Saturday, June 11, 2022

Notes of Economic ch-1(the village of Palampur)

 The village of palampur


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 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.


Very Short Answer Type Questions

Question 1. What are the factors of production?

Answer: The essential inputs which are required for the production of goods and services are known as factors of production. For example, for the production of cloth, cotton-machine, labour and technology is required.

Question 2. Name the main production activity of Palampur.

Answer: Farming.

Question 3. What capital is needed as first priority to set up a jaggery manufacturing unit?

Answer:Fixed capital.

Question 4.Give a few examples of fixed capital.

Answer:Tools, machines and building

Question 5.Name any one item of working capital.

Answer:Money.

Question 6.Give an example of an entity which is not a part of fixed capital.

Answer:Cash amount.

Question 7.Give two examples of the working capital.

Answer: Raw materials, Money in hand.

Question 8.What do raw materials and money in hand call?

Answer:The working capital.

Question 9.The clay used by a potter is an example of which type of capital?

Answer:Working capital.

Question 10.Why is it important to use land very carefully?

Answer:Land is a natural resource, once destroyed it is very difficult to restore it.

Question 11.What are rabi crops?

Answer:The crops which are grown in the winter season i.e., November or December and harvested in summer i.e., April or May. For example, wheat.

Question 12.What are kharif crops?

Answer:The crops which are grown in the rainy season i.e., June or July and harvested in October or November. For example, rice.

Question 13.Farmer’s plough is an example of which factors of production?

Answer:Capital.

Question 14.Which is the most abundant factor of production?

Answer:Labour.

Question 15.What is physical capital?

Answer:Physical capital includes variety of inputs required at every stage during production like machines, raw material etc.

Question 16.What are different categories of physical capital?

Answer:Fixed capital,Working capital

Question 17.Categorise the following as fixed capital or working capital:

(i) Cotton,.       (ii) Machine.

Answer:.   (i) Cotton — Working capital,

              (ii) Machine — Fixed capital.

Question 18.Which term is used for production for self-consumption?

Answer:Subsistence farming.

Question 19. Enumerate a few effects of modem farming method.

Answer:Soil degradation, reduced water table below the ground and water pollution.

Question 20.Mention any two natural factors of production.

Answer:Land, forests, water, minerals etc

Question 21.What is a market?

Answer:It is a place where goods and services can be sold.

Question 22.Define yield.

Answer:Crop produced on a given piece of land during a single season.

Question 23.Who provides capital to the small farmers at high rate of interest?

Answer:Large farmers, village moneylender or the traders.

Question 24.What does HYV stand for?

Answer:High Yielding Varieties (HYV).

Question 25. “The yield of food grains hectare is high in Punjab, Haryana and Uttar Pradesh”. Give two reasons.

Answer:  Use of HYV seeds., Use of tubewells for irrigation.

Question 26.Which are the prime requirement for production of goods and services?

Answer:Market.

Question 27.Write down the names of the crops that were promoted by Green Revolution.

Answer:Cultivation of wheat and rice.

Question 28. During which season do farmers of Palampur grow jo war and bajra?

Answer:Rainy season.

Question 29.At present, what is the percentage of the people who are engaged in the rural areas in non-farming activities in India?

Answer: 24%.

Question 30.What is the basic constraint in raising farm production?

Answer:The basic constraint in raising farm productions land which is a fixed factor of production.

Question 31.What is Green Revolution? 

Answer:The great increase in the production of food grains in our country during the last 40 years, due to use of high yielding variety (HYV) of seeds, and other inputs is known as the Green Revolution.

Question 32.What was production of pulses and wheat in 2010-11?

Answer:Pulses – 18 MT, Wheat – 86 MT.

Question 33.Mention any two non-farm activities.

Answer:Dairy and transport.

Question 34.Name any two states which benefited from the Green Revolution.

Answer: Punjab, Haryana.

Question 35. Mention any two factors responsible for the low yield of foodgrains in India.

Answer:  Old technology, Small land holdings.

Question 36. Which of the following is not used in modem farming?

Answer: Ploughs.

Question 37.Which is the best way to expand non-farm activities in a village?

