A Shirt in the Market
Text Book Page No. 105
Did Swapna get a fair price on the cotton ?
No. Swapna didn’t get a fair price on the cotton.
Why did the trader pay Swapna a low price ?
The trader paid Swapna a low price on the cotton because she had borrowed money from him and promised to sell her cotton produce to him only.
Where do you think large farmers would sell their cotton ? How is their situation different from Swapna ?
(1) Large farmers would directly sell their cotton either in the cotton market or to Ginning mill.
(2) Large farmers’ situation is different from Swapna. Swapna is a poor farmer who often borrows money from traders on high interest rate and is made to promise to sell her produce to trader on the price he fixes.
But larger farmers are rich and don’t need money on interest to cultivate cotton plants. They invest their money and are not compelled to sell their produce to traders as happened in the case of Swapna. They are free to sell their produce anywhere to fetch reasonable price.
Text Book Page No. 107
What are the following people doing at the Erode Cloth market merchants, weavers, exporters ?
Merchants are doing the following activities at the Erode cloth market they buy the cloths made by weavers in the villages. They also get the cloths made on order by the weavers.
These merchants supply cloth on order to garment manufactures and exporters around the country. They also purchase yarn and give instructions to the weavers about the kind of cloth that is to be made.
Weavers : Weavers make cloth in the village and bring in the Erode’s bi-weekly cloth market in Tamil Nadu for sale. They also make cloths on order from the merchant. For this, they get the yarn from the merchant and supply him the cloth.
Exporters : Exporters buy cotton cloths from merchants and use these cloths to make shirts. They export or sell these shirts to foreign buyers in the US and Europe who run a chain of stores there.
These exporters, the owners of the garment exporting factory get the maximum work out of the workers at the lowest possible wages so that they can maximize their profits on supplying the garments to foreign buyers.
In what ways are weavers dependent on cloth merchants ?
- The weavers get the work from the merchants based on the orders the merchants have received for the type and quantity of cloth.
- The weavers are dependent on merchants as they get the yarn from the cloth merchants and supply them the cloth.Thus, the weavers are dependent on the merchants both for raw material and markets.
Text Book Page No. 108
If the weavers were to buy yam on their own and sell cloth, they would probably earn three times more. Do you think this is possible ? How ? Discuss.
(1) Yes. This is possible. Because, the yarn the weavers buy from merchants is on credit of high price and high interest rate of the cost.
(2) But they cannot sell the woven cloth in the market on their own. They have to sell these cloths to merchants who pay very little for these. So, if the weavers were to buy yam on their own and sell cloth, they would probably earn three times more.
Do you find similar ‘putting out’ arrangements in making papads, masalas, bidis ? Find out about this in your area and discuss in class.
Students, do these themselves.
[Hints : Students ask the elders of their area about any ‘putting out system’ in making papads, maslas and bidis. Find out what is this arrangement and how the workers are supplied the raw materials and then make papads, masala and bidies. On what conditions this system functions.]
You might have heard of co¬operatives in your area. It could be in milk, provisions, paddy, etc. Find out for whose benefit they were set up ?
Students, do these themselves.
[Hints : For the convenience of the students, a sample answer is given below.]
There is a milk cooperative in my area. In this cooperative, the milkmen with common interest come together and work for their mutual benefit. This milk cooperative collects the milk from all the milkmen and sell to milk factory on a reasonable price.
The milkmen also get advance through the cooperative without interest and buy cows and buffaloes. Thus, they develop their milk business with the help of cooperative.
Text Book Page No. 109
What are the demands foreign buyers make on the garment exporters? Why do the garment exporters agree to these demands?
(1) The foreign buyers do business on their own terms and conditions. They demand the lowest prices of garments from the garment exporters. In addition, they also set high standards for quality of production and timely delivery. Any defects, or delay in delivery is dealt with strictly.
(2) The garment exporters agree to the demands of foreign buyers because they earn high profit from this order.
How do the garment exporters meet the conditions set by the foreign buyers ?
(1) The garment exporters try to cut costs of the garment. They fill this cut by getting the maximum work from the workers at the lowest possible wages.
(2) This way they supply the garments to foreign buyers at a cheap price. Thus, the garment exporters meet the conditions set by the foreign buyers.
Text Book Page No. 110
Why do you think more women are employed in the Impex garment factory ? Discuss.
(1) The women who are not well educated and belong to poor family, try to earn some money instead of staying at home.
(2) These women become ready to work in garment exporting factory at a monthly wage of as low as 1500 rupees. They think this amount is an additional earning for the family. But at this rate, probably no man agrees to work. This is the reason, why more women are employed in the Imper garment factory.
Write a letter to the Minister asking for what you think would be proper payment to the workers.
Students, do this question themselves.
[Hints : A sample letter is given as an answer on next page for the guidance of the students.]
5/3, Mandir Marg Gole Market
Date : ………………….
Ministry of Labour and Social Welfare
Government of Delhi
Subject : An application’ regarding proper payment to the workers.
