The Story of Village Palampur Notes Class 9 Economics Chapter 1

‘The Story of Village Palampur’ Notes CBSE Class 9: The comprehensive and detailed exhaustive notes given here cover the whole chapter ‘The Story of Village Palampur’ in systematic manner with headings and subheadings followed by relevant key points. So, enjoy a free learning here! 😊

I. Description of Palampur Village

Palampur is a village that boasts excellent connectivity to neighbouring towns and villages. The following points highlight the village’s infrastructure and facilities:


  • Raiganj, a big village, is only 3 kilometres away from Palampur and is connected by an all-weather road.
  • The road also connects Raiganj to the nearest small town of Shahpur.
  • Various modes of transportation are visible on this road, from traditional bullock carts, tongas, and bogeys to modern vehicles like motorcycles, jeeps, tractors, and trucks.

Population and Housing:

  • Palampur has a population of approximately 450 families belonging to several different castes.
  • The upper-caste families (80 in number) own most of the land in the village and have large houses made of brick with cement plastering.
  • The SCs (dalits) comprise one third of the population and live in one corner of the village in much smaller houses, some of which are made of mud and straw.


  • Most houses in Palampur have access to electricity.
  • The electricity powers all the tubewells in the fields and supports various small businesses.

Education &Health Care:

  • Palampur has two primary schools and one high school.
  • There is a primary health centre run by the government and one private dispensary where the sick are treated.

II. Organisation of Production

The aim of production is to produce goods and services that fulfill our needs and desires. In order to achieve this, there are four essential requirements for the production of goods and services:

Land and Natural Resources:
Land and natural resources, such as water, forests, and minerals, are the first requirement for production. These resources provide the necessary foundation for various production activities. For example, agricultural production relies on fertile land, while industries may require access to specific minerals or water sources.

Labour refers to the people who contribute their skills and effort to perform the necessary work in production. Different production activities require different types of labor. Some tasks demand highly educated workers, while others require manual labor. Each worker plays a crucial role in providing the necessary workforce for production.

Physical Capital:
Physical capital represents the diverse range of inputs required at every stage of production. It includes the following items:

  • a) Tools, Machines, and Buildings (Fixed Capital):
    Tools and machines vary from simple implements like a farmer’s plough to sophisticated equipment such as generators, turbines, and computers. Buildings also form part of the physical capital, serving as dedicated spaces for production activities. Tools, machines, and buildings are considered fixed capital as they can be used in production over an extended period.
  • b) Raw Materials (Working Capital):
    Raw materials, such as yarn for weavers or clay for potters, are essential inputs in the production process. Working capital, consisting of money in hand, is also necessary to make payments and purchase other required items during production. Unlike tools and buildings, raw materials and working capital are consumed or used up in the production process.

Knowledge and Enterprise (Human Capital):
The fourth requirement for production is knowledge and enterprise to put together land, labor, and physical capital and produce an output either for personal use or to sell in the market. This requirement is commonly known as human capital.

Factors of Production:

  • The combination of land, labour, physical capital, and human capital constitutes the factors of production.
  • These factors are necessary for organizing and conducting production activities.
  • Land provides the foundation, labour contributes the necessary work, physical capital provides the tools and infrastructure, and human capital brings knowledge and enterprise.

Conclusion: The organization of production is a complex process that requires the coordination of various factors of production. By understanding these factors and how they are organized, we can better appreciate the goods and services that we use every day.

III. Farming in Palampur

1. Land is fixed

Farming as the Primary Source of Livelihood

  • 75% of the population in Palampur relies on farming for their livelihood.
  • Both farmers and farm laborers contribute to the agricultural activities.
  • The well-being of the people is directly linked to the productivity of the farms.

Fixed Land Constraint

  • The cultivation of land is a fundamental constraint affecting farm production.
  • The land area available for cultivation in Palampur has remained fixed since 1960.
  • Previously, wastelands were converted into cultivable land, but no further expansion has occurred.
  • There are no opportunities to increase farm production by bringing new land under cultivation.

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

Palampur would resemble a village in the western part of Uttar Pradesh as it follows similar agricultural practices. This includes growing various crops throughout the year and utilizing irrigation systems for higher yields.

Multiple Cropping in Palampur:

  • All land in Palampur is cultivated, leaving no land idle.
  • During the rainy season (kharif), farmers grow jowar and bajra as cattle feed.
  • Potato cultivation takes place between October and December.
  • In the winter season (rabi), wheat is the main crop grown.
  • Surplus wheat is sold at the market in Raiganj.
  • Sugarcane is also grown, which is harvested once a year and sold in Shahpur.

