CBSE Class 9 Economics Chapter 1 Notes - The Story of Village Palampur

There are a lot of sectors that have a major contribution to the Indian Economy, but the agriculture sector has been dominating the Indian Economy without a doubt. It is said that almost 18% of India’s Gross Domestic Product constitutes the agricultural sector. Also, it is mentioned in CoolGyan’s Class 9 Economics Chapter 1 notes that half of the country’s workforce belongs to the agricultural sector. Through the Class 9 Economics Chapter 1 notes free PDF, we get to know that India is the largest producer of spice products, pulses, rice and wheat.

Access Class 9 Social Science Economics Chapter 1 - The Story of the Village Palampur Notes

1. Overview of Palampur

  • Palampur village is similar to one we saw in the research study of Gilbert Etienne.

  • Palampur has pucca roads that can withstand winter, rain and summer. This road connects Palampur village to their neighbouring village, Raiganj.

  • Various types of vehicles ply on Palampur road, like bullock carts, tongas, tractors, jeeps, motorcycles, trucks etc.

  • Availability of Electricity in Palampur. Many houses have electricity and tube-wells are powered by electricity.

  • There are 2 primary schools and 1 high school for the students of Palampur.

  • There is one government run primary health care and one private dispensary in Palampur village.


2. Factors of Production

There are 4 factors of production:

a. Land

b. Labour

c. Physical Capital

d. Human Capital


a. Land

Without land, a production facility is not possible to exist. There would be no place for agriculture, without land. This also involves other natural resources like water, trees, minerals etc.


b. Labour

People are required to work either in a factory to operate machines or to sow the seeds, using tractors to irrigate the land as far as agriculture is concerned. These people are labour.


c. Physical Capital

  • Labour requires tools to do work, be it in a factory or field. Farmers need tractors, water pumps etc. Factory labours require specialised tools and machinery.

  • Physical capital is divided in two categories: Fixed capital and Working capital.

  • Fixed capital is, those which once brought, will serve you for a longer period of time – tractors and machinery.

  • Working capitals are once that are not permanent – such as the raw materials or the money to run the business or farm.


d. Human Capital

Labour all alone cannot keep the production unit and the company running. There is a need for creativity, can-do attitude. People who employ these things are called the Human Capital.


3. Farming in Palampur

  • In Palampur village, 75% of the people earn a livelihood through farming.

  • Some are farmers and others are farm labourers.

  • The area in Palampur is used to its fullest for farming purposes. Hence, no possibility of expansion of land for agriculture.


4. The village of Palampur uses multiple cropping

  • As land cannot be expanded in Palampur, farmers tend to use the same land to grow different plants and eatable things.

  • In monsoon, jowar and bajra are cultivated. Crops were sown before the starting of rain called as Kharif crops.

  • Farmers used to grow potatoes during the period of October to December.

  • Farmers used to sow Rabi crops such as wheat during winter and harvest them in springtime.

  • A part of the land was dedicated to growing sugarcane.

  • Farmers used to keep wheat for their consumption and sell the surplus sugarcane and jaggery.

  • Farmers could irrigate their farmland effectively since electricity came to Palampur earlier compared to other villages in India.

  • Government installed the initial set of tube-wells.


5. Another Method of Increasing Production in Agriculture

  • Apart from multi-crop methods, an increase in High Yielding Varieties of Seeds (HYV) was seen.

  • Compared to traditional crops, High Yielding Varieties of seeds produce more grains.

  • But, HYV seeds require more water compared to traditional seeds.

  • Farmers needed to use chemical fertilizers and pesticides for HYV. Hence cost of production increased.

  • During the Green Revolution of 1960’s the farmers of Haryana and Punjab started using HYV seeds.

  • In Palampur village, the traditional seeds gave a yield of 1300 kg/ha while the HYV seeds gave a yield of 3200 kg/ha.


6. The sorry state of pulses production in India

After the Green Revolution, India experienced an increase in wheat production, but production of pulses lagged behind.


7. The unintended consequences of the Green Revolution

  • The Green Revolution people started using pesticides and fertilizers in extreme manners. Which resulted in loss of solid fertility.

  • Improper crop rotation technique has also added to the worst condition.

  • Too much drawing of groundwater has depleted the underground water.


8. Land distribution between farmers in Palampur

  • Many of the Dalit families approx. 150 are landless.

  • 240 families had less than 2 hectares of land for farming.

  • 60 families consisting of large and medium farmers cultivate more than 2 hectares of land.

  • Few families had more than 10 hectares of land.


