"Possibly giving them some stake, for example while putting up land for a new mine, giving them a stake in the mine, or some kind of shareholding in the industrial units which are coming up, that kind of gives a solution. One has to try out many solutions, a combination of them," said Roy.

It is widely believed that Maoist rebels – regarded as India's biggest internal security threat – are gaining influence as they tap the growing resentment in the countryside about land acquisition issues.

Reports that local officials often collude with business interests to take away land from villagers against their will has deepened such resentment.

Many food analysts also worry that handing over large chunks of farmland to industry could spark a food security crisis in a country which has a large population to feed and where spiraling food prices already pose a worry for millions of poor people.

Government stand

Indian Finance Minister Pranab Mukherjee told parliament recently that a balance will have to be struck between the demands of industry and those of rural India.

"We shall have to ensure that the farmers are not disturbed, their interests are not jeopardized, because they have to play the most positive role in respect of ensuring food security," Mukherjee said.

Indian authorities admit that there is need for new legislation to protect the interests of farmers. But two bills which have been drafted are pending before parliament. These proposed laws are meant to ensure that farmers get compensation for their land at the market price. They also address issues of rehabilitation, jobs and training for those affected.