Resource Distribution and Non-Farm Activities

Chapter Notes:

• Land Distribution in Palampur:

  • Unequal Distribution: Land is crucial for farming, but not all engaged in agriculture have sufficient land.

  • Landless Families: About one-third of the 450 families (150 families), mostly Dalits, are landless.

  • Small Farmers: 240 families cultivate small plots (less than 2 hectares), which do not provide adequate income.

    • Case of Gobind: Farmer with 2.25 hectares in 1960. After his death, land divided among three sons, each getting 0.75 hectares. Despite improved irrigation and modern methods, sons cannot make a living and seek additional work.

  • Medium and Large Farmers: 60 families cultivate more than 2 hectares of land, with some large farmers owning over 10 hectares.

  • Visual Representation: Picture 1.5 shows scattered small plots and large plots covering more than half the village area.

• Labour in Farming:

  • Second Factor of Production: Labour is necessary and requires hard work.

  • Small Farmers: Provide their own labour along with their families.

  • Medium and Large Farmers: Hire farm labourers.

  • Farm Labourers: Come from landless families or those cultivating small plots.

    • No Right Over Crops: Unlike farmers, labourers do not have rights over the crops grown on the land.

    • Wages: Paid wages (cash or kind, sometimes meals). Wages vary by region, crop, and activity, as does employment duration.

    • Dala’s Case: Landless farm labourer on daily wages, constantly seeking work. Government minimum wage was Rs 300/day (March 2019), but Dala receives Rs 160 due to heavy competition for work.

    • Poverty: Dala and Ramkali are among the poorest in the village.

    • Migration: Common in India, as people migrate for work (e.g., from North Bihar villages to Punjab, Haryana, Delhi, Mumbai, Surat, Hyderabad, Nagpur).

• Capital Needed in Farming:

  • Modern Farming’s Capital Needs: Requires a great deal of capital, more cash than before.

  • Small Farmers’ Borrowing: Most small farmers borrow money from large farmers, village moneylenders, or traders.

    • High Interest Rates: Interest rates on such loans are very high, leading to distress in repayment.

    • Savita’s Case: Small farmer needing Rs 3,000 for working capital for wheat cultivation on 1 hectare. Borrows from Tejpal Singh at 24% interest for four months and has to work as a farm labourer for him at a low wage (Rs 100/day) during harvest. She accepts due to difficulty in getting loans.

  • Medium and Large Farmers’ Savings: Have their own savings from farming, enabling them to arrange capital.

    • Surplus Sale: Sell surplus farm products. Small farmers have little surplus.

    • Tejpal Singh’s Example: Large farmer with 350 quintals of wheat surplus. Sells in Raiganj, earns well. Uses savings for lending to farmers like Savita and for working capital for the next season. Plans to buy another tractor (increases fixed capital).

    • Investment: Some farmers also use savings to buy cattle, trucks, or set up shops (capital for non-farm activities).

• Summary of Factors of Production (Recap):

  • Labour: Most abundant factor, but limited work opportunities, leading to low wages and difficult lives for farm labourers.

  • Land: Scarce and fixed. Unequally distributed, with many small farmers living in difficult conditions.

  • Capital: Scarce, especially for small farmers who need to borrow at high interest.

  • Difference: Land is a natural resource and fixed; capital is man-made and can be increased. Environment care is crucial.

• Non-Farm Activities in Palampur:

  • Only 25% of the working population is engaged in non-agricultural activities.

  • 1. Dairy: Common activity. Buffalos fed jowar and bajra. Milk sold in Raiganj, collected and chilled for transport to towns/cities.

  • 2. Small-Scale Manufacturing: Less than fifty people engaged.

    • Methods: Simple production methods, mostly done at home or in fields with family labour; rarely hire labourers.

    • Mishrilal’s Example: Purchased an electric sugarcane crushing machine. Processes sugarcane into jaggery (buying from other farmers) and sells to traders in Shahpur, making a small profit.

  • 3. Shopkeeping: Not many involved in trade.

    • Role: Shopkeepers buy goods from wholesale markets in cities and sell in the village.

    • Items: Wide range of items like rice, wheat, sugar, tea, oil, biscuits, soap, toothpaste, batteries, candles, notebooks, pen, pencil, some cloth.

    • Location: Some shops near the bus stand sell eatables.

    • Kareem’s Computer Centre: Opened a computer class due to student demand for classes in Shahpur. Hired two women with computer application degrees.

  • 4. Transport: Fast developing sector.

    • Vehicles: Rickshawallahs, tongawallahs, jeep, tractor, truck drivers, bullock carts, and bogeys.

    • Function: Ferry people and goods, earning payment.

    • Growth: Number of people in transport has grown.