Markets Around Us

• What a market is; different types of markets.
• Chain of markets — how goods move from producer to consumer.
• Weekly markets, neighbourhood shops, shopping complexes, malls.
• Who gains and who loses in the chain of buying and selling.
• Role of equality in markets — why some people are excluded.

What is a market?

A market is any place or system where buyers and sellers come together to exchange goods or services.

Markets are not just physical places — online shopping, auctions, stock exchanges are all markets.

Types of markets

Weekly markets

• Goods sold: vegetables, fruit, cloth, utensils, electronics, street food.
• Advantages: cheaper (sellers have low overhead costs — no rent, no electricity bills); wide variety; fresh produce.
• Disadvantage: only once a week; stalls may lack quality guarantee.
• Sellers in weekly markets often belong to poorer economic backgrounds.

Chain of markets — from farm to consumer

Example: cotton shirt

Farmer (grows cotton)
    ↓ sells raw cotton
Cotton trader / mandi
    ↓ sells to
Spinning mill (makes yarn)
    ↓ sells to
Cloth mill / power loom (makes fabric)
    ↓ sells to
Garment factory / tailor (makes shirt)
    ↓ sells to
Wholesaler
    ↓ sells to
Retailer (shop)
    ↓ sells to
Consumer

At each step someone buys and sells. Each person in the chain makes a profit — but the price rises each time.

• Farmer gets least; retailer gets most per unit sold.
• Workers in factories (stitching, spinning) are paid wages — they do not own the product.

Who gets what in the chain?

Inequality in markets

• Not everyone can access all types of markets equally.
• Lack of capital: small farmers/weavers cannot bypass middlemen → forced to sell cheap.
• Lack of information: sellers who don't know market prices are exploited.
• Social discrimination: Dalits in some areas are denied entry or face discrimination in village markets.
• Gender: women may have less access to markets due to mobility restrictions.

Markets and equality

• Markets are often presented as "neutral" — anyone can buy and sell.
• Reality: wealth, caste, gender, and information create unequal access.
• Government can intervene: minimum support price (MSP) for farmers; consumer protection laws; fair price shops (PDS).

• What is a market? Name three different types.
• Why are goods in weekly markets generally cheaper?
• Draw the chain of production for a cotton shirt. Who earns the most and least?
• Why might a farmer get less than a retailer for the same product?
• How does social inequality affect access to markets?

Open the Practice tab for graded questions on Markets Around Us.