A SHIRT IN THE MARKET
Swapna’s story is representative of many small cotton farmers in India. She struggles with:
Debt: Like many small farmers, Swapna borrows money at the start of the season, binding her to sell her produce to the local trader. This lack of choice often means she gets a price lower than the market rate for her cotton.
Market Dynamics: The trader uses the surplus of cotton in the market as a reason to offer a low price. But the real dynamic here is the power imbalance: the trader holds power over Swapna due to her debt and dependence on him for loans.
The putting-out system is an age-old practice, where:
Dependency: Weavers are dependent on merchants for raw materials and selling the finished product. While it seems convenient, this system gives excessive power to the merchant.
Low Remuneration: Weavers, despite their skills and hours of labour, earn a fraction of the final sale price of the cloth. They remain unaware of the end customer and the final selling price, making it easy for merchants to exploit them.