Answer:Better transportation, availability of loan at low interest, availability of markets where goods can be sold are the best way to expand non-farming activities.

Question 38.In which period is the cultivation of potato done?

Answer: October to December.

Question 39. In which type of activity is dairy farming included?

Answer: Primary activity.

Question 40.Which state in India has the highest consumption of chemical fertilizers?

Answer: Punjab.

Question 41. Scientific reports indicate that the modem farming methods have overused the land. Explain by giving examples.

Answer:The soil is losing fertility due to increased use of chemical fertilizers,

The continuous use of groundwater from tubewell irrigation has reduced the water table.

Question 42.What is multiple cropping?

Answer:To grow more than one crop on a piece of land during the year is known as multiple cropping.

Question 43.Name any two methods to increase production in agriculture.

Answer:  By using HYV seeds,  By irrigation.

Question 44.Which capital is known as working capital?

Answer: Raw materials and money in hand are called the working capital

Question 44. Which capital is known as working capital?

Answer: Raw materials and money in hand are called the working capital.

Question 45. Which is the most important economic activity of the people of rural India?

Answer:Farming.

Question 46. Mention the standard unit for measuring the area of land.

Answer: Hectare.

Question 47. “Many people belonging to SCs (dalits) are discriminated in village.” Justify giving a reason.

Answer: SCs live in one corner of the village and in much smaller houses.

Question 48. What is production? Give an example.

Answer: Production is the creation of value in a commodity. For example, manufacturing of a car from steel


Short Answer Type Questions

Question 1. Define the meaning and aim of production.

Answer:Production is the creation of value in a commodity, e.g., manufacturing of a car from steel.

Aim: 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, labour, physical capital and human capital.

Question 2.Mention three characteristics of traditional method of farming,

Answer:

1. Traditional seeds with low yield were used.

2. Cow-dung and natural manures were used.

3. Less irrigation was required.

Question 3.Explain the problems which arise due to unequal distribution of land.

Answer:

Economic Inequality: Unequal distribution of land leads to economic inequality.

Unemployment: It leads to unemployment.

Poverty and Hunger: Lack of economic opportunities leads to poverty and hunger.

Question 4. Describe the role of human capital in the production process. Name two investment that can improve the quality of human capital.

Answer:

Human capital can be built only in the long run through education and training.

Human capital includes competent and trained people who put together land, capital and other factors of production to produce goods.

Question 5. Farmers of which two states were the first to use modem farming methods in India? Mention any four positive effects of it. 

Answer:

(i) The farmers of Punjab, Haryana and Western Uttar Pradesh were the first to use modem farming methods in India.

(ii) (a) Modern farming methods increased the productivity of land.

(b) It increases foodgrain production in the country.

(c) It brought the Green Revolution in the 1960s which resulted in high increase in the production of cereal grains, particularly, wheat and rice.

(d) It has played a very important role in food security.

(e) It has led to growth of agro-based industries.

Question 6. Write any three differences between land and capital.

Answer:

Land                                                                Capital

(i) It is a fixed factor of production. It is a man-made factor of production.

(ii) It is a free gift of nature.               It is a man-made source of production.

(iii) Land varies in fertility.                           It is of two types, i.e., fixed and working capital.

Question 7. ‘Capital is a basic need in agriculture.’ How is it arranged by Indian farmers? Explain.

Answer:Most of the small farmers borrow money from the moneylenders or traders to arrange the capital.

The moneylenders and traders charge a high rate of interest from the farmers.

Medium and large farmers have their own savings from the farming.

They also get loans from the banks.

Question 8. What problems do farm labourers face in terms of unemployment? Explain any three problems. 

Answer:

Problems of Farm Labourers:

They come either from landless families or families cultivating small plots of land.

They do not have a right over the crops grown on the land.

They got wages in cash or in kind.

Wages vary widely from region to region and from crop-to-crop etc.

Wide variation in the duration of employment was also seen, (any three)

Question 9. Mention any four characteristics of an entrepreneur or human capital as a factor of production.

Answer

It is a factor of production which combines or arranges all the factors of production to produce.

