The purpose of this story is to introduce some basic concepts relating to production. Palampur is an imaginary village where farming is the main production activity. Non-farm activities like small scale manufacturing, dairy, transport etc are also being carried out in small scale.

Palampur has well developed system of road, transport, electricity, irrigation, school and health centre.

  • Road System: This village is well connected to the neighboring villages and towns. A big village, Raiganj and a nearest small town, shahpur are connected with it.
  • Transport system: Various means of transport from bullock carts, tangas, bogeys loaded with jiggery to motor vehicles are visible on this road.
  • Electricity: Most of the houses have electricity connection. This facility greatly helps the villagers to power their tubewells to irrigate the field.
  • Health care centre: This village has one government primary health centre and one private health centre.


The resources, natural as well as man-made, which are organized to produce desired goods and services, are called requirements of production (factors of production).

Basically there are three factors of production and these are follows:

i ) Land : it includes not only site of production but also other natural resources above or below the soil. Water, air, soil, mineral, flora, fauna and climate are used in the creation of production.

ii) Labour : it refers to the work done by the people for production. It can be classified as physical and mental contribution of people.

iii) Physical capital: these are the human made goods which are used in the production of other goods. There are two types of capital :

a) Fixed capital: it includes tools, machine, building which can be used in production over many years. It is one-time investment.

b)  Working capital: raw material and money in hand are called working capital. These are used up in production.

There is also fourth factor of production i.e.  Knowledge and enterprise (human capital). This helps in combining land, labor and physical capital to produce an output.


75 percent of its villagers are dependent on farming for their livelihood. Since land area under cultivation is fixed, villagers of palampur shifted towards new methods of production to increase yield. These two methods are:

  1. Multiple cropping methods: growing more than one crop on a same piece of land during the year to increase production is known as multiple cropping.

Electricity transformed the irrigation system in palampur . now, multiple cropping method is widely used. Electric-run tube wells instead of Persian wheels are used for irrigation of much larger areas effectively.

All the farmers in palampur grow multiple crops during the year:

  • During rainy season (kharif) they grow jowar and bajra .it is followed by cultivation of potatoes between October and December.
  • During winter season (Rabi) they sown wheat on field.
  • Sugarcane is also cultivated once in a year. It is sold in its raw form (jaggery) to traders in shahpur after harvesting.
                       Kharif crops                       Rabi crops
Crops which are sown when rainy season begins i.e. between April and May. However, sowing months can varies from region to region. Crops which are sown when the winter season begins i.e. between September and October. However, sowing months can varies from region to region.
The term is derived from the Arabic word for “autumn”. The term is derived from the Arabic word for “spring”.
Also known as monsoon or autumn crops. Also known as winter crops.
Affected by rainfall pattern. Not affected by rainfall pattern
The harvesting month is between September-October. The harvesting month is between March-April.
Examples-rice, jowar, bajra, cotton, maize(corn) etc. Examples- wheat, barley, peas, gram etc.


2. Modern farming method: till mid 1960s, traditional methods of farming were used. Cow-dung and other natural manure were used by farmers.

With the advent of Green Revolution in the late 1960s, farmers started cultivation of wheat and rice using high yielding varieties (HYVs) of seeds. It leads to larger production of crops. HYV seeds needed plenty of water, chemical fertilizers and pesticides to produce best result

  Problems caused by Green Revolution

  • Loss of soil fertility due to increased use of fertilizers.
  • Depletion of ground water-table.
  • Increase in soil and water pollution.
  • Income disparity get widened
Bases of differences Traditional farming method Modern farming method
Seeds Traditional seeds are used. High yielding varieties (HYVs) seeds are used.
Fertilizers Cow-dung and other natural manure Chemical fertilizers and pesticides
Ploughing and harvesting Animals,bullocks Machinery-tractors and threshers
Sources of irrigation Persian wheels were used to draw water from the wells,canals and rainfall. Electric-run tube wells, canals,dams,tanks etc.

Some points to be remembered

  • In economics we study the production, distribution, and consumption of goods and services.
  • Farming is the main production activity in India.
  • The standard unit of measuring land is hectare. One hectare = 10000 square metres. Bigha , guintha, jareeb etc are local units used by farmers in most of the villages of India.
  • The aim of production is to produce goods and services to satisfy the needs of people.
  • Multiple cropping replaces the fertility of soil.
  • Green Revolution was a period when the productivity of global agriculture increased drastically as a result of new advances in farming. It is due to the adoption of modern methods and technology such as high yielding seeds (HYVs), new chemical fertilizers, pesticides, tractors, irrigation facility etc.
  • Norman Borlaug was the father of green revolution who also received Nobel Peace Prize in 1970.
  • Farmers of Punjab, Haryana and western Uttar Pradesh were the first to use modern farming methods in India.
Categories: General


Naiyer Eqbal · June 25, 2020 at 2:58 pm

You are a good beginner.I hope these important and beneficial work towards our Education system will be more suitable and easy to the students. Very impressive and useful content contribution towards the student’s prosperity.

Haidar Ali · June 25, 2020 at 4:57 pm

Thanks for your precious and motivational comment bhaiya… Really your comment motivated me and hope that students would find the contents of tapoj team easy and beneficial.

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