The Story of Village Palampur

Introduction “The Story of Village Palampur” is an effort to explain the process of production, focusing on the role played by different factors of production and their relative importance in production activities. Production is an act of transforming inputs into outputs. The four main factors of production are: Land, Labour, Capital and Entrepreneur. Land consists of all the free gifts of nature such as: air, forests, water, minerals, soil, etc. Labour refers to all human efforts of body or mind, undertaken in the expectation of reward. Capital refers to all those physical assets which help in further production of goods and services such as machine, raw materials, money etc. Capital can further be classified into fixed capital and working capital. Human capital or entrepreneur is a person who plans, organizes and manages the business enterprise.

In Palampur, farming is the main activity; about 75% of people are dependent upon agriculture. In Palampur cultivated land area is fixed. During the rainy season farmers grow jowar and bajra. This is followed by cultivation of potatoes between October and December and Wheat is sown in the winter season. For increasing production on the limited area, farmers practice multiple cropping and modern farming methods. Multiple cropping is the practice of growing two or more crops on the same piece of land during the year. On the other hand the modern farming methods include the use of modern techniques and farm machinery, use of high yielding varieties (HYV) seeds, Proper irrigation methods and use of chemical fertilizers and pesticides, etc. Green revolution was introduced in India in 1960s that led to multifold increase in agricultural productivity.

People engaged in farming can be grouped as farm laborers, small farmers and medium and large farmers. Modern farming need less land but much more of capital. Small farmers have to borrow working capital; on the contrary, large farmers have their own savings. Farmers retain some produce for self consumption and sell the surplus. Small farmers have little surplus as their total production is less. It is the medium and large farmers who supply surplus produce to the market. A significant number of people in village are also engaged in non-farm activities. The main non–farm activities of village Palampur are dairy farming, small scale manufacturing, Shop keeping and transportation, etc.

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