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Class 7 Civics Chapter 8 Notes - A Shirt in the Market

Introduction

Imagine walking into a bustling market, where the air is filled with the sounds of people bargaining, the smell of fresh fruits, and the sight of colorful stalls. Markets are lively places where people come together to buy and sell goods. 

Whether it's fresh vegetables, clothes, or toys, markets are full of energy and excitement. Today, we'll explore what makes markets so special, how they work, and why they are important in our daily lives!

Class 7 Civics Chapter 8 Notes - A Shirt in the Market

A Cotton Farmer in Kurnool

  • Swapna is a small farmer in Kurnool, Andhra Pradesh. She grows cotton on her small piece of land.
  • Swapna and her husband pick the ripe cotton bolls. Instead of selling at the Kurnool cotton market, they take it to a local trader.
  • Swapna had borrowed Rs 2,500 from the trader at a high-interest rate for cultivation. She promised to sell all her cotton to the trader.
  • At the trader's yard, the cotton is weighed, fetching Rs 6,000 at Rs 1,500 per quintal. The trader deducts Rs 3,000 for loan repayment and interest. Swapna receives only Rs 3,000 for her hard work.
  • Swapna knows the cotton could sell for more but doesn't argue. The trader is powerful in the village, and farmers depend on him for loans.
  • Swapna's earnings from cotton are barely more than what she might have earned as a wage laborer. Small farmers like Swapna face challenges and often need to borrow money for various needs.
  • This situation highlights the vulnerability of small farmers, the power dynamics with local traders, and the financial struggles they face in the agricultural process.Cotton farmer in Kurnool
    Cotton farmer in Kurnool

Question for Chapter Notes - A Shirt in the Market
Try yourself:
What challenges do small farmers like Swapna face in the agricultural process?
View Solution

The Cloth Market of Erode

  • Erode's cloth market in Tamil Nadu is one of the world's largest.
  • The market offers a wide variety of clothes, including products made by local weavers.
  • Cloth merchants' offices surround the market, buying cloth from weavers in nearby villages.
  • Traders from various South Indian towns also visit this market to purchase clothes.
  • Weavers bring custom-made cloth on market days as per orders from merchants.
  • Merchants play a crucial role in the supply chain by providing cloth on order to garment manufacturers and exporters.
  • They buy yarn and instruct weavers on the type of cloth needed.
  • This system helps connect local weavers to a broader market and ensures a consistent supply of cloth for manufacturers and exporters. Cloth Market of Erode
    Cloth Market of Erode

Putting-out system– weavers producing cloth at home 

Weavers Producing ClothWeavers Producing Cloth

Class 7 Civics Chapter 8 Notes - A Shirt in the Market

(i) Merchant-Weaver Relationship: The merchant decides what cloth the weavers make based on received orders. Weavers receive yarn from the merchant and provide the finished cloth.

(ii) Advantages for Weavers: Weavers don't spend money on buying yarn. They know in advance what cloth to make, and selling the cloth is taken care of.

(iii) Dependence and Power Imbalance: Weavers depend on merchants for raw materials and markets. Merchants have significant power as they give orders and pay low prices for the cloth.

(iv) Market Dynamics: Merchants sell the cloth to garment factories at the cloth market. The market tends to favor the merchants in this arrangement.

(v) Weavers' Challenges: Weavers invest their savings or borrow money at high-interest rates for looms (Rs 20,000 each). Small weavers with two looms invest Rs 40,000. They work up to 12 hours a day, earning about Rs 3,500 per month.

(vi) Putting-Out System: This arrangement is an example of the putting-out system. The merchant supplies raw materials and receives the finished product. Common in the weaving industry across many regions of India.


The garment exporting factory near Delhi

The Erode merchant supplies cotton cloth made by weavers to a garment exporting factory near Delhi. The garment exporting factory uses the cloth to make shirts.

Garment Exporting FactoryGarment Exporting Factory

  • Export to Foreign Buyers: Shirts are exported to foreign buyers, including businesspersons from the US and Europe who run chain stores.
  • Challenges from Powerful Buyers: Foreign buyers demand the lowest prices, high production quality, and timely delivery. Any defects or delays are strictly dealt with by the buyers.
  • Pressure on Garment Exporting Factories: To meet buyer conditions, factories try to cut costs. This often means maximizing work from workers at the lowest wages.
  • Impex Garment Factory: Employs 70 workers, mostly women. Many workers are on a temporary basis, making them vulnerable to being asked to leave when not needed.
  • Wage Structure: Wages are based on skills, with tailors being the highest paid at about Rs 3,000 per month. Women are employed for tasks like thread cutting, buttoning, ironing, and packaging, which have the lowest wages.

This system emphasizes the challenges faced by workers, especially women, in garment factories that export to foreign markets. The pressure to cut costs often results in temporary employment and lower wages for workers.

