Chapter 1: The Story of Village Palampur

Savita got a loan from Tejpal Singh at the rate of interest of 24 per cent for four months and also had to work for Tejpal Singh as a farm labourer at the wage of Rs 100 per day during the harvest season.

The case would have been different if Savita had taken the loan from a bank. The rate of interest would have been lesser than what was asked by Tejpal Singh and also she would have been able to pay complete attention to her own field during the time of harvest.

Answer: Students must do this activity and write an answer based on their own observation.

The non-farm production activities taking place in our region are as follow:

1. Dairy
2. Transportation
3. General Stores
4. Fishing
5. Mining

To promote more non-farm production activities in villages, the following steps can be taken:

1. Loans must be available for people at lower interest rates so that they can start the non-farm production activities.
2. Proper markets should be set up so that the produced goods can be sold.
3. The concerned authorities must set up better transportation between cities and villages so that the produced goods can be transported to cities and more money can be earned through the non-farming activities.