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Rationalizing Land Fragmentation: Gujarat’s Legislative Shift on Minimum Agricultural Holdings

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The Gujarat government has amended a seven-decade-old law to standardize the minimum size of agricultural land units to 10 gunthas, aiming to balance land-use efficiency with developmental needs.

The Gujarat government’s recent legislative amendment to standardize the minimum size of agricultural land units to 10 gunthas (approximately 0.25 acres) marks a significant intervention in the state’s land management framework. By revisiting a 70-year-old statute, the state aims to address the persistent challenge of land fragmentation, which has historically hindered the adoption of modern agricultural practices and efficient land-use planning. In the Indian context, land fragmentation—the division of land into small, non-contiguous plots—is a structural bottleneck that reduces economies of scale. Small, scattered holdings often make it difficult for farmers to invest in irrigation, mechanization, and high-yield technology. By setting a floor on the size of agricultural units, the state government seeks to curb the excessive subdivision of land, which often occurs due to inheritance laws and rapid urbanization. This policy shift is designed to ensure that agricultural land remains viable for productive use while simultaneously streamlining the process for land conversion and developmental projects.

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