NCERT Economics Class 9 Chapter 1 | Non Farm Activities in Palampur Notes & PDF

Topic covered: Non Farm Activities in Palampur and MCQs Questions: The Story of Village Palampur (All single detail notes are exam-oriented).

We have discussed in-depth and exam-oriented pointers that can be asked in the board exam of class 9th about the “Non Farm Activities in Palampur“ from the NCERT Economics notes for class 9th chapter 1 “The Story of Village Palampur“.

Download the NCERT Economics for Class 9th Chapter 1 The Story of Village Palampur Notes PDF

Class 9 Economics begins with Chapter 1: The Story of Village Palampur, which sets the base for understanding how production works in real life. This chapter explains land, labor, capital, and organization of production using Palampur as a simple example. Students often get confused between fixed capital and working capital or how multiple cropping boosts production. To make these ideas clear, I’ve prepared concise notes that break down each concept with easy explanations. You can download the NCERT Economics for Class 9th Chapter 1 The Story of Village Palampur Notes PDF and use it for revision, assignments, or last-minute exam prep.

Non Farm Activities in Palampur

1. Main Activity:

• Farming is the main production activity in Palampur.

2. Non-Farm Activities:

• Apart from farming, there are non-farm production activities in the village.
• Examples: (to be studied further in the chapter – shopkeeping, transport, small-scale manufacturing, etc.).

3. Share of Non-Farm Activities:

• Only 25% of the working population in Palampur is engaged in non-farm activities.
• Majority (75%) still depend on farming/agriculture for their livelihood.

4. Key Exam Insight:

• Farming dominates the economy of Palampur, but diversification through non-farm activities provides alternative sources of income and employment.

1. Dairy – The Other Common Activity

1. Dairy as a Common Activity:

• Dairy is practiced by many families in Palampur.
• It is one of the most common non-farm activities.

2. Sources of Animal Feed:

• Buffalos are mainly fed on:
  a. Different types of grass.
  b. Jowar and bajra grown during the rainy season (kharif crops).

3. Marketing of Milk:

• Milk is sold in Raiganj, a nearby large village.
• From Raiganj, milk is collected and transported further.

4. Role of Traders and Infrastructure:

• Two traders from Shahpur have established collection-cum-chilling centres in Raiganj.
• Milk is preserved here before being transported.
• From these centres, milk is sent to towns and cities far away.

5. Exam Pointers Recap:

• Dairy is a non-farm activity providing income beyond agriculture.
• Links village economy to urban demand through collection and transportation.
• Example of how traders and infrastructure (chilling centres) connect rural producers to wider markets.

2. An example of Small-scale Manufacturing in Palampur

1. Extent of Manufacturing:

• Less than 50 people are engaged in manufacturing in Palampur.
• It is a very small share compared to farming.

2. Nature of Manufacturing:

• Unlike big factories in towns/cities, Palampur’s manufacturing is:
• On a small scale.
• Uses simple production methods.
• Carried out mostly at home or in fields.
• Mainly uses family labour; rarely are outside labourers hired.

3. Example: Mishrilal’s Sugarcane Crushing:

• Mishrilal purchased a mechanical sugarcane crushing machine powered by electricity.
• Earlier, sugarcane was crushed with bullocks.
• Now, machines are preferred over animal power.
• Mishrilal also buys sugarcane from other farmers – processes it into jaggery.
• Jaggery is sold to traders in Shahpur.
• Mishrilal earns a small profit from this activity.

4. Exam Pointers Recap:

• Small-scale manufacturing in Palampur is limited and simple.
• Done mainly with family labour, not hired labour.
• Shows a shift from traditional to machine-based methods.
• Example of non-farm diversification that connects village to nearby market towns.

3. The Shopkeepers of Palampur

1. Trade in Palampur:

• Very few people are involved in trade.
• Traders are mainly shopkeepers.

2. Role of Shopkeepers:

• Shopkeepers buy goods from wholesale markets in cities.
• They resell these goods in Palampur village.

3. Types of Shops:

• General stores selling a wide variety of daily-use goods:
  a. Food items: rice, wheat, sugar, tea, oil, biscuits.
  b. Household items: soap, toothpaste, batteries, candles.
  c. Stationery: notebooks, pen, pencil.
  d. Even some cloth.
• A few families near the bus stand have opened small eatable shops.

4. Note Example: Kareem’s Computer Centre:

• Kareem started a computer class centre in the village.
• Reason: many students from Palampur went to Shahpur for computer classes.
• He employed two women with computer application degrees from the village.
• Bought computers and set up classes in his house near the market area.
• Many high school students now attend these classes.

