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86 Social and Political Life
A Shirt in
the Market
This chapter tells us the story
of a shirt ! It begins with the
production of cotton and ends
with the sale of the shirt. We
shall see that a chain of
markets links the producer of
cotton to the buyer of the
shirt in the supermarket.
Buying and selling takes place
at every step in the chain.
Does everyone benefit equally
from this? Or do some people
benefit more than others? We
shall find out.
8
CHAPTER
Page 2


86 Social and Political Life
A Shirt in
the Market
This chapter tells us the story
of a shirt ! It begins with the
production of cotton and ends
with the sale of the shirt. We
shall see that a chain of
markets links the producer of
cotton to the buyer of the
shirt in the supermarket.
Buying and selling takes place
at every step in the chain.
Does everyone benefit equally
from this? Or do some people
benefit more than others? We
shall find out.
8
CHAPTER
87
Did Swapna get a fair price on the
cotton?
Why did the trader pay Swapna
a low price?
Where do you think large farmers
would sell their cotton? How is
their situation different from
Swapna?
A cotton farmer in Kurnool
Swapna, a small farmer in Kurnool (Andhra Pradesh)
grows cotton on her small piece of land. The bolls of
the cotton plant are ripe and some have already
burst, so Swapna is busy picking cotton. The bolls,
which carry the cotton in them, do not burst open
all at once so it takes several days to harvest the
cotton.
Once the cotton is collected, instead of selling it at
Kurnool cotton market, Swapna and her husband
take the harvest to the local trader. At the beginning
of the cropping season, Swapna had borrowed
` 2,500 from the trader at a very high interest rate
to buy seeds, fertilisers, pesticides for cultivation.
At that time, the local trader made Swapna agree to
another condition. He made her promise to sell all
her cotton to him.
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.
At the trader?s yard, two of his men weigh the
bags of cotton. At a price of ` 1,500 per quintal, the
cotton fetches ` 6,000. The trader deducts
` 3,000 for repayment of loan and interest and pays
Swapna ` 3,000.
Swapna: ` 3,000 only!
Trader: Cotton is selling cheap. There is a lot of
cotton in the market.
Swapna: I have toiled so hard for four months to
grow this cotton. You can see how fine and clean the
cotton is this time. I had hoped to get a much better
price.
Chapter 8: A Shirt in the Market 87
Page 3


86 Social and Political Life
A Shirt in
the Market
This chapter tells us the story
of a shirt ! It begins with the
production of cotton and ends
with the sale of the shirt. We
shall see that a chain of
markets links the producer of
cotton to the buyer of the
shirt in the supermarket.
Buying and selling takes place
at every step in the chain.
Does everyone benefit equally
from this? Or do some people
benefit more than others? We
shall find out.
8
CHAPTER
87
Did Swapna get a fair price on the
cotton?
Why did the trader pay Swapna
a low price?
Where do you think large farmers
would sell their cotton? How is
their situation different from
Swapna?
A cotton farmer in Kurnool
Swapna, a small farmer in Kurnool (Andhra Pradesh)
grows cotton on her small piece of land. The bolls of
the cotton plant are ripe and some have already
burst, so Swapna is busy picking cotton. The bolls,
which carry the cotton in them, do not burst open
all at once so it takes several days to harvest the
cotton.
Once the cotton is collected, instead of selling it at
Kurnool cotton market, Swapna and her husband
take the harvest to the local trader. At the beginning
of the cropping season, Swapna had borrowed
` 2,500 from the trader at a very high interest rate
to buy seeds, fertilisers, pesticides for cultivation.
At that time, the local trader made Swapna agree to
another condition. He made her promise to sell all
her cotton to him.
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.
At the trader?s yard, two of his men weigh the
bags of cotton. At a price of ` 1,500 per quintal, the
cotton fetches ` 6,000. The trader deducts
` 3,000 for repayment of loan and interest and pays
Swapna ` 3,000.
Swapna: ` 3,000 only!
Trader: Cotton is selling cheap. There is a lot of
cotton in the market.