With due respect, I want to draw your kind attention towards the wages, the workers mainly women get in a garment exporting factory. They are given Rs. 1,500 to Rs. 2,000 per month. This is less than the minimum wages fixed by the government. So, please take this case for your supervision and try to take legal action so that they can get proper payment which I think should be more than Rs. 3000 per month.
The shirt below shows the profit made by the businessperson, and the various costs that he had to pay. If the cost price is Rs. 600,’ find out from the diagram given on textbook page 110, what the cost price includes
The cost price is Rs. 600.
It includes (Rs. 600) =
Purchase – Rs. 200/
Storage – Rs. 100/
Advertising – Rs. 300/
Total cost price = Rs. 600/
Text Book Page No. 111
Compare the earnings per shirt of the worker in the garment factory, the garment exporter and the business¬person in the market abroad. What do you find ?
|Cost price per shirt||X||Rs. 100/||Rs. 100/|
|Sale price/shirt||X||Rs. 200/||Rs. 100/|
|Earning/shirt||Rs. 15 (wage)||Rs. 100/||Rs. 100/|
(1) Comparative earnings per shirt of worker, the garment exporter and the businessperson in the market aboard are as follow :
(2) I found that the worker earns the minimum i.e., Rs. 15 per shirt. And the businessman in the market abroad earns the maximum earning, i.e., Rs. 600 per shirt. Whereas, the garment exporter earns more than five times what a worker earns and six times less than the businessperson.
What are the reasons that the business person is able to make a huge profit in the market ?
- Investment of money is the main reason to make profit in the market.
- The person who invests as much money and the power to decide the deal earn as much profit.
- Here the businessperson is the richest and most powerful in dealing the garment business. So he makes a huge profit in the market.
You have read the chapter on advertising. Why does the businessperson spend Rs. 300 per shirt on advertising? Discuss.
- Making brand is the key process in the business to make profit. As the brand will be popular in the market and the consumers mind, it will do business.
- As “a result, the brand owner make profit from the sale of the products of the brand.
- And it is the advertising that develops a brand in the market. This is the reason why the businessperson spends Rs. 300 per shirt on advertising.
Fill up the table given on Textbook page 111
People who gained in the market
- Businesspersons in the market abroad (the most)
- Garment exporters
- Merchants or trades
People who didn’t gain as much in the market
- Workers in the garment export factory
- Weaver, making cloths
- Farmers, growing and selling cotton
Exercise Questions and Answers
What made Swapna sell the cotton to the trader instead of selling at the Kurnool cotton market ?
(1) Because, at the beginning of the cropping season Swapna had borrowed Rs. 2,500 from the trader to buy seeds, fertilisers, pesticides for cultivation.
(2) At that time, the local trader made Swapna agree with another condition. He made her promise to sell all her cotton to him.This condition made Swapna sell the cotton to the trader instead of selling at the Kurnool cotton market.
Describe the conditions of employment as well as the wages of workers in the garment exporting factory. Do you think the workers get a fair deal ?
(1) Most of the workers are employed in the garment exporting factory on a temporary basis. This means that whenever the employer feels that a worker is not needed, he can be asked to leave. Workers’ wages are fixed according to their skills.
The highest paid among the workers are the tailors who get about Rs. 3,000 per month. Women are employed as helpers for thread cutting, buttoning, ironing and packaging. These jobs have the lowest wages about Rs. 1,500 per month.
(2) I think, the workers don’t get a fair deal in the garment export factory.
Think of something common that we use. It could be sugar, tea, milk, pen, paper, pencil, etc. Discuss through what chain of markets this reaches you. Can you think of the people that help in the production or trade ?
(1) It could be milk, something common to clothe that we use. It also has a long chain of markets in reaching to the people in the big city. It starts with the small farmers or villagers who have one to five cows or buffaloes or of both in the villages. ,
They sell milk to Ghusi (milkmen). The Ghusi collects milk from each cow/buffalo owners at every night and morning. He gives this collection to either dairy farm or a trader.
The trader collects a huge quantity of milk from rural area, through Ghusis. The trader provides this bulk of milk to dairy farm like Mother Dairy in Delhi or some times small dairy farms.
In turn, these big or small dairy farms supply milk either in packet or loose to us (consumers) directly through dairy centres or through shops in the cities.
(2) The people who help in the production or trade of milk are villagers who domesticate cows/buffaloes in the rural area, Ghusi (milkman), trader, (in between Ghusis and- dairy farms), dairy farm, shop keepers in the town/city.
Arrange the statements given below in the correct order and then fill in the numbers in the cotton bolls accordingly. The first two have already been done for you.
1. Swapna sells the cotton to the trader.
3. Trader sells cotton to the Ginning Mill.
9. Ginning Mill cleans the cotton and makes it into bales.
7. Spinning mill buys the cotton and sells yarn to the yarn dealers.
5. Yarn dealers or merchants give the yarn to the weavers.
8. Weavers return with the cloth.
4. Garment exporters buy the cloth from merchants for making shirts.
6. The exporter sells shirts to the businesspersons of USA.
2. Customers buy these shirts in a supermarket.