It is an active factor of production.

It produces goods and services for self-consumption or to sell in the market.

It is the most important factor of production.

Question 10. How do small farmers obtain capital for farming? What is its consequence? Explain.

Answer: Most small farmers have to borrow money to arrange for the capital. They borrow from large farmers or the moneylenders or the traders whd supply various inputs for cultivation.

Consequence:

The rate of interest on such loans is very high. The small farmers are put to great distress to repay the loan.

Question 11. Describe any three features of small-scale manufacturing as a non-farm activity in Palampur.

Answer:

v Less than 50 people are engaged in manufacturing in Palampur.

v Manufacturing in Palampur involves very simple production methods and are done on a small-scale.

v Manufacturing activities are carried out mostly at home or in the fields with the help of family labour. Labourers are hired rarely.

Question 12. How do the medium and large farmers make their own savings and how do they utilize it? Explain.

Answer: The medium and large farmers have surplus production even after keeping a substantial part for their own family needs. They sell it in the market and have good earnings and save it in their bank accounts. They utilize their savings:

By lending to small farmers who are in need of a loan.

As working capital for farming in the next season.

As fixed capital for buying tractors etc.

Question 13. What factors have led to the reduction of water level in Palampur?

Answer:

Continuous use of groundwater for tubewell irrigation has reduced the water table below the ground.

While environmental resources like soil fertility and groundwater are built-up over many years. So, once destroyed, it is very difficult to restore them.

Misuse of groundwater is another important factor for lowering of water table.

Question 14. Describe any three sources of irrigation in Palampur.

Answer:

1. Persian wheel is the main source of irrigation in Palampur.

2. Well is also a source of irrigation.

3. Tubewells are also important sources of irrigation. These are run by electric supply.

Question 15. State any two features of modem farming method.

Answer:  Its main features were:

Use of tube wells for irrigation.

Use of HYV seeds.

Chemical fertilizers.

Pesticides.

Farm machinery such as tractors, threshers, etc. (any two)

Question 16. Explain any two differences between physical capital and human capital.

Answer: Differences:

Physical capital has variety of inputs while human capital is labours, using those inputs.

Physical captial includes tools, machines can be used over the years while human capital can produce output only it they have experience.

Question 17. What is modem farming methods? Explain its drawbacks.

Answer: It is a scientific way of increasing the production. Under this, production is increased by using HYV seeds and other inputs.

Drawbacks:

It is used by rich farmers as it requires more inputs.

Loss of soil fertility due to increased use of chemical fertilizers.

Continuous use of groundwater for tubewell irrigation has reduced the water table below the ground

Question 18. Describe the role of the farmers after the crops are harvested and production is complete.

Answer: Role of the Farmer:

The farmers retain a part of the crop for their family consumption and sell the surplus in the market.

The small farmers grow the crops just to fulfil the needs of the family. So, they do not have any surplus to sell in the market.

The big farmers make big earnings by selling main crops in the market.

They sell the crops and earn huge profit on them.

Question 19.How many crops are grown by the farmers in Palampur? How are they able to grow these different crops in a year?

Answer:

(i) The farmers in Palampur grow jowar and bajra during the rainy season, potato between October and December and wheat in the winter season.

(ii) (a) There is the well-developed system of irrigation in Palampur that enables the farmers there to grow three different crops in a year.

(b) Electricity came early to Palampur. Its major impact was to transform the system of irrigation in the village.

(c) By mid-1970s, the entire area of 200 hectares was irrigated.

(d) Modern farming methods and the Green Revolution introduced HYV seeds.

Question 20.Why was the initial impact of Green Revolution limited to wheat and only to a few regions?

Answer:  It was limited to wheat because HYV seeds were available only for wheat.

Its impact was limited only to few regions as the HYV seeds need higher inputs which only the rich farmers can afford.

HYV seeds need assured means of irrigation which were available only in northern parts of India.

Question 21. How are traditional seeds different from HYV seeds?

Answer:   HYV Seeds                              Traditional Seeds

(i) HYV seeds produce more output per hectare.      Traditional seeds produce less output per hectare.

