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CONCEPTS
* Human beings perform many activities which can be grouped into economic and non
economic.
Economic Activities : Economic activities refer to those activities of man which are
undertaken for a monetary gain or to satisfy his/her wants. The activities of workers, farmers,
shopkeepers, manufacturers, doctors, lawyers, taxi drivers, etc. fall under this category.
Non-Economic Activities : Non-economic activities are ones that are not undertaken for any
monetary gain. These are also called unpaid activities, e.g., Puja-paath, housekeeping, helping
the poor or disabled, etc.

*Classification of Economic Activities. Various economic activities can be classified into
three main sectors, that is primary sector, secondary sector and tertiary sector. The primary sector includes activities like agriculture, forestry, animal husbandry, fishing, poultry, farming and mining. In this sector, goods are produced by exploiting nature. In the secondary sector, manufacturing (small and large) and construction activities are included. The tertiary sector (also called service sector) provides various types of services like transport, education,banking, insurance, health, tourism, etc.

*Market Activities and Non-Market Activities. Economic activities, i.e. production of goods
and services can be classified into market activities and non-market activities. Market
activities are performed for remuneration. Non-market activities are the activities carried out
for self-consumption.

*Activities of Women. Women generally look after domestic affairs like cooking of food,
washing of clothes, cleaning of utensils, housekeeping and looking after children.

*Human Capital. Human capital is the stock of skill and productive knowledge embodied in
human beings. Population (human beings) become human capital when it is provided with
better education, training and health care facilities.

*People as a Resource. People as resource is a way of referring to a country’s workforce in terms of their existing skills and abilities.

*Human Capital Formation. When the existing human resource is further developed by
spending on making the workforce more educated and healthy, it is called human capital
formation.

*Quality of Population. The quality of population depends upon the literacy rate, life
expectancy and skills formation acquired by the people of the country.

*Role of Education. Education is the most important component of human resource
development.
In view of its contribution towards the growth of the society, government expenditure on
education as a percentage of GDP rose from 0.64% in 1951-52 to 3.98% in 2002-03.
However, our national goal is 6% of GDP.
There has been considerable improvement in the country’s health standard. For instance, the
life expectancy at the time of birth in India rose from 37.2 years in 1951 to 63.9 years in
2001. Similarly, infant mortality rate has come down from 147 to 70 during the same time
period.
* Unemployment. Unemployment is said to exist when people who are willing to work at the prevailing wage rates cannot find jobs. When we talk of unemployed people, we refer to
those in the age group of 15-59 years. Children below 15 years of age and the old people
above 60 are not considered while counting the number of unemployed.

* Nature of Unemployment in India. Seasonal unemployment occurs when people fail to get work during some months of the year (that is, during off-season). Farm labourers usually face this kind of problem. Disguised unemployment is another kind of unemployment found in
rural areas. Such kind of problem arises due to excessive pressure of population on
agriculture. Disguised unemployment refers to a situation wherein the number of workers in
a job is more than actually required to do the job. The extra number of workers are
disguisedly unemployed.
Consequences of Unemployment :
(i) Unemployment leads to wastage of manpower resource.
(ii) Unemployment tends to increase the economic overload that is dependence of the
unemployed on the working population.
(iii) Unemployment may lead to increase in social unrest and tension.

*Health. Health is another very important component of human resource development.
Efficiency of workers largely depends on their health.

