Key Points - A Shirt in the Market

This deals with steps involved in marking a shirt.

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.

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 is given in advance. 
(iv) The weavers get yarn from the merchants and supply them the cloth.
(v) It saves money of the weavers as they do not have to buy yarn. Likewise, the problem of selling the cloth is also taken care of. 
(vi) Since weavers do not know the price of the cloth, they are at a loss and get very small amount.

The Garment Exporting Factory near Delhi:
(i) Erode merchants sent the cloth to graments export centre in Delhi. (ii)
The garments factory makes shirts to be sold to the chain of business from the US and Europe.
(iii) They set standard of quality and time. 
(iv) Faced with pressure the garment centre tries to extract maximum work from their workders 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 businessman 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) Poor are exploited in the market. 
(vi) Laws should be made to protect the interest of weavers and small farmers.