Agriculture forms the bedrock of Palampur's heritage. The star crop is Kangra tea (*Camellia sinensis*), specifically known for its distinct flavor and aroma, which earned it a Geographical Indication (GI) tag. The tea estates—such as the Co-operative Tea Factory and various private gardens—dominate the landscape.
Beyond tea, the terraced fields of the valley are used to cultivate staples like rice (including a local variety of red rice), wheat, and maize. Horticulture is also prominent; orchards yielding plums, peaches, kiwis, and apples are common in the upper reaches. Innovative agricultural practices are continually introduced and supported by the local agricultural university and the CSIR-IHBT, which promote the cultivation of aromatic plants, stevia, saffron, and floriculture (like tulips) to boost farmers' incomes.