Chapter 1 The Story of Village Palampur

Social Science Economics [Class IX]

Content’s

• Concept’s of The Story of Village Palampur Class 9th Social Science Economics
• Notes of The Story of Village Palampur Class 9th Social Science Economics
• NCERT Textbook Questions Solution’s of The Story of Village Palampur Class 9th Social Science Economics
• Multiple Choice Questions [Solved] [1 Marks] of The Story of Village Palampur Class 9th Social Science Economics
• SHORT ANSWER TYPE QUESTIONS (3 MARKS) of The Story of Village Palampur Class 9th Social Science Economics
• LONG ANSWER TYPE QUESTIONS (4 MARKS) of The Story of Village Palampur Class 9th Social Science Economics

Tags: village palampur class 9th social, palampur class 9th social science, class 9th social science economics, story of village palampur class, village palampur class 9th,

LONG ANSWER TYPE QUESTIONS (4 MARKS)

Q.1. Why it is necessary to increase the area under cultivation? Explain.
Ans.(a) Farming – main activity : In Palampur, farming is the main activity as 75% of population
earn their living through farming. Unfortunately, not all people engaged in farming have
sufficient land for cultivation. So it is necessary to increase area under cultivation.
(b)Use of modern farming methods : Use of HYV seeds, improved methods of irrigation,
pesticides, insecticides and chemical fertilisers and new harvesting techniques require
larger farming land area of cultivation. In small area, they are not successful and the cost
involved is also high.
(c) Land area under cultivation is fixed in Palampur. Since 1960, in Palampur, there has been
no expansion in land area. So some of the wastelands in the village had been converted
to cultivable land. More alternatives are required of such type.
Q.2. What is the main source of capital for medium and large farmers? How is it different
from the small farmers? Explain.
Ans.(a) Surplus wheat selling : Main source of capital for medium and large farmers is supply
of surplus wheat in market as they own large area of cultivable land. They retain part of
wheat for their own use and sell rest of wheat in market. While for small farmers, no
surplus wheat is available so they arrange capital from large farmers or village
moneylenders or the traders.
(b)Extra work to landowner or large farmers : In order to get loan from landowner or large
farmers they have to pay higher interest rates and also extra work on their fields to repay
the loan, while medium and large farmers can devote their full time to their own land.
Q.3. Why modern farming methods require more inputs which are manufactured in industry?
Explain.
Ans.(a) A modern farming method requires higher investment : Use of HYV seeds, pesticides,
insecticides, electric tubewells etc. require more initial investment as all are costly affairs.
(b) HYV seeds require more water, chemical fertilisers : HYV seeds would give higher
yield only in combination of HYV seeds, irrigation, chemical fertilisers, pesticides etc.
(c)More electricity consumption : Use of electric tubewells, mechanical harvesters require
more electricity for their operation to produce better results.
Q.4. What were the main terms on which Savita got a loan from Tejpal Singh? How can
Savita be benefitted if she gets a loan from the bank?
Ans. Savita arranged money for capital from a big farmer – Tejpal Singh, who belongs
to the same village.
Main terms decided to get loan of Rs 3000.
(a) Interest rate of 24%.
(b) Loan given for the period of 4 months.
(c) Extra work to be done by Savita on Tejpal Singh’s field.
(d) Tejpal Singh would give her Rs 35 per day as wages.
These conditions were very tough for a small farmer like Savita but these had to be agreed
upon. If she could arrange money from cooperative society or bank she could repay the
loan in easy instalments on reasonable interest rate of 16–18% and no need to put extra
working hours on other’s land.
Q.5. What was the basic aim of the ‘Green Revolution’ in India? How did it affect the market
economy?
