Questions covered are:
1. Who is Swapna, and what challenges did she face as a cotton farmer?
2. What is the putting-out system? What are its advantages and disadvantages for weavers?
3. What is the role of cooperatives in improving the lives of weavers?
4. How do garment exporters meet the demands of foreign buyers? What challenges do workers face in garment factories?
5. Explain how the market chain works, from the cotton farmer to the buyer in the supermarket.
6. Compare the earnings of different participants in the market chain.
7. How does inequality manifest in the market system?
8. What role does advertising play in the profitability of garments sold abroad?
9. How can the exploitation of small farmers and workers be reduced in the market system?
Fill in the Blanks
Intext Questions
Book Back Questions and answer
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1. Who is Swapna, and what challenges did she face as a cotton farmer?
Swapna is a small cotton farmer from Kurnool, Andhra Pradesh. She faced the following challenges:
- High costs of cultivation: Cotton farming required expensive inputs like seeds, fertilizers, and pesticides.
- Dependence on loans: Swapna borrowed ₹2,500 from a local trader at a high interest rate to finance her farming.
- Low prices for her cotton: The trader paid her only ₹1,500 per quintal, which was below the market price.
- Lack of bargaining power: Swapna was forced to sell her cotton to the trader because she owed him money and had agreed to sell her produce to him in advance.
2. What is the putting-out system? What are its advantages and disadvantages for weavers?
The putting-out system is an arrangement where merchants supply raw materials (like yarn) to weavers, who produce cloth and return the finished goods to the merchants.
Advantages for weavers:
- They do not have to purchase raw materials like yarn, which reduces their initial investment.
- They do not have to worry about marketing or selling the finished goods, as the merchant takes care of it.
Disadvantages for weavers:
- Weavers earn very little as the merchant pays low wages.
- They are entirely dependent on the merchant for raw materials, orders, and payments.
- They have no control over the market or the price of their products, leading to exploitation.
3. What is the role of cooperatives in improving the lives of weavers?
Weaver cooperatives are organizations formed by weavers to reduce their dependency on merchants and improve their income.
Functions of cooperatives:
- They collectively purchase raw materials (like yarn) at reasonable rates and distribute them among members.
- They market and sell the finished cloth, ensuring better prices for the weavers.
- They often receive government support, such as procurement of cloth for programs like free school uniforms or sales through Co-optex stores.
Benefits of cooperatives:
- Fairer wages and reduced exploitation by merchants.
- Increased independence and bargaining power in the market.
- A sense of community and collective support among weavers.
4. How do garment exporters meet the demands of foreign buyers? What challenges do workers face in garment factories?
Meeting the demands of foreign buyers:
- Exporters must meet strict quality standards set by buyers from the US and Europe.
- They are required to deliver goods on time to avoid penalties.
- They reduce production costs by paying low wages to workers and maximizing output.
Challenges faced by workers:
- Most workers are employed on a temporary basis, allowing employers to terminate them anytime.
- Workers are paid very low wages. For example, tailors earn about ₹3,000 per month, while helpers (thread cutting, buttoning, etc.) earn even less.
- Women form a significant portion of the workforce, often taking on low-paying, labor-intensive tasks.
5. Explain how the market chain works, from the cotton farmer to the buyer in the supermarket.
The market chain involves a series of steps linking producers to consumers:
- Cotton farmer: Farmers like Swapna grow cotton and sell it to traders.
- Traders: Traders sell the raw cotton to ginning mills, where the seeds are removed, and the cotton is pressed into bales.
- Spinning mills: These mills process the cotton into yarn, which is then sold to merchants or yarn dealers.
- Weavers: Weavers use the yarn to produce cloth, often under the putting-out system, where merchants supply the yarn and collect the finished cloth.
- Cloth merchants: Merchants sell the cloth to garment exporters or manufacturers.
- Garment factories: These factories produce shirts or other garments, which are then exported to foreign buyers.
- Foreign buyers and retailers: The garments are sold in large stores at a significant markup. For example, a shirt made for ₹300 in India may be sold for $26 (~₹1,800) abroad.
6. Compare the earnings of different participants in the market chain.
The earnings vary significantly across the market chain:
- Cotton farmers like Swapna: They earn the least, often barely enough to cover their costs.
- Weavers: They earn slightly more than farmers but still face low wages due to their dependence on merchants.
- Merchants and traders: They earn moderate profits by controlling the trade of yarn and cloth.
- Garment exporters: They earn higher profits by meeting the demands of foreign buyers while keeping production costs low.
- Businesspersons abroad: They make the highest profits, selling garments at a large markup in their stores.
7. How does inequality manifest in the market system?
The market system often benefits the rich and powerful more than the poor.
- Small farmers and weavers toil hard but earn very little due to their dependence on traders and merchants.
- Merchants and exporters earn higher profits by controlling production and exploiting workers.
- Foreign businesspersons earn the maximum profits, as they control the retail market and set high prices for consumers.