9. Labour

  • Small farmers cultivated their own land. They were helped by their family members.

  • Medium and large farmers hired labourers for the farm. People who had small land also worked as farm labourers to earn extra money.

  • The farm used to get exploited. So, wages were quite low.


10. Capital

  • To buy seeds, fertilizers or any farming instruments the small farmers of Palampur had to borrow money from the lenders and large farmers. They had to pay high-interest rates, that is 24%.

  • Large farmers buy physical capital with their own money. They produced lots of grains and hence can sell surplus. This lets them earn a huge amount of money.


11. Non-farm activities in Palampur

  • Dairy: farmers grow bajra and feed them to their buffalos. The buffaloes gave milk to the people of Palampur. This milk was sold in Raiganj where 2 traders from Shahpur town had established chilling centres. Milk was transported to other big cities as well.

  • Manufacturing: Mishrilal, a farmer, used a mechanical sugarcane machine and crushed his and other farmers' sugarcane, so that they could make jaggery out of it. Jaggery was sold to traders in Shahpur.

  • Kareem opened a computer centre and employed 2 women who teach there. They used to earn money by teaching computer lessons to the students.

  • Rickshawallah, Tongawallah, truck and jeep drivers transported agricultural and other products to people from Palampur to other big cities and villages. They earned money through transportation.


Frequently Asked Questions

1. Modern Farming Methods use various materials and things. These things are manufactured in the industry. Do you agree?

Ans: Yes, modern farming methods require more fertilizers, water, pesticides and tractors.

  • To draw water from tube wells, pumps and electricity was needed.

  • Pumps were made in factories.

  • Fertilizers too were made in factories.

  • Farmers needed tractors to irrigate their lands.

  • These tractors were made in vehicle factories.


2. How did the easy availability of electricity help the Palampur farmers?

Ans: Electricity was available in Palampur for a long time. Farmers of Palampur could irrigate their lands efficiently with less work.

  • The wheel system of drawing water and irrigation was inefficient.

  • The electric-run tube-wells in Palampur irrigate large tracts of land faster.

  • Government installed a few tube-wells and then the people installed some more.


3. Why do farm labourers work for low wages?

Ans: The farm labourers in Palampur were landless. They had to work in the land of big farmers to earn some money.

  • Dalit families were the most, who are landless farm labourers in Palampur.

  • One-third of the population were Dalit families.

  • So, there were many labourers in search of a job.

  • Since, there was huge competition among them, they agreed to get paid less than standard pay.


4. How can the production of crops on the same land be increased?

Ans: The two ways are:

  • Using Multi-crop techniques: In the multi-crop technique, people grow more than one crop during an agricultural year. Farmers of Palampur used to grow Bajra and Jowar during the rainy season, potatoes during October to December and they grow wheat as a Rabi crop.

  • Using HYV: High Yield Variety seeds will provide farmers more yield from a single plant. HYV became more famous after the Green Revolution. Farmers need more water and fertilizers for this type of seed.


5. Why is it important to increase the amount of land that can be cultivated?

Ans: If the amount of arable land in a country remains same but population keeps on increasing, then it is not possible for that country to be self-sufficient in feeding the whole nation.

  • Then it has to import food grains from other countries.

  • In India, total cultivated land has remained same from the year 1990 to 2015 but the population in 1990was 87.33 crores. In 2021, it increased to 131.02 crores.

  • Cultivated area remained the same but the population has increased significantly.

  • So, India imported 85,727 crores of food grains in the year 2013-14.


Economics Chapter 1 Notes

While learning Class 9 Economics Chapter 1 notes, students will have a better understanding of the crops production, organisation, labour work, transport and other things related to the Indian economy. Hence, with a clear concept and expert CBSE notes, students will be able to score good marks in the exam. Students should also take help of The Story of Village Palampur PPT where all these topics have been covered adequately.

The story of village Palampur notes depicts Palampur as a hypothetical village where farming has been highlighted as the main activity. Besides farming, small scale manufacturing, transport and dairy are also mentioned as the important activities of the village. The Story of Village Palampur Class 9 notes will give you an overview of the village which is well connected with the system of roads, transport, irrigation, electricity, health care centres and schools. These activities inside the village are referred to as the production activities. These production activities produce goods and services with four essential components that include capital, machines, land and labour.

If students are having difficulty studying online, they can take the help of Class 9 Economics Chapter 1 notes PDF and study offline. Both online and offline notes will highlight the use of raw materials for production and thus will state its importance.


