Economics (Ch-1)
The story Of Village Palampur
Introduction to the
village Palampur
-This is a
hypothetical village
-Farming is the main
production activity
-Dairy, transport,
small scale manufacturing are a few other activities
- Well connected with
neighbouring villages and towns like Raiganj and Shahpur
-Bullock carts, tongas, bogeys, motorcycles, jeeps, tractors,
trucks, can be seen on the ‘All Weather road’.
-Village has about 450
families of several different castes. Out of them 80 are upper caste who live
in big & cemented houses and one third are SC who live in small houses in
one corner of the village.
-Most houses have
electric connection.
-Village has two
primary schools and one high school,
-A primary health
centre run by government and one private dispensary.
AIM OF PRODUCTION- To produce goods and services that we require and want.
Organization of Production
(Factors / Requirements of Production)
1. Land and other natural resources such as water, forests, minerals
etc.
2. Labour-some production activities require highly educated workers and
others require workers who can do manual work. Each worker is providing the
labour necessary for production.
3. Physical Capital- i.e. variety of inputs required at every
stage during production
· Fixed Capital-tools, machines and buildings
which can be used over many years like generators, tractors, computer etc.
· Working Capital- raw material and money in hand which are used
up in production.
4. Human Capital- knowledge and enterprise to put together
land, labour and physical capital and produce an output.
Every production is
organized by combining land, labour, physical capital, which are known as Factors of Production.
FARMING IN PALAMPUR
Farming is the main
production activity.75% of the people who are working are dependent on farming
for their livelihood. They are farmers or farm labourers.
Constraint-Land area
under cultivation is fixed. Some of the wastelands had been converted to
cultivable land but there is no further scope to increase farm production by
bringing new land under cultivation.
WAYS TO GROW MORE FROM SAME LAND
1) Multiple Cropping-To grow more than one crop
on a piece of land during the year is known as multiple cropping.
2) Modern Farming Method-Use of modern techniques
in farming like HYV seeds, chemical fertilizers, irrigation facilities like
tube wells, pesticides, modern machinery like tractors, threshers, harvesters
etc.
DIFFERENCE BETWEEN
|
TRADITIONAL FARMING
|
MODERN FARMING
|
|
-Seeds used in cultivation were
traditional ones with low yield.
-Traditional seeds needed less
irrigation.
-Cow-dung and other natural manure
were used as fertilizers.
-Yield-1300 kg per hectare.
-Sickle, wooden plough and other
traditional tools were used
|
-High yielding variety (HYV) seeds
are used.
-HYV seeds need plenty of water.
-Chemical fertilizers and
pesticides are used to produce best results.
-Yield-3200 kg per hectare.
-Modern machines like tractors,
threshers, harvesters are used.
|
Green Revolution-The Green revolution in 1960s introduced
Indian farmers to cultivation of Wheat and rice using HYV seeds, chemical
fertilizers, pesticides, irrigation facilities. Farmers of Punjab, Haryana, and Western UP were the first
to try out modern farming methods in India. They bought tractors, threshers, which made ploughing and
harvesting faster. Farmers now had greater amounts of surplus wheat to sell in
markets.
Disadvantages of
modern farming methods
-These methods have
overused the natural resource base
-Resulted in loss of
soil fertility due to increased use of chemical fertilizers
-Tube well irrigation
has reduced has reduced water table below the ground
-Chemical fertilizers
penetrate into the soil and pollute ground water
Land distribution between the farmers
-LANDLESS: One third of the
families involved in agricultural activities are landless i.e. they have no
land for cultivation. They provide labour on the fields of big and medium
farmers
-SMALL FARMERS:
some farmers cultivate small plots of land i.e. less than 2 hectares. Farmers
along with their families cultivate the field.
-big and medium farmers have large plots
extending over 10 hectares or more. Hire farm labourers to work on their
fields.
Landless farmers
They provide labour on
the fields of big and medium farmers. They are paid wages in cash or in kind
i.e. crop or sometimes meals. They are employed on daily basis or for a
particular farm activity or for the whole year. Minimum wage set by government
is Rs 60 per day but due to heavy competition they agree to work for Rs 35-40.
