The Story of the Village of Palampur

Village of Palampur

1. Background & Purpose

   • Based on a study by Gilbert Etienne in Bulandshahr district, Uttar Pradesh.

2. Main Economic Activity

   • Farming is the primary activity.

     • Other activities (on a smaller scale):

       • Dairy farming

       • Manufacturing

       • Transport

       • Shopkeeping

3. Resources for Production

   • Requires:

     • Natural resources (land, water)

     • Man-made tools/machines

     • Human labor

     • Capital (money)

4. Infrastructure & Connectivity

   • Connected by an all-weather road to:

     • Raiganj (3 km away)

     • Shahpur (nearest town)

   • Electricity powers:

     • Tube wells (for irrigation)

     • Small manufacturing units

5. Social Structure & Housing

   • 450 families live in the village.

   • Around 80 upper-caste families own most land; live in brick houses.

   • One-third of the population are landless laborers, mainly SCs (Dalits).

   • SCs live in mud/straw houses in a separate corner of the village.

6. Facilities in Palampur

   • Schools: 2 primary schools + 1 high school

   • Healthcare:

     • 1 government primary health center

     • 1 private dispensary

Organization of Production

Production is the activity of creating goods and services.

It requires four key factors, called Factors of Production:

1. Land

   • Basic requirement for production.

   • Includes natural resources like water, minerals, and forests.

2. Labour

   • Refers to the human effort used in production.

   • Can be manual or skilled (educated) workers.

   • Each worker contributes labor to the process.

3. Physical Capital

   • (i) Fixed Capital:

     • Long-term investments like buildings, machines, tools (e.g., ploughs, turbines, computers).

     • Used again and again in production.

   • (ii) Working Capital:

     • Includes raw materials and money in hand.

     • Used to buy raw materials and services or to sell finished goods.

     • Used up during production.

4. Human Capital

   • Refers to knowledge and enterprise.

   • Needed to organize all other inputs.

   • The person may produce directly or guide others in production.

Farming in Palampur

1. Fixed Land

• Farming is the main occupation for 75% of Palampur’s working population.

• These people are either farmers or farm laborers.

• Land under cultivation is fixed (no increase since 1960).

• So, farmers have to increase productivity using the same land.

Ways to Grow More from the Same Land

Multiple Cropping

• Farmers grow more than one crop on the same piece of land each year.

1. Cropping Seasons in Palampur:

   • Kharif (Rainy season): Crops like jowar and bajra (used as cattle feed).

   • Post-Kharif (Oct–Dec): Potatoes as a third crop.

   • Rabi (Winter season): Wheat is grown.

     • Farmers keep some wheat for their own use and sell the rest in Raiganj market.

2. Sugarcane Cultivation

   • A part of the land is used for sugarcane, harvested once a year.

   • Sold as raw sugarcane or jaggery in Shahpur.

3. Irrigation System

   • Palampur has a well-developed irrigation system.

   • Electricity helps power tube wells that replaced traditional Persian wheels.

   • By the mid-1970s, irrigation covered 200 hectares.

Modern Farming in Palampur

1. Use of HYV Seeds & Green Revolution

• Introduced in late 1960s using High-Yielding Variety (HYV) seeds.

• Gave better yields than traditional seeds but required:

  • Irrigation (plenty of water)

  • Chemical fertilizers

  • Pesticides

• States like Punjab, Haryana, and Western UP adopted these methods first.

• Yield of HYV seeds: up to 3200 kg/hectare vs. 1300 kg/hectare for traditional seeds.

2. Farm Machinery

• Farmers also started using tractors and threshers, improving ploughing and harvesting speed.

1. Sustenance of Land

• Modern farming uses too much water, lowering the groundwater level.

• This affects long-term soil fertility and sustainability (increased use of chemical fertilizers).

2. Ill Effects of Chemical Fertilizers

• Advantages:

  • Quick mineral supply to plants.

• Disadvantages:

  • minerals supplied by fertilizers may not be retained in the soil for long

  • Long-term soil damage and pollution of rivers/lakes.

  • Kills helpful microbes and bacteria in soil.

    • Punjab has the highest fertilizer use in India.

Land Distribution in Palampur

• Out of 450 families:

  • 150 families are landless (mostly Dalits).

  • 240 families have small plots (less than 2 hectares) ().

  • 60 families are medium or large farmers (2+ hectares); some have 10+ hectares.

Farm Labour

• Laborers are either:

  • Landless

  • Belong to families with small plots

• Meals or crops may be given instead of cash.

• Paid daily or per job (e.g., sowing, harvesting).

• Due to high competition, wages are low.

• Some work in non-farm sectors or are dependent on moneylenders.

Capital Needed in Farming

• Modern farming requires a lot of money for:

  • HYV seeds, fertilizers, machinery, etc.

• Small farmers borrow from large farmers, traders, or moneylenders.

• Interest rates are high, causing debt traps.

• Large and medium farmers use their own savings for capital needs.

Sale of Surplus Farm Products

• Large and medium farmers keep part of the harvest for family use and sell the surplus in the market.

• Traders buy grains and sell them in towns and cities.

• Money earned is used to:

  • Buy farming inputs for the next season.

  • Purchase capital equipment.

  • Give loans to small farmers.

  • Start non-farm activities.

• Surplus sale boosts working and fixed capital for these farmers.

Non-Farm Activities in Palampur

• Only 25% of the working population is in non-agricultural work (similar to the national rural average).

• Activities are diverse but small-scale.

  Types of Non-Farm Activities:

1. Dairy Farming

   • Second most common activity after crop farming.

   • Buffaloes fed with grass, jowar, bajra (grown in rainy season).

   • Milk is sold in Raiganj and transported to towns from collection/chilling centers set up by Shahpur traders.

2. Manufacturing

   • Involves less than 50 people.

   • Done at home or on fields.

   • No hired labor; mostly family-based work.

3. Trade

   • Very few traders/shopkeepers.

   • Goods are purchased from city wholesale markets and sold in the village.

   • Small shops and eateries near bus stand.

4. Transport

   • Growing sector.

   • Connects Palampur to Raiganj.

   • Involves rickshaws, tongas, jeeps, tractors, trucks, and bullock carts.