CHAPTER 9. A SHIRT IN THE MARKET
CASE STUDY OF FARMER IN ANDHRA
PRADESH: GROWING COTTON
•
Cotton
bolls carry cotton
•
Balls
don’t burst all at once. It takes several days to harvest
•
Requires
input like pesticides and fertilizers
•
Borrow
money for farm expenses
•
Repayment
of loans
GINNING MILL
•
A
factory where seeds are removed from cotton bolls. The cotton is pressed into
bales to be sent for spinning into thread
•
Trader
is a powerful man. Farmers depend on him for loans and to meet other exigencies
such as illness, children’s school fees
•
In
case of no farm income farmers borrow money for survival
CLOTH MARKET- ERODE
•
Erode’s
bi-weekly cloth market in Tamil Nadu is one of the largest cloth market in the
world
•
Cloth
by weavers is brought for sale
•
Cloth
merchants buy the cloth
•
Merchants
supply it to garment manufacturer or exporter
•
Weavers
take the yarn from traders and bring back finished product from power looms
BENEFIT FOR WEAVERS
•
Weavers
don’t spend money to buy yarn
•
Weavers
don’t have to bother about selling the product
•
They
know what to make and how much to weave
WEAVERS’ DEPENDENCY ON MERCHANTS
•
Merchants
get more power
•
They
give the order for cloth and pay low prices
•
Weavers
don’t know for whom they are making the cloth
•
Weavers
don’t know the price at which the trader would sell the cloth
•
Merchants
sell it to garment factories and market is in favor of merchants
•
Weavers
invest there saving or borrow money to buy looms (cost of 1 loom is around Rs.
20,000)- they work 12 hours a day and get Rs,3500 per month
PUTTING OUT SYSTEM
•
Merchants
supplies the raw materials and receives the furnished product-Prevalent in
India
Weaver cooperatives
•
Weaver’s
cooperatives reduce dependence on the merchant and to earn a higher income for
the weavers
•
Weavers
from group and procure yarn from yarn dealers and distribute among weavers-
also do marketing, reduces role of merchants
•
Tamil
Nadu runs free school uniform program. Govt. procures the cloth for this program from the power loom
weaver’s cooperatives. Govt. buys cloth
from the hand loom weaver’s cooperatives and sells it through stores known as
Co-optex
GARMENT FACTORY
•
Use
cloth for shirt marketing
•
US
and Europe business persons who run the stores- demand lowest price from
suppliers
•
Quality
of production and delivery time is set up
•
Exporter
tries best to meet the condition
•
Exporting
factories- cut cost and so pay less wages to workers, maximize profit and
supply garment at cheap-price
•
Highest
are highest paid with workers with Rs.3000 per month
•
Women
are employed as helpers for thread cutting, buttoning, ironing and packaging
PRICE OF SHIRT IN USA
•
Profit
Rs. 600
•
Advertising
Rs. 300
•
Storage,
etc. Rs. 100
•
Purchase
Rs. 200
•
Garment
exporter sold at Rs.200/shirt
•
Cloth
and raw-materials cost him Rs.70/per shirt
•
Workers
wage cost him Rs.15/per shirt
•
Buying
and selling occurs at many points-till it reaches supermarket
•
Foreign
business person makes wages huge profits
•
Garment
export factory gets enough to meet its daily needs
•
The
weaver doesn’t get a fair price for the product
•
Not
everyone gains equally in market
•
Rich
and powerful gets the maximum earning- who have money, shops and land holdings
•
Poor
are exploited because of dependence
THE END
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