This deals with steps involved in marking a shirt. The chapter highlights a chain of markets that link the producer of cotton to the buyer of the shirt in the supermarket. Buying and selling takes place at every step in the chain.
A Cotton Farmer in Kurnool:
(i) A small farmer grows cotton on his small piece of land. Once the harvesting is done, cotton balls are collected.
(ii) These are taken to the local trader as the farmer had borrowed money from the trader to buy seeds, fertilisers, etc. for cultivation.
(iii) Even though the market price is high, the trader buys it at a meagre price from the farmer.
(iv) Cultivation of cotton requires high levels of inputs such as fertilisers and pesticides and the farmers have to incur heavy expenses on account of these. Most often, the small farmers need to borrow money to meet these expenses.
(v) They depend on traders for loans and other expenses during exigencies. Also, there are
times in the year when there is no work and no income for the farmers, so borrowing money is the only means of survival.
The Cloth Market of Erode:
(i) The bi-weekly market of Erode in Tamil Nadu is one of the biggest cloth markets in the world.
(ii) Cloth made by weavers from all over comes here for sale.
(iii) Instructions about the type of cloth to be made are given in advance by merchants to traders.
(iv) The merchant distributes work among the weavers based on the orders he/she has received for cloth. The weavers get the yarn from the merchant and supply him/her the cloth.
For the weavers, this arrangement has two advantages:
- The weavers do not have to spend their money on purchase of yarn.
- Also, the problem of selling the finished cloth is taken care of. Weavers know from the outset what cloth they should make and how much of it is to be woven.
(v) This dependence on the merchants both for raw materials and markets means that the
merchants have a lot of power. They give orders for what is to be made and they pay a very low price for making the cloth.
(vi) The arrangement between the merchant and the weavers is an example of putting-out system, whereby the merchant supplies the raw material and receives the finished product. It is prevalent in the weaving industry in most regions of India.
The Garment Exporting Factory near Delhi:
(i) Erode merchants sent the cloth to garments export centre in Delhi.
(ii) The garments factory makes shirts to be sold to businessmen from the US and Europe who run a chain of business stores.
(iii) These large stores do business strictly on their own terms. They demand the lowest prices from the supplier. In addition, they set high standards for quality of production and timely delivery. Any defects or delay in delivery is dealt with strictly. So, the exporter tries his best to meet the conditions set by these powerful buyers.
(iv) Faced with pressure the garment centre tries to extract maximum work from their workers of the lowest cost.
(v) Most hired workers are temporary and get low salary.
The Shirt in the US:
(i) The shirts sent from garments export centres are sold in dollars in the US.
(ii) The shirts sold at Rs 200 by the garment export centre sell at Rs 1,200 in the US.
(iii) Thus, a chain of markets links the producers of cotton to the buyers at the supermarket.
Market and Equality:
(i) Foreign businessmen made huge profits in the market.
(ii) Garment manufacturers only make moderate profits.
(iii) Weavers at Erode market and small farmers don’t make huge profit.
(iv) Poor people have no option but to depend on the rich.
(v) The poor are exploited in the market.
(vi) Laws should be made to protect the interests of weavers and small farmers. Cooperatives of producers should also be formed to help them.
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New
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