Capital needed for farming
Small farmers have to borrow money to arrange capital from
large farmers or village moneylenders or traders. Rate of interest for such
loans is very high.
Medium and large
farmers have their own savings
from farming because they have surplus production every year. They are thus
able to arrange for the capital needed during the next season.
SURPLUS FARM PRODUCTS
Farmers retain apart
of the wheat (production) for the family’s consumption and sell the surplus
wheat. Small farmers have little surplus because their total production is
small and from this a substantial share is kept for their own family’s need.
Medium and big farmers have lot of surplus and thus they sell it in the market
to traders and make huge profits. Traders at the market buy wheat and sell it
to shopkeepers in the towns and cities.
Capital for the next season
Medium and big farmers
put their most of their money in the bank account. Later they use the savings
for lending to poor farmers who are in need of a loan. They also use the
savings to arrange for the working capital for farming in the next season. They
also use their savings to buy machinery, cattle, trucks or to set up shops. A
part of the earnings is saved and kept for buying capital for the next season.
Thus they are able to arrange the capital for farming from their own savings.
Small and poor farmers
borrow from big farmers at a very high interest rate like 24% for 4 months.
Poor farmers cultivate their own field, work as labourers on the lands of big
farmers and even do their household chores.
NON FARM ACTIVITIES IN
PALAMPUR
25% of the people are
engaged in activities other than farming. Though there are a number of non farm
activities in villages but the number of people employed is quite small.
Different non farm activities
1. Dairy-dairy is a common activity in many families in villages of India especially north India. People feed
their buffalos on jowar and Bajra. Milk is sold in neighbouring towns and
cities. Traders in towns and cities have collection cum chilling centres where
milk is transported to far away towns and cities.
2. Small scale manufacturing- very less people at present are involved in
manufacturing activity. Manufacturing in villages involve very simple
production methods and is done on a small scale. They are carried out mostly at
home or in the fields with the help of the family labour. Rarely are labourers
hired.
3. Shopkeepers and traders- number of people involved in trading is very
less. The traders buy goods from the wholesale markets in the cities and sell
them in the village. Small general stores in the village sell a variety of
items like rice, sugar, tea, oil, biscuits, soap, toothpaste, pen, pencil,
cloths, eatables etc.
4. Transport- this is a fast developing sector in villages. A variety of
vehicles like tongas, rickshaws, tongas, trucks, jeep, bullock carts , carry
people and goods from one place to another and in return they get paid for it.
Advantages of non farm activities
-Unlike farming, non
farm activities require little land.
-People with small
amount can set up non farm activities.
-Non farm activities
generate employment opportunities.
-As the more villages
get connected to towns and cities through roads, transport and telephone it is
possible that the opportunities for non-farm activities in the village would
increase in the coming years.
Change after the spread of electricity
-It helped farmers to
irrigate their lands in a better way. Earlier they used to irrigate their lands
with Persian wheels which was a slow process. But now with the help of
electricity they could irrigate much larger areas quickly and effectively.
-Due to better
irrigational facilities farmers could grow different crops all the year round.
-They are now not
dependent on monsoonal rains which are uncertain and erratic.
Work of farmer with I hectare of land
-A small farmer will
cultivate his small piece of land with traditional methods as he is poor and
can not afford modern techniques.
-To meet his needs he
will work on the field of some big farmer for Rs 35-40.
-To arrange for the
working capital he will have to take loan from a moneylender, big farmer even
if the rate of interest is very high.
-Because of this he
will get struck into the cycle of loans.
Ways to increase non farm activities in villages
-Some small scale and
cottage industries can be started.
-Poultry farming can
be encouraged
-Technical training in
cutting & tailoring, cycle and scooter repair, etc can be given
-Dairy farming with
more facilities like collection cum chilling centers can be done
-shop keeping can be
encouraged
-Government & co-operative banks can give
loans to encourage non –farm activities in villages.
