Hoping to improve the economic viability of the farm sector at an all-India level, the Ministry of Rural Development has drawn up an action plan which they hope would stem the tide of fragmentation of land. Economists and agriculture experts have often pointed to the detrimental effect that frequent division and further sub-division of land holdings as they pass from one generation to the next. The result is a loss of productivity and lower returns, especially as farm lands grow smaller.

A meeting of the National-level Committee on Consolidation of Land Holdings reviewed the attempts being made by different states to consolidate land holdings.