CBSE Class 7 Social Science Chapter 9: A Shirt in the Market NCERT Solutions

Solution: No, Swapna did not receive a fair price for her cotton. The local trader, who had provided her with a loan, paid her a very low price for her produce.

Solution: The trader paid Swapna a low price because she was indebted to him. He had lent her money at the beginning of the cropping season with the condition that she would sell all her cotton to him. This gave the trader leverage to exploit her situation and offer a low price.

Solution: Large farmers, unlike small farmers like Swapna, would likely sell their cotton in the open market. Their situation is different because they typically grow cotton on their own resources and are not dependent on traders for loans. This freedom allows them to choose the best market and get a better price for their produce.

Solution: In the Erode cloth market:

Merchants: They play a crucial role by supplying cloth to garment manufacturers and exporters across the country based on specific orders. They also purchase yarn and provide detailed instructions to weavers regarding the type and quality of cloth to be produced.

Weavers: They are responsible for weaving cloth. They bring their finished cloth to the market for sale. Additionally, they also weave cloth according to the specific orders placed by the merchants.

Exporters: These individuals or companies use the cloth purchased to manufacture shirts and other garments, which are then exported to buyers in foreign countries.

Solution: Weavers are significantly dependent on cloth merchants in two primary ways: firstly, for the supply of raw materials, mainly yarn, which they need to weave cloth; and secondly, for a market to sell the cloth they produce. Merchants often provide the yarn and place orders, creating a continuous cycle of work for the weavers.

Solution: Yes, it is highly probable that weavers could earn significantly more, possibly up to three times their current earnings, if they were able to manage their own supply chain. This would involve buying yarn directly from suppliers at the lowest possible wholesale prices and then selling the finished cloth in markets where they can command the highest possible prices. By eliminating the merchant as an intermediary, they would capture the profit margin that the merchant currently makes. This would require weavers to have access to capital for purchasing yarn in bulk and knowledge of market trends and pricing.

Solution: Cooperatives are typically set up for the benefit of their members, especially those who lack sufficient capital or bargaining power. For example, milk cooperatives help dairy farmers by providing fair prices and facilities, while provision stores help consumers by offering goods at reasonable rates. In essence, cooperatives are established to support and uplift groups of people who might otherwise be exploited or unable to access resources and markets effectively.

Solution: Foreign buyers typically make two main types of demands on garment exporters: they demand the lowest possible prices for the garments, and they set very high standards for the quality of production and timely delivery. Any defects or delays in delivery are dealt with strictly, often resulting in penalties or rejection of the consignment.

Garment exporters agree to these demanding conditions because, despite the low prices and high standards, they are still able to make substantial profits. They achieve this by efficiently managing their production processes and controlling costs, ensuring that even with lower per-unit revenue, their overall profit remains high due to large volumes and cost-cutting measures.

Solution: To meet the stringent conditions set by foreign buyers, garment exporters primarily focus on cutting costs wherever possible. A key strategy is to maximize the work output from their employees while paying them the lowest possible wages. This approach helps them to produce garments at a very low cost, enabling them to meet the price demands of the buyers and maintain profitability.

Solution: It is likely that more women are employed in factories like Impex because they are often willing to work for lower wages compared to men. This willingness to accept lower pay helps the garment exporters to reduce their production costs, which is crucial for meeting the low-price demands of foreign buyers. Therefore, employers may prefer to hire women to keep labor costs down.

Solution: When comparing the earnings per shirt, a stark difference is observed:

The worker in the garment factory earns a very small amount, approximately Rs. 15 per shirt.

The garment exporter makes a profit of about Rs. 100 on each shirt.

The business person in the foreign market earns the highest profit, around Rs. 600 on one shirt.

This comparison reveals that the profit margin increases significantly at each stage as the shirt moves up the supply chain, with the final seller abroad earning the most and the person who actually made the shirt earning the least.

Solution: The business person in the foreign market is able to make a huge profit due to several strategic reasons:

1. Targeting High-Income Customers: They sell their shirts to people belonging to high-income groups, who are willing to pay a premium price for branded or fashionable clothing.
2. High Sales Volume: They are able to sell a large number of shirts every day, which multiplies their profit even if the per-shirt profit margin is high.
3. Negotiating Power: They possess strong negotiation skills and know how to get the garments from exporters at the lowest possible prices, thereby maximizing their own profit margin.

Solution: Swapna was a small farmer who cultivated cotton on her small piece of land.

Solution: Swapna took a loan from the local trader to purchase essential agricultural inputs such as seeds, fertilizers, and pesticides needed for the cultivation of her cotton crop.

Solution: The trader agreed to give the loan to Swapna on the specific condition that she would sell all the cotton she produced to him.

Solution: The 'putting-out' arrangement is a system where cloth merchants supply the raw material, such as yarn, to weavers. The weavers then process this material and return the finished product (cloth) to the merchants.

Solution: Women are the primary group of workers employed in the Impex garment factory.

Solution: In the Impex garment factory, the women workers are engaged in various tasks related to garment finishing, including thread cutting, buttoning, ironing, and packaging the final products.

Solution: The garment exporting factory exports the shirts it produces to foreign buyers located in other countries.