Economics (Ch-1)
The story Of Village Palampur
Introduction to the
village Palampur
-This is a
hypothetical village
-Farming is the main
production activity
-Dairy, transport,
small scale manufacturing are a few other activities
- Well connected with
neighbouring villages and towns like Raiganj and Shahpur
-Bullock carts, tongas, bogeys, motorcycles, jeeps, tractors,
trucks, can be seen on the ‘All Weather road’.
-Village has about 450
families of several different castes. Out of them 80 are upper caste who live
in big & cemented houses and one third are SC who live in small houses in
one corner of the village.
-Most houses have
electric connection.
-Village has two
primary schools and one high school,
-A primary health
centre run by government and one private dispensary.
AIM OF PRODUCTION- To produce goods and services that we require and want.
Organization of Production
(Factors / Requirements of Production)
1. Land and other natural resources such as water, forests, minerals
etc.
2. Labour-some production activities require highly educated workers and
others require workers who can do manual work. Each worker is providing the
labour necessary for production.
3. Physical Capital- i.e. variety of inputs required at every
stage during production
· Fixed Capital-tools, machines and buildings
which can be used over many years like generators, tractors, computer etc.
· Working Capital- raw material and money in hand which are used
up in production.
4. Human Capital- knowledge and enterprise to put together
land, labour and physical capital and produce an output.
Every production is
organized by combining land, labour, physical capital, which are known as Factors of Production.
FARMING IN PALAMPUR
Farming is the main
production activity.75% of the people who are working are dependent on farming
for their livelihood. They are farmers or farm labourers.
Constraint-Land area
under cultivation is fixed. Some of the wastelands had been converted to
cultivable land but there is no further scope to increase farm production by
bringing new land under cultivation.
WAYS TO GROW MORE FROM SAME LAND
1) Multiple Cropping-To grow more than one crop
on a piece of land during the year is known as multiple cropping.
2) Modern Farming Method-Use of modern techniques
in farming like HYV seeds, chemical fertilizers, irrigation facilities like
tube wells, pesticides, modern machinery like tractors, threshers, harvesters
etc.
DIFFERENCE BETWEEN
|
TRADITIONAL FARMING
|
MODERN FARMING
|
|
-Seeds used in cultivation were
traditional ones with low yield.
-Traditional seeds needed less
irrigation.
-Cow-dung and other natural manure
were used as fertilizers.
-Yield-1300 kg per hectare.
-Sickle, wooden plough and other
traditional tools were used
|
-High yielding variety (HYV) seeds
are used.
-HYV seeds need plenty of water.
-Chemical fertilizers and
pesticides are used to produce best results.
-Yield-3200 kg per hectare.
-Modern machines like tractors,
threshers, harvesters are used.
|
Green Revolution-The Green revolution in 1960s introduced
Indian farmers to cultivation of Wheat and rice using HYV seeds, chemical
fertilizers, pesticides, irrigation facilities. Farmers of Punjab, Haryana, and Western UP were the first
to try out modern farming methods in India. They bought tractors, threshers, which made ploughing and
harvesting faster. Farmers now had greater amounts of surplus wheat to sell in
markets.
Disadvantages of
modern farming methods
-These methods have
overused the natural resource base
-Resulted in loss of
soil fertility due to increased use of chemical fertilizers
-Tube well irrigation
has reduced has reduced water table below the ground
-Chemical fertilizers
penetrate into the soil and pollute ground water
Land distribution between the farmers
-LANDLESS: One third of the
families involved in agricultural activities are landless i.e. they have no
land for cultivation. They provide labour on the fields of big and medium
farmers
-SMALL FARMERS:
some farmers cultivate small plots of land i.e. less than 2 hectares. Farmers
along with their families cultivate the field.
-big and medium farmers have large plots
extending over 10 hectares or more. Hire farm labourers to work on their
fields.
Landless farmers
They provide labour on
the fields of big and medium farmers. They are paid wages in cash or in kind
i.e. crop or sometimes meals. They are employed on daily basis or for a
particular farm activity or for the whole year. Minimum wage set by government
is Rs 60 per day but due to heavy competition they agree to work for Rs 35-40.
