Class 7 Social Science Notes Chapter 9 (A Shirt In The Market) – Social and Political Life Book

Alright class, let's delve into Chapter 9, 'A Shirt in the Market' from our Social and Political Life book. This chapter is crucial because it helps us understand how markets work, who benefits from them, and the journey of a common product, like a shirt, from its very beginning to the final consumer. This is important not just for your exams, but also for understanding the economic world around you.

Chapter 9: A Shirt In The Market - Detailed Notes for Government Exam Preparation

Core Theme: The chapter traces the journey of cotton from the farm to a finished shirt sold in a foreign supermarket. It highlights the 'chain of markets' and exposes the inequalities and power dynamics inherent in this chain.

Key Stages and Actors in the Chain of Markets:

1. The Cotton Farmer (Example: Swapna from Kurnool, Andhra Pradesh):

   • Role: Grows raw cotton.
   • Challenges:
     • High input costs (seeds, fertilizers, pesticides).
     • Dependence on loans, often from local traders/moneylenders at high interest rates, especially at the beginning of the growing season.
     • Vulnerability to crop failure (weather, pests).
     • Lack of bargaining power. Forced to sell cotton to the local trader (who might also be the moneylender) at a low price, often just enough to repay the loan, leaving little profit.
     • Even Minimum Support Price (MSP) declared by the government may not benefit small farmers who are compelled to sell to local traders due to debt obligations.
   • Outcome: Receives a very small share of the final price of the shirt. Often trapped in a cycle of debt.

2. The Ginning Mill:

   • Role: Buys raw cotton (often from traders).
   • Process: Separates the cotton fibres from the seeds. Presses the cotton into bales.
   • Outcome: Sells the cotton bales to spinning mills. Acts as an intermediary.

3. The Spinning Mill:

   • Role: Buys cotton bales.
   • Process: Cleans the cotton and spins it into yarn (thread).
   • Outcome: Sells the yarn to yarn dealers or merchants.

4. The Cloth Market (Example: Erode Bi-weekly Cloth Market, Tamil Nadu):

   • Role: A major hub where yarn is sold, and finished cloth is bought and sold. Connects spinners, weavers, and merchants.
   • Key Players:
     • Merchants: Buy yarn from spinning mills or yarn dealers. They supply this yarn to weavers.
     • Weavers: Receive yarn from merchants and weave it into cloth, usually at home on looms (powerlooms or handlooms).
   • The 'Putting-Out' System:
     • Merchants supply raw materials (yarn) to weavers and pay them based on the quantity of cloth produced.
     • Advantages for Merchants: Low investment in infrastructure (no need to own looms), control over production and quality, ability to dictate prices.
     • Disadvantages for Weavers: Dependent on merchants for work and raw materials, very low wages/piece rates, no bargaining power, bear the cost of looms and electricity (if powerloom).
   • Outcome: Weavers earn very little despite their skill and effort. Merchants make profits by selling the finished cloth.

5. The Garment Exporting Factory (Example: Near Delhi):

   • Role: Buys cloth (often from merchants like those in Erode).
   • Process: Manufactures shirts (cutting, stitching, finishing, ironing, packaging) according to specifications from foreign buyers.
   • Key Players:
     • Exporter: Manages the factory, secures orders from foreign buyers, aims to maximize profit by minimizing costs (especially labour costs).
     • Workers: Mostly women, often employed temporarily, face low wages, long working hours (especially during peak season), pressure to meet deadlines, lack of job security and benefits.
   • Power Dynamics: Exporters operate under pressure from powerful foreign buyers who demand lowest prices, high quality, and timely delivery. This pressure is often passed down to the workers in the form of low wages and poor working conditions.
   • Outcome: Exporters make profits, but workers receive minimal wages for their labour.

6. The Foreign Businessperson/Buyer (Example: USA/Europe):

   • Role: Represents large retail chains or brands. Places bulk orders with exporting factories.
   • Power: Holds significant power. Demands strict quality standards, timely delivery, and the lowest possible price from the exporter.
   • Activities: Focuses on branding, marketing, and advertising the shirt.
   • Outcome: Sets the terms of the deal, influencing the entire chain back to the factory and potentially the weaver/farmer.

7. The Retail Store/Supermarket (Example: USA/Europe):

   • Role: Sells the finished shirt to the final consumer.
   • Pricing: Marks up the price significantly. The largest share of the final price paid by the consumer goes towards store rentals, branding, advertising, salaries, and profit for the retailer/brand.
   • Outcome: Makes the highest profit margin in the entire chain.

8. The Consumer:

   • Role: Buys the shirt.
   • Awareness: Often unaware of the long chain of production, the conditions of the workers, or the low prices received by the farmers and weavers. Pays a price that reflects branding and retail costs more than production costs.

