Guidelines for valuation of Orchards

Government have issued guidelines for capitalization of the value of Garden lands under acquisition and guidelines for valuation of Orchards in the State in supersession of all earlier orders in the matter an also ordered for future revision of the valuation of Horticulture crops once in 10 years. Further an amendment was also issued on inter-crop cultivation in the fruit bearing Orchards.

Guidelines for valuation of Orchards

  • In the reference 4th read above, the Spl.CS & Chief Commissioner of Land Administration, A.P., Vijayawada has submitted the report of Expert Committee recommendations to the Government with a request to revise the valuation of Horticulture crops and Garden lands under acquisition. 
  • After careful examination of the report of the Expert Committee, Government hereby approve the rates as recommended by the Expert

Committee. Accordingly, in supersession of all earlier orders issued in regard to computation and payment of compensation for orchards the following guidelines are issued:

I. GUIDELINES FOR VALUATION OF ORCHARDS:

  1. The Land Acquisition Officers concerned shall determine the Market value of the land with Orchards with due regard to the comparable bonafide sale transactions of a similarly placed Orchards in that locality in recent year. 

       Example: (i) In case of valuation of Mango / any orchards, the Land Acquisition Officer shall obtain basic value of the orchards from the Sub-Registrar concerned, if basic value of orchards are available with Sub-Registrar. 

(ii) In case basic values of Mango orchards are not available, Sale transaction of Mango orchards in that vicinity shall be taken to arrive Market value. 

       If, the above (i) or (ii) available, no need to pay additional compensation with regard to Orchards.  Market value only shall be taken for further calculations as per the existing provisions. 

  • If there have been no such sales transaction or basic values, the Capitalization method will be adopted for valuation of land with orchards following the guidelines contained in the LA manual of Government of A.P.  It shall be strictly borne in the mind while adopting the capitalization method, compensation for the land as well as fruit bearing trees cannot be separately awarded. Further, when the market value is determined on the basis of yield from the trees or plantation, 8 years multiplier shall be adopted as per the guidelines of Supreme Court of India.   

3)  If the above two methods are not applicable for any reasons, the Land Acquisition Officers may follow the guidelines and rates indicated in the Annexures appended to this order. 

II. PROCEDURE FOR VALUATION OF ORCHARDS: 

Category ‘A’ :  Well Maintained

  • Trees belonging to certain variety of a horticulture crop species recommended for that region. 
  • Recommended Orchard management practices including timely inputs, cultural operations, prescribed spacing etc., should have been observed. 

(iii)Trees with healthy growth, good productivity and free from pests and diseases.

Category ‘B’ : Average Maintained

  • Trees belonging to commercial or good local variety recommended for the region.
  • Orchards with average management practices showing average growth and productivity which among other reasons could be due to prescribed spacing not being observed, etc.,

Category ‘C’ : Poor Maintained

  • Trees with non-descriptive varieties / seedlings. 
  • Trees with poor management practices showing poor growth and productivity.

III. VALUATION OF PRE-BEARING ORCHARDS

  1. The category under which the Orchards falls i.e., whether it is category A or B or C may be identified at the outset. 
  • The market value of the land alone may be arrived at, on the basis of bonafide and comparable sales of similarly placed lands, following the guidelines as may be prescribed from time to time. 
  • Apart from market value of land so arrived at, an amount up to the maximum of the total cost of cultivation (being the non-recurring and recurring cost), depending on the age, category of Orchard and the management practices observed may be awarded as compensation
  1. The Orchard which falls in category-A may be awarded compensation up to maximum of the cost of cultivation depending on the age of plants as per Annexure II. 
    1. The Orchard falling in category-B may be awarded a maximum up to 80% of the amounts as indicated in Annexure-II depending on the age of the Orchard.
    1. The Orchard falling in category-C may be awarded a maximum up to 60% of the amounts indicated in Annexure II depending on the age of the Orchard.
  • As seen from the foregoing paras, pre-bearing Orchard is therefore entitled for compensation as shown in Annexure-II.
  1. PROCEDURE FOR VALUATION OF FRUIT BEARING ORCHARDS WHERE REMAINING BEARING PERIOD IS MORE THAN / LESS THAN THE GESTATION PERIOD:

  Depending on the growth and condition of the Orchard, the category under which the Orchard falls i.e., whether it is category A or B or C, may be identified at the outset on the basis of the guidelines indicated above.

  Just as envisaged for pre-bearing Orchard, the market value of the land may be arrived at, on the basis of bonafide and comparable sales of similarly placed lands following the guidelines that may be prescribed from time to time.

