Lecture-2
Economics
Organisation of
Production
The aim of production is to produce the goods and
services that we want. There are four requirements for
production of goods and services:-
Land
The first requirement is land, and other
natural resources such as water, forests,
minerals.
Labour
The second requirement is labour, i.e. people who will
do the work.
-Some production activities require highly educated
workers to perform the necessary tasks.
-Other activities require workers who can do manual
work. Each worker is providing the labour necessary for
production.
Labour
The second requirement is labour, i.e. people who will
do the work.
-Some production activities require highly educated
workers to perform the necessary tasks.
-Other activities require workers who can do manual
work. Each worker is providing the labour necessary for
production.
Physical capital
The third requirement is physical capital, i.e. the
variety of inputs required at every stage during
production.
1.Fixed capital.
2.Working capital
Physical capital
fixed capital
A) Tools, machines, buildings: Tools and machines
range from very simple tools such as a farmer’s plough
to sophisticated machines such as generators,
turbines, computers, etc.
-Tools, machines, buildings can be used in production
over many years, and are called fixed capital.
(B) Raw materials and money in hand: Production
requires a variety of raw materials such as the yarn
used by the weaver and the clay used by the potter.
-Also, some money is always required during
production to make payments and buy other
necessary items.
-Raw materials and money in hand are called
working capital. Unlike tools, machines and
buildings, these are used up in productio
Working capital
Human
capital
There is a fourth requirement too. We will need knowledge and
enterprise to be able to put together land, labour and physical
capital and produce an output either to use yourself or to sell in
the market.
-This these days is called human capital.
-Every production is organised by combining land, labour,
physical capital and human capital, which are known as factors
of production.
Economics class 9th story of village palampur
Economics class 9th story of village palampur
Land is fixed
Land is fixed Farming is the main production activity in
Palampur.
-75 % of the people who are working are dependent
on farming for their livelihood.
-They could be farmers or farm labourers. The
wellbeing of these people is closely related to
production on the farms.
There is a basic constraint in raising farm
production. Land area under cultivation is
practically fixed.
Since 1960 in Palampur, there has been no
expansion in land area under cultivation.
-By then, some of the wastelands in the village
had been converted to cultivable land. There
exists no further scope to increase farm
production by bringing new land under
In the kind of crops grown and facilities available,
Palampur would resemble a village of the western
part of the state of Uttar Pradesh.
-All land is cultivated in Palampur. No land is left idle.
During the rainy season (kharif) farmers grow jowar
and bajra.
-These plants are used as cattle feed. It is followed by
cultivation of potato between October and
December. In the winter season (rabi), fields are sown
Cropping
Pattern
From the wheat produced, farmers keep
enough wheat for the family’s consumption
and sell the surplus wheat at the market at
Raiganj.
-A part of the land area is also devoted to
sugarcane which is harvested once every year.
Sugarcane, in its raw form, or as jaggery, is
sold to traders in Shahpur.
Irrigation
System
The main reason why farmers are able to grow
three different crops in a year in Palampur is due
to the well-developed system of irrigation.
-Electricity came early to Palampur. Its major
impact was to transform the system of irrigation.
-Persian wheels were, till then, used by farmers to
draw water from the wells and irrigate small
fields.
Economics class 9th story of village palampur
People saw that the electric-run tubewells
could irrigate much larger areas of land more
effectively.
-The first few tube wells were installed by the
government. Soon, however, farmers started
setting up private tube wells.
-As a result, by mid-1970s the entire cultivated
To grow more than one crop on a piece of land during
the year is known as multiple cropping.
-It is the most common way of increasing production
on a given piece of land.
-All farmers in Palampur grow at least two main
crops; many are growing potato as the third crop in
the past fifteen to twenty years.
Multiple cropping
Not all villages in India have such high levels of
irrigation. Apart from the riverine plains, coastal
regions in our country are well-irrigated.
-In contrast, plateau regions such as the Deccan
plateau have low levels of irrigation.
-Of the total cultivated area in the country a little
less than 40 % is irrigated even today.
-In the remaining areas, farming is largely
dependent on rainfall.
Unit of measuring land
The standard unit of measuring land is hectare, though in the
villages we may find land area being discussed in local units such
as bigha, guintha (101 square meter) etc.
