Category: Social Science

  • Multiple Choice Questions [Solved] [1 Marks] of The Story of Village Palampur Class 9th Social Science Economics

    MULTIPLE CHOICE QUESTIONS (1 MARK)


    Q.1. Which of the following is grown in the rainy season?
    (a) Jowar and bajra (b) Wheat (c) Soyabean (d) Rice
    Ans. (a)
    Q.2. Which of the following is a Rabi crop?
    (a) Wheat (b) Rice (c) Cotton (d) Jowar and bajra
    Ans. (a)
    Q.3. Which of the following is fixed capital?
    (a) Tools and machines (b) Fertilisers and pesticides

    (c) Soil (d) Seeds
    Ans. (a)

    Q.4. Which of the following is a standard unit of measurement of land?
    (a) Bigha (b) Hectare (c) Acre (d) Guintha
    Ans. (b)
    Q.5. The minimum wages for a farm labourer set by the government is
    (a) Rs. 50 (b) Rs. 60 (c) Rs. 70 (d) Rs. 80
    Ans. (b)
    Q.6. Money in hand is an example of
    (a) Human capital (b) Fixed capital (c) Working capital (d) Physical capital
    Ans. (c)
    Q.7. HYV seeds stands for
    (a) Heavy yielding variety seeds (b) High yielding variety seeds
    (c) Half yielding variety seeds (d) None of the above
    Ans. (b)
    Q.8. What is the main production activity in Palampur village?
    (a) Farming (b) Animal husbandry

    (c) Transport (d) Small-scale manufacturing
    Ans. (a)
    Q.9. Multiple cropping means growing

    (a) only two crops (b) only three crops (c) upto four crops (d) more than one crop
    Ans. (d)
    Q.10. Land under cultivation (in million hectares) in India in the year 2000 was
    (a) 120 (b) 130 (c) 140 (d) 150
    Ans. (c)
    Q.11. Which area in India has a low level of irrigation?
    (a) Deccan plateau (b) Coastal regions (c) Riverine plains (d) Both (a) and (b)
    Ans. (a)
    Q.12. Modern farming methods were tried in India for the first time in
    (a) Punjab (b) Western U.P. (c) Haryana (d) All the above
    Ans. (d)
    Q.13. Which of the following is a modern farming method?
    (a) Multiple cropping (b) Use of HYV seeds
    (c) Use of chemical fertilisers (d) Both (b) and (c)
    Ans. (d)
    Q.14. Production of pulses (in million tonnes) in India during 2000-01 was
    (a) 10 (b) 11 (c) 14 (d) 12
    Ans. (b)
    Q.15. Which one is a natural resource?
    (a) Labour (b) Raw materials (c) Mineral (d) None of the above
    Ans. (c)
    Q.16. High yielding variety seeds (HYV) were introduced to Indian farmers as a result of
    (a) White Revolution (b) Green Revolution

    (c) IT Revolution (d) None of the above
    Ans. (b)

    Q.17. Which Kharif crop is used for cattle feed?
    (a) Sugarcane (b) Potato (c) Jowar and bajra (d) Wheat
    Ans. (c)
    Q.18. The activities such as small manufacturing, transport, shopkeeping are referred to as
    (a) Non-economic activities (b) Non-farming activities

    (c) Non-traditional activities (d) Non-market activities
    Ans. (b)
    Q.19. High Yielding Variety (HYV) seeds are developed in

    (a) Research institutes (b) Factories

    (c) Krishak Bharati Cooperatives (d) None of the above
    Ans. (a)
    Q.20. The concept of White Revolution is associated with

    (a) food crops (b) milk (c) cotton (d) pesticides
    Ans. (b)
    Q.21. Who is a person who puts together land, labour and capital?
    (a) Moneylender (b) Entrepreneur (c) Zamindar (d) Manager
    Ans. (b)
    Q.22. A farmer who works on a piece of 1 hectare of land is treated as
    (a) medium farmer (b) small farmer (c) large farmer (d) none of the above
    Ans. (b)
    Q.23. Scope of farming activity is limited in Palampur due to
    (a) fixed amount of land (b) lack of irrigation

    (c) lack of labour (d) none of the above
    Ans. (a)
    Q.24. What is done to surplus wheat in Palampur?

