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Agriculture sector provides livelihood to about three-fourths of the panchayat's population, employs over 70 percent of the labour force. Puramattom may be divided in to three geographical regions.(1) Highlands (50%), (2) Midlands (40%) and (3) Lowlands(10%). Owing to historical and climatic reasons the panchayat has developed commercial agriculture more than food crops. Consiquently the panchayat is short of foodgrains, especially rice which is the staple food of the pople. There are three main crop seasons, namely, kharif, rabi and summer. About 20% of the total cropped area is under irrigation. Rice and tapoica are important food crops. Cashewnut, arecanut, coconut, oilseeds, pepper, sugarcane, rubber, coffee, ginger and coca are the main cash crops of Puramattom. In 1987 Sepetember 1st an agricultural Development office established in Puramattom.

The production of fish is not very high. But in the production of milk the panchayat reached the targeted level. 'Puramattom curd' is very famous. And the famous bull market 'Mamanal Kalachandha' is also located here. The rapid and unprecedented changes in the external enviornment such as leberalisation of the economy, globalisation of international markets, deregulation of the financial system and implications of various clauses under WTO also exerted considerable pressure on the agriultural system of this panchayat. The inadequated levels of capital formation in agricultural sector, distancing of farm technologies from requirements of the marker, inadequate and untimely supply of credit and post-harvest losses are the worrying factors of the agricultural sector in this panchayt.

There has been considerable industrial growth in this panchayat. There are number of small scale industrial units here. As on 31-03-1997 there were 17 registered Small Scale Industries(SSI) units in the panchayat. But there is no large industrial enterprises in neither public sector nor private sector. The main reason for that is the abysmally poor supply of power in most parts of the panchayat. A variety of quality timbers are available in this panchayat. So there are many wood based industries here. There is good scope for plywood industry. There are two printing units.

There is one match box factory . The village and cottage industries are promoted under government sponsored programs like IRDP, PMRY, etc. And there are number of artisans units like black smithy, carpentry and gold smithy in this panchayt. There is also good potential for skill based industries. The skill based industries like electrical and electronic industries, mechanical workshops, general engineering, repairing units, construction activities, plumbing works etc. have good pottential in this panchayat. Rubber is one of the most important agricultural product in the panchayat. As such there is abundant scope for large number of rubber based units in the panchayat.

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