Swapna: I have toiled so hard for four months to
grow this cotton. You can see how fine and clean the
cotton is this time. I had hoped to get a much better
price.
Chapter 8: A Shirt in the Market 87 88 Social and Political Life
A shop in Erode.
Trader: Amma, I am giving you a good price. Other
traders are not even paying this much. You can check
at the Kurnool market, if you do not believe me.
Swapna: Don?t be angry. How can I doubt you? I had
only hoped that we would earn enough from the
cotton crop to last us a few months.
Though Swapna knows that cotton will sell for at
least ` 1,800 per quintal, she doesn?t argue further.
The trader is a powerful man in the village and the
farmers have to depend on him for loans not only for
cultivation, but also to meet other exigencies such
as illnesses, children?s school fees. 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.
Swapna?s earning from cotton cultivation is barely
more than what she might have earned as a wage
labourer.
The cloth market of Erode
Erode?s bi-weekly cloth market in Tamil Nadu is one
of the largest cloth markets in the world. A large
variety of cloth is sold in this market. Cloth that is
made by weavers in the villages around is also
brought here for sale. Around the market are offices
of cloth merchants who buy this cloth. Other traders
from many south Indian towns also come and
purchase cloth in this market.
 On market days, you would also find weavers
bringing cloth that has been made on order from the
merchant. These merchants supply cloth on order
to garment manufacturers and exporters around the
country. They purchase the yarn and give
instructions to the weavers about the kind of cloth
that is to be made. In the following example, we can
see how this is done.
Page 4


86 Social and Political Life
A Shirt in
the Market
This chapter tells us the story
of a shirt ! It begins with the
production of cotton and ends
with the sale of the shirt. We
shall see that a chain of
markets links the producer of
cotton to the buyer of the
shirt in the supermarket.
Buying and selling takes place
at every step in the chain.
Does everyone benefit equally
from this? Or do some people
benefit more than others? We
shall find out.
8
CHAPTER
87
Did Swapna get a fair price on the
cotton?
Why did the trader pay Swapna
a low price?
Where do you think large farmers
would sell their cotton? How is
their situation different from
Swapna?
A cotton farmer in Kurnool
Swapna, a small farmer in Kurnool (Andhra Pradesh)
grows cotton on her small piece of land. The bolls of
the cotton plant are ripe and some have already
burst, so Swapna is busy picking cotton. The bolls,
which carry the cotton in them, do not burst open
all at once so it takes several days to harvest the
cotton.
Once the cotton is collected, instead of selling it at
Kurnool cotton market, Swapna and her husband
take the harvest to the local trader. At the beginning
of the cropping season, Swapna had borrowed
` 2,500 from the trader at a very high interest rate
to buy seeds, fertilisers, pesticides for cultivation.
At that time, the local trader made Swapna agree to
another condition. He made her promise to sell all
her cotton to him.
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.
At the trader?s yard, two of his men weigh the
bags of cotton. At a price of ` 1,500 per quintal, the
cotton fetches ` 6,000. The trader deducts
` 3,000 for repayment of loan and interest and pays
Swapna ` 3,000.
Swapna: ` 3,000 only!
Trader: Cotton is selling cheap. There is a lot of
cotton in the market.
Swapna: I have toiled so hard for four months to
grow this cotton. You can see how fine and clean the
cotton is this time. I had hoped to get a much better
price.
Chapter 8: A Shirt in the Market 87 88 Social and Political Life
A shop in Erode.
Trader: Amma, I am giving you a good price. Other
traders are not even paying this much. You can check
at the Kurnool market, if you do not believe me.
Swapna: Don?t be angry. How can I doubt you? I had
only hoped that we would earn enough from the
cotton crop to last us a few months.
Though Swapna knows that cotton will sell for at
least ` 1,800 per quintal, she doesn?t argue further.
The trader is a powerful man in the village and the
farmers have to depend on him for loans not only for
cultivation, but also to meet other exigencies such
as illnesses, children?s school fees. 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.
Swapna?s earning from cotton cultivation is barely
more than what she might have earned as a wage
labourer.
