'A Shirt in the Market' — Practice

Question 1

Describe the journey of a shirt from the cotton farmer to the consumer.

Accepted Answer

A cotton farmer grows and sells cotton at the mandi. It goes to a spinning mill to be made into yarn, then to a weaving factory for cloth, a dyeing unit for colour, and a garment factory where it is stitched into a shirt. An exporter ships it to a buyer or it reaches a wholesaler, then a retail shop, and finally the consumer.

Question 2

Explain the inequalities in the shirt market.

Accepted Answer

The benefits are distributed very unequally. The cotton farmer, who invests heavily and bears the risk, gets less than 1% of the final price. Mill, weaving, and garment workers earn low wages in poor conditions for 2-5%. Exporters get 10-15%, while the brand (40-50%) and retailer (20-30%) -- who have capital, design, and marketing power -- take the largest shares.

Question 3

What is MSP and why do farmers often get less than it?

Accepted Answer

MSP (Minimum Support Price) is the government-guaranteed minimum price for a crop. Farmers often get less than the MSP because middlemen at the mandi pay them lower prices.

Question 4

How do global brands control the garment industry?

Accepted Answer

Global brands design and market the clothes and sell them at high prices, but they do not own the factories -- they contract the work out. Because they can easily switch to another, cheaper supplier, they hold the power and force exporters to keep wages and costs low.

Practice — 'A Shirt in the Market'

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