Observe the diagram and describe the flow of goods from the manufacturer / producer to the consumer. What is the role of the wholesaler and the retailer in the flow?

Question

Accepted Answer

Fig. 12.11 is a chain of eight links . Read it in order and the whole journey of a shirt, a kilo of rice or a bag of cement becomes clear. Inputs / Raw Materials Producers Finished Goods Wholesalers Warehouses & Distributors Mandīs / Wholesale Markets Retailers Consumers purchased by manufacture & converted into go to reach send to The chain of Fig. 12.11, redrawn as a single line. The two links the question asks about — the wholesaler and the retailer — are ringed in orange. The flow, link by link. Inputs / raw materials — cotton, iron ore, grain, chemicals — are purchased by … Producers , who manufacture and convert them into… Finished goods — cloth, a refrigerator, packed flour — which go to … Wholesalers , who buy in very large quantities. From them the goods reach … Warehouses and distributors , where stock is stored — godowns for grain, cold storage for perishables — and from where the goods are sent to … Mandīs / wholesale markets , the trading floors for each commodity, from which they go to… Retailers , the shops and stores near your house — and finally to… Consumers — us. Wholesaler Retailer Buys from The producer or manufacturer directly — grains, vegetables and fruits “directly from the farms” The wholesaler, or through a distributor Quantity Large / bulk Small Sells to Retailers and big retail stores, in India and abroad The final consumer Purpose of the sale Resale Consumption Storage Godowns and cold storage (Figs. 12.12, 12.13, 12.14) A shop counter an

	Wholesaler	Retailer
Buys from	The producer or manufacturer directly — grains, vegetables and fruits “directly from the farms”	The wholesaler, or through a distributor
Quantity	Large / bulk	Small
Sells to	Retailers and big retail stores, in India and abroad	The final consumer
Purpose of the sale	Resale	Consumption
Storage	Godowns and cold storage (Figs. 12.12, 12.13, 12.14)	A shop counter and a small back room
Special job in the chain	Assesses how much retailers will need, so the manufacturer knows what stock to keep and supply is never interrupted	Increases availability — puts goods and services within walking distance of every household; also runs service retail such as salons, cinemas and restaurants

NCERT Solutions Exploring Society: India and Beyond Chapter 12 Fig. 12.11, Movement of Physical Goods in Markets — LET'S EXPLORE