CLASS- IX ECONOMICS
01.
THE STORY OF VILLAGE PALAMPUR
Chapter Outline
·
About
Palampur
·
Four
Factors Of Production
·
Main
Production Activities
·
Important
Changes In Farm Activities
·
Capital
And Interest In Indian Agriculture
·
Sale
Of Surplus Farm Products
·
Non
Farming Activities In Indian Villages
Overview
This chapter provides following concepts by using a story of a
hypothetical village called Palampur:
About Palampur:: Palampur is a small village
having around 450 families. It is 3 km away from Raiganj, a bigger village.
Nearest town to the village is Shahpur.
Four factors of Production: Four factors or basically
the requirements to produce anu goods or services.
- Land
In its simplest
form, land is the physical place where any economic activity takes place.
However, land also includes all the natural resources found on it. Resources
can include timber, water, oil, livestock, and so forth.
- Labor
It seems
obvious, but things can't be produced unless someone makes them. Therefore,
another important factor of production is labor. Labor represents all of the
people that are available to transform resources into goods or services that
can be purchased.
- Capital
Capital is
short for capital goods.These are man-made objects like machinery, equipment,
and chemicals that are used in production.
- Entrepreneurship
Specialized
Knowledge and Expertise to produce a product. It is the drive to develop an
idea into a business. An entrepreneur combines the other three factors of
production to create a product or service.
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.
Important Changes in Farm Activities:
Though farm land area availability is limited, barren land can
be developed into farm land by proper irrigation and agricultural practices
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:
·
Multiple
cropping farming is a technique of growing more than one crop on a land within
an year.
Yield is measured as crop produced in a single season on a given area of land.
More yield from same are of land can be achieved by Multiple Cropping.
·
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. HYV (High
Yielding Varieties) of Wheat and Rice were introduced. It also promoted the use
of fertilizers, pesticides and improved irrigation techniques. Farmers of
Punjab, Haryana and western Uttar Pradesh were the first to try out the modern
farming methods in India.
Capital and Interest in Indian Agriculture: Many
small farmers borrow money at high interest rate to invest as capital in
farming activities. They face distress due to less yield, reduced prices of
grains and increased cost of labor and raw materials. Rich farmers have their
own savings from previous farming seasons to invest in this current season.
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 selfconsumption 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-Farming economic activities in Indian villages: Non farm
economic activities provide employment to only 24 percent of Indian village
population. All other 76% are dependent on agricultural employment.
- Cattle and Dairy farming
- Small scale manufacturing
- Shopkeepers
- Transport services
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