Land Distribution in Palampur

  • Unequal Land Ownership: Out of 450 families in Palampur:
    • 150 families (mostly Dalits) are landless.
    • 240 families own small plots of land (<2 hectares), insufficient for a stable income.
    • Only 60 families own medium or large plots (>2 hectares), with some owning over 10 hectares.
  • Reasons for Small Landholdings:
    • Inheritance laws: Land gets divided among heirs, reducing its size over generations (e.g., Gobind’s sons each inherited 0.75 hectares).
    • Limited resources: Small plots restrict the potential to adopt profitable modern farming techniques.
  • Key Impacts:
    • Smaller plots lead to low productivity and compel farmers to find alternative sources of income.
    • Unequal distribution results in a significant disparity in wealth and living standards.

Labour in Farming

  • Farm Labourers:
    • Comprise landless families or those with tiny plots.
    • Paid low wages (e.g., Dala earns Rs. 160/day, below the government-mandated Rs. 300).
    • Employment is irregular, and many compete for limited work.
  • Farmers Providing Labour:
    • Small farmers work on their own fields due to lack of funds to hire workers.
    • Medium and large farmers hire labourers for tasks like plowing, sowing, and harvesting.
  • Wage Disparities:
    • Wages differ by region, crop type, and activity (e.g., sowing vs. harvesting).
    • Labourers often work under tough conditions due to economic pressures.

Capital Needs in Farming

  • Small Farmers:
    • Depend on loans from large farmers, moneylenders, or traders.
    • Loans often have high interest rates (e.g., Savita pays 24% interest and agrees to low wages as repayment).
  • Large Farmers:
    • Have savings from previous harvests, reducing their dependency on external loans.
    • Use savings for reinvestment in farming (e.g., Tejpal Singh saves earnings to buy a tractor or lend to others).

Use of Chemical Fertilizers

  • Overuse of fertilizers in states like Punjab has led to:
    • Soil degradation: Loss of fertility and dependency on increased chemical use.
    • Water pollution: Chemicals seep into water sources, affecting ecosystems.
    • Economic strain: Higher costs for maintaining yields.

Surplus Farm Production

  • Small Farmers: Retain most of their produce for consumption, leaving little for sale.
  • Large Farmers: Sell surplus produce (e.g., Tejpal Singh sells 350 quintals of wheat), generating significant profits.
    • Profits are used for:
      • Buying machinery or additional land.
      • Providing loans to smaller farmers.
      • Investing in non-farm activities.

Non-Farm Activities

  1. Dairy Farming:
    • Common in Palampur; milk sold to nearby towns via collection centers.
    • Provides an additional income source.
  2. Small-Scale Manufacturing:
    • E.g., Mishrilal runs a sugarcane crushing unit powered by electricity, producing jaggery for sale.
    • Limited profits due to small-scale operations and market challenges.
  3. Trade:
    • Shopkeepers in Palampur sell daily necessities sourced from wholesale markets.
    • Some families have turned parts of their homes into small shops.

Economic Challenges and Solutions

  • Migration:
    • Many from villages migrate to urban areas for better job opportunities in factories, construction, or services.
    • Migrants send remittances back home, supporting rural economies.
  • Modern Farming Techniques:
    • Use of improved seeds, irrigation, and machinery can boost productivity but require substantial initial investment.
  • Key Concepts for Competitive Exams:
    • Factors of Production:
      • Land: Fixed and unequally distributed.
      • Labour: Abundant but underemployed.
      • Capital: Scarce for small farmers but accessible to larger ones.
    • Sustainability:
      • Over-reliance on chemical inputs harms long-term productivity and environmental health.

THESE ALL ARE THE NOTES OF CHAPTER 1 ECONOMICS. AND AFTER SOME TIME YOU GET IMPORTANT QUESTIONS HERE. *#THANKS FOR VISITING, VISIT AGAIN#* 😊