Ans.The introduction of HYV seeds and the increased use of fertilisers and irrigation are known
collectively as the Green Revolution which was associated with increase in production of food
grains in India and make India self-sufficient in foodgrains.
Impact of Green Revolution on market economy
(a) Increased production of foodgrains like wheat and rice : Foodgrain yields continued
to increase throughout the 1980s. In financial year 1980, almost 75 percent of the total
cropped area under wheat was sown with HYV seeds.
(b)Increased income disparities, higher income growth and reduced incidence of
poverty: Green revolution has increased income disparities, higher income growth and
reduced incidence of poverty.
Q.6. What are the different ways of increasing production on the same piece of land. Explain
any four points. [2010 (T-1)]
OR
What are the different ways of increasing production on the same piece of land. Explain
with the help of examples.
OR
State four steps of optimal utilisation of land.
Ans.Land area under cultivation is fixed. So, the ways of increasing farm produce on the same
piece of land are :
(i)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 atlest two main crops in a year. Some farmers have been
growing a third crop also over the past twenty years.
(ii) Green Revolution : It was brought in India in the late 1960s, the use of HYV (High
Yielding Variety) seeds for increase in production of rice and wheat. It promised to
produce much greater amount of grains on a single plant.
(iii)Use of modern technology : By the use of well developed able to cultivate their land with
greater efficiency. Farmers use pumpsets for irrigation, threshers for threshing, harvesters
for harvesting, tractors for floughing etc.
(iv)Use of chemical fertilizers and pesticides : Use of chemical fertilisers and pesticides
improves fertility of soil and reduces pest respectively for the particular period of
production. This improves the quantity of production.
Q.7. Who provides labour for farming in Palampur? How are they paid for their work?
[2010 (T-1)]
Ans.After land, labour is the second most necessary factor for production. Small farmers along with
the other numbers of their family cultivate their own fields. Thus, they provide the labour
required for farming themselves. Medium and large scale farmers hire farm labourers to work
on their fields.
Farm labourers either engaged from landless families or the families cultivating small piece of
land.
Farm labourers do not have any right over the crops grown on the land. They are paid in the
following ways :
(i) Wages are paid to them in form of cash or kind, i.e., crops.
(ii) Government has set up minimum wages for farm labourers to be Rs 60 per day but
unfortunately they do not get this much and are mostly exploited.
(iii) Sometimes poor farm labourers work for meal also.
(iv) Sometimes they are employed on daily basis and sometimes for the whole year. Thus,
durations of their employment is not fixed.
Q.8. What are the four requirements for production of goods and services? Explain.
OR [2010 (T-1)]
What are the four requirements of production? Explain with examples.
Ans.There are four requirements of production of goods and services. These requirements are
known as factors of production.
These are :
(i) Land : By land we mean not only the level surface but all gifts of nature which are
amenable to human control, such as water, forests, minerals etc.
(ii)Labour : Manpower required to do the work. The mental and physical work done by
people in an organisation comes under labour.
(iii)Physical Capital : It means a variety of inputs required at every stage during production.
They can be classified as :
(a)Fixed capital : It includes tools, machines and building that can be used for
production for many years.
(b)Working capital : Money in land and raw material that has to be used in current
products are included in working capital.
(iv)Enterprise : It means need of knowledge and enterprise to put together all other factors
of production and ability to sell the produce in the market. This is also called human
capital.