Key Concepts Illustrated:

• Chain of Markets: Markets are linked together. The product moves through various stages, involving buying and selling at each step.
• Inequality in the Market: Markets do not benefit everyone equally. Those with power (capital, information, scale) tend to gain the most (e.g., foreign buyers, large retailers, exporters, merchants). Those with less power (small farmers, weavers, factory workers) often get exploited and receive very low returns for their labour/produce.
• Profit Distribution: Profit is generated at various stages, but it is distributed very unevenly. The primary producers (farmers) and labourers (weavers, factory workers) get the smallest share, while intermediaries and final sellers (especially brands/retailers) get the largest share.
• Putting-Out System: A system of production where merchants supply raw materials to workers (often working from home) and pay them per piece produced. Common in weaving and other crafts. Leads to worker dependence and low wages.
• Power Dynamics: The chapter clearly shows how power influences prices and working conditions throughout the chain. Foreign buyers exert power over exporters, exporters over workers, and traders/merchants over farmers and weavers.
• Globalization: Connects local producers in one country (India) with consumers in another (USA/Europe), but the benefits are not equally shared.

Conclusion: The journey of the shirt reveals that while markets provide opportunities for buying and selling, they are often characterized by significant inequalities. The final price paid by the consumer rarely reflects a fair distribution of earnings back to the people who grew the cotton or made the garment. The market tends to favour the powerful and organized over the small and vulnerable producers and workers.

Multiple Choice Questions (MCQs):

1. In the chapter 'A Shirt in the Market', Swapna, the cotton farmer, belongs to which state?
   (a) Tamil Nadu
   (b) Karnataka
   (c) Andhra Pradesh
   (d) Maharashtra

2. What is the primary function of a ginning mill in the cotton supply chain?
   (a) Spinning cotton into yarn
   (b) Weaving yarn into cloth
   (c) Separating cotton fibres from seeds
   (d) Dyeing the finished cloth

3. The Erode bi-weekly market in Tamil Nadu is primarily known for:
   (a) Selling raw cotton
   (b) Selling finished garments
   (c) Trading in cloth and yarn
   (d) Manufacturing spinning machines

4. The 'putting-out' system, commonly seen among weavers in Erode, involves:
   (a) Weavers selling yarn directly to consumers.
   (b) Merchants supplying yarn to weavers and paying them for the finished cloth.
   (c) Weavers buying looms from merchants on loan.
   (d) Government agencies supplying free yarn to weavers.

5. Garment exporting factories often employ workers, mostly women, under which conditions?
   (a) High wages and permanent positions
   (b) Low wages and temporary employment, especially during peak demand
   (c) Equal profit sharing with the exporter
   (d) Flexible working hours decided by the workers

6. Who typically holds the most power in dictating terms like price, quality, and delivery time to the garment exporter?
   (a) The cotton farmer
   (b) The weavers
   (c) The foreign businessperson/buyer
   (d) The ginning mill owner

7. According to the chapter, who earns the least profit margin in the entire chain of the shirt market?
   (a) The foreign supermarket owner
   (b) The garment exporter
   (c) The merchant in the cloth market
   (d) The cotton farmer and the weaver/factory worker

8. The sequence of markets through which cotton travels to become a shirt sold in a supermarket is called:
   (a) Profit ladder
   (b) Chain of markets
   (c) Production cycle
   (d) Retail network

9. Why are small farmers like Swapna often forced to sell their cotton to the local trader at a lower price than the market rate?
   (a) Because they prefer selling locally.
   (b) Because they owe money to the trader, borrowed earlier for cultivation.
   (c) Because the trader offers better quality seeds in return.
   (d) Because the government prohibits selling directly in the main market.

10. What does the journey of the shirt primarily reveal about markets?
    (a) Markets ensure fair prices for everyone involved.
    (b) Markets always benefit the primary producers the most.
    (c) Markets can create opportunities but often lead to inequality, favouring the powerful.
    (d) Markets function independently without any chain or linkages.

Answer Key for MCQs:

1. (c) Andhra Pradesh
2. (c) Separating cotton fibres from seeds
3. (c) Trading in cloth and yarn
4. (b) Merchants supplying yarn to weavers and paying them for the finished cloth.
5. (b) Low wages and temporary employment, especially during peak demand
6. (c) The foreign businessperson/buyer
7. (d) The cotton farmer and the weaver/factory worker
8. (b) Chain of markets
9. (b) Because they owe money to the trader, borrowed earlier for cultivation.
10. (c) Markets can create opportunities but often lead to inequality, favouring the powerful.

Make sure you understand the entire process and the reasons behind the inequalities discussed. This chapter gives a very practical insight into how economic systems function on the ground. Let me know if any part needs further clarification!