Telangana SCERT TS 6th Class Social Study Material Pdf 8th Lesson – Trade in Agricultural Produce Part 1 Textbook Questions and Answers.
Trade in Agricultural Produce Part 1 – The Earliest People – TS 6th Class Social 8th Lesson Questions and Answers Telangana
How are agricultural products traded ?
People get agricultural products from street vendors, santhas and small shops. In recent times farmers are selling their fruits and’ vegetables in Rythu Bazaars. The markets held for a day in the week at different localities of a town (or) at different small towns. These markets are called weekly markets.
The traders move from one weekly market to another weekly market and sell their goods. The traders of weekly market procure goods from wholesale shops in towns and cities and reach out to a large section of the people. Most agricultural goods like grains and pulses are sold directly to wholesale merchants. Small traders buy these goods from them to sell to the consumers.
List the differences between Gouri, Indra and Ramagopal on the following issues.
|Gouri||Indra||Ramgopal in Rythu Bazar|
|1. Where do they get money for doing business ?||from money lender/merchant||Self-help group (Pavala vaddi)||Govt, provides loan facility (Pavala vaddi)|
|2. Where are the goods sold ?||She goes door to door and asks the residents.||She travels to four weekly markets and to three large villages.||Stalls in the bazaar are allocated to these sellers daily by officers.|
|3. How are prices fixed ?||She fixed prices herself||Wholesaler decides the prices.||The price for bazaar products is fixed daily in the morning by the officers in consultation with a committee set up for the purpose comprising three farmers.|
List a few difficulties that retail traders face in their business.
- Retail traders lead a very difficult life and are chronically in debt, since they borrow from money lenders and a considerable part of their earnings goes towards paying interest.
- Retail traders do not have any facilities ?for preserving perishable goods like vegetables and fruits which have to be sold at a very low price.
In what ways can the retail traders can also increase their income ?
The retail traders can also increase their income in the following ways :
- By obtaining loans from self-help groups.
- By saving some of their earning for tomorrow’s purchase.
- By having storage facilities for perishable goods.
- By selling imperishable goods.
Why is it better to borrow from Self-Help Groups rather than money-lenders ?
- It is better to borrow from Self – Help Groups rather than money-lenders.
- Self-Help Group charges only 25 paise per 100 rupees per month i.e. Pavala vaddi.
- Whereas money lenders charge Rs. 3 per 100 per month.
- Loan amount can be paid in installments with Self-Help Group.
- Monthly interest needed tobe paid to money lender and the principal amount finally.
- Thus borrowing from Self-Help Groups is better compared to money lenders.
What are the difference and similarities between money lenders, banks and self – help groups ?
- Both the money lender, self help groups lend money immediately according to their needs while banks cause delay.
- One can pay in easy instalments to banks and self-help groups but money lenders won’t accept this.
- Bank and money lenders ask for mortgage of land but self-help groups won’t ask. These are the differences and similarities between money lenders, banks and self-help groups.
Why do you think selling through Rythu Bazaars is better than selling through wholesale shops ?
Earlier the farmers used to take their produce to wholesale market. They don’t have any choice but to sell at the price fixed by the wholesalers. Many times the farmers have to sell vegetables at throw away price, not even covering the expenses they incurred. Rythu Bazaars are big relief for them. The price for bazaar products is fixed daily in the morning by the officers in consultation with a committee set up for the purpose comprising three farmers.
Read the paragraph “Vendors like Gouri…. small trader become poorer” on page 132 (66) and comment on it.
Vendors like Gouri lead a very difficult life and are chronically in debt. Since they borrow from moneylenders (Generally banks do not lend money to these small traders) a considerable part of their earnings goes towards paying interest or vaddi. Secondly, they do not have any facilities to preserve the unsold vegetables. In contrast to this, big traders have cold storage facilities and godowns. They can also borrow money from banks at low rates of interest. Thus, they earn more and become richer whereas the small traders become poorer.
The street vendor borrow money from moneylenders in order to run their daily bussiness. As the banks do not lend money to the vendors they mainly depend on ‘moneylenders. They pay high interest rates on these loans. As a result moneylenders become richer and the small traders become poorer.
With the help of your teacher, locate the places in the map of your district where weekly markets (Santha) .are held ?
What is Rythu Bazaar ? What are its benefits and limitations ?
