ORGANISATION OF PRODUCTION
Aim of production is to produce the goods and services that are wanted by the people
Land
Land and other People, who would do
natural resources the work.
such as water,
forests, minerals.
IMPORTANT CHANGES IN FARM ACTIVITIES
Land
Land area under
cultivation is virtually
fixed.
Changes that took
place with time:
1. Multiple cropping
farming.
2. Use of modern
farming methods.
Due to the above
changes (late 1960s)
productivity of land
has increased
substantially known
as the Green
Revolution.
Dairy – the other
common activity
People feed their
buffalo on various
kinds of grass and the
jowar and bajra that
grows during the
rainy season.
Traders also have
collection centres for
milk from where they
transport it to far
away towns and
cities.
Requirements of production
Labour
The variety of inputs are
required at every stage
during production.
Fixed Capital
Tools, machines,
buildings.
Labour
Labour is considered
to be the next basic
factor of production.
Small farmers provide
their own labour,
whereas medium and
large farmers make
use of hired labour to
work on their fields.
NON-FARM ACTIVITIES
Small-scale
manufacturing
They are carried out
mostly at home or in
the fields with the
help of family labour.
Physical Knowledge and
Capital Enterprise
To be able to put
together land, labour
and physical capital and
produce an output.
Working Capital
Raw materials
and money in
hand.
Sale of Surplus
Capital
farm Products
Small farmers borrow A crop is produced in
from large farmers or market by using capital,
the village labour and land.
moneylenders or the
traders who supply
them various inputs for The farmers retain a
cultivation. part of produce for
self-consumption
and sell the surplus
in the nearby market.
That part of farm
produce which is
sold in the market is
known as
marketable surplus.
Shopkeepers Transport
They are basically those It is used to carry people
who buy various goods and goods from one
from wholesale markets place to another.
in the cities and sell
them in the village.