“Analyzing Market

Reforms of Alauddin khalji”

 Abstract
This project work is focused on the introduction and Analysis of Market Reforms of Alauddin
Khalji. When he ascended the throne, the kingdom was in a situation of chaos. There was
looming Mongol threat on sultanate, apart from this consolidation and expansion of sultanate
was also a challenge before him. Recalcitrant Nobles and zamindars were also a challenge
before him. This project paper covers all these problems and tries to explore the causes of
Alauddin Khalji’s Market reform and Price Control Policy. The project paper also provides a
comprehensive account of all steps taken for price control including fixation of prices of
commodities, royal granaries, strict action on hoarders, strong espionage system, strict action
on complaints, establishment of ‘Diwan-I-Riyasat’, and elimination of Middleman. It
particularly highlights and analyzes major steps adopted for the successful implementation of
the policy.
 ➢ Market reforms-

After ascending the throne of Delhi in 1296, Alauddin initiated a host of reforms in Military,
Administrative, Agrarian, Economic and Market apparatus. Most prominent and distinct of
these are Market reforms. Peter Jackson considers these reforms as “miracles of history.”
The historians have different views about the reasons for his price control policy. Ziauddin
Barni in his book ‘Tareekh-I-Firoz Shahi’ describes that Alauddin had initiated these reforms
because he had to maintain a large army due to the threat of Mongols, to increase the royal
grandeur, to achieve the economic stability and to get rid of social injustice. Dr. K.S. Lal opines
that “He had to maintain a large army due to the permanent Mongol threat, due to which he had
to make an effective price control policy.” apart from Mongol threat his expansionist vision in
Deccan and other areas also necessitated huge army, R.C. Majumdar opines that “Alauddin
realized that a strong army was an indispensable requisite for the system of government, he had
been trying to build up. But its efficient maintenance required a huge expenditure at a time
when the influx of wealth from the South had caused a fall in the value of money and augmented
the prices of goods.” and in order to respond to this he initiated market reforms.
Dr.K.S lal opines that “since he had decided to reduce and fix the salary of soldiers, he also
decided to reduce and fix the prices of common use”. But U.N. Day counters the opinion, that
in order to reduce salary of soldiers for maintaining huge army, he fixed the prices of goods,
by comparing salaries of soldiers of same rank during time of Alauddin, Akbar and Shajhan
and says that it can’t be said that he was paying less salary to his soldiers. Alauddin did not fix
the prices of different goods lower than the prevalent prices of those goods in places around
Delhi. Besides, the prices fixed by Alauddin were not very different from what we find during
the reign of Firoz Shah Tughlaq. So, this raises question that when Alauddin did not fix the
prices lower than the country–side and these was certainly not below the normal prices then
what was the need of fixing the prices and taking strong measures to see that these were
observed? The answer to this question is during this time Delhi became big center of trade and
there was constant movement of Merchants, this led to increase in demand of goods and also
increase in Money circulation and cash. These factors produced inflationary conditions.
because the price of a commodity is not only governed by the intensity of demand but also
proportional to the amount of money in circulation. After this dealers and merchants created
artificial scarcity and that led to high prices. Therefore in opinion of Dr,Day “Alauddin’s
motive was to check the rising prices which were due to manipulation of the business
community and not to produce the prices to a lower level than the normal.”
Both Amir khusro and Shaikh Nasiruddin Chirag attribute Alauddin’s market reform to his
Humanitarian motive, Sultan desired that all his subjects should get all necessary goods in
sufficient quality and at proper price. Therefore, he fixed the prices of all articles. But these
sources can’t be relied upon therefore this can’t be justified. Also, rigorous imposition of this
policy and resultant impact on people clearly brings forth that he was not guided by
Humanitarian motive.
Thus, we can conclude that primary reasons for Market reforms was based on political and
military interest of Allaudin. For the political stability and consolidation, he needed a
permanent standing army. He curtailed the salaries of his soldiers but desired that the soldiers
remain comfortable with this reasonable amount of salary. For this purpose, he tried to check
the prices, and the manipulation of merchants to raise the prices artificially and forced him to
fix the prices of all goods and enforce them strictly.

Features of his market reforms –

• Fixation of prices of commodities-
Allaudin fixed the prices of nearly all goods i.e. all variety of grain, pulses, cloth,
slaves, cattle and horses also of necessary items of daily use such as meat, fish, dry
fruit, sugar-cane, vegetables, needles, colors, betel-leave, silk etc.

• Accumulation of grain stock-

Accumulation of grain stock in royal granaries was also an essential component of his
policy of Market reforms. And it is from these royal granaries, grains were distributed.
No merchant or farmer was allowed to hoard grain or sell it at higher price.
And this was the reason for which revenue was collected in kind from khalisa and
doab region.
In times of scarcity these graineries proved to be of much value.

