A Shirt in the Market

Production of cotton by a farmer (e.g., Swapna in Kurnool, Andhra Pradesh).

Bolls ripen -> Picking -> Selling to trader. It requires high inputs (fertilizers/pesticides) and risks (pests/rain).

The merchant supplies the raw material (yarn) to the weavers and receives the finished product (cloth). Weavers work at home.

Advantage: Don't have to buy yarn or find buyers. Disadvantage: Dependent on merchant. Paid very low. Don't know whom cloth is for.

In Tamil Nadu. Ideally one of the largest cloth markets in the world. Merchants buy cloth here.

The factory buys cloth from merchants. They stitch shirts. These shirts are exported to foreign buyers (USA/Europe).

Businesspersons running chains of stores. They demand lowest price, high quality, and timely delivery. They make the maximum profit.

Mostly women. Employed on temporary basis. Paid low wages. Tailors, ironers, checkers, packers.

The farmer and the weaver/worker. They often struggle to meet needs.

The foreign businessperson, followed by the garment exporter.

She borrowed money from the trader for seeds. Condition: Must sell cotton to him. He paid her very less (Rs 1500/quintal) vs market price.

For inputs. They get into a debt trap and lose bargaining power.

People with common interests come together. E.g., Weaver's co-operative. They buy yarn together and sell cloth directly, reducing dependence on merchants.

Intermediary between weaver and factory. He controls the market.

Separating seeds from cotton fibres.

Converting fibres into yarn.

Converting yarn into cloth (on looms).

Maybe $26 (Rs 1800). Cost to produce might be Rs 200. Huge profit margin.

No. Opportunities are unequal. The rich get richer. The poor toil for survival.

Co-operatives, better laws, fair wages, and minimum support prices (MSP) for farmers.

Kurnool produces cotton.

Cotton bolls carry seeds.

Picking cotton takes days.

Traders exploit farmers via debt.

Erode is a cloth market in TN.

Powerlooms use electricity.

Handlooms use manual labour.

Putting-out system prevails in weaving.

Weavers earn very little.

Merchants dominate the supply chain.

Garment exporters are in Delhi/Mumbai.

Exporters face pressure from foreign buyers.

Workers in factories have no job security.

Women work as helpers/thread cutters.

Impex garment factory story.

Shirt sold for Rs 1800 in US.

Cost of materials is low.

Advertising costs are added.

Profit to US buyer is huge.

Profit to Exporter is moderate.

Wage to worker is tiny.

Farmer barely recovers cost.

Markets link farmer to buyer.

Inequality is built into the chain.

Fairness is rare.

Co-operatives (Tamil Nadu govt free uniform scheme gives work to co-ops).

Spinning mills spin yarn.

Ginning mills clean cotton.

Bales of cotton are sold.

MSP helps farmers.

Suicides among cotton farmers are high.

Bt Cotton is a variety.

Globalisation affects local workers.

Lean season means no work.

Overtime is often unpaid.

Factory conditions can be harsh.

Consumer awareness is growing.

Fair Trade movement advocates for producers.

Cotton is a cash crop.

Monsoon failure ruins cotton.

Pests (Bollworm) ruin cotton.

Fertilizers are expensive.

Banks often refuse loans to poor farmers.

Informal loans have high interest.

Democracy promises equality.

Economic democracy is needed.

Every shirt has a story.

Value addition happens at each step.

Ongoing economic cycle