Answer:
Cotton is produced at a farm and undergoes various stages of spinning, weaving, dyeing, tailoring etc. before it becomes a shirt. The wholesalers and retailers who earn the major chunk of profit are merely agents in the chain of sale. The following flow chart will explain the supply chain for a cotton shirt: Cotton farmer (Producer) (Say income Rs. 10,000) \[\downarrow \] Wholesaler (intermediary) (Income Rs.50, 000) \[\downarrow \] Cotton gin owner (intermediary) (Income Rs. 70,000) \[\downarrow \] Trader (Intermediary) (Income Rs. 80,000) \[\downarrow \] Knitwear (shirt) manufacturers (intermediary) \[\downarrow \] Retail stores (sell products at highest price) \[\downarrow \] Consumer (buys products at a high price given on the tag)
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