Well-Developed Irrigation System:

  • The presence of electricity in Palampur transformed the irrigation system.
  • Previously, farmers used Persian wheels to draw water from wells for small fields.
  • Electric-run tubewells became popular due to their ability to irrigate larger areas effectively.
  • The government initially installed a few tubewells, but farmers began setting up private tubewells.
  • By the mid-1970s, the entire cultivated area of 200 hectares was irrigated.

Multiple Cropping and Modern Farming Methods:

  • Multiple cropping, growing more than one crop on the same land within a year, is practiced by all farmers in Palampur.
  • Modern farming methods have contributed to higher production.
  • Traditional seeds with low yields were replaced by high-yielding varieties (HYVs) of seeds during the Green Revolution in the late 1960s.
  • HYV seeds promised greater grain production per plant, resulting in larger quantities of foodgrains from the same land.
  • HYV seeds required more water, chemical fertilizers, and pesticides for optimal results.
  • Farmers in Punjab, Haryana, and Western Uttar Pradesh were early adopters of modern farming methods, including tubewells, HYV seeds, chemical fertilizers, and pesticides.

Impact on Wheat Production in Palampur:

  • In Palampur, the yield of wheat from traditional varieties was 1300 kg per hectare.
  • The introduction of HYV seeds increased the yield to 3200 kg per hectare.
  • This significant increase in wheat production provided farmers with surplus wheat to sell in the markets.

Conclusion: Palampur’s agricultural practices revolve around multiple cropping and the adoption of modern farming methods. The well-developed irrigation system and the use of HYV seeds, fertilizers, and pesticides have resulted in increased wheat production and improved yields, allowing farmers to generate surplus produce for sale.

3. Will the land sustain?

  • Land is an important natural resource that need to be used carefully.
  • Overuse of Natural Resource Base: Scientific reports indicate that modern farming methods have overused the natural resource base.
  • Green Revolution and Soil Fertility Loss: In many areas, the Green Revolution is associated with the loss of soil fertility due to increased use of chemical fertilizers.
  • Depletion of Water-Table: Continuous use of groundwater for tubewell irrigation has led to the depletion of the water-table.
  • Environmental Resources Built Up Over Time: Environmental resources like soil fertility and groundwater are built up over years.
  • Difficulty in Restoring Environmental Resources: Once destroyed, it is very difficult to restore environmental resources.
  • Importance of Care for Future Agricultural Development: We must take care of the environment to ensure the future development of agriculture.

4. How is land distributed between the farmers of Palampur?

In Palampur, the distribution of land among farmers is characterized by disparities, with some families owning substantial plots while others are landless.

Landless Families:

  • Around one third of the total 450 families in Palampur, which amounts to 150 families, are landless.
  • Most of the landless families in Palampur belong to the dalit community.
  • These families lack the resources and means to engage in agricultural cultivation due to the absence of land.

Small Landowners:

  • Among the families who do own land, 240 families cultivate small plots less than 2 hectares in size.
  • Cultivating such small plots does not generate adequate income for these farmer families.
  • The picture of the village reveals numerous small plots, indicating the prevalence of small-scale farming in Palampur.

Large Landowners:

  • More than half of the village’s area is covered by plots that are quite large in size.
  • In Palampur, there are 60 families consisting of medium and large farmers who cultivate more than 2 hectares of land.
  • Some of these large farmers possess land extending over 10 hectares or even more.

5. Who will provide the labour?

Labour is an essential factor for production, particularly in farming, where hard work is required. Farmers and farm labourers provide the necessary labour.

Labour in Small Farms: Small farmers cultivate their own fields and provide the required labour. They work alongside their families to maintain their crops.

Labour in Medium and Large Farms: Medium and large farmers hire farm labourers to work on their fields. These labourers come from landless families or families cultivating small plots of land.

Rights of Farm Labourers: Unlike farmers, farm labourers do not have a right over the crops grown on the land.

Variations in Wages:

  • Farm labourers are paid wages by the farmer for whom they work.
  • Wages can be in cash or in kind, such as crops, and sometimes labourers receive meals too.
  • Wages vary widely from region to region, from crop to crop, and from one farm activity to another.
  • The duration of employment also varies, with some labourers being employed on a daily basis, and others for specific activities or the whole year.