5. Exam Pointers Recap:

• Trade in Palampur is limited, not a major occupation.
• Shopkeepers provide essential goods by linking village to urban wholesale markets.
• Shows diversification into service sector activities like computer education.
• Highlights employment opportunities created for educated villagers (e.g., women in Kareem’s centre).

4. Transport: A Fast Developing Sector

1. Transport Services in Palampur:

• Roads connect Palampur to Raiganj.
• Variety of vehicles used in transport:
  a. Traditional: bullock carts, bogeys, tongas.
  b. Modern: rickshaws, jeeps, tractors, trucks.
• People in transport ferry goods and passengers for payment.
• The number of people in transport has increased in recent years – shows growth of non-farm activities.

2. Note Example: Kishora’s Story:

• Kishora, a farm labourer, struggled to meet his family’s needs from wages.
• Took a cheap loan from bank under a government programme for poor landless households.
• With loan money, Kishora:
  a. Bought a buffalo – sells its milk.
  b. Attached a wooden cart to the buffalo – uses it for transport services.
• Types of work Kishora does:
  a. Weekly trips to the Ganga river to fetch clay for potters.
  b. Transporting jaggery and other commodities to Shahpur.
• Earns more now compared to earlier – shows how non-farm activity improved his livelihood.

3. Exam Pointers Recap:

• Transport sector in Palampur is diverse and expanding.
• Provides income and employment to many villagers.
• Example of livelihood diversification – poor labourers like Kishora can improve earnings by combining small-scale dairy with transport services.
• Role of government support (cheap loans) in helping the landless shift towards non-farm work.

Summary – The Story of Village Palampur

1. Farming as the Main Activity:

• Farming is the primary production activity in Palampur.
• Over time, new farming methods have increased crop production from the same amount of land.
• This is important since land is fixed and scarce.

2. Issues with Modern Farming:

• Modern farming has put great pressure on land and natural resources.
• It requires more capital but less land.
• Use of labour on farms is limited, even though labour is abundant in India.

3. Farmers and Capital:

• Medium and large farmers use their own savings from production for capital needs.
• Small farmers:
  a. Constitute about 80% of total farmers in India.
  b. Own small plots of land – limited production – little or no surplus.
  c. Cannot save for capital – forced to borrow money at high interest.
  d. Often work as farm labourers to support their families.

4. Labour and Migration:

• Limited demand for labour in farming – surplus labourers migrate.
• Migration towards nearby villages, towns, and cities.
• Some enter the non-farm sector within the village.

5. Non-Farm Sector:

• Presently, non-farm activities are small in scale.
• Out of 100 rural workers in India, only 24 are engaged in non-farm activities.
• Examples in Palampur: dairy, small manufacturing, shopkeeping, transport.
• Non-farm activities require less land but some capital.

6. Conditions for Expanding Non-Farm Activities:

• Capital availability is crucial – loans must be given at low interest rates.
• Need markets to sell goods and services.
• Good roads, transport, and communication link villages to towns/cities – expands opportunities.
• Future development of rural India depends on diversification into non-farm activities.

Next & Previous Topics of NCERT/CBSE Economics Class 9 Chapter 1: The Story of Village Palampur

MCQs on NCERT Economics Class 9 Chapter 1 Topic – Non Farm Activities in Palampur

Here are the top exam-oriented MCQ-type questions on “Non Farm Activities in Palampur” that you should prepare for your CBSE or state board exams:

Question 1. What percentage of people in Palampur are engaged in non-farm activities?

(a) 50%
(b) 40%
(c) 25%
(d) 75%

Answer: (c) 25%

Question 2. What is the most common non-farm activity in Palampur?

(a) Shop-keeping
(b) Dairy farming
(c) Transport
(d) Small-scale manufacturing

Answer: (b) Dairy farming

Question 3. The buffalos in Palampur are fed mainly on—

(a) Wheat and rice
(b) Grass, jowar, and bajra
(c) Oilseeds and pulses
(d) Cotton seeds

Answer: (b) Grass, jowar, and bajra

Question 4. Where is the milk from Palampur sold?

(a) Shahpur market
(b) Raiganj
(c) Palampur shops
(d) Dehradun

Answer: (b) Raiganj

Question 5. Who set up collection-cum-chilling centres at Raiganj?

