Agricultural land prices touch new high in Telangana

In the backward undivided Adilabad district, agriculture land prices have zoomed since the implementation of the Rythu Bandhu scheme. 

Published: 05th October 2020 07:57 AM  |   Last Updated: 05th October 2020 07:57 AM   |  A+A-


Image for representational purpose only.

By Express News Service

HYDERABAD: Unfazed by the COVID-induced lockdown and the resultant sluggish economy, the value of agricultural land in Telangana villages has appreciated. In fact, it has doubled in the last two years.  The real estate sector, hit hard by the reverse migration of labourers to their native places after the lockdown was clamped across the country, is trying to catch up with the trend in the rural areas. But when TNIE took a look at different districts, it found that the situation is different, with prices going up and up. 

There seem to be two main reasons for agricultural land value bucking the trend: the Telangana government sanctioning and constructing new irrigation projects and providing Rythu Bandhu to farmers — the scheme which guarantees a fixed annual income from land, thus discouraging them from selling, and these put together  are turning the outback of the State into a land of milk and honey.  

In the backward undivided Adilabad district, agriculture land prices have zoomed since the implementation of the Rythu Bandhu scheme. In Jainath mandal, which is rich in black soil and suitable for growing cotton, the value of agricultural land has increased from Rs 5 lakh to Rs 6 lakh per acre a couple of years ago to Rs 8 lakh to Rs 10 lakh now.  In the neighbouring and relatively more developed district of Karimnagar, the trend is similar. 

K Ravinder Reddy has been trying to buy agricultural land in Jammikunta and is ready to spend as much as Rs 20 lakh for an acre, but he is unable to find anyone who is ready to part with their land. There are only buyers and no sellers. The main reason is the availability of irrigation facilities under the Kaleshwaram project for the two crop seasons. 

In erstwhile Nizamabad district, though no new irrigation projects have come up, the land prices have shot up mainly because of Mission Kakatiya, which has enhanced water supply to farmlands. The improvement in the Sri Ram Sagar Project flood flow canal has provided water to several tanks in the Balkonda Assembly constituency. In Medak and Sangareddy, the value of agricultural land has been surging due to construction of irrigation projects and canals. Also, because of its proximity to Hyderabad and with the hope that the real estate sector will pick up once the worst of Covid-19 is over, realtors are buying land in these two districts. This is also pushing the rates upward.  

Riding on hope
In Siddipet district, irrigation projects such as Ranganayak Sagar and Kondapochamma, along with canals, have resulted in a hike in agricultural land value. In Gajwel, the value has increased from Rs 10 lakh per acre, when the government conducted land acquisition three years ago, to around Rs 1 crore now. With erstwhile Warangal district being not very far from Hyderabad, the prices have been going up. Hoping for better days to come, real estate developers are buying agricultural land and developing these into plots. The prices have increased to Rs 50 lakh to Rs 60 lakh per acre from Rs 15 lakh to Rs 25 lakh two years ago, in areas adjoining Warangal city. 

In the southern district of Khammam, agriculture land prices have doubled as compared to last year. Within a 50-km radius of Khammam town, an acre costs Rs 1.5 crore as compared to Rs 60 lakh in 2019. Transaction of land and increased real estate activity have resulted in rising prices. In Bhadradri-Kothagudem district, too, the prices have increased from Rs 15 lakh to Rs 20 lakh per acre to Rs 30 lakh toRs 50 lakh. However, there is not much change in tribal areas due to the LTR 1/70 Act.

Eyes on land along NH-44
In Mahbubnagar, farmlands abutting National Highway-44 are in huge demand. Over the last two years, the price has steadily increased from Rs 50 lakh to Rs 75 lakh per acre to Rs 1 crore. Even in the small towns and villages of erstwhile Mahbubnagar, the value has increased from around Rs 35 lakh per acre to Rs 50 lakh. 

The primary reason behind this trend here is the investment in land by professionals and business persons who hail from the region but work elsewhere.
(With inputs from districts)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp