Absentee Landowners and their Impact: A Village-Level Study in Andhra Pradesh and Telangana

Abstract

This study investigates the implications of the rise of non-cultivating absentee landowning households within the agrarian economy. A primary survey was conducted across eight villages—four in Telangana and four in Andhra Pradesh—selected based on their irrigation sources, including canals, tube wells or tanks, while dry/rainfed villages were chosen based on rainfall, particularly in drought-affected areas. These selected villages represent a diverse range of agrarian structures seen in broader regions of Andhra Pradesh and Telangana. Absentee landowning households have become increasingly significant within the agrarian landscape of the study area. Their proportion is notable, particularly in regions with public irrigation provisions (canals and tanks). In contrast, in drought-affected and tube-well-irrigated regions, a smaller percentage of absentee landowning households reside in urban areas. The study underscores the adverse effects of absentee landowning households on agriculture. These households are often reluctant to sell their land due to expectations of future value appreciation, fixed rental income and benefits from government policies. Consequently, this reluctance leads to a lack of agricultural investment, adversely impacting the agrarian economy.