MIDTERM ASSIGNMENT

By Aishani Biswas (22 JSGP)

ID- 22040113

Market: Land prices in Bolpur, Shantiniketan, West Bengal

Bolpur is a small city and a municipality in the Birbhum district of West Bengal. Agricultural
land in Bolpur is crucial as a large number of people in the region are dependent on agriculture.
As the newly appointed Block Development Officer of Shantiniketan, the responsibility has
been given to me to value local agricultural land prices. I wish to understand the dynamics of the
current market price of agricultural land and decide on what the fair and sustenance price should
be, given their lifestyle and income. As a state government official, I advocate for a balanced
approach.

Market price: It is the price reached between a willing buyer and a willing seller who are both
operating freely and independently which typically reflects the market value for a good or
service at any particular time.
The market price of 5 separate agricultural lands in Bolpur is given below:

S.I Land Area (in katha) Land price (total- in lakhs) Land price (per katha- in
lakhs)

1. 20 28 1.4

2. 12 14.4 1.2

3. 30.63 1.32 0.04

4. 120 100 69.10

5. 134 234 144

The differences in land prices are justified as these are owned and maintained by private parties.
Obviously, as the land area increases, the total price and the price per katha also rise. The
average price of the 5 lands is calculated to be 75.54 lakhs. The market value of land for them
somewhere falls between 50 lakhs and 85 lakhs. Since these are privately owned, there is no
particular price set. The general price hovers between these numbers, given the owners realise
that if the price they offer exceeds the market price, their land will not likely get sold. The
competition is tough- as the owners wait longer for their land to be sold, the value of the land
falls. In the recent past, there have been a good number of people relocating to Kolkata for better
job opportunities and livelihood. This has led them to sell their ancestry lands as soon as possible
so they’re willing to negotiate their price without much bargain. Therefore, the competition is
tough. The owners trying to sell their land from before are being forced to bring their prices
down. Adding to this, the buyers (farmers) are also facing issues. According to data from SAS
(Land and Livestock Holdings of Households and Situation Assessment of Agricultural
Households) survey 2019, the average monthly income per agricultural household is 10,218
rupees. With this minimal amount, it is evident that farmers find it troublesome to arrange money
when buying the land.
Keeping these reasons in mind, I have decided to set a market price for these lands. The market
price of land should range between 35 lakhs and 65 lakhs. The idea is that with this range,
would the price owners won’t feel that the price of their land might be too high or too low and
the farmers will be able to buy the land without fearing extremely burdensome loans. Most lands
sold in Bolpur range between 10 to 30 katha, so this price would provide a standard value to
these lands. With the lands that have a much larger area, a separate market price should be made.
Lands sold between 80 katha and 250 katha should have a range of market prices between 75
lakhs and 10 crores. As the price of maintenance and construction is rising, the owners trying to
sell large amounts of land should receive a standard amount of money from their land.

Fair Price: Considered more of a theoretical concept, the simplest definition of fair price would
be that it is a good price that is acceptable to both the buyer and the seller, which also reflects the
current market value.
In Bolpur, lands that are between 10 to 30 katha should have a fair price range between 45 lakhs
and 52 lakhs. With the suggested market price, owners shouldn’t necessarily have to lower the
cost of their land for the benefit of the farmers, they should receive the price their land evaluates
to. As for the lands between 75 lakhs and 10 crores, it can be assumed that farmers buying these
vast areas of land already have sufficient capital to maintain them and generate good output.
Therefore, keeping the owner’s demands in mind as well, the suggested fair price should be
between 90 lakhs and 5 crores. This balances the interests of both.

Sustenance Price: The sustenance price of land is the price that covers basic living expenses
housing, food, education, and in this case, land maintenance as well.
The farmers in Bolpur have an annual income of ₹122,616, given the average monthly income of
agricultural households in Bolpur is ₹10,218. These farmers are likely to buy lands that are
between 10 to 30 katha. For them, in my opinion, the sustenance price for lands between 10 and
30 katha should be 35 lakhs. This will also ensure their financial security, as they’ll be able to
pay off their loans without much burden. For richer farmers with the ability to buy lands between
90 lakhs and 5 crores, the sustenance price should be slightly lower than the minimum amount of
fair price. So, the price should be 80 lakhs. With lands so large, this is the minimum amount
needed to manage them. For the owners, even though the price range is a little lower than they
might demand, it’s certainly within the market price suggested and is enough to sustain them.
In conclusion, the pricing and valuation of land are critical factors in ensuring the financial
stability of owners and farmers in Bolpur. While both markets stand firmly demanding ‘fair
value’, it is difficult to build a consensus amount that meets their needs according. As the BDO
of Shantiniketan, I have neutrally viewed both their problems closely and suggested ways
accordingly.