Definition : Rythu Bazaar is a market place where the producers directly sell their agricultural goods like vegetables, grains, pulses, etc. to consumers at reasonable prices. Most agricultural goods like grains and pulses are sold directly to wholesale merchants. Small traders buy these goods from them to sell to the consumers. However there are a few markets in which the producers directly sell their goods to consumers. “Rhythu Bazaars” are one such market.
- Only a person with a valid photo identity is allowed to enter the Rythu Bazaar to Sell his/her produce.
- Stalls in the bazaar are allocated to the sellers daily on a first come first serve basis.
- The farmers need not pay any rent for their premises. .
- The price for bazaar products is fixed daily in the morning by the officers in consultation with a committee set up for the purpose comprising three farmers.
- Customers get all the items at reasonable prices.
- Here they get not only fruits and vegetables but also many other essential items like pulses, tamarind, dry chillies and edible oils.
- Some people in the guise of farmers coming to sell vegetables in the bazaar.
- There is no sufficient space for parking our vehicles and at time it is risky.
- It is difficult to get good space to sell vegetables.
Why does panchayat or municipality collects money from traders in Chouttuppal weekly market ?
Besides agricultural produce like chilli, a large number of industrial products of daily use like cloth, torches, matches, pots, utensils, tools, baskets, plastic items, etc. are sold by small traders in the weekly markets. All such traders pay about Rs.10 each to the Town Panchayat as tax. There are separate and famous weekly markets where cattle, sheep and goats too are sold. Most of the spaces in weekly markets are reserved for a specific trader. No other trader can come and set up a shop in that place.
I. Conceptual Understanding
What are the terms and conditions of money lenders for lending money ?
Money lenders charge with high rates of interest. Vendors like Gouri lead very difficult life and are chronically in debt. Since she borrow money lenders and a considerable part of their earning goes towards paying interest or vaddi. Banks generally do not lend to these small traders. If anyone wants Rs.500 from the money lender or merchant who gives him / her only Rs.450 and he / she has to pay back Rs.500 on the next day. .
Why do you think banks lend money only to large traders having permanent shops ?
Banks generally do not lend to small traders. Secondly, they do not have any facilities like refrigerators for preserving the unsold vegetables and they have to be sold at a very low price. In contrast to this, large traders have cold storage facilities (or) godowns. They can also borrow from banks for which they pay only a small amount as interest.
Who are the beneficiaries of Rythu Bazaar and why ?
Stalls in the Bazaar are allocated to the’sellers daily on a first come first serve basis. It is meant only for farmers. Rythu Bazaar is a big relief for farmers. They will get much profits instead of wholesale markets and customers get the full value for their money.
What are the difficulties that retail traders face while doing their business ?
Since their residences are far away from santhas, they have to sell all the goods they purchased from the wholesale market. They don’t have storage facilities. If they are not able to sell the perishable items by the evening, they have to take them back by paying transport expences. Sometimes they sell their goods at lower than the purchase price to avoid heavier losses.
Suppose you are a vegetable retail trader and have borrowed Rs.3000 from money lender. How much you have to pay while returning the money after three months ? (Rs. 3 for every hundred rupees)
I borrowed Rs. 3000 from money lender interest rate is Rs. 5 Interest for 1 Month = Rs. 150 Interest for 3 Months = 150 x 3 = Rs. 450 After three months I have to pay the money lender = Rs. 3450.
II. Reading the Text (given), Understanding and Interpretation
In what ways are the weekly markets different from permanent markets ?
|Weekly Markets||Permanent Markets|
|1. The traders move from one weekly market to another to sell their goods.||1. Stalls in the bazaar are allocated to the sellers -daily on a first come first serve basis.|
|2. They will be.held for a day in the week.||2. They will continue throughout the week.|
|3. There are nearly more than 25,000 such weekly markets are functioning in IndiAnswer:||3. Farmers come from more than 10-15 villages in a permanent market.|
|4. They function in both rural and urban areas.||4. Wholesale markets function mainly in towns.|
|5. In weekly markets the traders can sell all varieties with different rates like vegetables, fruits, clothes, meat, fish, dry fish, hand-made and readymade footwear, cosmetics, ropes, etc.||5. Here customers get: these items with reasonable rates or fixed rates. We can check in the internet also.|
How are the prices fixed in Rythu Bazaar ?
The price for bazaar products is fixed daily in the morning by the officers in consultation with a committee set up for the purpose comprising three farmers. The principle is that the price should be around 25 percent more than the wholesale price and 25 percent less than the retail price.
