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The purpose of the story is to introduce some basic concepts relating to production and this we do through a story of a hypothetical village called Palampur.*

Farming is the main activity in Palampur, whereas several other activities such as small scale manufacturing, dairy. transport, etc. are carried out on a limited scale. These production activities need various types of resources natural resources, man made items, human effort, money, etc. As we read through the story of Palampur. we will learn how various resources combine to produce the desired goods and services in the village.

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Palampur is well-connected with neighbouring villages and towns. Raiganj, a big village, is 3 kms from Palampur. An all weather road connects the village to Raiganj and further on to the nearest small town of Shahpur. Many kinds of transport are visible on this road starting from bullock carts, tongas, bogeys (wooden cart drawn by buffalos) loaded with jaggery (gur) and other commodities to motor vehicles like motorcycles, jeeps, tractors and trucks.

This village has about 450 families belonging to several different castes. The 80 upper caste families own the majority of land in the village. Their houses, some of them quite large, are made of brick with cement plastering. The SCS (dalits) comprise one third of the population and live in one corner of the village and in much smaller houses some of which are of mud and straw. Most of the houses haveelectric connections. Electricity powers all the tubewells in the fields and is used in various types of small business. Palampur has two primary schools and one high school. There is a primary health centre run by the government and one private dispensary where the sick are treated.

The description above shows that Palampur has fairly well-developed system of roads, transport, electricity. irrigation, schools and health centre. Compare these facilities with those in your nearby village.

The story of Palampur, an imaginary village, will take us through the different types of production activities in the village. In villages across India, farming is the main production activity. The other production activities, referred to as non farm activities include small manufacturing, transport, shop-keeping. etc. We shall take a look at both these types of activities, after learning a few general things about production.

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Introduction | The Story of Village Palampur | Economics | Class 9 | In Hindi | Magnet Brains

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The aim of production is to produce the goods and services that we want. Their are 4 requirement for production of goods and services.

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Organisation of Production | The Story of Village Palampur | Class 9 Economics

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1). Land is fixed
2). Is there a way one can grow more from the same land ?
3). will the land sustain?
4). hou is land distributed between the farmers of palampur?
5). How will provide the labour ?
6). The capital need in farming
7). Sale of surplus farm products

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Farming in Palampur | The Story of Village Palampur | Class 9 Economics

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Farming is the main production activity in Palampur. 75 per cent of the people who are working are dependent on farming for their livelihood. They could be farmers or farm labourers. The well being of these people is closely related to production on the farms.

But remember that there is a basic constraint in raising farm production. Land area under cultivation is practically fixed. Since 1960 in Palampur, there has been no expansion in land area under cultivation by then some of the waste land in the village had been observed to cultivate their existing no for the scope in increase farm production by bringing new land under cultivation

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E:- 1.4 ~ Land is fixed - Farming in Palampur | The Story of Village Palampur | By Priyanka Gaur

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Is there a way one can grow more from the same land

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Is there a way one can grow more from the same land

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In the kind of crops grown and facilities available. Palampur would resemble a village of the western part of the state of Uttar Pradesh. All land is cultivated in Palampur. No land is left idle. During the rainy season (kharif) farmers grow jowar and bajra. These plants are used as cattle feed. It is followed by cultivation of potato between October and December. In the winter season (rabi), fields are sown with wheat. From the wheat produced. farmers keep enough wheat for the family's consumption and sell the surplus wheat at the market at Raiganj. A part of the land area is also devoted to sugarcane which is harvested once every year. Sugarcane, in its raw form, or as jaggery. is sold to traders in Shahpur.

The main reason why farmers are able to grow three different crops in a year in Palampur is due to the well-developed system of irrigation. Electricity came early to Palampur. Its major impact was to transform the system of irrigation. Persian wheels were, till then, used by farmers to draw water from the wells and Irrigate small fields. People saw that the electric-run tubewells could irrigate much larger area of land use official the first new tubules were installed by the government soon however farmers started set up the private tubewells as a result by mind 1917 the entry cultivated area of 200 hectare (ha.) what is irrigated .

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E:-1.5~ Is there a way one can grow more from the same land | Farming in Palampur | By Priyanka Gaur

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Land being a natural resource, it is necessary to be careful in its use. Scientific reports indicate that the modern farming methods have overused the natural resource base.

In many areas, Green Revolution is associated with the loss of soil fertility due to increased use of chemical fertilisers. Also, continuous use of groundwater for tubewell irrigation has led to the depletion of the water-table. Environmental resources, like soil fertility and groundwater, are built up over years. Once destroyed it is very difficult to restore them. We must take care of the environment to ensure future development of agriculture.

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E:-1.6 | Will the Land Sustain - Farming in Palampur | By Priyanka Gaur

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How is land distributed between the farmers of Palampur?

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How is land distributed between the farmers of Palampur?

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You must have realised how important land is for farming. Unfortunately, not all the people engaged in agriculture have sufficient land for cultivation. In Palampur, about one third of the 450 familles are landless, Le 150 families, most of them dalits, have no land for cultivation who own of the remaining families who own land, 240 families.cultivate small plots of land Teks than 2 hectares in size Cultivation of such plots doesn't brin adequate income to the farmer family. You can see the large number of small plots scattered around the village in the picture. These are cultivated by the small farmers. On the other hand, more than half the area of the village is covered by plots that are quite large in size. In Palampur, there are 60 families of medium and large farmers who cultivate more than 2 hectares of land. A few of the large farmers have land extending over 10 hectares or more.

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E:-1.7 | How is land distributed between the farmers of Palampur~Farming in Palampur | Priyanka Gaur

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After land, labour is the next necessary factor for production. Farming requires a great deal of hard work. Small farmers along with their families cultivate their own fields. Thus, they provide the labour required for farming themselves. Medium and large farmers hire farm labourers to work on their fields.

