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SAI INTERNATIONAL SCHOOL
SESSION 2020-21
CLASS-IX
ECONOMICS- Ch-1- STORY OF VILLAGE PALAMPUR
LESSON NOTES
SUB-TOPIC- 6

Subtopics: An example of small-scale manufacturing in Palampur
The shopkeepers of Palampur
Transport: a fast developing sector

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.