Growing real estate and infrastructure development, urbanization and increasing industrialization has seen reduction in average farm land holding per person in TamilNadu. The average agricultural land holding per person has shrunk and come to 0.80 hectares during 2010-11.
As per the Section 81 of the Land Acquisition Act, agricultural land cannot be used for construction, but the Government has lifted certain of these restrictions, bringing relief to people in rural areas. This is seen as an effort to woo investments into the real estate industry and thus into the rural development. When we talk of development the agricultural land is in demand primarily due to development of infrastructure like roads and highways connecting rural areas to the urban areas in the country.
Though the farmland holdings have reduced, the average grain production in the country has not decreased. This is attributed to the technological advances in farming and better water management techniques that have enabled farmers to achieve an average yield of 3 tons per hectare.
The Government is also inviting FDIs which will allow foreign investors to purchase farm land in India. The Government converts large agricultural, waste and pasture land parcels into Special economic Zones, multilane highways, industrial manufacturing units, ports and commercial office complexes, using land for developmental purposes. The portfolio management experts at Ikia Consulting services believe that it is always advantageous to have the state Government playing the role of a broker helping industries and commercial establishments to acquire land for development purposes.