Class 7 Civics Chapter 8 Notes - A Shirt in the Market

Question for Chapter Notes - A Shirt in the Market
Try yourself:
What is the relationship between merchants and weavers in the cloth market system?
View Solution

The Shirt in the US  

(i) Businessperson in the United States

Imagine someone buys shirts from a place called Delhi and sells them in the United States. They sell each shirt for $26 but they have to spend money to get the shirts, advertise them, and handle other costs. The total of all these costs per shirt is $900.

Now, let's figure out how much they bought each shirt for from Delhi.

Cost Price per shirt = Selling Price − Total Cost

Cost Price per shirt=26−900=−874

It seems something might be off here because we're getting a negative number. But if we continue with this, it means the person is losing money instead of making a profit. Let's move on to the exporter.

(ii) Garment Exporter in Delhi

The exporter in Delhi sells shirts to the person in the US. They sell each shirt for ₹300. But they have their own costs too, like buying materials, paying workers, and running their office. Let's add up those costs:

Total Cost per shirt = Cost of Materials+ Worker Wages+ Office Running Cost

Total Cost per shirt = ₹ 100 + ₹25 + ₹25 = ₹150

Now, let's find out how much profit the exporter makes on each shirt:

Profit per shirt = Selling Price − Total Cost

Profit per shirt = ₹300 − ₹ 150 = ₹150

So, the exporter makes ₹150 profit on each shirt they sell to the person in the US.

Who are the gainers in the market?

  • Within the market chain connecting cotton producers to supermarket shoppers, transactions occur at various stages.
  • Reflecting on the participants in these transactions, it's evident that not everyone benefited equally.
  • While some individuals profited from market activities, others, despite their considerable effort, saw limited returns.

Question for Chapter Notes - A Shirt in the Market
Try yourself:
Who makes a profit on each shirt sold from Delhi to the United States?
View Solution

Market and Equality

  • In the market, some people make big profits, like foreign businesspeople, while others, like garment exporters, make less. But workers in garment factories barely earn enough to get by.
  • Even small cotton farmers and weavers work hard but don't get fair prices for what they sell. Merchants make more money than weavers but still less than exporters.
  • So, not everyone benefits equally from the market. Democracy means everyone should earn a fair wage. The market provides opportunities for work and selling goods, but usually, the rich and powerful earn the most.
  • The poor often rely on the rich for loans, materials, and jobs, making them vulnerable to exploitation. To overcome this, people can form producer cooperatives and ensure that laws are followed closely.

Glossary:

(i) Ginning mill: A ginning mill is where cotton is processed to remove seeds from the fibers. This process is essential for preparing cotton to be spun into thread and woven into fabric, playing a key role in the textile industry. 

(ii) Exporter: An exporter is a person or company that sells goods or services to other countries. They help businesses reach international markets and play a crucial role in global trade. 

(iii) Profit: Profit is the money a business earns after subtracting all its costs and expenses. It's the reward for successfully running a business and is essential for growth and sustainability. 

The document Class 7 Civics Chapter 8 Notes - A Shirt in the Market is a part of the Class 7 Course Social Studies (SST) Class 7.
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FAQs on Class 7 Civics Chapter 8 Notes - A Shirt in the Market

1. What is the significance of cotton farming in Kurnool?
Ans. Cotton farming in Kurnool is significant because it provides livelihood to many farmers in the region. The climate and soil conditions in Kurnool are suitable for cotton cultivation, which is a major cash crop. The cotton produced is crucial for the textile industry, as it forms the raw material for cloth production.
2. How does the cloth market in Erode contribute to the local economy?
Ans. The cloth market in Erode plays a vital role in the local economy by providing a platform for traders, weavers, and garment manufacturers. It facilitates the buying and selling of textiles, creating jobs and boosting income for those involved in the textile supply chain. Erode is known for its high-quality fabrics, which attract buyers from various regions.
3. What is the putting-out system, and how does it affect weavers?
Ans. The putting-out system is a method where weavers produce cloth at home instead of in factories. This system allows them to work at their own pace and manage their time, but it often leads to low wages and lack of job security. Weavers depend on middlemen who provide them with raw materials and pay them for the finished products, which can affect their income levels.
4. What role do garment exporting factories near Delhi play in the global textile market?
Ans. Garment exporting factories near Delhi play a crucial role in the global textile market by manufacturing a wide range of clothing items for international brands. These factories contribute to India's economy by generating employment and earning foreign exchange through exports. They also help in promoting Indian textiles on a global platform.
5. How does the price of a shirt in the US reflect the global supply chain?
Ans. The price of a shirt in the US reflects the global supply chain as it includes various costs incurred at different stages, such as raw material production, manufacturing, transportation, and retail. The shirt's price is influenced by factors like labor costs in producing countries, tariffs, and consumer demand, showcasing the interconnectedness of global markets.
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