The cloth market of Erode
Erode?s bi-weekly cloth market in Tamil Nadu is one
of the largest cloth markets in the world. A large
variety of cloth is sold in this market. Cloth that is
made by weavers in the villages around is also
brought here for sale. Around the market are offices
of cloth merchants who buy this cloth. Other traders
from many south Indian towns also come and
purchase cloth in this market.
 On market days, you would also find weavers
bringing cloth that has been made on order from the
merchant. These merchants supply cloth on order
to garment manufacturers and exporters around the
country. They purchase the yarn and give
instructions to the weavers about the kind of cloth
that is to be made. In the following example, we can
see how this is done.
89
1.This is a merchant?s shop in the bazaar.
Over the years, these traders have
developed extensive contacts with
garment firms around the country from
whom they get orders. These traders
purchase the yarn (thread) from others.
2. The weavers live in villages around
and take the yarn supplied by these
traders to their homes where the looms
are located in sheds adjacent to their
houses. This photograph shows a
powerloom in one such home.
The weavers and their families spend
long hours working on these looms.
Most weaving units have about  2?8
powerlooms on which the yarn is woven
into cloth. A variety of sarees, towels,
shirting, ladies dress material and
bedsheets are produced in these looms.
3. They then bring back the finished cloth
to the traders. Here, they can be seen
getting ready to go to the merchant in the
town. The trader keeps an account of the
yarn given and pays them money for
weaving this into cloth.
1 2
3
What are the following people
doing at the Erode cloth market?
merchants, weavers, exporters?
In what ways are weavers
dependent on cloth merchants?
Putting-out system? weavers producing
cloth at home
The merchant distributes work among the weavers
based on the orders he has received for cloth. The
weavers get the yarn from the merchant and supply
him the cloth. For the weavers, this arrangement
seemingly 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.
However, 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. The weavers have no way of
Chapter 8: A Shirt in the Market
Page 5


86 Social and Political Life
A Shirt in
the Market
This chapter tells us the story
of a shirt ! It begins with the
production of cotton and ends
with the sale of the shirt. We
shall see that a chain of
markets links the producer of
cotton to the buyer of the
shirt in the supermarket.
Buying and selling takes place
at every step in the chain.
Does everyone benefit equally
from this? Or do some people
benefit more than others? We
shall find out.
8
CHAPTER
87
Did Swapna get a fair price on the
cotton?
Why did the trader pay Swapna
a low price?
Where do you think large farmers
would sell their cotton? How is
their situation different from
Swapna?
A cotton farmer in Kurnool
Swapna, a small farmer in Kurnool (Andhra Pradesh)
grows cotton on her small piece of land. The bolls of
the cotton plant are ripe and some have already
burst, so Swapna is busy picking cotton. The bolls,
which carry the cotton in them, do not burst open
all at once so it takes several days to harvest the
cotton.
Once the cotton is collected, instead of selling it at
Kurnool cotton market, Swapna and her husband
take the harvest to the local trader. At the beginning
of the cropping season, Swapna had borrowed
` 2,500 from the trader at a very high interest rate
to buy seeds, fertilisers, pesticides for cultivation.
At that time, the local trader made Swapna agree to
another condition. He made her promise to sell all
her cotton to him.
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.
At the trader?s yard, two of his men weigh the
bags of cotton. At a price of ` 1,500 per quintal, the
cotton fetches ` 6,000. The trader deducts
` 3,000 for repayment of loan and interest and pays
Swapna ` 3,000.
Swapna: ` 3,000 only!
Trader: Cotton is selling cheap. There is a lot of
cotton in the market.
Swapna: I have toiled so hard for four months to
grow this cotton. You can see how fine and clean the
cotton is this time. I had hoped to get a much better
price.
Chapter 8: A Shirt in the Market 87 88 Social and Political Life
A shop in Erode.
Trader: Amma, I am giving you a good price. Other
traders are not even paying this much. You can check
at the Kurnool market, if you do not believe me.
Swapna: Don?t be angry. How can I doubt you? I had
only hoped that we would earn enough from the
cotton crop to last us a few months.