Economics Class 9 Chapter 1: Main Features of the Village Palampur

The area of the village is 300 hectares along with facilities like education, market, electric supply and communication. Also, it has a particular land meant for important farming activities. All of this information is available in notes of Economics Class 9 Chapter 1.

If you are doing the last-minute preparation, you can go through The Story of Village Palampur summary which will provide you with key concepts about this chapter.


The Story of Village Palampur: Key Concepts

Q. What are the drawbacks of modern farming?

Ans: There are certain drawbacks of modern farming which are as follows:

  • It involves an investment of greater capital compared to traditional methods.

  • Excessive use of chemical fertilisers decreases the fertility of the soil.

  • Natural resources like groundwater get affected and destroyed. This leads to the difficulty in restoration.


Q. How do farmers arrange money for farming?

Ans: Farmers either borrow money amongst each other or from money lenders in the village. They also, at times, take help of the traders. They have to pay a high rate of interest against such loans. However, money borrowing is only among small farmers because big framers have their own savings from farming.


Did You Know?

  • Modern farming methods involve a significant amount of capital compared to traditional methods.

  • Without knowledge and an enterprise, production cannot function only with capital, labour and land.

  • Besides agriculture, transport is an important sector that has a major contribution to the economy.

  • Palampur is a hypothetical village that also informs students about a marginal farmer who cultivates as owner or tenant.

  • Palampur is an example of a developed village in the country that has a significant amount of contribution to the economy.

FAQs (Frequently Asked Questions)

1. What are the Essential Things for Production?

The Story of Village Palampur notes includes the most important things that must be considered during production. These are as follows:

  • Capital - Without money, nothing functions in the world. It is essential during the production of goods and also required for future use and other activities. Money in hand is known as working capital.

  • Physical Capital - These include machines, raw materials and similar other things.

  • Labour - As stated earlier, 50% of the workforce belongs to the agriculture sector. Hence it is a labour-intensive sector and without which it can never work. It is the hard work of the labourers that gives the consumer the opportunity to enjoy high-quality goods.

  • Land - It is the most basic thing in production. Be it in the agriculture sector or any other sector, the requirement of land is mandatory where the production activities can be conducted.

2. What are the Ways to Grow More in the Same Land?

It has been informed in the chapter about how Kharif farmers grow jowar and bajra before the cultivation of potatoes in between October and December. Also, in the winter season, the farmers grow wheat in half of the land and the other half is dedicated to sugarcane. The process of irrigation is geared up with the introduction of electricity which is one of the significant reasons behind the growth of three different crops at the same time. Students can understand this better when they learn Economics Class 9 Chapter 1 notes. This is also known as multi-cropping. Besides this, another approach to implement for higher yield is modern cropping which, however, requires a considerable amount of capital.

3. What is the story of the village Palampur?

The Class 9 Economics Chapter 1 is based on the story of a hypothetical village named Palampur. The importance of the agriculture sector is highlighted through this story. Besides farming, small scale manufacturing units have also been set up in the village. Transport facilities are adequate and the roads are well built. Basically, the story is designed to give students an overview about the production process involving its four essential components, namely capital, machines, land and labour.

4. What is Green Revolution Class 9 economics the story of village Palampur?

The Green Revolution completely changed the face of modern agriculture in the late 1960s. It introduced the Indian farmer to high yielding varieties (HYVs) of seeds. As a result, the production of grains and staple food like wheat and rice grew by leaps and bounds. In Palampur, the traditional varieties of seeds yielded 1300 kg of wheat per hectare which increased to 3200 kg per hectare with HYV seeds. 

5. What are the factors of production class 9 the story of village Palampur?

According to The Story of Village Palampur, land, labour, working and human capital comprise the various factors of production. The aim is always to yield maximum output from a limited number of resources. Although the land is fixed, high yielding varieties of seeds can help increase production significantly even in the same area of land. Similarly, other modern techniques have to be adopted to increase production. 

6. What do the farmers do with surplus farm products?

With the help of the example of Tejpal Singh, students are taught about what farmers should do with surplus farm products in an ideal scenario. Keep a section of the farm products for consumption and sell the other section for a profit. With the help of these additional earnings, farmers can increase their fixed capital by buying different machines and tractors, which will further aid in increasing production.

7. What are the problems faced by the farmers?

Farmers in Palampur are having a hard time adjusting to the modern methods of farming. Farmers who own small plots of land constitute about 80 per cent of the total farmers in India. They find it difficult to obtain capital. Because of the small size of their plots, the only way for them to increase production is by adding to their fixed capital. However, to do this, they are having to take loans which is putting them in serious debt.