Complex sentence: Old Paluvayi has a population of three thousand that is ethnically made up of Reddy, Kamma, Vysya, Yadavs and Muslims and SC, ST. The primary income activity comes from agriculture; here most of the people depend on cultivation like paddy, chilli, cotton.
Split into simpler sentences: Old Paluvayi has three thousand population including Reddy, Kamma, Vysya, Yadavs and Muslims and SC, ST living together. Here most of the people depend on cultivation like paddy, chilli, cotton.