Organisation of Production

• The aim of all production is to create desired goods and services.
• Four essential requirements exist for the production of goods and services.

Organisation of Production

• The primary requirement is land, encompassing all natural resources like water, forests, and minerals.
• Labor is the second requirement, including both skilled and unskilled workers necessary for different production activities. Each worker provides labor necessary for production.
• Physical capital is the third requirement, including various inputs needed at every stage of production.
• Tools, machines, and buildings fall under physical capital and can be used in production for many years, and are considered fixed capital.
• Raw materials and money in hand are also part of physical capital as production needs raw materials like yarn and clay, plus money for payments, and are called working or variable capital.
• Human capital, the knowledge and enterprise to combine land, labor, and physical capital, constitutes the fourth requirement to produce an output.
• Every production is organised by combining land, labor, physical, and human capital, known as factors of production.

Increasing Production

• Growing multiple crops on the same land during the year, known as multiple cropping, is the most common way of increasing production.
• Modern farming methods are another way to increase yield.
• The Green Revolution started in the late 1960s and it introduced Indian farmers to High Yielding Varieties (HYVs) of seeds for wheat and rice.
• HYV seeds promised larger amounts of grain from a single plant, leading to greater quantities of food grains from the same land area compared to traditional seeds.
• HYV seeds require ample water, chemical fertilizers, and pesticides for the best results.
• Farmers in Punjab, Haryana, and Western Uttar Pradesh were the first to adopt modern farming methods in India.
• Higher yields are possible with the combination of HYV seeds, irrigation, chemical fertilizers, and pesticides.
• The Green Revolution led to the loss of soil fertility due to increased chemical fertilizer use.
• Continuous groundwater use for tube well irrigation depleted the water table, which is difficult to restore once depleted.

Non-Farm Activities

• Dairy is common in Palampur, where buffaloes are fed grass, jowar, and bajra grown in the rainy season.
• Milk is sold in Raiganj, a nearby village.