    (a) Sold in the market (b) Destroyed (c) Stocked by self (d) Given in charity
    Ans. (a)
    Q.25. Consumption of chemical fertilisers is highest in which state of India?
    (a) Punjab (b) Haryana (c) Rajasthan (d) Himachal Pardesh
    Ans. (a)
    Q.26. People of Palampur sell milk in the near by large village named [2010 (T-1)]
    (a) Pitampura (b) Siliguri (c) Shahpur (d) Raiganj
    Ans. (d)
    Q.27. Out of the total cultivated areas in the country, how much area is irrigated today :
    [2010 (T-1)]
    (a) less than 40% (b) less than 30% (c) less than 60% (d) less than 70%
    Ans. (a)
    Q.28. ‘Operation Flood’ is related to : [2010 (T-1)]
    (a) control flood (b) produce fish (c) milk production (d) grain production
    Ans. (c)
    Q.29. Green Revolution is related to : [2010 (T-1)]
    (a) Milk Production (b) Grain production
    (c) Fish production (d) none of these
    Ans. (d)
    Q.30. Where do most of the small farmers borrow money to arrange for the capital in
    Palampur? [2010 (T-1)]
    (a) Banks (b) Co-operative Societies

    (c) Village money lenders (d) Friends and relatives
    Ans. (c)
    Q.31. Which one among the following is not fixed capital? [2010 (T-1)]

    (a) Machines (b) Buildings (c) Tools (d) Raw materials
    Ans. (d)
    Q.32. Why do the farmers of Palampur follow multiple cropping? Choose the correct answer.
    [2010 (T-1)]
    (a) Because the water consumption is less in this method
    (b) Because this method consumes less chemical fertilisers
    (c) Because this method doesn’t require fertile soils
    (d) Because this method is the most common way of increasing production
    Ans. (d)
    Q.33. Which of the following transformed the system of irrigation in Palampur?[2010 (T-1)]
    (a) Tubewells (b) Persian wheel (c) Rainwater harvesting (d) None of these
    Ans. (a)
    Q.34. How many families lives in Village Palampur? [2010 (T-1)]
    (a) 150 (b) 250 (c) 350 (d) 450
    Ans. (d)
    Q.35. Which one among the following is a non-farm activity? [2010 (T-1)]
    (a) Multiple croppping (b) Crop rotation

    (c) Dairy farming (d) Modern farming
    Ans. (c)


    Q.36. Which one of the following is not an effect of the modern farming? [2010 (T-1)]
    (a) Soil degradation (b) Deforestation

    (c) Decrease in groundwater (d) Water pollution
    Ans. (d)
    Q.37. Marginal farmers are those : [2010 (T-1)]
    (a) who use modern methods for farming
    (b) who practice crop rotation for farming
    (c) who did not have sufficient land for farming
    (d) who use modern methods of irrigation
    Ans. (c)

    Q.38. Working capital stands for : [2010 (T-1)]
    (a) tools, machines and buildings (b) raw materials and money in hand

    (c) total share capital (d) fixed deposits in financial institutions
    Ans. (b)

    Q.39. Which is the most abundant factor of production in India? [2010 (T-1)]
    (a) Land (b) Capital (c) Labour (d) Tools and machines
    Ans. (c)

    Q.40. Multiple Cropping refers to : [2010 (T-1)]
    (a) cultivation of wheat and rice
    (b) cultivation of two crops in alternate rows

    (c) cultivating more than one crop on the same field each year
    (d) cultivating crops and rearing animals on the same farm
    Ans. (c)
    Q.41. The use of high yields with combinations of HYV (High Yielding Varieties) seeds,
    irrigation, chemical fertilisers, pesticides etc. refers to : [2010 (T-1)]
    (a) modern cropping (b) mixed cropping

    (c) multiple cropping (d) mega cropping
    Ans. (a)

    Q.42. Which product is sold by Mishri Lal traders in Shahapur [2010 (T-1)]
    (a) Jaggery (b) Cotton Textile (c) Machine Tools (d) Fertilisers
    Ans. (a)
    Q.43. Finance raised to operate a business is the : [2010 (T-1)]
    (a) labour (b) enterprise (c) land (d) capital
    Ans. (d)
    Q.44. ‘Bigha’ and Guintha’ are : [2010 (T-1)]
    (a) the type of village house (b) the types of Hybrid seeds

