The Story of Village Palampur

Overview

• Introduction to basic production concepts through a hypothetical village, Palampur.
• Main activity: farming; other activities include small-scale manufacturing, dairy, transport.
• Production activities require various resources: natural resources, human effort, money.

Introduction to Palampur

• Connected to Raiganj (3 km) and Shahpur via all-weather road.
• Various transport modes: bullock carts, tongas, motorcycles, jeeps, tractors.
• 450 families, diverse castes; 80 upper-caste families own most land.
• Facilities: electricity, schools, health centers.

Organisation of Production

• Aim: produce goods and services.
• Four production requirements: land, labor, physical capital, human capital.
  • Land & natural resources.
  • Labor: skilled vs. unskilled.
  • Physical capital: tools, machines, buildings.
  • Human capital: knowledge to combine resources.

Farming in Palampur

• Land is Fixed: No expansion since 1960; entire 200 hectares are irrigated.
• Multiple Cropping: Farmers grow three crops due to well-developed irrigation.
• Modern Farming Methods: High Yielding Variety (HYV) seeds introduced during Green Revolution.

Challenges in Farming

• Overuse of natural resources leading to soil fertility loss.
• Groundwater depletion due to continuous tubewell irrigation.

Distribution of Land

• Unequal distribution: 150 families landless, 240 families with small plots.
• Medium and large farmers have more than 2 hectares.

Labor in Farming

• Small farmers work their own fields; medium/large hire labor.
• Farm laborers paid low wages, less than government-set minimum.
• Migration common due to lack of opportunities.

Capital in Farming

• Small farmers often borrow at high interest.
• Medium/large farmers use savings for capital.

Sale of Surplus Farm Products

• Medium/large farmers sell surplus; small farmers retain for consumption.

Non-Farm Activities in Palampur

• Dairy: Milk sold in Raiganj.
• Small-scale Manufacturing: E.g., sugarcane processing to jaggery.
• Shopkeeping: Trade of goods from cities.
• Transport: Growth in rickshaw, jeep, tractor services.

Summary

• Farming is the primary activity; modern methods increased production but stressed natural resources.
• Small farmers struggle with capital; non-farm activities offer potential growth.

Exercises

• Understanding land distribution, farming methods, irrigation, and capital usage.

References

• Various references on rural development, land, and labor in India.