The boom in agricultural lands has been evident over the last 10 years, largely due to the BRS government's Rythu Bandhu scheme.
Regardless of the financial background of the landowner, the scheme used to pay Rs 10,000 per acre. With maintenance costs being covered, many buyers were eager to purchase agricultural lands.
Depending on the soil quality, some deployed farmers to cultivate, while others bought the land as an investment, enjoying the Rythu Bandhu benefit and spending a small portion on maintenance.
There are people who have acquired lands ranging from 50 to 200 acres. Only a few have bought smaller plots of 3-5 acres, keeping them as farmhouses for weekend retreats.
For those who are using the land in some way, either as a farmhouse or by cultivating crops with a serious interest in agriculture, there’s no problem. However, those who kept the land solely as an investment, enjoying Rythu Bandhu are now facing issues.
As Rythu Bandhu payments have not been released (despite Chief Minister Revanth Reddy's promise of Rs 15,000 per acre), the old buyers are considering selling off their properties, but similar new buyers are not showing much interest, resulting in a slowdown in agricultural land sales.
People who are thinking of acquiring agricultural land solely for investment are quoting lower prices, further contributing to a bear market for agricultural lands.
In fact, there is speculation that the Congress Government wouldn’t give Rythu Bandhu to everyone this time.
Instead, there would be background checks and assessments of the financial status of the owner to mitigate the burden on the government exchequer. This could result in a further slump in the agricultural land market.