    (c) the measuring units of grain (d) the measuring units of land area in village
    Ans. (d)
    Q.45. At present, what is the percentage of the people who are engaged in the rural areas in
    Non-farming activities : [2010 (T-1)]

    (a) 14% (b) 24% (c) 34% (d) 44%
    Ans. (b)

    Q.46. Which sector includes Agriculture and Animal Husbandry? [2010 (T-1)]
    (a) Primary Sector (b) Secondary Sector
    (c) Tertiary Sector (d) None of these
    Ans. (a)
    Q.47. Which one of the following terms is used for measuring crop produced on a given piece
    of land during a single season? [2010 (T-1)]
    (a) Yield (b) Productivity (c) Cultivation (d) Output
    Ans. (a)
    Q.48. What percentage of total land area is cultivated by Medium and Large farmers? Choose
    the correct answer. [2010 (T-1)]
    (a) 36 (b) 50 (c) 85 (d) 64
    Ans. (d)
     

  • NCERT Textbook Questions Solution’s of The Story of Village Palampur Class 9th Social Science Economics

    NCERT TEXTBOOK QUESTIONS

    Questions Within The Lesson

    Q.1. What is the difference between multiple cropping and modern farming methods?

    Ans. Difference between Multiple Cropping and Modern Farming :

    Multiple cropping and modern farming are two ways of increasing production from the same piece of land. Under multiple cropping, production is increased by growing more than one crop on a piece of land during the year. It is the most common way of raising agricultural production.

    Under modern farming method, production is increased by using modern technology in place of traditional agricultural practices. Under this method, high yielding varieties (HYVs) of seeds are used in place of simple seeds. HYV seeds promise to produce much greater amounts of grain on a single plant. Again, chemical fertilisers are used in place of cow dung and other natural manures.

    Q.2. The following table shows the production of wheat and pulses in India after the Green Revolution in units of million tonnes. Plot this on a graph. Was the Green Revolution equally successful for both the crops? Discuss.

    Table 1.2 : Production of pulses and wheat

    Production of Pulses Production of Wheat
    1965 – 66 10 10
    1970 – 71 12 24
    1980 – 81 11 36
    1990 – 91 14 55
    2000 – 01 11 70

    Ans. Graph showing production of pulses and wheat.

    The graph clearly shows that Green Revolution was more successful in wheat crop. In fact, there was nothing like Green Revolution in case of pulses.

    Years

    Q.3. What is the working capital required by the farmer using modern farming methods? Ans. Working capital required by the farmer using modem farming includes the following :

    1. HYV seeds (ii) Chemical fertilisers (iii) Pesticides

    (iv) Water (v) Diesel (vi) Cash or money in hand

    Q.4. What kind of farming methods — modern or traditional or mixed do the farmers use? Write a note.

    Ans. In India, some farmers (mainly large farmers) use modern methods of farming. Farmers of Punjab, Haryana and western U.P. use these methods. However, small and marginal farmers all over the country still use traditional methods of cultivation. However, some of them have begun to use better seeds, chemical fertilisers, etc. In fact, we find farmers using modern methods along with the farmers who still use traditional methods.

    Q.5. What are the sources of irrigation?

    Ans. (i) Canals (ii) Tubewells (iii) Tanks

    A majority of the farmers in India continue to depend on rains as source of irrigation.

    Q.6. How much of the cultivated land is irrigated? (very little/nearly half/majority/all)

    Ans. Nearly half.

    Q.7. From where do farmers obtain the inputs that they require?

    Ans. Farmers obtain the required inputs from the traders.

    Q.8. Why are farm labourers like Dala and Ramkali poor?

    Ans. Both Dala and Ramkali are among the poorest people in village Palampur.

    Dala is a landless farm labourer who works on daily wages. He fails to get regular work in the fields because of mechanisation of agriculture.

    Similarly, Ramkali hopes to get lesser work even during the harvesting season this year. Last

    year she worked for less than five months in the entire year. Due to past debt, the village moneylender has refused to give her any more loan.

    So Dala and Ramkali are poor.