Capital needed for farming
Small farmers have to borrow money to arrange capital from
large farmers or village moneylenders or traders. Rate of interest for such
loans is very high.
Medium and large
farmers have their own savings
from farming because they have surplus production every year. They are thus
able to arrange for the capital needed during the next season.
SURPLUS FARM PRODUCTS
Farmers retain apart
of the wheat (production) for the family’s consumption and sell the surplus
wheat. Small farmers have little surplus because their total production is
small and from this a substantial share is kept for their own family’s need.
Medium and big farmers have lot of surplus and thus they sell it in the market
to traders and make huge profits. Traders at the market buy wheat and sell it
to shopkeepers in the towns and cities.
Capital for the next season
Medium and big farmers
put their most of their money in the bank account. Later they use the savings
for lending to poor farmers who are in need of a loan. They also use the
savings to arrange for the working capital for farming in the next season. They
also use their savings to buy machinery, cattle, trucks or to set up shops. A
part of the earnings is saved and kept for buying capital for the next season.
Thus they are able to arrange the capital for farming from their own savings.
Small and poor farmers
borrow from big farmers at a very high interest rate like 24% for 4 months.
Poor farmers cultivate their own field, work as labourers on the lands of big
farmers and even do their household chores.
NON FARM ACTIVITIES IN
PALAMPUR
25% of the people are
engaged in activities other than farming. Though there are a number of non farm
activities in villages but the number of people employed is quite small.
Different non farm activities
1. Dairy-dairy is a common activity in many families in villages of India especially north India. People feed
their buffalos on jowar and Bajra. Milk is sold in neighbouring towns and
cities. Traders in towns and cities have collection cum chilling centres where
milk is transported to far away towns and cities.
2. Small scale manufacturing- very less people at present are involved in
manufacturing activity. Manufacturing in villages involve very simple
production methods and is done on a small scale. They are carried out mostly at
home or in the fields with the help of the family labour. Rarely are labourers
hired.
3. Shopkeepers and traders- number of people involved in trading is very
less. The traders buy goods from the wholesale markets in the cities and sell
them in the village. Small general stores in the village sell a variety of
items like rice, sugar, tea, oil, biscuits, soap, toothpaste, pen, pencil,
cloths, eatables etc.
4. Transport- this is a fast developing sector in villages. A variety of
vehicles like tongas, rickshaws, tongas, trucks, jeep, bullock carts , carry
people and goods from one place to another and in return they get paid for it.
Advantages of non farm activities
-Unlike farming, non
farm activities require little land.
-People with small
amount can set up non farm activities.
-Non farm activities
generate employment opportunities.
-As the more villages
get connected to towns and cities through roads, transport and telephone it is
possible that the opportunities for non-farm activities in the village would
increase in the coming years.
Change after the spread of electricity
-It helped farmers to
irrigate their lands in a better way. Earlier they used to irrigate their lands
with Persian wheels which was a slow process. But now with the help of
electricity they could irrigate much larger areas quickly and effectively.
-Due to better
irrigational facilities farmers could grow different crops all the year round.
-They are now not
dependent on monsoonal rains which are uncertain and erratic.
Work of farmer with I hectare of land
-A small farmer will
cultivate his small piece of land with traditional methods as he is poor and
can not afford modern techniques.
-To meet his needs he
will work on the field of some big farmer for Rs 35-40.
-To arrange for the
working capital he will have to take loan from a moneylender, big farmer even
if the rate of interest is very high.
-Because of this he
will get struck into the cycle of loans.
Ways to increase non farm activities in villages
-Some small scale and
cottage industries can be started.
-Poultry farming can
be encouraged
-Technical training in
cutting & tailoring, cycle and scooter repair, etc can be given
-Dairy farming with
more facilities like collection cum chilling centers can be done
-shop keeping can be
encouraged
-Government & co-operative banks can give
loans to encourage non –farm activities in villages.