 

Q.9. What is Green Revolution? Explain some of its features.	[2010 (T-1)]
Ans. Green Revolution is a revoluton with farmers using modern methods for higher yields and
achieving self sufficiency in the production of wheat and rice. It includes use of High Yielding
Variety (HYV) seeds, irrigation, chemical fertilizers, pesticides etc for producing best results.
Farmers of Punjab, Haryana and Western Uttar Pradesh were the first to try it in the late 1960s.
Factors responsible for Green Revolution are :
(i) Increase in yield : HYV seeds promised to produce much greater amounts of grains on
a single plant. As a result, the same piece of land produce for larger quantities of food
grains.
(ii) Use of modern technology : Use of modern technology like tractors, harvesters, tubewells

etc have made the implementation of green revolution possible in the environment.
(iii)Use of chemical fertilisers and pesticides : Unlike traditional fertilisers and manures, use
of chemical fertilisers has increased as a requirement with HYV seeds which improves the
quality and quantity of the produce.
Q.10. Explain any two positive and two negative effects of Green Revolution. [2010 (T-1)]
OR
Explain two achievements and two drawbacks of Green Revolution in Indian agriculture.
Ans.Green Revolution was started in the late 1960s with an aim of achieving self sufficiency in the
production of grains like wheat and rice.
Two positive effects and achievements of green revolution are :
(i)Increase in productivity of grains : Use of HYV seeds produced much more amount of
wheat and rice in comparison to traditional seeds.
(ii)Modernisation of agriculture : HYV seeds required well-developed irrigation, use of
chemical fertilisers and pesticides. Use of farm machinery has also encouraged in the
green revolution which resulted in development and modernisaton of agriculture. It also
increased the surplus in the field of agriculture.
Two Negative effects and drawbacks of Green Revolution :
(i)Decline in fertility of soil : Too much use of chemical fertilisers resulted in decline of
fertility of soil. Farmers have to use more and more chemical fertilisers which increases
the lost of production.
(ii)Level of groundwater : Use of groundwater for cultivation with the help of tubwells have
caused decline in level of ground water.
Q.11. What are the difficulties faced by small farmers in arranging capital in comparison with
medium and large farmers. [2010 (T-1)]
Ans.Modern farming methods require a great deal of capital, so the small farmers face more
difficulties in arranging capital in comparison with mediun and large farmers.
Most of the small farmers have to borrow money from for large farmers or the village money
lenders or the traders who supply various inputs for cultivation. The rate of interest on such
loans is very high. This put the small farmers in great distrerss to repay the loans.
Unlike small farmers, medium and large farmers have their own savings from farming. They
sale their good amount of surplus and earn more income. This incomes they utilise in arranging
capital for next season of production.
Q.12. Is Palampur a developed village? Explain by presenting four arguments. [2010 (T-1)]
OR
How can you say that Palampur is a well developed village?
Ans.Palampur is a well developed village. This can be made clear from the following
arguments :
(i)Multiple cropping : Farmers of Palampur have adapted multiple cropping. They plant
three crops on a year and never leave their land idle.
(ii)Modern facilities of agriculture : They have a well developed system of irrigation.
Electricity came early in Palampur. They use modern machinery like tractors, harvesters
etc for farming. Use of HYV seeds and chemical fertilisers is also noticed in Palampur.
(iii)Markets and Education : There are small markets setup in Palampur which have all the
daily need commodities available. Kareem is also running computer classes and a good
number of students are learning there. High schools and education for women is available
here.
(iv)Transportation : People of Palampur have facilities of transporting goods to other towns
and village with a good transportation system and well developed roads.
Q.13. What are the various ways through which farmers can get loan? Write their advantages
and disadvantages. [2010 (T-1)]
Ans.Farmers can get loans through the following ways :
(i)Large farmers or village moneylenders : Most of the small farmers prefer taking loans
from large farmers or village moneylenders.Advantages of taking loans from such
sources are :
(a) They are flexible in terms and conditions of repayment and rate of interest.
(b) They know the lenders personally so get loans without collateral security.
Disadvantages :
(a) Rate of interest is very high.
(b) Small farmers are exploited and are trapped in virous circle of poverty.
(ii)Banks and coperative scieties : Although, very few number of small farmers approach
banks for loan but they provide them better services.Advantages of loans from banks and
cooperatives :
(a) No exploitation of farmers.
(b) Uniform and nominal rate of interest for all.
Disadvantages :
(a) Needs propr security and have set terms and conditions.
Q.14. Differentiate between fixed capital and working capital. State any four points.
[2010 (T-1)]
Ans.Both fixed capital and working capital are the parts of physical capital required for production.
(i)Fixed Capital :
(a) It includes fixed factors of production which are used for years.
(b) Tools and machines range from very simple tools such as a farmer’s plough to
sophisticated machines such as generators, turbines etc.
(c) It includes tools, machines, buildings etc.
(d) They remain constant for many years of production and increased or decreased only
when needed.
(ii) Working Capital :
(a) It includes variable factors of production which are needed to be arranged every time
at the time of production.
(b) Whatever money and raw material required for production are included in it.
(c) It is required to be arranged according to the desired production.
(d) They are dynamic depending upon the profits and income of last season.
Q.15. Explain four efforts that can be made to increase non-farming production activities in
villages? [2010 (T-1)]
Ans. Non-farming production activities should be increased in the village. Unlike farming, non-farm
activities required very less land and capital.
(i) Loans can be made available to villagers on low rates of interest so that people with less
savings can set up non-farm activities.
(ii) Markets should be made available to sell the goods produced in non-farm activities.
(iii) Development of goods transport, communication system and proper storage of goods
should be established to increase the opportunities for non-farm activities in the village.

