NCERT Folder 9th Economics Chapter 1 : The Story of Village Palampur


Class 9

Chapter 1

The Story of Village Palampur

Revision Notes

Important Terms

  • Labour : It refers to the people who are available for work.
  • Capital : It is the form of money or assets, taken as a sign of the financial strength of an individual and assumed to be available for development or investment.
  • Physical capital : The variety of inputs required during the process of production.
  • Fixed capital : The part of physical capital which can be used in process of production over many years and cannot be altered in short periods.
  • Working capital : Raw materials and money in hand are known as working capital.
  • Human capital : It is the stock of skills and productive knowledge embodied in them. Physical capital cannot deliver goods in the absence of adequate trained human power.
  • Agriculture : The art of cultivating the land.
  • Irrigation : Supply of water to agriculture from canals, wells and tube wells artificially or manually.
  • Soil fertility : The ability level of soil to grow and support plant life.
  • Multiple Cropping : The practice of growing two or more crops in the same piece of land during a single growing season.
  • Green Revolution : A package programme to increase the productivity of food grains by using HYV seeds, fertilizers, insecticides and pesticides, machines and better methods of irrigation.
  • Manufacturing : The process through which raw materials are transformed into a final product.
  • Yield: Agricultural yield is measured as a crop produced on a given piece of land during single season.
  • Non- farming activity : It refers to the activities in a village other than farming. This includes manufacturing and transportation.


Organization Of Production

  • Palampur is well-connected with neighbouring villages and towns. This village has about 450 families belonging to several different castes.
  • In villages across India, farming is the main production activity. The other production activities, referred to as non-farming activities include small manufacturing, transport, shop-keeping, etc.
  • Organization of Production
    • The aim of production is to produce the goods and services that we want.
    • There are four requirements for production of goods and services :
      • Land : This category includes land and other natural resources such as water, forests and minerals.
      • Labour : People who will do the work. Some production activities require highly educated workers to perform the necessary tasks. Other activities require workers who can do manual work.
      • Physical capital : This refers to the variety of inputs required at every stage during production. Tools, machines, buildings (fixed capital) and raw materials and money in hand (working capital) come under physical capital.
      • Human capital : We need knowledge and enterprise to be able to put together land, labour and physical capital and produce an output either to use yourself or to sell in the market. This is called human capital.
    • Every production is organized by combining land, labour, physical capital and human capital, which are known as factors of production.

Farming In Palampur

1. Land is fixed

  • 75 per cent of the people of Palampur are dependent on farming for their livelihood.
  • The well-being of these people is closely related to production on the farms.
  • But one of the main problems of the Palampur village is that the land area under cultivation is practically fixed.
  • Since 1960 in Palampur, there has been no expansion in land area under cultivation.
  • By then, some of the wastelands in the village had been converted to cultivable land.
  • The standard unit of measuring land is hectare.

2. Will the land sustain?

  • Land being a natural resource, it is necessary to be very careful in its use.
  • The modern farming methods have overused the natural resource base.
  • In many areas, the Green Revolution is associated with the loss of soil fertility due to increased use of chemical fertilizers.
  • Continuous use of groundwater for tube well irrigation has reduced the water table below the ground.
  • Chemical fertilizers provide minerals which dissolve in water and are immediately available to plants. But these may not be retained in the soil for long. They may escape from the soil and pollute groundwater, rivers and lakes.
  • Chemical fertilizers can also kill bacteria and other microorganisms in the soil.
  • Therefore, soil becomes less fertile and degraded by overusing of chemical fertilizers.
  • The consumption of chemical fertilizers in Punjab is highest in the country.

3. How is land distributed among the farmers of Palampur?

  • All the people engaged in agriculture do not have sufficient land for cultivation in Palampur.
  • The large number of small plots scattered around the village are cultivated by the small farmers.
  • On the other hand, in Palampur, there are 60 families of medium and large farmers who cultivate more than 2 hectares of land. A few of the large farmers have land extending over 10 hectares or more.

4. Who will provide the labour?

  • Small farmers along with their families cultivate their own fields. Thus, they provide the labour required for farming themselves.
  • Medium and large farmers hire farm labourers to work on their fields.
  • Farm labourers come either from landless families or families cultivating small plots of land.
  • A farm labourer might be employed on a daily basis, or for one particular farm activity like harvesting, or for the entire year.
  • The minimum wages for a farm labourer set by the government is Rs. 115 (April, 2011) per day.

5. The capital needed in farming

  • Most of the small farmers have to borrow money to arrange for the capital. They borrow from large farmers or the village moneylenders or the traders.
  • Since the rate of interest on such loans is very high, they are put to great distress to repay the loan.
  • The medium and large farmers have their own savings from farming. They are thus able to arrange for the capital needed.

6. Sale of surplus farm products

  • The farmers retain a part of the wheat for the family’s consumption and sell the surplus one.
  • The traders at the market buy the crop and sell it further to shopkeepers in the towns and cities.
  • The large farmers are able to sell the entire produced crop at the market and earn good income.
  • They can save most of their money in the bank account and later use the savings for lending to small farmers.
  • They can even buy tools, machines, cattle or trucks for improving agriculture.

Modern Farming Methods

Is there a way one can grow more from the same land?