  • In case of fruit bearing orchards where remaining bearing period is more than gestation period the compensation may be awarded as per rates shown in Column No’s (9), (10) and (11) of Annexure-III for A, B and C categories respectively. 
  • In case of fruit bearing orchards where remaining bearing period is less than gestation period the compensation may be awarded as per rates shown in Column No’s (6), (7) and (8) of Annexure-III for A, B and C categories respectively. 
  • GUIDELINES FOR VALUATION OF ORCHARDS WHERE MIXED CROP IS RAISED:
  1. Pre-bearing Stage:
  1. For pre-bearing Orchard where two or more perennial horticulture species are raised in the same garden as intercrop, depending on the condition and the growth, the main crop shall be categorized either under B or C.
  • The inter crop also treated as main crop and can be categorized as A,B,C as per the guidelines issued for the main crop. 
  • Apart from market value of land, damages equivalent to a maximum of the total cost of cultivation shall be payable for the main crop depending on whether the category is B or C and depending on the age of the plants.
  • Where the prescribed spacing is observed for both main and inter-crop, the proportionate cost of cultivation restricting to the number of trees subject to optimum number for the inter-crop duly classifying it under A/B/C may be paid as damages.
  • In case where prescribed spacing is not observed, cost of cultivation will not be payable for inter-crop.
  • If the number of trees are less than the optimum number as prescribed in col. 3 of Annexure II damages payable towards cost of cultivation, shall be fixed proportionately subject to spacing being observed.
  • Bearing Stage:
  1. In a bearing Orchard when two or more perennial horticulture crops are raised as inter-crop depending on the condition, the growth of the crop and management practices observed, the main crop shall be categorized under B or C.
  • lnter-crop shall be categorized as A/B/C.
  • Compensation up to a maximum of the total cost of cultivation shall be payable for the main crop depending on the category (B or C) and depending on the management practices observed. 
  • Depending on the category (B) or (C) under which the main crop is classified and on the management practices observed, compensation equivalent to the net returns for the gestation period of that crop may be awarded. If the number of trees are less than the optimum number, proportionate compensation is payable.
  • Where the prescribed spacing is observed for both main and inter-crop, the proportionate net returns (restricting the number of trees subject to optimum number) for the gestation period may be awarded for the intercrop duly classifying it under (C).
  • Where prescribed spacing for either main crop or inter crop are not observed, the net returns for gestation period for the inter-crop shall not be paid. 
  • Damages equivalent to net returns for one year shall be payable for the main crop depending on its category (B or C), management practices observed and the proportionate number of trees subject to optimum number.
  • If the number of trees is less than the optimum number as prescribed in Annexure-I, compensation payable towards cost of cultivation, net returns as indicted above shall be fixed proportionately.
  • If the number of trees in a Orchard is more than the optimum number prescribed for either the main crop or the intercrop the total amount payable either towards cost of cultivation or for net returns, etc., shall be restricted to the optimum number depending on the category of the crop.

NOTE:  For the purpose of valuation of orchards where mixed cropsraised,the rates indicated in Annexure-IV may be followed.

  • VALUATION OF SCATTERED OR ISOLATED TREES:
  1. Isolated and scattered trees normally will not be given the recommended package of practices as prescribed, and they will therefore be treated as under category C and proportionate amounts towards damages to be paid on tree basis.
  • The entire amount so payable by following the guidelines given under Annexure-II – Category- A or B or C as the case may be, shall be treated as damages. Therefore the 12% additional market value and solatium shall not be awarded on such damages.
  • Unlike Orchards no additional amount towards damages may be paid.
  • NARROW STRIPS OF ORCHARDS: 
  • Pre-Bearing: If a part of an Orchard is acquired the proportionate amount towards damages depending on the number of trees, the age, category and the management practices observed, as indicated in Annexure-II shall be paid towards the pre-bearing Orchard.
  • For a strip of Orchard at bearing stage depending on number of trees; category and the management practices observed, the compensation shall be proportionately calculated as per Annexure-I.
  • WOOD VALUE: 

           In case of crops like Pomegranate, Guava, Grapes, etc., the wood does not have significant economic value and therefore separate compensation for wood does not arise. Even in case of crops like Mango, Coconut, etc., the crop is not grown for wood, which is only incidental or secondary product. However, since the wood from Mango, Coconut, Jack, Jamun, have some value, the ryots may 

be allowed to cut and take the wood if the Orchards are going to be removed / submerged. In the alternative if trees are to be conserved, wood value at site as determined by the D.F.O, concerned as per prevailing rates may be granted towards damages. Such amount shall carry solatium or additional market value.

  1. FUEL WOOD VALUE:  

          The fuel wood for the fuel wood trees may be determined by the Joint Collector and D.F.O. concerned as per the existing procedures, if the total is below Rs.50,000/- and by the District Collector where the value exceeds Rs.50,000/-.

  • GENERAL:
    • The future revision of the valuation of Horticulture crops shall be done once in 10 years.
  • No compensation need to be paid for short duration crops as the farmer can harvest the standing crop and deliver the vacant position of the land.
  • All the orchards under acquisition shall be strictly recorded Videography/ Photography/ Google Maps with GPS Coordinates at every stage from the initial stage. 
  • The existing instructions contained in G.O.Ms.No.601, Revenue (LA) Department, dt.19-6-1992 shall be continued for fuel wood trees and wood value of fruit bearing trees.
  • In respect of valuation of other species, Horticulture crops, perennial vegetable crops etc. which are not included in this report, the valuation shall be decided by a committee to be constituted at the district level headed by the District Collector as shown below and the LAOs concerned may address the respective District Collectors in the matter.
  • District Collector – Chairman
    • Land Acquisition Officer         – Convener
    • Joint Director, Agriculture     – Member
    • Deputy Director, Horticulture – Member
    • Assistant Director, Sericulture         – Member
    • District Forest Officer   – Member
    • A representative from the Requisitioning   – Member Department
    • Principal    Scientist      available     at       the – Member

Horticulture/Agrl Research Station in the

District Collector

  • Wherever valuation of an orchard under acquisition exceeds Rs.10,000/- it may be got approved by the District Level Committee under the chairmanship of the District Collector with Joint Collector as convenor and the Joint Director of Agriculture and Deputy Director of Horticulture /Assistant Director of Horticulture as members.
  • The details of the compensation to be paid towards value per tree payable in case of bearing trees and pre-bearing trees, Valuation of fruit bearing orchards where remaining bearing period is more than / less than the gestation period for each Horticulture species are appended as Annexures- I, II & III. 
  • For arriving valuation of orchards where mixed cropsraised,the rates indicated in Annexure-IV shall be followed.

5.   The District Collectors/LAOs concerned shall directly address the Commissioner of Horticulture for any clarification if needed. 

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