Q.16. Explain any four non-farming activities in Palampur village.	[2010 (T-1)]
Ans. Most of the people living in palampur village are involved in production activities. Only 25%
of the people working in Palampur village are engaged in activities other than agriculture.

Various non-farm activities in Palampur village are :
(a) Dairy : It is a common activity at Palampur village. People feed their buffalos on jowar
and bajra and sold their milk in Raiganj 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.
(b) Small scale manufacturing units : People get involved in very simple production
methods in their homes only with their family members. They make baskets, pottery etc
small things and sell them in the markets nearby.
Shopkeepers : People get involved in trade, they buy goods from nearby whole sale markets
and sell them in the village. They sell wide range of items like sugar, tea, oil, soap etc. They
open shops for eatables near bus stands.
Transport : People also get involved in providing transportation services like rickshaws,
tongas, jeeps, tractors, trucks, bullok cart, bagey etc. The number of people involved in
transport has grown over the last several years.
Q.17. What do you mean by Green Revolution? Why was the initial impact of Green
Revolution limited to wheat and only to a few regions? [2010 (T-1)]
Ans. Green Revolution is a revolution which started in the late 1960s with an aim of achieving self
sufficiency in the production of grains like wheat and rice.
The initial impact of Green Revolution was limited to wheat and only to a few regions because
initially only the farmers of Punjab, Haryana nad Uttar Pradesh by out the modern farming
method in India. They used tubewells for irrigation and made use of HYV seeds, chemical
fertilisers and pesticides in farming. Capital required for using HYV seeds was very high.
Therefore small farmers and many backward regions could not use the modern techniques.
Results and markets for wheat were better therefore, HYV seeds were utilised more for
growing wheat initially. Use of HYV seeds require all other modern techniques of cultivation
also therefore for initial time it remained unapproachable in many backward villages and small
farmers which work without electricity or own poor farm distribution.

Q.18. What is land? Suggest any three ways to sustain land.	[2010 (T-1)]
Ans. Land is the levelled surface and other natural resources such as water, forests, minerals etc
used for production of goods and services.
Excessive use of chemical fertilisers or modern techniques of farming destroys land and all
other natural resources.
Land can be sustained through following ways :

(i) Limited use of chemical fertilisers : Chemical fertilisers should be used in a limited
number and only as the per the requirement. Excessive use of chemical fertilisers destroys
the fertility of land.
(ii) Crop rotation : Crops should be planted in such a way that land gets time of restore its
fertility. Different nutrients are required with different lands, therefore planning of
multiple cropping should be done in such a way that the land is also able to restore the
lost nutrients.
(iii) Waste of chemical fertilisers : Waste of chemical fertilisers or pesticides should not be
thrown in the water bodies of village as this will pollute the water.
(iv) Adequate use of ground water : Ground water should be adequately used so that there
is minimum wastage of ground water

SHORT ANSWER TYPE QUESTIONS (3 MARKS)

