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Class 09 • Revision Notes

The Story of Village Palampur

class 9 Notes Economics
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9 Economics notes Chapter

2 The Story of Village
Palampur
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CBSE Class 09 Social Science
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The Story of Village Palampur class 9 Notes Economics

Village Palampur

Palampur is a small hypothetical village having about 450 families. It is 3 km

away from Raiganj — big village. Shahpur is the nearest town to the village.

The village is well connected with neighbouring villages and towns.The village is
well connected by the road and most of the houses are electrified.

It has two primary schools and one high school.

There is a government primary health Centre and a primary dispensary.

Main Production Activities

Farming is the main production activity in the village Palampur. Most of the
people are dependent on farming for their livelihood. Non-farming activities
such as dairy, small-scale manufacturing (e.g. activities of weavers and potters,
etc.), transport, etc., are carried out on a limited scale.

Factors of Production (Or Requirements for Production of Goods

and Services)

Land, labour and capital are the basic requirements for production of goods
and services which are popularly known as factors of production. Land includes
all free gifts of nature,e.g., soil, water, forests, minerals, etc. Labour means
human effort which of course includes physical as well as mental labour.
Physical capital is the third requirement for production.Physical capital
includes fixed capital (e.g. tools, machines, building, etc.)

Working capital includes raw materials such as seeds for the farmer, yarn for
the weaver. and money in hand.

Important Changes in Farm Activities

Land area under cultivation is virtually fixed. However, some wastelands in

India had been converted into cultivable land after 1960.

Over the years, there have been important changes in the way of farming,
which have allowed the farmers to produce more crops from the same amount
of land.

These changes include :

(a) Multiple cropping farming

(b) Use of modern farming methods.

Due to these changes (in the late 1960s) productivity of land has increased
substantially which is known as Green Revolution . Farmers of Punjab,
Haryana and western Uttar Pradesh were the first to try out the modern
farming methods in India.

Overuse of fertilizers, pesticides and water is resulting into land degradation.

The farmers in Punjab are facing these problems.

Labour : After land, labour is the next basic factor of production. Small
farmers provide their own labour, whereas medium and large farmers
make use of hired labour to work on their fields.
 There are many landless families in Palampur which provide labours. As the
work is less for the number of labourers they are not given minimum
wages set by the government.
So some labourers migrate to the cities.
Capital : After land and labour, capital is another basic factor of
production. All categories of farmers (e.g. small, medium and large) require
capital. Small farmers borrow from large farmers or the village
moneylenders or the traders who supply them various inputs for
cultivation.

Modern farming requires a great deal of capital.

Sale of Surplus Farm Products

Farmers produce crops on their lands by using the three factors of production,
viz. land, labour and capital. They retain a part of produce for self-consumption
and sell the surplus in the nearby market. That part of farm produce which is
sold in the market is called marketable surplus. Small farmers have little
surplus output. It is the medium and large farmers only who have substantial
surplus produce for selling in the market.

Non-farm activities

Out of every 100 workers in the rural areas in India, only 24 are engaged in non-
farm activities. There is a variety of non-farm activities in the villages. Dairy,
small scale manufacturing, transport, etc., fall under this category.

Some of the people are engaged in these non farming activities.

The Story of Village Palampur

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