(ii) HYV seeds need irrigation.                          Traditional seeds needed less irrigation

(iii) HYV seeds need modem inputs like fertilizers, pesticides etc. Traditional seeds needed inputs which           were readily available with the farmers who did not have to buy these from the market.

Question 22.“Most of our villages have good infrastructure.” Justify. VSQ

Answer:  1.   Most of the villages are well connected with other neighboring villages or town through all weathered roads.

2  Most of the Indian villages have primary schools, health centers etc.

3  Many kinds of means of transport are available like motorcycles, jeeps, tractors, tongas etc.

Question 23. Why do people migrate? Explain.

Answer: 1    People migrate from one region to another:

2   In search of better jobs.

3     For better living conditions.

4     For higher education.

Question 24 What was the status of upper caste families in Palampur?

Answer: The 80 upper caste families owned majority of the land in Palampur. Some of their houses were quite large and made up of brick with cement plastering.

Question 25 What was the benefit of electricity in Palampur?

Answer:Most of the houses have electricity connections. Electricity is used to power the tubewells in the fields and also for many small businesses.

Question 26What facilities are available for education and health in Palampur?

Answer:Palampur has two primary schools and one high school. There is a primary health centre run by the government and one private dispensary where the sick are treated.

Question 27 What is human capital?

Answer: Human capital refers to knowledge and enterprise required to put tpgether land, labour and physical capital and produce an output for self-consumption or to sell in the market.

Question 28 What is the impact of Green Revolution on soil and ground water table?

Answer: Green Revolution is associated with the increased use of chemical fertilisers. The minerals of chemical fertilisers dissolve in water and contaminate it, thereby polluting both water and soil, thus, the continuous use of fertilisers makes the soil less fertile,

Question 29 State the importance of growing more than one crop on a piece of land. [CBSE 2014]

Answer: The importance of growing more than one crop on a piece of land is:

It retains the fertility of the soil. 

It generates employment for many people throughout the year.

It benefits the farmers economically.

Question 30 What can be done to increase the non-farm activities in the Indian Villages? [CBSE 2016]

Answer: The things which can be done to increase the non-farm activities in the Indian villages are:

Banks should provide loans at low interest rates so that the poor villagers can start some small-scale businesses and can earn their livelihood.

Government should initiate effective employment generating schemes like small-scale industries, computer training centres, vocational courses etc.

Government should provide training to the villagers in different skills.

Government should provide facilities for transportation and selling of locally manufactured goods

of the villagers in the cities. (any three)


Long Answer Type Questions

Question 1. Explain the meaning of ‘Physical Capital’. Explain its two types with the help of suitable examples.

Or

What is physical capital? What are its different types?

Answer: Physical capital is the variety of inputs required at every stage during production. Its two different types are as follows:

(i) Fixed Capital: It can be used in production over many years. For example, tools, generator, turbines, buildings, computers etc.

(ii) Worki ng Capital: Raw materials and money in hand are called Working Capital. Production requires a variety of raw material such as yarn used by the weaver and clay used by the potter. Some money is always required during production to make payments and buy other necessary items.

Question 2. What is land? Suggest any three ways to sustain land.

Answer: (i) Land is the basic natural, resource required as a factor or an input in any production activity. Various activities or human activities take place on land which is a fixed asset.

(ii) (a) Land is a free gift of nature. So, it is necessary that we should be very careful in its use. We must avoid pollution of land.

(b) Soil is a vital part of land and the basis of agricultural activities. So, it becomes necessary that we should use bio-compost and eco-friendly methods in place of using chemical fertilizers and pesticides.

(c) We have to see that the Modern Farming Methods are used scientifically in such a way that the natural resource base that the land provides is saved from further damage.

(d) Some farming practices can, if used carefully and judiciously, certainly help in making land sustainable. Such practices include intensity of cropping, rotation of crops, multiple cropping, fallowing etc.

(e) We should give encouragement to community agriculture system or cooperative farming, instead of individual farming which is often exploitative. This could be another sustaining land productivity.

Question 3. How do large farmers utilise surplus farm products to arrange for the capital needed for farming?