Q.1. What was the major impact of electricity on the farmers of Palampur? Explain.
Ans.Electricity reaching in Palampur transformed irrigation system as electric-run tubewells could
be used to irrigate much larger areas of land more effectively. Electric tubewell would draw
water from well electrically and no manual handling required. Electricity has also facilitated
the harvesting of crops with electric harvesters.
Q.2. What is the basic aim of production. What are the essential four requirements for
production?
Ans.Basic aim of production was to produce goods and services that we want. Four requirements
for production of goods and services were :
z Land and other natural resources like water, forests, minerals
z Labour, i.e. people who would do the work. Each worker is providing the labour necessary
for production.
z Third requirement is physical capital, i.e. variety of inputs required at every stage during
production
z Fourth requirement is knowledge and enterprise to be able to put together land, labour and
physical capital and produce an output.
Q.3. What do you mean by working capital? How does it affect the day-to-day activities in
farming?
Ans.Raw materials and money in hand is known as working capital. Some money is always
required during production to make payments and buy other necessary items. Working capital
is related with day-to-day activities in farming like use of seeds, pesticides, insecticides,
manure, wages of labour etc. So production in farming is high for more working capital.
Higher working capital would facilitate more purchase of seeds, fertilisers and wages, so
higher yield would be there.
Q.4. What do you mean by Rabi crops and Kharif crops? When are they sown and harvested?
Give examples also.
Ans. Rabi crops are grown in winter season (between October to December) and harvested in
spring season (between mid-late April to mid-late June). Potato, wheat, barley, mustard are
Rabi crops.
Kharif crops are sown in rainy season (from July to September) and harvested in autumn
season. Examples of Kharif crops are jowar and bajra, sugarcane, cotton, red chillies etc.
Q.5. What is the difference between multiple cropping and modern farming method?
Ans. To grow more than one crop on a piece of land during the year is known as multiple cropping.
For example, sugarcane is sown along with wheat in winter season as sugarcane is harvested
once every year. Modern farming methods are the use of improved methods and techniques to
be used in agriculture to increase yield per hectare. Use of HYV seeds, insecticides, pesticides,
electric tubewell etc. are modern farming methods.
Q.6. Modern farming methods require the farmers to invest more cash than before. Why?
Explain.
Ans. Yes, modern farming methods like use of HYV seeds, chemical fertilisers, electric tubewell for
irrigation require higher investment in farming because they carry higher cost than traditional
one. HVY seeds need more water and also chemical fertilisers and pesticides to produce best
results. Higher use of chemicals cause environmental degradation also.
Q.7. What was the major disadvantage associated with HYV seeds? Explain.
Ans. Biggest disadvantage associated with HYV seeds is bigger requirement of water and also
chemical fertilisers and pesticides to produce best results. Higher yields are possible only from
combination of HYV seeds, irrigation, chemical fertilisers, pesticides etc. Chemical fertilisers
and pesticides degrade our environment killing necessary bacterias in soil. Poor farmers could
not afford HYV seeds due to increased requirement of fertilisers and machinery. New
machinery replaced manual labour leading to unemployment and rural-urban migration.
Q.8. What are the various farming and non-farming activities in village Palampur?
[2010 (T-1)]
Ans. Farming activities : Farming is the main production activity in Palampur. About 75% of the
people depend upon farming for their livelihood. They use methods of multiple farming and
modern farming techniques for increase in their productivity. Well developed irrigational
facilities and use of HYV seeds has improved in production levels of agriculture in Palampur.
Non-farming activities : Non farming activities in Palampur includes dairy farming. Small
scale manufacturing units, shop-keeping and transportation activities. Milk is transported to
nearby and far of towns. Family members, without hired labours run small manufacturing units
with simple techniques shop keepsrs buy various goods from wholesale markets in cities and
sell them in villages. Road transport facilities includes rickshaws, tongs, jeeps, tractors, trucks
and bullock carts.
Q.9. What do the scientific reports indicate about the modern farming methods? Mention any
three points. [2010 (T-1)]
Ans. Scientific reports indicate that the modern farming methods has overused the natural resource
base.
l Green revolution, due to increased use of chemical fertilisers, has led to loss of soil
fertility.
l Use of ground water with due help of tubewells for irrigation has reduced the level of
ground water.
l Use of chemical fertilisers resulted in loss of soil fertility. Therefore, farmers are forced
to use more and more chemical fertilisers to achieve the production levels which in turn
raises the cost of production.

