A Shirt in the Market Class 7 NCERT: Chapter Guide

Overview: How One Shirt Connects Many People

This chapter teaches that a market is not only a place where things are bought and sold. It is also a chain of relationships. A shirt begins as cotton grown by a farmer. The cotton may be sold to a trader, turned into yarn and cloth, stitched in a factory, and finally sold by a retailer. At every stage, someone adds work and expects income. However, the income is not shared equally. A small farmer may borrow money and be forced to sell at a low price. A weaver may depend on a merchant for yarn and orders. A factory worker may get daily wages while the exporter earns a larger profit. The main civics idea is that markets can create opportunity, but unequal power makes some people gain much more than others.

Key Terms You Must Know

Production chain

The sequence of steps through which a product is made and sold, such as cotton farmer to trader to weaver to factory to shop.

Putting-out system

A system in which a merchant supplies raw material to producers, gives them orders, and later buys the finished goods. It is common in weaving.

Trader

A person who buys goods from producers and sells them to other buyers, often deciding the price when the producer has fewer choices.

Wages

Money paid to workers for their labour, usually daily, weekly or monthly.

Profit

The money left after subtracting costs such as raw material, wages, transport and rent from the selling price.

Process: Journey of a Shirt from Cotton to Shop

1. Step 1: Cotton is grown — A small farmer grows cotton using seeds, fertilisers, labour and water. If the farmer takes a loan from a trader, the farmer may have to sell cotton to that trader even if the price is low.
2. Step 2: Cotton becomes yarn and cloth — Cotton is processed into yarn. Weavers then make cloth. In many cases, merchants supply yarn to weavers and order a fixed quantity of cloth under the putting-out system.
3. Step 3: Cloth becomes a shirt — Garment factories cut, stitch, iron and pack shirts. Workers do the main labour, but they may receive low wages because factories try to reduce costs and keep buyers happy.
4. Step 4: Shirt is sold in the market — Exporters, wholesalers or retailers sell the shirt at a higher price. The final buyer sees only the shirt, but the price includes labour, transport, profit and the power of different market players.

Worked Examples: Understanding Unequal Earnings

• Example 1: A farmer spends money on seeds, fertiliser and labour to grow cotton. Step 1: If the farmer has borrowed from a trader, the trader may say, sell the cotton only to me. Step 2: The farmer cannot freely compare prices in different markets. Step 3: The trader buys at a low price and later sells at a better price. Learning: The farmer worked hard, but debt reduced the farmer's bargaining power.
• Example 2: A merchant gives yarn to a weaver and asks for 20 metres of cloth. Step 1: The weaver does not need to buy yarn, so the risk of buying raw material is lower. Step 2: But the merchant decides the design, quantity and payment. Step 3: The weaver earns for labour, while the merchant controls the sale of cloth. Learning: The putting-out system gives work, but it also keeps weavers dependent.
• Example 3: A shop sells a shirt for a high price. Step 1: The customer may think the whole amount goes to the person who stitched it. Step 2: Actually, the price is divided among many costs and profits: cloth, stitching, transport, rent, branding and retailer margin. Step 3: The worker may get only a small part as wages. Learning: Final market price does not automatically mean fair income for every worker.

Who Has More Power in the Market?

Exam Tip: Do Not Write Only the Story

In answers, connect the story of the shirt to the civics concept of inequality in markets. Mention at least two stages, such as farmer and garment worker, and explain why they earn less: debt, dependence on traders, lack of choice, temporary work or low bargaining power. Avoid saying markets are always unfair or always fair. A balanced answer says markets provide work and goods, but benefits are unequally shared because some people have more money, information and control.

Common Mistakes to Avoid

• Do not confuse wage with profit. Wages are paid to workers; profit is what owners or sellers keep after costs.
• Do not write that the shopkeeper makes the shirt. The shopkeeper sells it; many people produce it before it reaches the shop.
• Do not describe the putting-out system as charity. It is a business arrangement where merchants control raw material and orders.
• Do not ignore the role of loans. Debt can force small producers to accept unfavourable prices.
• Do not answer only from the buyer's point of view. Civics questions expect you to notice workers, farmers, traders and sellers.

Practice Questions with Solutions

• Q: What is the main idea of A Shirt in the Market?
  A: Step 1: Identify the product discussed in the chapter: a shirt.
  Step 2: Trace the people connected to it: cotton farmer, trader, weaver, factory worker, exporter and seller.
  Step 3: Notice that they do not earn equally because some have more power in the market.
  Final answer: The chapter shows how a shirt passes through many hands and how markets often give higher profits to powerful traders and sellers while small producers and workers earn less.

• Q: Explain the putting-out system in simple words.
  A: Step 1: Start with the merchant, who has money and access to the market.
  Step 2: The merchant gives raw material, such as yarn, to weavers and asks them to produce cloth.
  Step 3: The weavers are paid for their work, but the merchant decides orders, raw material and sale of cloth.
  Final answer: The putting-out system is an arrangement where merchants supply raw material to producers and buy the finished goods, making producers dependent on them for work and payment.

• Q: Why does a small cotton farmer often get a low price for cotton?
  A: Step 1: A small farmer may need money for seeds, fertilisers and family expenses.
  Step 2: If the farmer borrows from a trader, the trader may demand that the cotton be sold only to him.
  Step 3: Since the farmer has debt and fewer market choices, the farmer cannot bargain strongly.
  Final answer: A small cotton farmer may get a low price because debt, urgent need for money and dependence on traders reduce bargaining power.

• Q: How are workers in a garment factory different from the exporter who sells shirts?
  A: Step 1: Workers stitch, cut, iron or pack shirts and are paid wages for their labour.
  Step 2: The exporter organises production, receives orders and sells shirts to buyers at a higher price.
  Step 3: Workers usually have less control over price and profit, while the exporter can keep profit after paying costs.
  Final answer: Garment workers earn wages for labour, but the exporter has more control over orders, selling price and profit, so their earnings are unequal.

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