IIM-Ahmedabad launches agricultural land price index with SFI

IIM-Ahmedabad launches agricultural land price index with SFI

IIM-Ahmedabad (IIM-A) has collaborated with SFarms India, an e-marketplace for agricultural land to develop a farm land price index that is based on the purchases and sales done on the platform. This index has been designed with the aim of recording and presenting quality-controlled data on the prices of agricultural land in India.

What will be the work of the index?

• This index will be tracking the price movements in the marketplace (SfarmsIndia) and will be coming up with a composite pricing mechanism on a monthly basis.
• This will be updated twice a year.
• This index is being launched under the Misra Centre for Financial Markets and Economy at IIM-A and will be hosted on its official website.
• It will be named IIM-Ahmedabad SFarmsIndia Land Price Index (ISALPI).
• The index will not be having any correlation with circle rates but will be using the quoted prices in the online marketplace as the base value for the purpose of research.
• This index will be a reliable source for benchmarking land prices in semi-urban and rural areas of the country and will be helping to convert agricultural land into real estate.
• The index will benefit various stakeholders such as local governments, policymakers, investors, environmentalists, financiers, real estate developers, etc.
• The index can also be used by the local governments to compensate those people who lose their land for highway expansion projects.

Why was the index developed and where has it been started on a pilot basis?

This index has been developed to address disparities as well as to ensure accuracy as it is very complex to develop an index for land parcels as there are price differences. ISALPI has been started on a pilot basis in:

• Karnataka
• Andhra Pradesh
• Tamil Nadu
• Maharashtra
• Uttar Pradesh
• Telangana

More data is being awaited from other states of the country. After acquiring more data, this index will be offering a superior representation at the regional and national levels.

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