Q.10. What are the sources of irrigation in Palampur?	[2010 (T-1)]
Ans. Palampur holds a well developed system of irrigation. Due to introduction of electricity
irrigation system transformed from Persian wheels to electric-run tubewells. Initially, the first
few tubewells were installed by the government and then by mid of 1970s the entire cultivated
area of 200 hectare was irrigated by privately installed tubewells.
Q.11. Explain any three types of production activities in Palampur.	[2010 (T-1)]

Ans. (i) Farming at Palampur : Farming is the main activity in village Palampur. Land area
available for farming is fixed. Expansion in production is done due to methods of multiple
cropping and use of modern farming methods.
(ii) Dairy farming : Dairy is a common activity in many families of Palampur. Many families
have cows and buffalos. They feed them on jowar nad bajra. They sell milk either in the
village or in nearby villages or town.
(iii) Small-scale manufacturing : People at Palampur are Angaged in same kind of small
scale and cottage industries. Simple techniques of production are used on a small scale.
Such small scale units are mostly carried at home or in fields with the help of family
members. Sugarcan curshing, carpet Neaving and basket – making activities are carried
under such production units.

Q.12. State any three advantages of multiple cropping.	[2010 (T-1)]
Ans. Advantages of multiple cropping are :
(a) Efficient use of land : Land is not left idle at any time of the year and therefore more

efficiently used in the process of production.
(b) Increase of production : It increases the production on a piece of land during the year.
(c) Increase in income : Multiple cropping increases the agricultural income of the country
as well as for the farmers.
Q.13. What is Green Revolution? Which crop is benefitted the most due to Green Revolution?
[2010 (T-1)]
Ans. Green Revolution is a revolution of using modern farming methods for higher yield and
achieving the self sufficiency in the production of wheat and rice. It includes use of High Yielding
Variety (HYV) seeds, irrigation, chemical fertilisers, pesticides etc for producing best results.
Wheat is benefitted most due to Green Revolution.
Q.14. What are the problems do form labourers face in terms of employment? Explain any
three problems. [2010 (T-1)]
Ans. Problems faced by farm labourers are :
(a) Unadequate wages : Government has fixed the minimum wages as Rs 60 day but they
donot usually get this amount of money.
(b) Availability of labour : Too much availability of labour forces the labourers to work on
lower wages.
(c) Duration of employment : Labourers are sometimes employed on the daily wages and
sometimes for the whole year. They do not have surety of job.
Q.15. Explain any three modern farming methods of Agriculture. [2010 (T-1)]
Ans. (i) Use of HYV seeds : Use of High Yielding Variety seeds promises larger quantity of
production of foodgrains.
(ii) Use of farm machinery : Use of machinery for irrigation, harvesting, threshing etc
improves the quality of work as well as reduces time consumption.
(iii) Use of chemical fertilisers and pesticides : Use of chemical fertilisers and pesticides
ensure the farmers about the better upbringing of crops in quality and quantity.
Q.16. Many factors are responsible for the poor economic condition of farm labourers like Dala
and Ramkali. Can you explain a few of these factors? [2010 (T-1)]
Ans. The factors responsible for poor economic conditions of farm labourers like Dala and Ramkali
are :
(i) Use of modern farming techniques : Use of modern farming techniques make it difficult
for farm labourers to get work. Tractors are used foor ploughing, harvesters for harvesting,
threshers for threshing and weedicide for removing weeds. This leaves very less or no
work for farm labourers.
(ii) Poorly Paid : Due to heavy competition for work among the farm labourers, people agree
to work for lower wages. The minimum wages for a farm labourer set by government is
Rs 60 per day but they are generally paid only half of it. This forces them to take loan
from local money lenders which put them in the vicious circle of poverty.

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

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.

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.