to construct their houses, increasing addiction to alcohol and inclination towards starting non-agricultural enterprises or professions, landhunger tendency of urban businessmen and colonizers. The study has suggested that certain effective legislations and institutional measures will have to be introduced and enforced for non-transfer of agricultural land.