Answer:The large farmers generally sell the surplus farm products and have good earnings.

They put most of their earnings or money in their bank accounts and get adequate interest on the same.

A part of their earnings is saved and kept to arrange for the working capital for farming in the next season.

They also use savings for lending to small farmers and other persons in the village.

A part of their earnings is used to increase their fixed capital like tractor, thresher, cattle etc.

Question 4. Distinguish between Fixed, Working and Human Capital.

Answer:


Fixed Capital.          Working Capital               Human Capital

(i)  Tools, machines, buildings etc. which can be used in production over many years is called fixed capital.     (ii) Fixed capital cannot be changed or built in short period of time. Human capital includes competent and trained people who put together land, capital and other factors of production to produce goods.

The factors of production which are used up in the production process are known as working capital. Working capital can be changed or built in short period. Human capital can be built only in the long run through education and training

Question 5.What is the difference between Rabi crops and Kharif crops? When are they sown and harvested? Mention some necessary conditions for multiple cropping.

Answer:

Kharif crops are grown in the rainy season. They are sown in June-July and harvested in October-November. Farmers in Palampur mainly grow jowar and bajra which are used as cattle feed.

Rabi crops are grown in the winter season. They are sown in . October-November and harvested mainly in March-April. Wheat is the main crop grown in this season.

Necessary Conditions for Multiple Cropping:

Adequate irrigation facilities should be available on land.

Farmers should also have sufficient capital to invest and meet farm expenses

Question 6. Explain the distribution of workforce engaged in non-farming activities in the rural areas. Suggest some measures to increase non-farming activities.

Or

Explain any four efforts which can be made to increase non-farming production activities in villages.

Answer: 25% of the total workforce is engaged in non-farming activities. 

Measures to Increase Non-farming Activities:

Infrastructure: Infrastructure includes building of roads, establishing of banks and improving communication. All these are basic inputs for economic development.

Expansion of Market: To increase non-farming activities, rural markets should be linked to urban markets.

Education and Health: Improvement in education will lead to human capital formation.

Cheap Loan: Non-farming activities can be promoted by providing cheap and affordable loan to the farmers.

Question 7. State any five reasons as to why farm labourers are considered poor. –

Answer:  1) Farm labourers are generally landless.

2) They have no permanent jobs. They have to look for work on daily basis.

3) They are not even paid minimum wages. The minimum wages for a farm labourer set by the government is ₹ 60 per day, but they get only?

4) They have large family.

5) They are illiterate, unhealthy and unskilled.

Question 8. Why do modern farming methods require more capital? Explain.

Answer: Modem farming methods need inputs like chemical fertilizers, pesticides, tractors etc. which are manufactured in industry. So, they require the farmer to start with more cash than before.

In modem farming methods, HYV seeds are used which require more irrigation.

In traditional method, the farmers use cow-dung as natural fertilizer, which they do not need to buy while chemical fertilizers need more cash to buy from the market.

Modem farming is machine-oriented. Hence, farmers need more capital to purchase them.

To operate the machines, semi-skilled or skilled manpower is required which need more investments.

Question 9. State three reasons of the variation in the wages of farm laboures all over India.

Answer:1There is a wide variation in the wages of farm laboures in the country. They generally get the wages less than the minimum wages set by the government. 

The reasons of the variation in the farm wages are as follows.:


1) The farm labourers come either from landless families or the families cultivating small plots of land. They are poor and helpless. They work on daily wages. They regularly have to look for work. Since there is heavy competition for work among the farm labourers in the country, these labourers agree to work for less than the minimum wages.

2) Most agricultural labourers are from low castes and the depressed classes. They have little courage to challenge the upper caste people.

3) Farm labourers are generally illiterate and ignorant. They are not organised in unions. So, it is difficult for them to bargain with the landowners and secure good wages

Question 10. Explain the basic requirements for the production of goods and services. Which one is the most important?

Answer: (i) Land: Land is the most important factor of production. It is required for growing crops, building factories and infrastructure. The first requirement is land. We also need other natural resources such as water, forests, minerals etc.