-One hectare equals the area of a square with one side measuring
100 metres.
The bigha (also formerly beegah) is a traditional unit of
measurement of area of a land, commonly used in India
(including Uttarakhand, Haryana, Himachal Pradesh, Punjab,
Madhya Pradesh, Uttar Pradesh, Bihar, Jharkhand, West Bengal,
Assam, Gujarat and Rajasthan but not in southern states of
India), Bangladesh and Nepal. There is no "standard" size of
bigha. The size of a bigha varies considerably from place to
one way of increasing production from the same land is
by multiple cropping. -The other way is to use modern
farming methods for higher yield.
-Yield is measured as crop produced on a given piece of
land during a single season.
-Till the mid 1960s, the seeds used in cultivation were
traditional ones with relatively low yields.
Traditional seeds needed less irrigation .
Farmers used cow -dung and other
natural manure as fertilizers .
All these were readily available with the
farmers who did not have to buy them.
Economics class 9th story of village palampur
Economics class 9th story of village palampur
The Green Revolution is a general term used
to describe all the improvements made in
agriculture .
Green Revolutions describe a prompt increase in the
production of crops extending from wheat to rice.
-It compelled a boom in the agriculture industry.
-The organization and distribution of fertilizers &
pesticides.
-Implementation of these technological advances.
The Green Revolution in the late 1960s
introduced the Indian farmer to cultivation of
wheat and rice using high yielding varieties
(HYVs) of seeds.
Compared to the traditional seeds, the HYV
seeds promised to produce much greater
amounts of grain on a single plant.
As a result, the same piece of land would now
produce far larger quantities of foodgrains than
was possible earlier.
The Green Revolution
HYV seeds, however, needed plenty of water and
also chemical fertilizers and
pesticides to produce best results.
Higher yields were possible only from a
combination of HYV seeds, irrigation, chemical
fertilisers, pesticides, etc.
Farmers of Punjab, Haryana and Western Uttar
Pradesh were the first to try out the modern
farming method in India.
The farmers in these regions set up tube wells for
irrigation, and made use of HYV seeds, chemical
fertilisers and pesticides in farming.
-Some of them bought farm machinery, like
tractors and threshers, which made ploughing and
harvesting faster. They were rewarded with high
yields of wheat.

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Economics class 9th story of village palampur

  • 3. The aim of production is to produce the goods and services that we want. There are four requirements for production of goods and services:- Land The first requirement is land, and other natural resources such as water, forests, minerals.
  • 4. Labour The second requirement is labour, i.e. people who will do the work. -Some production activities require highly educated workers to perform the necessary tasks. -Other activities require workers who can do manual work. Each worker is providing the labour necessary for production.
  • 5. Labour The second requirement is labour, i.e. people who will do the work. -Some production activities require highly educated workers to perform the necessary tasks. -Other activities require workers who can do manual work. Each worker is providing the labour necessary for production.
  • 6. Physical capital The third requirement is physical capital, i.e. the variety of inputs required at every stage during production. 1.Fixed capital. 2.Working capital
  • 8. fixed capital A) Tools, machines, buildings: Tools and machines range from very simple tools such as a farmer’s plough to sophisticated machines such as generators, turbines, computers, etc. -Tools, machines, buildings can be used in production over many years, and are called fixed capital.
  • 9. (B) Raw materials and money in hand: Production requires a variety of raw materials such as the yarn used by the weaver and the clay used by the potter. -Also, some money is always required during production to make payments and buy other necessary items. -Raw materials and money in hand are called working capital. Unlike tools, machines and buildings, these are used up in productio Working capital
  • 10. Human capital There is a fourth requirement too. We will need knowledge and enterprise to be able to put together land, labour and physical capital and produce an output either to use yourself or to sell in the market. -This these days is called human capital. -Every production is organised by combining land, labour, physical capital and human capital, which are known as factors of production.
  • 13. Land is fixed Land is fixed Farming is the main production activity in Palampur. -75 % of the people who are working are dependent on farming for their livelihood. -They could be farmers or farm labourers. The wellbeing of these people is closely related to production on the farms.