Example of Dala’s Situation:

  • Dala is a landless farm labourer in Palampur, who works on daily wages.
  • He must regularly look for work, and despite the government’s minimum wage of Rs 300 per day, he only receives Rs 160.
  • Heavy competition for work among the farm labourers in Palampur causes people to agree to work for lower wages.

Poor Status of Dala and Ramkali: Ramkali is another farm labourer in Palampur. Dala and Ramkali are among the poorest people in the village, both of whom are farm labourers.

Labour is a critical component of farming, with farmers and labourers working together to maintain crops. Farm labourers face challenges such as low wages and limited job security, which affect their quality of life.

6. The capital needed in farming

Modern farming methods require significant capital investments, which means farmers need more money than before. The small farmers arrange for the necessary capital, while medium and large farmers have their savings.

Capital for Small Farmers (Borrowing Money):

  • Most small farmers have to borrow money to arrange for the necessary capital.
  • They borrow from large farmers, village moneylenders, or traders who supply various inputs for cultivation.
  • The rate of interest on such loans is very high, which puts them in great distress to repay the loan.

Capital for Medium and Large Farmers (Self-Funding)

  • In contrast to small farmers, medium and large farmers have their savings from farming.
  • They are thus able to arrange for the capital needed.

7. Sale of Surplus Farm Products

Let us suppose that the farmers have produced wheat on their lands using the three factors of production. Farmers sell their surplus wheat to the market. Medium and large farmers supply wheat to the market while small farmers keep a substantial share for their family needs.

Supply of Wheat to the Market:

  • Medium and large farmers supply wheat to the market.
  • Traders at the market buy the wheat and sell it further to shopkeepers in towns and cities.

Case Study: Tejpal Singh

  • Tejpal Singh is a large farmer with a surplus of 350 quintals of wheat.
  • He sells his surplus wheat at the Raiganj market and earns good profits.
  • He puts most of the money in his bank account, which he later uses for lending to farmers in need of a loan.
  • He also uses the savings to arrange for the working capital for farming in the next season.
  • This year, Tejpal Singh plans to use his earnings to buy another tractor, which would increase his fixed capital.

Use of Earnings by Other Large and Medium Farmers:

  • Like Tejpal Singh, other large and medium farmers sell their surplus farm products.
  • They save a part of their earnings and keep it for buying capital for the next season.
  • Farmers use their savings to arrange for capital for farming from their own savings.
  • Some farmers use their savings to buy cattle, trucks or set up shops, which constitute the capital for non-farm activities.

IV. Non-Farm Activities in Palampur

We have learnt about farming as the main production activity in Palampur. We shall now take a look at some of the non-farm production activities. Only 25 per cent of the people working in Palampur are engaged in activities other than agriculture.

1. Dairy — the other common activity

  • Dairy is a common activity in many families of Palampur.
  • People feed their buffalos on various kinds of grass and the jowar and bajra that grows during the rainy season.
  • The milk is sold in Raiganj, the nearby large 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.

2. An example of small-scale manufacturing in Palampur

  • At present, less than fifty people are engaged in manufacturing in Palampur.
  • Manufacturing in Palampur involves very simple production methods and are done on a small scale.
  • Manufacturing is carried out mostly at home or in the fields with the help of family labour.
  • Rarely are labourers hired.

3. The shopkeepers of Palampur

  • People involved in trade (exchange of goods) are not many in Palampur.
  • The traders of Palampur are shopkeepers who buy various goods from wholesale markets in the cities and sell them in the village.
  • Small general stores in the village sell a wide range of items like rice, wheat, sugar, tea, oil, biscuits, soap, toothpaste, batteries, candles, notebooks, pen, pencil, and even some cloth.
  • A few families near the bus stand have opened small shops to sell eatables.

4. Transport: a fast-developing sector

  • There are a variety of vehicles on the road connecting Palampur to Raiganj.
  • Rickshawallahs, tongawallahs, jeep, tractor, truck drivers, and people driving the traditional bullock cart and bogey are involved in the transport services.
  • They ferry people and goods from one place to another and get paid for it.
  • The number of people involved in transport has grown over the last several years.

Conclusion: Non-farm activities in Palampur, though not as prevalent as farming, are still important for the economy of the village. Dairy, small-scale manufacturing, shopkeepers, and transport are some of the non-farm activities that contribute to the livelihoods of the people of Palampur.

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