(ii) Labour: The second requirement is labour, i.e., people who will do the work. Different production activities require different types of workers, such as highly educated, skilled or those doing some manual work. Each worker provides labour necessary for production.

(iii) Physical Capital: The third requirement is physical capital, comprising various inputs required during production. It has two components. Tools, machines and buildings fall under ‘fixed capital’.

They can be used in production for many years. Raw materials and money in hand are called working capital. These are used up in production.

(iv) Human Capital: The fourth requirement is the human capital. Knowledge and enterprise are needed to put together land, labour and physical capital in order to produce an output

Question 11. Define Green Revolution. How is Green Revolution different from traditional farming?

Answer: Large increase in agriculture production after 1967-68 due to the adoption of new agriculture strategy which implied a simultaneous use of better and modem agriculture inputs. Green Revolution involves the introduction of high yielding varieties of seeds. It also encompasses the use of fertilizers and irrigation techniques that increases the production and make countries like India self-sufficient in food grains. So, this technique is mainly used to improve the status of agriculture. It was brought in India by the initiative of Indian government. Dr. Norman Borlaug brought high yielding wheat in India. M.S. Swaminathan and his team also contributed towards the success of Green Revolution in India. Punjab, Haryana and Uttar Pradesh are the main regions where Green Revolution was started.

Difference between Green Revolution and Traditional Farming: 

Green Revolution refers to the use of artificial fertilizers, technology, high yielding variety seeds which are genetically engineered. Traditional farming emphasises on the use of natural seeds and fertilizers.

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.

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. HYV seeds, however, needed plenty.

Question 12. Describe the significance of Green Revolution in Indian economy.

Answer: The Green Revolution has two types of effects on Indian economy, namely      (i) economic effect’s and (ii) sociological effects.

(i) Economic Effects:

(a) Increase in Agricultural Production and Productivity:

Due to adoption of HYV technology the production of foodgrains increased considerably in the country. The production of wheat has increased from 8.8 million tones in 1965-66 to 184 million tons in 1991-92. The productivity of other food grains has increased considerably. It was 71% in case of cereals, 104% for i wheat and 52% for paddy over the period 1965-66 and 1989-90.

(b) Employment: The new agricultural technology has created more amounts of employment opportunities in the agricultural sector. The new technology is early maturing and makes multiple cropping possible.


(c) Market Orientation: The new technology has made the farmers market- oriented. Due to excess production the farmers have to go to the market for selling their surplus production.

(ii) Sociological Effects:

(a) Personal Inequalities: Due to Green Revolution the income of rich farmers increased considerably whereas the poor farmers couldn’t reap any benefit. This led to a class conflict between the rich and the poor farmers. The small and marginal farmers were deprived of enjoying the gains of new technology.

(b) Regional Inequality: The new technology was successfully implemented in the wheat-producing belt of the country whereas the rice producing zones were not at all affected by this Green Revolution. Hence, the disparity between the two regions increased considerably. Further Green Revolution became successful in irrigated areas whereas, in the rained belt the new technology couldn’t be properly implemented.

Question 13. Where and why has the Green Revolution been started in India? Give advantages and disadvantages of the Green Revolution.

Answer: Green Revolution involves the introduction of high yielding varieties of seeds. It also encompasses the use of fertilizers and irrigation techniques that increases the production and make countries like India self-sufficient in foodgrains. So, this technique is mainly used to improve the status of agriculture. It was brought in India by the I initiative of Indian government. Dr. Norman Borlaug brought high yielding wheat in India.

M.S. Swaminathan and his team also contributed towards the success of Green Revolution in India. Punjab, Haryana and Uttar Pradesh are ; the main regions where green Revolution was started.

Advantages / Merits of Green Revolution:

The HYV seeds produce much greater amount of grains in comparison to the normal seeds.

It has increased the production on the same pieces of land which produces large quantities of food grains than it was produced earlier.

Disadvantages / Demerits of Green Revolution:

Poor farmers are unable to afford HYV seeds, fertilizers and machineries.

This may lead to an end with large debts.

HYV seeds need more fertilizers and water and they are expensive.