How much does Indra, dry chilly seller earn per a day ?
Indra earns about Rs. 200 – 300 per day. There is no surety that she gets good quality chillies all the times. Since she purchases chillies by ordering over phone and cannot check each and every bag, she sometimes, gets low quality chilli due to which she incurs losses.
III. Information Skillse
Observe the following table carefully and answer the questions.
|Where do they get money for doing business ?||From money lender/merchant||Self-help group (Pavala vaddi)||Govt, provides loan facility (Pavala vaddi)|
|Where are the goods sold ?||She goes door to door and asks the residents.||She travels to four weekly. markets . and to three large villages.||Stalls in the bazaar are allocated to these sellers daily by officers.|
|How are prices fixed ?||She fixed prices herself||Wholesaler decides the prices.||The price for bazaar products is fixed daily in the morning by the officers in consultation with a committee set up for the purpose comprising three farmers.|
Answer the following questions.
1) Define Rythu Bazaar.
The farmers directly sell their goods to consumers. These markets are called Rythu Bazaars.
2) Where does Gouri get money for doing business ?
She gets money from money lenders or merchants.
3) Where does Indra get money for doing business ?
From self-help group.
4) Who allocated stalls in Rythu Bazaar ?
By the officers.
5) Who fixed the prices in Rythu Bazaars ?
By the committee.
IV. Reflection on Contemporary Issues and Questioning
Explain about Sunday weekly market in Chouttuppal.
Chouttuppal is a small town in Yadadri district. The Chouttuppal weekly market functions on every Sunday. In this weekly market, more than 200 traders sell vegetables, fruits, clothes, meat, fish, dry-fish, hand-made and readymade footwear, cosmetics, ropes and other equipments for cattle rearing, sickles and many more things. In Chouttuppal weekly market, separate space has been alloted for trading cattle, grocery items and non-edible items. For example, In a place meant say for vegetables, every trader has a fixed space. For trading cattle, sheds with facilities to keep cattle are also available.
Suppose you are a fruit trader selling on road sides. You buy 20 kilograms of grapes at Rs. 20 per kilo. By using the example of Gowri, what will be your selling price of grapes?
I sell grapes for Rs. 28 to 30 in the morning and Rs. 15 to 18 in the evening.
VI. Appreciation and Sensitivity
What is ‘Pavala Vaddi’ ?’Suppose you borrow Rs. 3000. How much do you pay in return after three months ?
‘Pavala Vaddi’ is a government scheme to low income group women who are the members of self-help groups. If l borrow Rs.3000, I have to pay Rs. 3,022.50 after 3 months.
How do small traders face difficulties selling agricultural goods-particularly fruits and vegetables ?
Small traders selling agricultural goods particularly perishables such as fruits and vegetables also face difficulties similar to that of Gouri. Since their residences are far away from weekly markets, they have to sell all the goods they purchased from the whole-sale market.
They don’t have storage facilities, weekly market traders keep all their goods in their houses. If they are not able to sell the perishable items by the evening, they have to take them back by paying transport expenses. Sometimes they sell their goods at lower than the purchase price to avoid heavier losses.
Talk to different vegetable vendors in your area to understand their work, livelihood and problems. Prepare a report and share it in the class.
Student’s self exercise.
Go to a nearby santha and observe its-functioning. Draw a picture of it and display it in your classroom.
Student’s self exercise.
TS 6th Class Social 8th Lesson Notes – Trade in Agricultural Produce Part 1
- Wholesale traders : The persons who sell goods in large quantities to be sold to the public by others.
- Retail traders : Person who sale the goods to general public.
- Market : An occasion when people buy and sell goods, fruit / flower / antique market.
- Weekly Market : The markets held for a day in the week at different localities of a town or at different small towns. These markets are called Weekly markets.
- Rythu Bazaar : The place where the producers directly sell their goods to consumers.
- Pavala vaddi : The government of combined Andhra Pradesh started a scheme of pavala vaddi for low income earners. They have to pay 25 paise for every 100 rupees per month.
- Self – Help Group : The villagers who want to do business together form a self-help group and get loan from banks with 25 paise for every hundred rupees per month.
- Trade : The activity of buying and selling (or) of exchanging goods or services between people or countries.
- Street Vendors : The persons who sell things for example food or newspapers, usually outside on the street.