ECONOMICS

CHAPTER-1
Organisation of
Production
Identify…………………
In economics, land comprises all naturally
occurring resources as well as geographic land.

Examples include
particular geographical locations,
mineral deposits,
forests,
fish stocks,
atmospheric quality, etc
Meaning…….

productive work

(especially physical work

done for wages)
Types
Identify….
Physical capital is the variety of
inputs required at every stage during
production.
It includes fixed capital and working
capital.
The tools, machines, buildings which
can be used in production over many
years are called fixed capital.

Raw materials and money in hand are

called working capital.
Meaning????????

The knowledge and enterprise

to put together land, labour and
physical capital and
produce an output
Every production is organized by
Combining
land,
labour,
physical capital
and
human capital, which are known as
factors of production
Organisation of Production
 Identify the land, labour
and fixed capital used in production.
Farming in Palampur
 PROBLEM ?????????

-Land is fixed
-No expansion in land area
-Waste lands are already
-converted into farm land
-No further scope to increase
production
 op p i ng
ip le C r
M u lt
1
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 jowar, bajra, wheat,

sugarcane etc
.
Discuss………..

Is it important to increase the

area under irrigation?

Why?
Activity time…………..

Fill the following table based on information on the crops

grown in your region
 ho ds
et
rm in gM
r n F a
M o de
2
Under the premiership of Congress leaders Lal
Bahadur Shastri and Indira Gandhi, the Green
Revolution within India commenced in 1968, leading
to an increase in food grain production, especially in
Punjab, Haryana, and Western Uttar Pradesh.
Lal Bahadur Shastri was an Indian politician
and statesman who served as the second
prime minister of India from 1964 to 1966.

Indira Gandhi was an Indian

politician who served as the
third Prime Minister of India
from 1966 to 1977 and again
from 1980 until her
assassination in 1984. She
was India's first and, to date,
only female prime minister
Dr. M. S. Swaminathan is considered as the
father of Indian Green Revolution.
In Palampur, the yield of wheat grown from the traditional varieties
was 1300 kg per hectare.

With HYV seeds, the yield went up to 3200 kg per hectare.

There was a large increase in the production of wheat.

Farmers now had greater amounts of surplus wheat to sell in the

markets

Was the Green Revolution equally

successful for both the crops?

What is the working capital required

by the farmer using modern farming
methods?
Modern farming methods:
Using tube wells for irrigation purposes.

Using HYV (High yielding varieties) seeds, chemical fertilizers, and pesticides
for farming.

Using farm machinery like tractors and threshers.

Disadvantages of using modern farming methods are:

Modern farming methods have overused the natural resource
base.

Increased use of fertilizers has led to the loss of soil fertility.

The use of groundwater for tube well irrigation has led to water
depletion.

Modern farming methods require a great deal of capital.

.The consumption of chemical fertilizers in Punjab is highest
in the country.

The continuous use of chemical fertilizers has led to

degradation of soil health.

Punjab farmers are now forced to use more and more

chemical fertilizers and other inputs to achieve
the same production level.

This means
cost of cultivation is rising very
fast.....
 u te d
s tr ib
d d i
s la n r?
o w i m p u
H e n Pa la
tw e s o f
b e m er
fa r
th e
In Palampur, about one third of the 450 families are landless, i.e. 150 families, most of
them dalits, have no land for cultivation.

Of the remaining families who own land, 240 families cultivate small plots of land less
than 2 hectares in size.

Cultivation of such plots doesn’t bring adequate income to the farmer family.

There are 60 families of medium and large farmers who cultivate more than 2 hectares
of land.

A few of the large farmers have land extending over 10 hectares or more.
 il i es o f
a n y fa m plo ts
o s o m h s m a ll
W hy d te s uc
c u l tiv a
e r s
farm
la n d?
of
Land=2.25 hectars

Gobind
How will the land get distributed after Gobind’s death?
Identify the work being done on the
field in the Pictures and arrange
them in a proper sequence
• Why are farm labourers like Dala and Ramkali
poor?

• Gosaipur and Majauli are two villages in North

Bihar. Out of a total of 850
households in the two villages, there are more than
250 men who are employed in rural Punjab and
Haryana or in Delhi, Mumbai, Surat, Hyderabad or
Nagpur. Such migration is common in most villages
across India. Why do people migrate? Can you
describe (based on your imagination) the work that
the migrants of Gosaipur and Majauli might do at the
place of destination?
The capital needed in farming
 Reading time………..

Savita is a small farmer.

She plans to cultivate wheat on her 1 hectare of land.

Besides seeds, fertilizers and pesticides, she needs

cash to buy water and repair her farm instruments.

She estimates that the working capital itself would

cost a minimum of Rs 3,000.

She doesn’t have the money, so she decides to borrow

from Tejpal Singh, a largefarmer.
Tejpal Singh agrees to give Savita the loan at an interest rate of 24 per
cent for four months, which is a very high interest rate.

Savita also has to promise to work on his field as a farm labourer during
the harvest
season at Rs 100 per day. As you can tell, this wage is quite low.

Savita knows that she will have to work very hard to complete harvesting
on her
own field, and then work as a farm labourer for Tejpal Singh.

The harvest time is a very busy time.

As a mother of three children she has a lot of household responsibilities.

Savita agrees to these tough conditions as she knows getting a loan is

difficult
for a small farmer.
What are the problems faced
by most of the small
farmers?

Are the medium and large farmers

facing such kind of problems?
 i t i e s
Ac t iv
F a rm
No n–
Activities other than
agriculture are called
non-farming activities.
 Importance

In many rural areas, agriculture alone cannot provide

sufficient livelihood opportunities. Migration is not an option
for everyone

These activities provide employment opportunities for

landless workers
In economics, surplus refers to means that you have more of it than
you need.

Once after the harvesting and production of crops, the farmers retain a
part of produced crops for their families and sell the surplus crops.

Farmers with smaller farm or land will have lesser production, hence
little surplus crops.