(a) Multiple Cropping

  • All land is cultivated in Palampur. No land is left idle.
  • During the rainy season (kharif), farmers grow jowar and bajra. These plants are used as cattle feed.
  • It is followed by cultivation of potato between October and December.
  • In the winter season (rabi), fields are sown with wheat.
  • A part of the land area is also devoted to sugarcane which is harvested once every year.
  • Sugarcane, in its raw form, or as jaggery, is sold to traders.
  • Presence of well-developed system of irrigation in Palampur is the main reason of growing three different crops in a year.
  • To grow more than one crop on a piece of land during the year is known as multiple cropping. It is the most common way of increasing production on a given piece of land.

(b) Green Revolution

  • Till the mid 1960s, the seeds used in cultivation were traditional ones with relatively low yields.
  • The Green Revolution in the late 1960s introduced the Indian farmer to cultivation of wheat and rice using high yielding varieties (HYVs) of seeds.
  • Compared to the traditional seeds, the HYV seeds ensured to produce much greater amounts of grain on a single plant.
  • Higher yields were possible only from a combination of HYV seeds, irrigation, chemical fertilizers, pesticides etc.
  • Farmers of Punjab, Haryana and Western Uttar Pradesh were the first to try out the modern farming method in India.

Non-Farming Activities In Palampur

  • Non-farming Activities in Palampur
    • Only 25 per cent of the people working in Palampur are engaged in activities other than agriculture.
    • Dairy, small-scale manufacturing, shop-keeping and transportation are different types of non- farming activities practiced in the village.
    • As more villages get connected to towns and cities through roads, transport and telephone, it is possible that the opportunities for non- farming activities in the village would increase in the coming years.

Intext Questions

Question.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.

Question.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

YearProduction of PulsesProduction of Wheat
1965 – 661010
1970 – 711224
1980 – 811136
2000 – 011170

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.graph-01-economics-9th-intext-q-2

Question.3. What is the working capital required by the farmer using modern farming methods?
Ans. Working capital required by the farmer using modern farming includes the following :
(i) HYV seeds
(ii) Chemical fertilisers
(iii) Pesticides
(iv) Water
(v) Diesel
(vi) Cash or money in hand

Question.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.

Question.5. What are the sources of irrigation?
(i) Canals
(ii) Tubewells
(iii) Tanks
A majority of the farmers in India continue to depend on rains as source of irrigation.

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

Question.7. From where do farmers obtain the inputs that they require?
Ans. Farmers obtain the required inputs from the traders.

Question.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.

Question.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.

Question.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.

Question.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.table-01-economics-9th-intext-q-2Compare 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?
Ans.table-01-economics-9th-intext-q-2 (1)

  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.

Question.12. (a) What capital did Mishrilal need to set up his jaggery manufacturing unit? Who provides the labour in this case?
(b) Can you guess why Mishrilal is unable to increase his profit?
(c) Could you think of any reasons when he might face a loss?
(d) Why does Mishrilal sell his jaggery to traders in Shahpur and not in his village?
Ans. (a) Sugarcane crushing machine and sugarcane.
(b) Mishrilal is unable to increase his profit because of high price of sugarcane.
(c) He might face a loss when —

(i) sugarcane price rises further
(ii) demand for jaggery declines

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

Question.13. (a) In what ways is Kareem’s capital and labour different from Mishrilal’s?
(b) Why didn’t someone start a computer centre earlier? Discuss the possible reasons.
Ans. (a) 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.
(b) 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.

Question.14. (a) What is Kishora’s fixed capital?
(b) What do you think would be his working capital?
(c) In how many production activities is Kishora involved?
(d) Would you say that Kishora has benefitted from better roads in Palampur?
Ans. (a) Kishora’s fixed capital includes — a buffalo, wooden cart.
(b) Kishora had a loan from the bank which could be his working capital.
(c) Kishora is involved in the following activities :

(i) He works as a farm labourer
(ii) Dairying is another activity. He sells baffalo’s milk.
(iii) He is also involved in transport activity.

(d) Yes, because he is involved in transport activity.

NCERT Solution

Question.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.table-02-economics-9th-intext-q-2
Ans. (a) Location : 3 km away from Raiganj village
(b) Total Area of the Village : 226 hectares
(c) Land Irrigated : 200 hectares
Unirrigated : Nil.
(d) 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.

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

Question.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 :
(i) Most of the houses have electric connections.
(ii) Electricity is used to run tubewells in the fields.
(iii) Electricity is used in various types of small business.

Question.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.

Question.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
Less than 2240
More than 260

Question.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.

Question.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 —
(i) They were getting Rs 50 per day.
(ii) They were being paid in cash.
(iii) They do not get work regularly.
(iv) Both of them had borrowed some money from the moneylender.

Question.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 :
(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 at least two main crops in a year. In India, some farmers are growing a third crop also over the past 20 years.
(ii) 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.

Question.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 :
(i) ploughing by bullocks/tractor
(ii) sowing of seeds
(iii) watering of the field
(iv) spraying of insecticides
(v) cutting of crops

Question.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.

Question.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.

Question.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.

Question.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 :
(i) Small manufacturing, i.e. the activities of weavers, potters, blacksmiths, carpenters, basket-makers, etc.
(ii) Large manufacturing
(iii) Brickmaking units
(iv) Shopkeeping/trading
(v) Transport
(vi) Dairying
(vii) Moneylending
(viii) Making of jaggery (gur)
(ix) Coaching centres.

Question.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.
(i) Although people with some amount of money can set up non-farm activities, it is important that concessional loans should be made available.
(ii) 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.
(iii) More villages need to be connected to towns and cities through all-weather roads, transport and telephone.

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