This inequality highlights the exploitation of small producers and workers in the market chain.
8. What role does advertising play in the profitability of garments sold abroad?
Advertising plays a crucial role in increasing the profitability of garments:
- It attracts customers by creating a brand image and demand for the product.
- Retailers spend significant amounts on advertising (e.g., ₹400 per shirt) to promote their products.
- This increases the perceived value of the garment, allowing them to sell it at a much higher price compared to its production cost.
9. How can the exploitation of small farmers and workers be reduced in the market system?
The exploitation of small producers and workers can be reduced through:
- Formation of cooperatives: Farmers and weavers can collectively purchase inputs and market their products to earn fair prices.
- Government intervention: The government can regulate markets to ensure fair wages and prices. Programs like the Tamil Nadu government’s free uniform scheme support weavers.
- Awareness among consumers: Consumers can support fair-trade products, which ensure better earnings for producers.
- Strict enforcement of labor laws: Ensuring fair wages and working conditions for factory workers can reduce exploitation.
Fill in the blanks:
- Swapna borrowed ₹_________ from the trader to buy seeds, fertilizers, and pesticides.
- The trader paid Swapna ₹_________ per quintal for her cotton.
- The __________ system involves merchants providing raw materials to weavers and collecting finished goods.
- In the putting-out system, the weavers depend on the __________ for yarn and orders.
- The __________ market in Tamil Nadu is one of the largest cloth markets in the world.
- The __________ cleans cotton and turns it into bales to be sent for spinning into yarn.
- The weavers weave the cloth using __________ provided by the merchants.
- The garment exporters sell clothes to __________ buyers in the US and Europe.
- Workers in garment factories are often employed on a __________ basis.
- A tailor in the garment factory earns about ₹_________ per month.
- The cost price of a shirt for the businessperson in the US is ₹, but it is sold for ₹.
- A weaver with two looms has to invest about ₹_________ to set up the looms.
- __________ cooperatives help reduce weavers’ dependence on merchants by providing yarn and marketing support.
- The Tamil Nadu government runs the __________ program to buy cloth for free school uniforms.
- The rich and powerful in the market earn the __________, while the small producers and workers earn the __________.
Answers:
- ₹2,500
- ₹1,500
- putting-out
- merchant
- Erode
- ginning mill
- yarn
- foreign
- temporary
- ₹3,000
- ₹900, ₹1,800
- ₹40,000
- Weaver
- Free School Uniform
- most, least
In-Text Questions with Answers
- Did Swapna get a fair price for her cotton? Why?
No, Swapna did not get a fair price. She sold her cotton to a trader at a low price of ₹1,500 per quintal due to her dependency on the trader for loans and the trader’s control over the market. - Why did the trader pay Swapna a low price?
The trader paid a low price because of the oversupply of cotton in the market and Swapna’s inability to negotiate, as she owed money to the trader. - What is the putting-out system? How does it work?:
The putting-out system is a production arrangement where merchants provide raw materials (like yarn) to weavers, who produce cloth and return it to the merchant. The merchant pays a fixed amount for their labor but retains control over the materials and finished goods.
- Why are weavers dependent on merchants?
Weavers depend on merchants for raw materials (yarn), orders, and marketing of finished goods. This dependency limits their earning potential and bargaining power. - How does the garment exporter meet the demands of foreign buyers?
The garment exporter meets demands by ensuring low production costs, maintaining quality standards, and delivering products on time. They achieve this by paying workers low wages and maximizing their output.
Book-Back Questions with Answers
- What made Swapna sell the cotton to the trader instead of at the Kurnool cotton market?
Swapna sold her cotton to the trader because she was bound by a prior agreement. She had taken a loan from the trader and promised to sell her cotton to him as a condition of the loan. - Describe the conditions of employment and wages of workers in the garment exporting factory. Do you think they get a fair deal?
Workers in the garment factory, mostly women, are paid low wages (₹1,500–₹3,000 per month) and employed temporarily. They do not get a fair deal as their wages are insufficient to cover basic needs, and they lack job security. - Explain the role of cooperatives in reducing the dependence of weavers on merchants.
Cooperatives reduce dependence by collectively procuring yarn and marketing finished products, allowing weavers to earn higher incomes. They eliminate the middleman and provide fairer prices for their labor. - Arrange the steps in the chain of markets for cotton production in the correct order:
- Swapna sells the cotton to the trader.
- Trader sells cotton to the ginning mill.
- Ginning mill cleans cotton and makes bales.
- Spinning mill buys the cotton and makes yarn.
- Yarn dealers give yarn to weavers.
- Weavers return with cloth.
- Cloth is sold to garment exporters.
- Exporter sells shirts to foreign buyers.
- Compare the earnings of workers, exporters, and businesspeople in the shirt production process.
- Workers earn the least (₹25–₹3,000 per month).
- Exporters earn moderate profits (₹300–₹900 per shirt).
- Businesspeople in foreign markets earn the highest profits (₹900 per shirt or more).
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