Page 1 - IX_ECO_CH-1_ST-5_LN

SAI International School

2025-26
Class IX

Chapter-1 The story of Village Palampur
Subtopic- 4

Non-Farm Activities in Palampur
Lesson Notes

An example of small-scale manufacturing in Palampur
•At present, less than fifty people are engaged in manufacturing in Palampur.
•Manufacturing in Palampur involves very simple production methods and are
done on a small scale.

MISHRILAL’S STORY (Let’s discuss pg. No. 12)
•Mishrilal has purchased a mechanical sugarcane crushing machine (Fixed Capital)
run on electricity and has set it up on his field.
•The labour is provided by him and his family.
•Mishrilal has set up a small scale unit. Since the industry is small scale,
production is less and therefore, he is unable to increase his profit.
•Conditions under which he may face a toss can be any of the following
(a)If his crushing machine becomes defective, his production will reduce or totally
stop.
(b)If due to drought or other calamity, the production of sugarcane in nearby areas
reduces; his jaggery production will come down leading to a loss for him.
(c)If the demand for jaggery decreases, ne will not be able to sell enough to break
even.
(d)If any other costs like electricity, labour or transportation costs increase, he may
face a loss.

•Palampur is a small village with 450 families and there is not a big demand for
jaggery there. Shahpur is a town where people come from different surrounding
villages to buy things and there is more demand of jaggery there, so Mishrilal sells
his jaggery to traders in Shahpur and not in his village.

The shopkeepers of Palampur
•The traders of Palampur are shopkeepers who buy various goods from wholesale
markets in the cities and sell them in the village.