    Q.9. Gosaipur and Majauli are two villages in north Bihar. Out of a total of 850 households in the two villages, there are more than 250 men who are employed in rural Punjab and Haryana or in Delhi, Mumbai, Surat, Hyderabad or Nagpur. Such migration is common in most villages across India. Why do people migrate? Can you describe (based on your imagination) the work that the migrants of Gosaipur and Majauli might do at the place of destination?

    Ans. Some people (250 in number) of Gosaipur and Majauli have migrated to the rural areas of Punjab, Haryana, Mumbai, Nagpur etc. The migrants are employed by the large farmers of these regions either as regular workers or as daily wage workers.

    Q.10. What does Tejpal Singh do with his earnings?

    Ans. Tejpal Singh — a large farmer of the village — deposits most of his earnings in the bank. Then he uses this accumulated money for lending to poor farmers like Savita. He also uses this money to arrange for the working and fixed capital for cultivation.

    Q.11. Let us take three farmers. Each has grown wheat on his field though the production is different (see Column 2). The consumption of wheat by each farmer family is the same (Column 3). The whole of surplus wheat this year is used as capital for next year’s production. Also suppose the production is twice the capital used in production. Complete the tables.

    Farmer 1

    Farmer 2

    Farmer 3

    Production Consumption Surplus = Production – Consumption Capital for the next year
    Year 1 100 40 60 60
    Year 2 120 40
    Year 3 40
    Production Consumption Surplus Capital for the next year
    Year 1 80 40
    Year 2 40
    Year 3 40
    Production Consumption Surplus Capital for the next year
    Year 1 60 40
    Year 2 40
    Year 3 40

    Compare the production of wheat by the three farmers over the years. What happens to farmer 3 in year 3? Can he continue production? What will he have to do to continue production?

    Production Consumption Surplus = Production – Consumption Capital for the next year
    Year 1 100 40 60 60
    Year 2 120 40 80 80
    Year 3 160 40 120 120
    Production Consumption Surplus Capital for the next year
    Year 1 80 40 40 40
    Year 2 80 40 40 40
    Year 3 80 40 40 40
    Production Consumption Surplus Capital for the next year
    Year 1 60 40 20 20
    Year 2 40 40 0 0
    Year 3 0 40 -40

    Farmer 1

    Farmer 2

    Farmer 3

    1. The production of wheat by farmer 1 continuously increases over the years. It increases from 100 to 120, then from 120 to 160. And the production of wheat by farmer 2 remains constant over the years. But the production by farmer 3 decreases over the years.
    2. Farmer 3 produces nothing in the year 3. So he cannot continue production. He should borrow some money for investment.

    Q.12. (a) What capital did Mishrilal need to set up his jaggery manufacturing unit? Who provides the labour in this case?

    Can you guess why Mishrilal is unable to increase his profit?

    (b)

    (c)

    (d)

    (a)

    1. (c)

    Could you think of any reasons when he might face a loss?

    Why does Mishrilal sell his jaggery to traders in Shahpur and not in his village?

    Sugarcane crushing machine and sugarcane.

    Ans

    Mishrilal is unable to increase his profit because of high price of sugarcane.

    He might face a loss when —

    1. sugarcane price rises further (ii) demand for jaggery declines

    Mishrilal sells his jaggery to traders in Shahpur because he gets a better price.

    (d)

    Q.13. (a) (b) Ans. (a)

    In what ways is Kareem’s capital and labour different from Mishrilal’s?

    Why didn’t someone start a computer centre earlier? Discuss the possible reasons.

    Mishrilal’s capital is used to produce jaggery (gur), while Kareem’s capital is used in the production of service. Similarly, Mishrilal employs unskilled labour, whereas Kareem has employed technically trained workers.

    1. There was no computer centre in the village before that of Kareem. Also, there were no degree-holders in computer applications in the village before. Moreover, computer has become a popular subject only in the recent years.

    Q.14. (a) What is Kishora’s fixed capital?

    1. What do you think would be his working capital?
    2. In how many production activities is Kishora involved?
    3. Would you say that Kishora has benefitted from better roads in Palampur?

    Ans. (a) Kishora’s fixed capital includes — a buffalo, wooden cart.

    1. Kishora had a loan from the bank which could be his working capital.
    2. Kishora is involved in the following activities :
    3. He works as a farm labourer
    4. Dairying is another activity. He sells baffalo’s milk.
    5. He is also involved in transport activity.
    6. Yes, because he is involved in transport activity.

