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Economics of Peri-urban Agriculture in off Bengaluru: A Linear Hedonic Model Approach


C. Kavya and G.N. Nagaraja



The Indian Journal of Economics and Development (2018) 14(4), 695-700
DOI: 10.5958/2322-0430.2018.00188.9
Indexed in Clarivate Analytics (ESCI)

C. Kavya and G.N. Nagaraja

Ph. D. Research Scholar (ICAR-SRF), and Dean (Agri) and University Head,Department of Agricultural Marketing
Cooperation and Agribusiness Management, University of Agricutural Sciences, GKVK Campus, Bengaluru-560065.
*Corresponding author’s email:

This study analyzes impact of peri-urban areas on agriculture under Farmers with High Urban Influence (FHUI) and Farmers with
Low Urban Influence (FLUI). Urban influence has short term and long term impact on peri-urban agriculture. The short term
impact is on market wage rate and occupation. The long term impact is on land market price and infrastructure. The classification used in this study are both short term and long term impact is considered and accordingly farms are classified into FHUI (Farms with high urban influence) and FLUI. The primary data was collected from 120 sample farmers from Devanahalli Airport area (FHUI=30 and FLUI=30) and Ramanagara Industrial park (FHUI=30 and FLUI=30) using simple random sampling technique.
The linear hedonic pricing model was employed with appropriate dummy variables to project the market value of land given the
qualitative and quantitative characteristics. The land value is hypothesized to be a function of peri urban influence and extent of water available, and land symbolizing pattern. The results revealed that the market value of land in both the study area were having an impact from location of land, extent of water availability and land symbolizing pattern and its fluctuating widely even within the study area based on the intensity of urban influence. The land value is sky rocketing in both absolute and real terms beating inflation in Devanahalli peri-urban area and Bidadi industrial area the size of land holding varied widely between FHUI and FLUI area. The market value varies widely even within Devanahalli taluk based on the intensity of urban influence. The addition of water availability, land under violet zone will add value to the FHUI with the resulting market value of land to be `111.66 lakhs.

Hedonic pricing model, inflation,
B16, C13, C30, C51, D10, Q51, R11.

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