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E:-1.8 | Class 9th Economics | Who will Provide the labour | Farming in Palampur | Priyanka Gaur

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You have already seen that the modern farming methods require a great deal of capital, so that the farmer now needs more money than before.

1. Most small farmers have to borrow money to arrange for the capital. They borrow from large farmers or the village moneylenders or the traders who supply various inputs for cultivation. The rate of interest on such loans is very high. They are put to great distress to repay the loan.

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E:-1.9 | Class 9th Economics | The Capital needed in Farming | Farming in Palampur | Priyanka Gaur

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Let us suppose that the farmers have produced wheat on their lands using the three factors of production. The wheat is harvested and production is complete. What do the farmers do with the wheat? They retain a part of the wheat for the family's consumption and sell the surplus wheat. Small farmers like Savita and Gobind's sons have little surplus wheat because their total production is small and from this a substantial share is kept for their own family needs. So it is the medium and large farmers who supply wheat to the market. In the Picture 1.1, you can see the bullock cart streaming into the market each carrying loads of wheat. The traders at the market buy the wheat and sell it further to shopkeepers in the towns and cities.
Tejpal Singh, the large farmer, has a surplus of 350 quintals of wheat from all his lands! He sells the surplus wheat at the Ratganj market and has good earnings What does Tejpal Singh do with his

earnings? Last year. Tejpal Singh had put most of the money in his bank account. Later he used the savings for lending to farmers like Savita who were in need of a loan. He also used the savings to arrange for the working capital for farming in the next season. This year Tejpal Singh plans to use his earnings to buy another tractor Another tractor would increase his fixed capital.

Like Tejpal Singh, other large and medium farmers sell the surplus farm products. A part of the earnings is saved and kept for buying capital for the next season. Thus, they are able to arrange for the capital for farming from their own savings. Some farmers might also use the savings to buy cattle, trucks, or to set up shops. As we shall see. these constitute the capital for non-farm activities.

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(E:-1.10) | Class 9th Economics | Sale of Surplus Farm Products| Farming in Palampur | Priyanka Gaur

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Non farming activities in the village of palampur 

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Non farming activities in the village of palampur 

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1). Dairy----The Other common activities
2). An example of small-scale manufacturing in Palampur
3). The shopkeeper of Palampur
4). Transport: a fast developing sector

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Non-Farm Activities in Palampur | The Story of Village Palampur | Class 9 Economics

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Dairy is a common activity in many familles of Palampur. People feed their buffalos on various kinds of grass and the jouar and baru that grows during the rainy season. The milk is sold in Raiganj, the nearby large village. Two traders from Shahpur town have set up collection cum chilling centres at Raiganj from where the milk is transported to far away towns and cities.

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Example of small-scale manufacturing in Palampur 

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Example of small-scale manufacturing in Palampur 

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At present, less than fifty people are engaged in manufacturing in Palampur.Unlike the manufacturing that takes place in the big factories in the towns and cities, manufacturing in Palampur involves very simple production methodsand are done on a small scale. They are carried out mostly at home or in the fields with the help of family labour. Rarely are labourers hired.

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People involved in trade (exchange of goods) are not many in Palampur. The traders of Palampur are shopkeepers who buy various goods from wholesale markets in the cities and sell them in the village. You will see small general stores in the village selling a wide range of items like rice, wheat, sugar, tea, oil, biscuits, soap, toothpaste, batteries. candles, notebooks, pen, pencil, even some cloth. A few of the families whose houses are close to the bus stand have used a part of the space to open small shops. They sell eatables.

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There are variety of vehicles on the road connecting Palampur to Raiganj. Rickshawallahs, tongawallahs, jeep. tractor, truck drivers and people driving the traditional bullock cart and bogey are people in the transport services. They ferry people and goods from one place to another, and in return get paid for it. The number of people involved in transport has grown over the last several years.

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Farming is the main production activity in the village. Over the years there have been many important changes in the way farming is practiced. These have allowed the farmers to produce more crops from the same amount of land. This is an important achievement, since land is fixed and scarce. But in raising production a great deal of pressure has been put on land and other natural resources.

The new ways of farming need less land, but much more of capital. The medium and large farmers are able to use their own savings from production to arrange for capital during the next season. On the other hand, the small farmers who constitute about 80 per cent of total farmers in India, find it difficult to obtain capital. Because of the small size of their plots, their production is not enough. The lack of surplus means that they are unable to obtain capital from their own savings, and have to borrow. Besides the debt, many of the small farmers have to do additional work as farm labourers to feed themselves and their families.

Labour being the most abundant factor of production, it would be ideal if new ways of farming used much more labour. Unfortunately, such a thing has not happened. The use of labour on farms is limited. The labour. looking for opportunities is thus migrating to neighbouring villages, towns and cities. Some labour has entered the non-farm sector in the village.

At present, the non-farm sector in the village is not very large. Out of every 100 workers in the rural areas in India, only 24 are engaged in non-farm activities. Though there is a variety of non-farm activities in the villages (we have only seen a few examples), the number of people employed in each is quite small.

In the future, one would like to see more non-farm production activities in the village. Unlike farming, non-farm activities require little land. People with some amount of capital can set up non-farm activities. How does one obtain this capital? One can either use his own savings, but more often has to take a loan. It is important that loan be available at low rate of interest so that even people without savings can start some non-farm activity. Another thing which is essential for expansion of non-farm activities is to have markets where the goods and services produced can be sold. In Palampur, we saw the neighbouring villages, towns and cities provide the markets for milk, Jaggery, wheat, etc. As more villages get connected to towns and cities through good roads. transport and telephone, it is possible that the opportunities for non-farm activities in the village would increase

in the coming years.