Longman Panorma Civics Solutions for Class 7 Social science Chapter 10 - Markets And Intermediaries

Answer:

The local trader benefits by buying Asim's product at Rs 25 per Chikankari piece less and earning interest on the loan.

Explanation - The local trader is taking undue advantage of Asim two ways, firstly, by paying him Rs 25 less per piece than the market rate and secondly, by earning a hefty interest on the loan given to him.

Answer:

Chikankari is the traditional handicraft of Lucknow.

Explanation - 'Chikankari' is a very popular style of cloth work that has been a traditional occupation for many artisans and traders in major towns of UP especially in and around Lucknow.

Answer:

The merchants at Aminabad buy yarn from Maharashtra and Tamil Nadu.

Explanation - The merchants of Aminabad need yarn as raw material for getting the cloth woven from the artisans and therefore they acquire it from Maharashtra and Tamil Nadu.

Answer:

Exporters try to save money by paying less to the workers.

Explanation - Exporters often pay very less wages to the workers who are women. They are employed on a temporary basis and are paid a meagre amount.

Answer:

The market creates a situation of inequality.

Explanation - During the lifecycle of production, the actual creators, that is, the artisans and the weavers, are the ones who are paid very less, while, on the other hand, the exporters and the big firms importing the finished clothes reap huge gains. Thus, a situation of inequality is created.

Answer:

Asim had to borrow a loan from the local trader since he wanted to arrange the marriage of his daughter. In return, he was compelled to make a promise to the trader of selling his future Chikankari pieces at Rs 75 per piece to him, which was Rs 25 less per piece than the market rate. Thus, Asim had to supply his embroidered pieces at a less rate than the usual to the local trader.

Answer:

Putting-out-system is a trading arrangement among the weavers and the merchants prevalent in most parts of India. Under this system, the merchants provide the yarn to the artisans and weavers, who, in turn, are given a very small sum for weaving the desired variety and length of the cloth as directed by the merchants. 

Answer:

A merchant enjoys lots of advantages over a weaver in the following ways:

1. A merchant has extensive contacts all over the country while a weaver lacks it.
2. A merchant buys cheap cloth from the weaver and sells it at a higher rate.
3. A weaver is completely dependent on the merchant for his raw material needs.
4. A weaver has no way to find out who is the cloth for or what is the actual market rate of the same. The merchant has direct access to market and buyers. Thus, he can utilise the prevailing conditions to ensure his own profitability.

Answer:

The various reasons behind the success of the importers abroad can be summarised as follows:

1. A stringent quality test done by the importers leads to rejection of a piece even with a minor defect and therefore strives to maintain a quality standard for the products.
2. The importers buy the cloth at a very low rate and price it up with a huge margin, thereby adding to their enormous profits.
3. The manufacturing costs of the importers is also significantly less.

Answer:

The two important steps to improve the condition of the actual producers or artisans are as follows:

1. Creation of cooperatives can reduce the dependency of artisans on the intermediaries.
2. The initiatives of the government are also necessary for uplifting the conditions of the actual producers. They need to ensure that the supply chain is not unduly skewed in favour of intermediaries and enable artisans to decide worth of their labour through standardised norms.

Answer:

The chikankari clothes are very famous in India and abroad. However, the real artisans and producers of these clothes still remain in a hand to mouth existence due to very low wages paid by the factory owners. The workers at the factory are made to do maximum possible work with minimal amount of wages. The majority of workers are women who are employed on a temporary basis. They have no surety of work and are only called upon when they are needed. Also, they are paid based only on their skills. The workers at the factory are categorised into tailors and other helpers needed for ironing, packaging, thread cutting and buttoning. The highest paid workers are the tailors who manage to get about Rs 4,000 per month while the helpers are only able to get Rs 1,500. These workers are made to work for unusually long hours (12–13 hours a day) and there is no provision for their healthcare needs. Thus, the condition of the factory workers at a chikankari unit remains pathetic and a reason for concern.

Answer:

There are numerous reasons for inequality in the profits earned in the chain of markets. These are discussed below:

1. Lack of resources: The main cause of inherent inequality of profits is the lack of resources with the real producers and artisans. They solely rely on the traders and merchants for their raw material requirements. Thus, the merchants have an upper hand in negotiating terms with the weavers and, thereby claim undue profits.
2. Financial constraints: The distribution of profits is along the lines of financial resources owned by the individuals in the production chain. The weavers who are already hand to mouth find it difficult to manage a handsome gain as they have certain personal and social obligations to meet unlike the merchants and the foreign importers who are financially well equipped. Weavers and artisans also do not have access to credit from banks and therefore have to depend on their suppliers or local moneylenders .
3. Role of intermediaries: The presence of a large number of intermediaries in the market system makes the condition of the actual producers worse by taking away their share of gain every time.
4. Market contacts: The weavers have no market access, so they get paid a meagre amount suggested by the merchants. The merchants, on the other hand, have good contacts, making them take away a decent cut from the profits. The manufacturing units also have a wide range of contacts in the overseas markets, making them eligible to take a large share in the profits. Finally, the importers are the largest gainers since they have excellent penetration in the international market.

Answer:

The functions of a cooperative are as follows:

1. Direct benefit to real producers: The cooperatives strive to provide the larger benefits to the actual producers and artisans who, so far, have been the least paid in the production chain.
2. Reduction in dependency on intermediaries: The cooperatives try to reduce dependency on the intermediaries by dealing directly with market segments.
3. Mutual benefit and growth: Cooperatives are the groups of people with similar objectives and who work for mutual growth and development.
4. Procurement of raw materials: The cooperatives are responsible for getting the raw materials in bulk, for example, yarn and dye, for the weavers to weave clothes. These raw materials are then distributed among the weavers or the artisans.
5. Marketing and selling functions:The cooperatives are also involved in marketing the finished goods and selling them directly in the market.

Answer:

Bilaspur is a small village in Uttar Pradesh.

Answer:

Aminabad ​is a renowned market in Lucknow where traders come from all parts of the country.

Answer:

The link between the weaver and the merchant is the trader (who purchases from the weaver and sells to the merchant).

Answer:

The merchants at Aminabad get cotton yarn from Maharashtra and Tamil Nadu.

Maharashtra and Tamil Nadu are the two prominent states of India where cotton production is in abundance and therefore these are the hot spots for acquiring yarns by the traders of Aminabad.

Answer:

The organisation that reduces the dependency of weavers and artisans on the intermediaries is called a cooperative.

Cooperatives are joint associations of the people with similar objectives and they work towards the mutual gain of each other. These organisations help in cutting down the intermediaries and passing the benefits directly to local artisans or weavers.