    QUESTIONS IN THE EXERCISE

    Q.1. Every village in India is surveyed once is ten years during the Census and some of details are presented in the following format. Fill up the following, based on information on Palampur.

    1. Location :
    2. Total Area of the Village :
    3. Land Use (in hectares) :
    Cultivated Land Land not available for cultivation

    (Area covering dwellings, roads, ponds, grazing ground)

    Irrigated Unirrigated
    26 hectares

    (d) Facilities :

    Educational
    Medical
    Market
    Electricity Supply
    Communication
    Nearest Town
    1. Location : 3 km away from Raiganj village
    2. Total Area of the Village : 226 hectares
    3. Land Irrigated : 200 hectares Unirrigated : Nil.
    4. Facilities-Educational : Two primary schools and one high school Medical : One government primary health centre and one private dispensary Electricity Supply : Most of the houses have electric connections Communication : Posts, telephone and television

    Nearest Town : Shahpur.

    Q.2. Modern farming methods require more inputs which are manufactured in industry. Do you agree?

    Ans. Modem farming requires more inputs than traditional farming. It requires inputs like chemical, fertilisers, pesticides, pump sets, farm machinery, electricity, diesel, HYV seeds, water supply. Most of these inputs are manufactured in industries. However, some inputs necessary for modern farming are not manufactured in factories. For example, HYV seeds. HYV seeds are developed at research centres like Pusa Institute, Delhi, Agricultural University, Pant Nagar, etc. Similarly, water supply is provided by canals, tanks etc.

    Q.3. How did the spread of electricity help farmers in Palampur?

    Ans. The spread of electricity has helped the farmers of Palampur village in the following ways :

    1. Most of the houses have electric connections.
    2. Electricity is used to run tubewells in the fields.
    3. Electricity is used in various types of small business.

    Q.4. Is it important to increase the area under irrigation? Why?

    Ans. India is an agricultural country. Nearly two-thirds of the people are dependent on farming for their livelihood. But of the total cultivated area in the country, a little less than 40 per cent is

    irrigated even today. In the remaining areas, farming is largely dependent on rainfall which is

    irregular and uncertain. Modern farming methods cannot be used in the absence of assured adequate water supplies. India cannot achieve the goal of self-sufficiency in food grains unless the area under irrigation is increased.

    Q.5. Construct a table on the distribution of land among the 450 families of Palampur.

    Ans. Distribution of land between the farmers of Palampur

    Land (in hectares) No. of families
    0 150
    Less than 2 240
    More than 2 60
    Total 450

    Q.6. Why are the wages for farm labourers in Palampur less than minimum wages?

    Ans. Farm workers at Palampur village get lower wages than the minimum wages fixed by the government. The minimum wages for a farm labourer is fixed at Rs 60 per day. But farm labourers get only Rs 35 – 40. This happens because of heavy competition for work among the farm labourers at Palampur village.

    Q.7. In your region, talk to two labourers. Choose either farm labourers or labourers working at construction sites. What wages do they get? Are they paid in cash or kind? Do they get work regularly? Are they in debt?

    Ans. Case Study of Two Farm Labourers.

    After talking to two farm labourers it was found that —

    1. They were getting Rs 50 per day. (ii) They were being paid in cash.
    2. They do not get work regularly.
    3. Both of them had borrowed some money from the moneylender.

    Q.8. What are the different ways of increasing production on the same piece of land? Use examples to explain.

    Ans. Ways of Increasing Production on the Same Piece of Land.

    Land area under cultivation is practically fixed. Hence something should be done to increase production on the same piece of land. There are two ways of increasing farm produce on the same piece of land. These are :

    1. Multiple Cropping : It is the most common way of increasing production on a given piece of land. Under it, more than one crop is grown on the same piece of land during the year. Indian farmers should grow at least two main crops in a year. In India, some farmers are growing a third crop also over the past 20 years.
    2. Modern Farming Methods : Production on the same piece of land can also be increased by adopting modern farming methods. The Green Revolution in India is a remarkable example of it. Under modern farming, more cultivable areas should be brought under HYV seeds and irrigation. The use of simple wooden plough must be replaced by tractors. The increasing use of farm machinery like tractors, threshers, harvesters, etc. make cultivation faster.