• Strict action on Hoarders-

Hoarding was strictly forbidden. The hoarders were dealt with iron hand and were
punished severely. Sultan not only controlled the prices and hoarding, but also those
of supply and transport of various goods. Traders, who carried goods from one place
to other, were registered and every type of facility was provided to them in
 transportation of goods. All the merchants were required to register themselves in the
office of Shahna-I-mandi (Inspector General of the markets) and to bring all goods for
sale to the Sarai adl, an open Market.
serious punishments were provided against the violation of the Sultan’s regulations.
Nobody could dare to sell any commodity underweight as the same amount of flesh
would be cut off from his body.

• Strong and efficient espionage system-

To keep himself aware of happenings of the market Alauddin established a very
strong espionage system. This was comprised of intelligence officers known as barids
and secret spies known as munhaiyan. These officers were required to report
separately to Sultan.and if the report of overseer(shana-I-mandi) and intelligence
officers differed, the sultan would conduct a special enquiry into the matter.

• Establishment of Diwan-I-Riayasat-
Allaudin had established a price control department named ‘Diwan-I -Riayasat’ whose
head was Malik Ulugh Khan and the Shahan-I-Mandi (the head of markets was
Yaqoob Khan). Thus, a new Government market was established under the Badaun
gate and was named ‘Sara-I-Adl’, which was under the control of Diwan-I-Riyasat.
There were also separate markets for slave, cattle and other commodities. The purpose
of this was to ensure that goods were supplied to market established by sultan and
were sold on the prices fixed by the sultan.

• Elimination of middleman-
Allaudin also eliminated middleman or dallals from the system, according to barani
this was done to ensure the smooth flow of commodities in the market.
➢ Areas where this policy was implemented-
According to Ziauddin barni these regulations and reforms were limited to Delhi and
its nearby areas only. Also, traders and merchants were required to register themselves
with Divan-I-riyasat and give an undertaking to reside and work in Delhi, this
indicates that there was fear of merchants migrating to other places ,where prices were
not controlled and merchants could hope for better profit outside Delhi.this indicates
that these reforms were limited to Delhi and its vicinity only.

➢ Effectiveness of market reforms- “success or failure”-

Barani is emphatic in this regard he opines that “so long as Allaudin ruled, prices of
commodities never rose or fell but ever remained fixed.” K.S. Lal praises “What is of
real importance in Allaudin’s reign is not so much the cheapness of price, as the
establishment of a fixed price in the market which was considered one of the wonders
of the age.” so keeping prices fix for such a long period is considered as his success
and achievement.
V.A. Smith criticizes and opines that “His measures certainly succeeded in preserving
an artificial cheapness in the markets of the capital even during years of drought, but
at the cost of infinite oppression. Majumdar said that “regulations worked according
to sultan’s desire so long as he lived. M.H. Syed says that “Bold and original in
conception, the new economic policy of Allaudin evokes our admiration, but its
defects and shortcomings should not be overlooked or minimized. The control of price
and rationing obtained in and near Delhi only, and the regulations adversely affected
both the trade as well as agriculture. Only the army and the population of Delhi
benefited by these regulations. Judged by the objective which inspired them, they
proved highly successful. Opposed as they were to economic laws, they died with
Allaudin.”
It we see it through the prism of maintaining huge army to resist Mongol threat and
expanding of empire then his reforms were success, because he was able to achieve all
these goals.
But looking it from the other side, we are bound to conclude that it was not in interest
of People. Because peasants were required to pay half of their produce as revenue to
state and other half, they were required to sell only to certain fix traders at a fix price.
 The traders also could not be happy as their profit depended upon will and whim of
the state and there were provisions of severe punishment for them on small mistakes.
There is no doubt that the benefits of the price control policy were enjoyed by the civil
as well as the military population of Delhi, still the peasant of the Doab and the areas
in the vicinity of Delhi suffered privations for the benefit of the people of the capital.
K. S. Lal expresses that ‘the motive of Sultan may not have been to crush the poor
peasants against whom he possibly could have no grudge, but the exigencies of the
state required him to take such steps under which the interests of commerce and
cultivators were sacrificed of those of army.”

➢ Conclusion-
During the reign of Alaudin khilji these policies functioned well ,and he was able to
achieve his objective of securing sultante from Mongol invasions and expanding
frontiers of sultante.however after his death these policies couldn’t survive, his
successors had not taken much interest in this and they were not confronted with
situations that Alauddin had to confront during his reign.Mongol therat was over for a
long time to come.therefore they neither needed a large standing army nor in
consequence price control policy.

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