  • 14. There is a basic constraint in raising farm production. Land area under cultivation is practically fixed. Since 1960 in Palampur, there has been no expansion in land area under cultivation. -By then, some of the wastelands in the village had been converted to cultivable land. There exists no further scope to increase farm production by bringing new land under
  • 15. In the kind of crops grown and facilities available, Palampur would resemble a village of the western part of the state of Uttar Pradesh. -All land is cultivated in Palampur. No land is left idle. During the rainy season (kharif) farmers grow jowar and bajra. -These plants are used as cattle feed. It is followed by cultivation of potato between October and December. In the winter season (rabi), fields are sown Cropping Pattern
  • 16. From the wheat produced, farmers keep enough wheat for the family’s consumption and sell the surplus wheat at the market at Raiganj. -A part of the land area is also devoted to sugarcane which is harvested once every year. Sugarcane, in its raw form, or as jaggery, is sold to traders in Shahpur.
  • 17. Irrigation System The main reason why farmers are able to grow three different crops in a year in Palampur is due to the well-developed system of irrigation. -Electricity came early to Palampur. Its major impact was to transform the system of irrigation. -Persian wheels were, till then, used by farmers to draw water from the wells and irrigate small fields.
  • 19. People saw that the electric-run tubewells could irrigate much larger areas of land more effectively. -The first few tube wells were installed by the government. Soon, however, farmers started setting up private tube wells. -As a result, by mid-1970s the entire cultivated
  • 20. To grow more than one crop on a piece of land during the year is known as multiple cropping. -It is the most common way of increasing production on a given piece of land. -All farmers in Palampur grow at least two main crops; many are growing potato as the third crop in the past fifteen to twenty years. Multiple cropping
  • 21. Not all villages in India have such high levels of irrigation. Apart from the riverine plains, coastal regions in our country are well-irrigated. -In contrast, plateau regions such as the Deccan plateau have low levels of irrigation. -Of the total cultivated area in the country a little less than 40 % is irrigated even today. -In the remaining areas, farming is largely dependent on rainfall.
  • 22. Unit of measuring land The standard unit of measuring land is hectare, though in the villages we may find land area being discussed in local units such as bigha, guintha (101 square meter) etc. -One hectare equals the area of a square with one side measuring 100 metres. The bigha (also formerly beegah) is a traditional unit of measurement of area of a land, commonly used in India (including Uttarakhand, Haryana, Himachal Pradesh, Punjab, Madhya Pradesh, Uttar Pradesh, Bihar, Jharkhand, West Bengal, Assam, Gujarat and Rajasthan but not in southern states of India), Bangladesh and Nepal. There is no "standard" size of bigha. The size of a bigha varies considerably from place to
  • 23. one way of increasing production from the same land is by multiple cropping. -The other way is to use modern farming methods for higher yield. -Yield is measured as crop produced on a given piece of land during a single season. -Till the mid 1960s, the seeds used in cultivation were traditional ones with relatively low yields.
  • 24. Traditional seeds needed less irrigation . Farmers used cow -dung and other natural manure as fertilizers . All these were readily available with the farmers who did not have to buy them.
  • 27. The Green Revolution is a general term used to describe all the improvements made in agriculture . Green Revolutions describe a prompt increase in the production of crops extending from wheat to rice. -It compelled a boom in the agriculture industry. -The organization and distribution of fertilizers & pesticides. -Implementation of these technological advances.
  • 28. The Green Revolution in the late 1960s introduced the Indian farmer to cultivation of wheat and rice using high yielding varieties (HYVs) of seeds. Compared to the traditional seeds, the HYV seeds promised to produce much greater amounts of grain on a single plant. As a result, the same piece of land would now produce far larger quantities of foodgrains than was possible earlier. The Green Revolution
  • 29. HYV seeds, however, needed plenty of water and also chemical fertilizers and pesticides to produce best results. Higher yields were possible only from a combination of HYV seeds, irrigation, chemical fertilisers, pesticides, etc. Farmers of Punjab, Haryana and Western Uttar Pradesh were the first to try out the modern farming method in India.
  • 30. The farmers in these regions set up tube wells for irrigation, and made use of HYV seeds, chemical fertilisers and pesticides in farming. -Some of them bought farm machinery, like tractors and threshers, which made ploughing and harvesting faster. They were rewarded with high yields of wheat.