One of the reasons for small land holdings in India are succession laws in Independent India. The entire holding doesn’t go to the eldest male/child, rather it’s often divided among siblings. The division leads to all kinds of violence and shrinking holdings over generations.
Also the most profitable farms aren’t the largest ones, which are often dedicated to growing common grain like wheat and rice, and sugarcane. These crops would be bought by the government at prefixed prices. And the assured income again leads to a lot of fighting and influence mongering, and ironically much smaller takes for the average competing farmer.
Quite unexpectedly, the highest profits are made by farmers who manage to get smart financing and grow niche crops like fruits, some vegetables, flowers, organic, cash crops etc. The highes profits in India are always made by people who carefully avoid government and activist attention, assistance, benevolence, interference.