Chapter 1: The Story of Village Palampur

Village Palampur

Palampur is a hypothetical village with about 450 families belonging to different castes. It has good connectivity with roads, electricity, and irrigation facilities.

Economic Activities

Farming is the main activity in Palampur. Other activities include dairy, small-scale manufacturing, shopkeeping, and transport.

Farming in Palampur

Farmers grow multiple crops using modern farming methods. The Green Revolution introduced HYV (High Yielding Variety) seeds, chemical fertilizers, and pesticides.

  • Kharif Season: Jowar and Bajra
  • Rabi Season: Wheat
  • Zaid Season: Sugarcane

Factors of Production

Production requires four factors:

  • Land: Fixed factor, unequally distributed
  • Labour: Physical and mental work
  • Capital: Tools, machines, buildings
  • Enterprise: Organizing other factors

Key Concepts

  • Multiple cropping increases production
  • Modern farming methods require capital
  • Small farmers often borrow at high interest rates
  • Non-farm activities provide alternative employment