Since Green Revolution introduced new machineries, it led to the replacement of labour, and further leading to unemployment and rural-urban migration.

It was limited to rice and wheat Disadvantages / Demerits of Green Revolution:


Poor farmers are unable to afford HYV seeds, fertilizers and machineries.

This may lead to an end with large debts.

HYV seeds need more fertilizers and water and they are expensive.

Since Green Revolution introduced new machineries, it led to the replacement of labour, and further leading to unemployment and rural-urban migration.

It was limited to rice and wheat only.only..

Question 14 List the changes in Palampur due to the advent of electric power in the village.

Answer: The advent of electric power in Palampur has brought about the following changes:

(i) Irrigation is now done through electric run tube wells, which has reduced the dependence of the farmers upon rainfall and enables larger areas of land to be irrigated.

(ii) Irrigation improvement allowed farmers to grow three different crops in a year.

(iii) It enabled Mishrilal to set up a sugarcane crushing machine so that he can sell jaggery manufactured by him to the traders at Shahpur. 


Question 15 . Why are farm laborers like Dala and Ramkali poor?

Answer:  (i) Dala and Ramkali are landless farm laborers who work on daily wages in Palampur.

(ii) The minimum wages for farm laborer set by the government is 115 per day, they get only 80.

(iii) There is heavy competition for work among the farm laborers in Palampur, so people agree to work for lower wages.

(iv) They remain out of work for most parts of the year and have to take loans from the moneylender to fulfill their needs. Due to this seasonal unemployment, they remain poor and are unable to repay the loan and fall into a debt trap. 

Question 16. How did the spread of electricity help farmers in Palampur?

Answer:  (i) Most of the houses in Palampur have electric connections.  

(ii) Electricity powers all the tube wells in the fields that help to irrigate much larger areas of land more effectively as compared to the traditional Persian wheel drawn by bullocks. Since the entire cultivated area of 200 hectares had come under irrigation farmers did not have to depend on rainfall and could grow multiple crops.  

(iii) It helps small businesses run their machinery like Mishrilal’s sugarcane crushing machine.

Question 17. In your region, talk to two laborers Choose either farm laborers or laborers working at construction sites. What wages do they get? Are they paid in cash or kind? Do they get work regularly? Are they in debt?

Answer: (i) In our region, there are two labourers namely Ram Khilawan and Basanti, who are husband and wife working as casual constructing labourers. Due to drought, they had to leave their village in search of employment. They get approximately 50 to 60 rupees per day which they are paid in cash.  

(ii) They do not get work regularly because there are a large number of workers seeking employment, due to which they agree to work for low wages. Because of irregular work and low wages they are unable to fulfill their needs and are in debt.  

Question 18 State the main reasons why farmers are able to grow three different crops in a year in Palampur.

Answer: The main reasons are:

(i) A well-developed system of irrigation.

(ii) Electricity came early to Palampur. It was perceived to help in transforming the system of irrigation as the earlier Persian wheels, till then, were used to draw water from wells to irrigate small fields.

(iii) People noticed that electric-run tubewells could irrigate much large areas of land more effectively.

Question 19 What are the harmful effects of chemical fertilizers?

Answer: Chemical fertilizers provide minerals which dissolve in water and are immediately available to plants. But they may escape from the soil and pollute the groundwater, rivers and lakes. Chemical fertilizers can also kill bacteria and other micro-organisms in the soil. It means sometimes, after their use, the soil will be less fertile than ever before. So, continuous use of chemical fertilizers has led to the degradation of the soil’s health.

Question 20  How do medium and large farmers obtain capital for farming? How is it different from small farmers?

Answer:  (i) Most small farmers have to borrow money to arrange for the capital. They borrow from large farmers or the village moneylenders or the traders who supply various inputs for cultivation. The rate of interest on such loans is very high and these farmers are in great stress to repay loans.

(ii) In contrast to the small farmers, medium and large farmers have their own savings from farming. They use this saving to arrange for next year’s capital and make high profits by selling surplus production and earning higher amounts. Sometimes, they deposit their savings in a bank or lend their money to small farmers or save their savings or buy cattle, truck or to set up shops.


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