Though Swapna knows that cotton will sell for at
least ` 1,800 per quintal, she doesn?t argue further.
The trader is a powerful man in the village and the
farmers have to depend on him for loans not only for
cultivation, but also to meet other exigencies such
as illnesses, children?s school fees. 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.
Swapna?s earning from cotton cultivation is barely
more than what she might have earned as a wage
labourer.
The cloth market of Erode
Erode?s bi-weekly cloth market in Tamil Nadu is one
of the largest cloth markets in the world. A large
variety of cloth is sold in this market. Cloth that is
made by weavers in the villages around is also
brought here for sale. Around the market are offices
of cloth merchants who buy this cloth. Other traders
from many south Indian towns also come and
purchase cloth in this market.
 On market days, you would also find weavers
bringing cloth that has been made on order from the
merchant. These merchants supply cloth on order
to garment manufacturers and exporters around the
country. They purchase the yarn and give
instructions to the weavers about the kind of cloth
that is to be made. In the following example, we can
see how this is done.
89
1.This is a merchant?s shop in the bazaar.
Over the years, these traders have
developed extensive contacts with
garment firms around the country from
whom they get orders. These traders
purchase the yarn (thread) from others.
2. The weavers live in villages around
and take the yarn supplied by these
traders to their homes where the looms
are located in sheds adjacent to their
houses. This photograph shows a
powerloom in one such home.
The weavers and their families spend
long hours working on these looms.
Most weaving units have about  2?8
powerlooms on which the yarn is woven
into cloth. A variety of sarees, towels,
shirting, ladies dress material and
bedsheets are produced in these looms.
3. They then bring back the finished cloth
to the traders. Here, they can be seen
getting ready to go to the merchant in the
town. The trader keeps an account of the
yarn given and pays them money for
weaving this into cloth.
1 2
3
What are the following people
doing at the Erode cloth market?
merchants, weavers, exporters?
In what ways are weavers
dependent on cloth merchants?
Putting-out system? weavers producing
cloth at home
The merchant distributes work among the weavers
based on the orders he has received for cloth. The
weavers get the yarn from the merchant and supply
him the cloth. For the weavers, this arrangement
seemingly 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.
However, 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. The weavers have no way of
Chapter 8: A Shirt in the Market 90 Social and Political Life
Weaver?s cooperative
We have seen that the weavers are paid very little by the
merchant under the putting out system. Weaver?s cooperatives
are one way to reduce the dependence on the merchant and to
earn a higher income for the weavers.  In a cooperative, people
with common interests come together and work for their mutual
benefit. In a weaver?s cooperative, the weavers form a group and
take up certain activities collectively. They procure yarn from
the yarn dealer and distribute it among the weavers. The
cooperative also does the marketing. So, the role of the merchant
is reduced, and weavers get a fair price on the cloth.
At times, the government helps the cooperatives by buying cloth from them at a reasonable
price. For instance, the Tamil Nadu government runs a Free School Uniform programme in
the state. The government procures the cloth for this programme from the powerloom weaver?s
cooperatives.  Similarly, the government buys cloth from the handloom weaver?s cooperatives
and sells it through stores known as Co-optex. Y ou might have come across one of these
stores in your town.
If the weavers were to buy yarn on
their own and sell cloth, they
would probably earn three times
more. Do you think this is
possible? How? Discuss.
Do you find similar ?putting-out?
arrangements in making p a p a d s ,
m a s a l a s , b e e d is? Find out about
this in your area and discuss in
class.
You might have heard of
cooperatives in your area. It could
be in milk, provisions, paddy, etc.
Find out for whose benefit they
were set up?
knowing who they are making the cloth for or at
what price it will be sold. At the cloth market, the
merchants sell the cloth to the garment factories. In
this way, the market works more in favour of the
merchants.
Weavers invest all their savings or borrow money
at high interest rates to buy looms. Each loom costs
` 20,000, so a small weaver with two looms has to
invest ` 40,000. The work on these looms cannot be
done alone. The weaver and another adult member
of his family work upto 12 hours a day to produce
cloth. For all this work, they earn about
` 3,500 per month.
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.
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