what are the problems faced by people working in powerlooms
Answers
Marketing of the power-loom products is one of the main problems which
become a challenge for the owners of power loom industry. Mostly, the weavers are
uneducated or less educated and are unable to estimate the demand of their products
according to the need of the market. They are unaware about economic norms like
demand & supply and business ethics. They are dependent on the middlemen to sell
their products. The middlemen purchase the products from them at low prices and sell
the same at higher prices.
The middlemen exploit the power-loom owners, the rates of finished products
are not measured on the basis of cost of production but by the bargaining of the
middlemen i.e. merchants & commission agents. So the main surplus goes to the
middlemen. In terms of numbers, the cloth merchants and commission agents are very
less as compared to the power-loom units. The merchants and agents are united while
the power-loom owners are dispersed. So, the buyers have more bargaining power and
sellers are dependent on the buyers. These middlemen mostly control the situation in
their favor to earn significant profit.