The Story of Village Palampur

To introduce basic concepts of production. Palampur is a hypothetical village where farming is the main activity, along with small-scale manufacturing, dairy, and transport.

1. Land (Natural resources). 2. Labour (People who work). 3. Physical Capital (Fixed: machines/buildings, Working: raw material/money). 4. Human Capital (Knowledge/enterprise).

To grow more than one crop on a piece of land during the year. Most common way to increase production on a given piece of land. (e.g., Jowar in rainy, Potato in between, Wheat in winter).

A shift in agriculture in the late 1960s where Indian farmers used High Yielding Variety (HYV) seeds, plenty of water, chemical fertilizers, and pesticides to produce huge amounts of wheat and rice.

1. Loss of soil fertility (overuse of fertilizers). 2. Depletion of water table (tube wells). 3. Environmental damage.

Small farmers cultivate their own land. Medium and large farmers hire farm labourers (landless people).

Payment made to labourers. Can be cash or kind (crop). Wages vary widely by region, crop, and activity.

They borrow money from large farmers or moneylenders at high interest rates. This pushes them into a debt trap.

They have savings from farming (selling surplus) which they use to buy inputs for the next season or lend to small farmers.

Rainy season (farmers grow jowar and bajra). These are used as cattle feed.

Winter season (farmers grow wheat).

The knowledge and enterprise needed to put together land, labour, and physical capital to produce output.

75% are dependent on farming.

Dairy (milk sold to Raiganj), Small-scale manufacturing (jaggery making), Shopkeeping (selling soap/biscuit), Transport (rickshaw/jeep).

Crop produced on a given piece of land during a single season.

There is heavy competition for work, so they agree to work for wages lower than minimum set by government. Also, employment is seasonal.

Raw materials and money in hand. These are used up in production.

Assets that can be used over many years (Tools, Machines, Buildings).

A farm labourer who took a loan, bought a buffalo, and now sells milk and transports clay. He earns more than before.

Hectare. Local units are Bigha, Guintha.

Palampur has 450 families.

80 families are upper caste (own majority land).

Dalits (SCs) are 1/3rd of population.

Dalits live in corners in mud houses.

Electricity powers tube wells.

Raiganj is a big village 3 km away.

Shahpur is the nearest town.

High Yielding Varieties (HYV) seeds need more water.

Chemical fertilizers kill soil bacteria.

Punjab, Haryana, West UP used HYV first.

Minimum wage for farm labour is Rs 300 (2017).

Dala and Ramkali are poor labourers.

Tejpal Singh is a large farmer.

Savita is a small farmer (debt victim).

Jaggery is made from sugarcane.

Kareem opened a computer centre.

Mishrilal makes jaggery.

Capital is scarce for poor.

Land is fixed factor.

Productivity can be increased by modern methods.

Sustainability is crucial.

Non-farm sector employs 25% people.

Infrastructure (Roads/Power) is key.

Market linkage helps sell surplus.

Moneylenders exploit poor.

Green Revolution

Govt notified minimum wage Rs 300