Changing Structure of Agricultural Land Market in Punjab

Under the scenario of rapid urbanization and industrial development, this paper has examined growth in productivity, land rent and land prices in the state of Punjab. The data for study have been taken from ‘Comprehensive Scheme to Study the Cost of Cultivation of Principal Crops in Punjab’ at four points of time, viz. 1997–98, 2001–02, 2005–06 and 2010–11. The study has revealed that during the study period the average productivity, land rent and value of land increased significantly in different zones as well as in the state as a whole. Since 2001–02, while the land rent and value of land in the state have increased at almost same rate, both of these have increased at a higher rate than the increase in average land productivity. This indicates towards increased demand for land in the state for lease-in and purchase despite the lower rate of productivity increase during the recent decade.