(a) Farmers of Palampur
(b) Government officials
(c) Traders from Shahpur
(d) Traders from Palampur

Answer: (c) Traders from Shahpur

Question 6. About how many people are engaged in manufacturing in Palampur?

(a) 100
(b) 80
(c) 50
(d) Less than 50

Answer: (d) Less than 50

Question 7. Manufacturing in Palampur is mainly carried out—

(a) In large factories
(b) In towns
(c) At home or in fields with family labour
(d) By hiring skilled labourers

Answer: (c) At home or in fields with family labour

Question 8. Which crop is processed by Mishrilal using his sugarcane crushing machine?

(a) Wheat
(b) Potato
(c) Sugarcane
(d) Rice

Answer: (c) Sugarcane

Question 9. What product does Mishrilal sell to traders in Shahpur?

(a) Gur (jaggery)
(b) Sugar
(c) Rice
(d) Milk

Answer: (a) Gur (jaggery)

Question 10. Who are the traders in Palampur?

(a) Moneylenders
(b) Shopkeepers
(c) Government officials
(d) Farmers

Answer: (b) Shopkeepers

Question 11. What kind of items are sold in the general stores of Palampur?

(a) Only food grains
(b) Only clothes and footwear
(c) Rice, wheat, sugar, tea, oil, biscuits, soap, stationery, etc.
(d) Only milk and jaggery

Answer: (c) Rice, wheat, sugar, tea, oil, biscuits, soap, stationery, etc.

Question 12. Kareem started which non-farm activity in Palampur?

(a) Transport services
(b) Sugarcane crushing
(c) Computer classes
(d) Dairy collection centre

Answer: (c) Computer classes

Question 13. Who were employed by Kareem in his computer centre?

(a) School dropouts
(b) Women with computer degrees
(c) Farm labourers
(d) Shopkeepers

Answer: (b) Women with computer degrees

Question 14. Which of the following is NOT a transport service in Palampur?

(a) Rickshaw
(b) Tongas
(c) Airplanes
(d) Trucks

Answer: (c) Airplanes

Question 15. Kishora initially worked as—

(a) A shopkeeper
(b) A farm labourer
(c) A dairy owner
(d) A school teacher

Answer: (b) A farm labourer

Question 16. What did Kishora buy with the help of a bank loan under a government programme?

(a) Tractor
(b) Sugarcane machine
(c) Buffalo
(d) Jeep

Answer: (c) Buffalo

Question 17. How did Kishora increase his income besides selling milk?

(a) By running a shop
(b) By working in Shahpur factory
(c) By attaching a wooden cart to his buffalo for transport
(d) By selling fertilizers

Answer: (c) By attaching a wooden cart to his buffalo for transport

Question 18. What is the main production activity in Palampur?

(a) Dairy
(b) Farming
(c) Shop-keeping
(d) Transport

Answer: (b) Farming

Question 19. Why was it important to increase production from the same land in Palampur?

(a) Because land is fixed and scarce
(b) Because population was declining
(c) Because more people migrated
(d) Because traders demanded more

Answer: (a) Because land is fixed and scarce

Question 20. Modern farming methods require—

(a) Less land, more capital
(b) More land, less capital
(c) Only more labour
(d) Only traditional seeds

Answer: (a) Less land, more capital

Question 21. About what percentage of farmers in India are small farmers?

(a) 50%
(b) 80%
(c) 25%
(d) 60%

Answer: (b) 80%

Question 22. What is the main problem of small farmers in India?

(a) Lack of land only
(b) Lack of capital due to small production
(c) Lack of labour
(d) Lack of transport facilities

Answer: (b) Lack of capital due to small production

Question 23. What happens due to lack of surplus with small farmers?

(a) They save money for next season
(b) They borrow at high interest
(c) They buy more land
(d) They migrate to towns

Answer: (b) They borrow at high interest

Question 24. Which factor of production is the most abundant in India?

(a) Capital
(b) Labour
(c) Land
(d) Machines

Answer: (b) Labour

Question 25. Out of 100 rural workers in India, how many are engaged in non-farm activities?

(a) 40
(b) 24
(c) 75
(d) 50

Answer: (b) 24

Question 26. What is essential for the expansion of non-farm activities?

(a) Cheap labour and high wages
(b) Availability of low-interest loans and markets
(c) More land and forests
(d) Government jobs

Answer: (b) Availability of low-interest loans and markets

Question 27. Which facilities help in increasing non-farm opportunities?

(a) Roads, transport, telephone
(b) Only moneylenders
(c) More land
(d) More rainfall

Answer: (a) Roads, transport, telephone