    Q.9. Describe the work of a farmer with 1 hectare of land.

    Ans. One hectare of land equals the area of a square with one side measuring 100 metres. A farmer who works on a piece of 1 hectare of land is treated as a small farmer. He performs the following type of activities on the field :

    1. ploughing by bullocks/tractor (ii) sowing of seeds
    2. watering of the field (iv) spraying of insecticides
    3. cutting of crops

    Q.10. How do the medium and large farmers obtain capital for farming? How is it different from the small farmers?

    Ans. Capital requirements of farmers.

    Farmers — Small or large require capital during production. They require both fixed capital and working capital.

    The medium and large farmers have their own savings from farming. They thus are able to arrange for the capital needed. These farmers sell the surplus farm products in the market. A part of this earning is saved and used for buying capital items such as farm machinery, raw material, etc.

    But 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 them various inputs for cultivation. The rate of interest on such loans is very high.

    Q.11. On what terms did Savita get a loan from Tejpal Singh? Would Savita’s condition be different if she could get a loan from the bank at a low rate of interest?

    Ans. Terms of Loan : Savita is a small farmer. She plans to cultivate a small piece of land of one hectare. She does not have money to arrange for capital. So she decides to borrow from Tejpal Singh — a big farmer who belongs to the same village Palampur. Tejpal Singh gives a loan of Rs 3000 to Savita at an interest rate of 24 percent. He gives this loan for four months.

    Besides, Savita also has to work on Tejpal Singh’s field as farm labourer during the harvesting season. Tejpal Singh will give her Rs 35 per day as wages. Savita agrees to all these tough conditions because she needs a loan.

    Savita’s condition would have been better if she could get a loan from the bank. The bank would have provided her the loan at a low rate of interest. Moreover, Savita could have devoted more time on her own field instead of working for Tejpal Singh as farm labourer.

    Q.12. Talk to some old residents in your region and write a short report on the changes in irrigation and changes in production methods during the last 30 years. (Optional)

    Ans. Report on Changes in Cultivation : A survey was conducted to know about the changes that have taken place in irrigation and other production methods during the last 30 years. Some old residents of the region were contacted. The findings of the report are given as under.

    The farmers reported that cultivation had gone through major changes during the last 30 years. These included :

    • Traditional agricultural practices are steadily being replaced by modern farming practices. Indian agriculture has witnessed mechanisation on a large scale. The use of HYV seeds has increased.
    • Farmers have begun to set-up their own pump-sets for irrigation.
    • Unlike past, farmers now grow at least two main crops during the year.

    Q.13. What are the non-farm production activities taking place in your region? Make a short list.

    Ans. Non-farm activities.

    Non-farm activities refer to the activities other than farming which are undertaken to earn income. Different types of these activities include the following :

    1. Small manufacturing, i.e. the activities of weavers, potters, blacksmiths, carpenters, basket-makers, etc.
    2. Large manufacturing (iii) Brickmaking units
    3. Shopkeeping/trading (v) Transport
    4. Dairying (vii) Moneylending

    (viii) Making of jaggery (gur) (ix) Coaching centres.

    Q.14. What can be done so that more non-farm production activities can be started in villages? Ans. Conditions Essential for the Expansion of Non-farm Activities.

    In future, there should be more and more non-farming activities in the villages. The following steps/measures may be undertaken in this regard.

    1. Although people with some amount of money can set up non-farm activities, it is important that concessional loans should be made available.
    2. Another thing which is essential for expansion of non-farm activities is to have markets where goods and services produced can be sold. For example, there should be markets for milk, cloth, clay, utensils, etc.
    3. More villages need to be connected to towns and cities through all-weather roads, transport and telephone.
  • Concept’s of The Story of Village Palampur Class 9th Social Science Economics

    THE STORY OF VILLAGE PALAMPUR

    CONCEPT

    • Village Palampur

    Palampur is a small village having about 450 families. It is 3 km away from Raiganj — a big village. Shahpur is the nearest town to the village.

    • 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.) and raw materials such as seeds for the farmer, yarn for the weaver.

    • 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 :

    1. Multiple cropping farming
    2. 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.

    • 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.
    • 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.

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