Alauddin Khilji (1296-1316 AD), the ruler of the Delhi Sultanate, imposed price restrictions and other reforms in his kingdom in the early 14th century. He set prices for a variety of commodities, including cereals, fabric, slaves, and animals. He outlawed hoarding and regrating, hired supervisors and spies to enforce the rules, and severely punished those who broke them. According to Alauddin's courtier Amir Khusrau, Alauddin's goal was to benefit the general populace. In this article, we will discuss about the Marketing system of Ala-ud-din Khilji which will be helpful for UPSC exam preparation.

Marketing System of Ala-ud-din Khilji - Background

• Alauddin's economic changes, in addition to administrative and agrarian improvements, are regarded as "Miracles of medieval history,"
• His Price Control Policy was a standout aspect of his economic reforms, earning him a position in the archives of socio-economic history.
• Alauddin's courtier Amir Khusrau claims that Alauddin reduced and regulated prices as he had "great respect for general prosperity and abundance, and for the happiness and comfort of the commons."
• Whereas the contrary view claims that Alauddin instituted these reforms in order to maintain an unprecedentedly huge army.
• The Mongol invasion of Delhi in 1303 motivated Alauddin to organise a huge army to counter the Mongol menace. Such a massive army would be a financial strain on the state unless the soldiers' salaries could be significantly reduced.
• He was the first monarch to approach the subject of price regulation in a methodical manner, and he was able to keep prices stable for a long time.

Central Grain Market (Mandi)

• Alauddin established a number of rules and regulations to administer the principal grain market known as Mandi.
• The prices of cereals were fixed and this system was known as Zabita.
• The government established the following monthly prices:
  • For Wheat, it was 7,1/2 jital (1 jital equals 2/3 tola),
  • For Barley it was 4 jital, Rice 5 jital, Pulses 5 jital, and Gram 5 jital
• Nobody knows how Alauddin arrived at these prices, but Amir Khusrao and Barni both say there was no price increase allowed.
• The price stability in the grain market was a marvel of the day.
• Malik Kabul Ulughkhani was appointed as Mandi's controller, also known as Shuhana-i-mandi.
• In Doab, all Khalsa towns were commanded to pay Kharaj in kind, which would be deposited in the cities' royal stores.
• As a result, all of Delhi's mohallas had two or three houses where grain was stored.
• For the collection of grains from merchants, agents were established. It was carried out under very stringent guidelines.
• Grain hoarding was outlawed, and all officers were obliged to sign a pledge promising to stop it in their respective areas.
• The defaulters received harsh punishment, and the grain used in the transaction was confiscated.
• Apart from this, peasants had to sell their grain at a predetermined price to an authorised agent in the field.
• Peasants could take their grain to the open market and sell it at the official rate or sell it directly to the king’s agent.
• The last rule dealt with Alauddin's report on the functioning of the Mandis, which came from Shuhana-i-Mandi.
• Alauddin also appointed Barid (a spy) and Munhiyas (local newsagents), whose job it was to keep meticulous records of every market action.
• People acted honestly because they knew Sultan was kept up to date on everything.

Sher-i-Adl (Cloth market)

• The Sher-i-Adl functioned similarly to a supermarket for manufactured goods.
• This market also included things purchased from outside the country.
• According to the Sultan's decree, all products costing between 1 and 10,000 tankas must be carried to Sher-i-Adl and sold at a fixed price. Clothes and high-end items were sold at the market.
• The Sultan had established certain laws and regulations to ensure that the market ran properly.
• For trade control, all merchants should be registered with the Diwan-i-Riyasat.
• Multani merchants were given subsidies since they transported expensive fabric from a long distance and sold it to the public at a lesser price.
• The sale was overseen by Parwana Rai, a permit officer. He used to give individuals permission to buy clothes.

Market of Slaves, Cattle & Horses

• Aside from these two markets, there were markets where other types of slaves, cattle and horses were sold.
• Alauddin created a regulation for this market that was similar to the other two.
• The prices of the goods were set based on their quality.
• He also got rid of middlemen and put brokers under strict supervision, with the king conducting personal reviews on a regular basis.
• People who wanted to join Alauddin's cavalry had to appear at a review with one or two horses and other supplies.
• If he was eligible, the army paid him the horse's price under the supervision of a horse broker.
• In addition, if the horse died while serving, the person was compensated for the cost of a new horse.
• The prices ranged from 100 to 120 tankas for first-class horses, 80 to 90 tankas for second-class horses, and 60 to 70 tankas for third-class horses.
• Although the broker system was curtailed, it was not totally eliminated.
• The Sultan, on the other hand, authorised the brokers to continue their business at a fixed fee.
• The city's general market, which sells vegetables, candies, fish, and other items was looked by Diwan-i-Riyasat.
• Aside from all of these commodities, slave prices were also set and in 5-12 tankas, anyone can hire a woman servant. For 20-40 tankas, a high-quality lady slave, a male servant for 10-15 tankas, and lovely slaves for 20-30 tankas.

Impact of the Market Policy of Alauddin Khilji

• The market reform strategy impacted diverse groups differently, but the government benefited the most of all because it was able to achieve its goal of keeping a big standing army at unusually low salaries.
• Alauddin developed such a powerful army as a result of his market reforms that the army always triumphed, whether at home or in a foreign nation.
• Market reforms have also proven to be a source of indirect taxes for the government.
• Furthermore, the government made money on the grain it bought from the farmers because the rate at which it bought was significantly cheaper than the official controlled pricing in Delhi.
• The army, government employees, and all other Delhi residents, on the other hand, benefited the most.

Impact on Merchants and Traders

• The price-fixing of almost every commodity, especially at such a low price, along with the harsh stance implemented against merchants and traders, left no room for the trader and industry to thrive.
• Merchants were forced to give under coercion and the fear of a minor weight deviation resulted in offering more than the real weight.
• However, the merchant or trade class went through a period of frustration, although they remained an important force in the state's economic development.

Impact on Artisans, Manufacturers and Craftsman

• All these experienced a financial blow since price reductions prompted them to minimise raw material payments, including skilled labour.
• The manufacturer suffered greatly because, despite all rules, the merchant was always able to find ways to obtain goods at a lower cost.
• Transferring the greatest amount of financial risk to the producer and workers.

Impact on Farmers and Common People

• Farmers and cultivators, who constituted the backbone of the agricultural sector, were the most affected.
• The Sultan's revenue control was intended to crash the rich intermediaries, not the impoverished farmers.
• However, the majority of them lived outside of Delhi, and the price control hypothesis was only used in Delhi and its environs.
• Farmers had to pay extra to buy grain that they had sold at a lower price to merchants and state officers in an emergency since no farmer could afford the time or money to travel to Delhi on a regular basis to make his necessary purchases.

Conclusion

After the Mongol siege of Delhi, Alauddin Khalji's military goals necessitated a standing and powerful army. Maintaining a huge army on regular salaries would be a significant financial burden. The amount of salary that had to be paid was decreased thanks to a pricing control mechanism. He took a number of initiatives to keep pricing under control. From top to bottom, he set the pricing for all commodities. Those who defaulted were severely penalised. However, it was only a temporary measure, imposed in an emergency. When the emergency ended, the policy was also allowed to lapse into obscurity. Furthermore, a policy that could only be implemented by force could not last long. Qutbuddin Mubarak Shah, Alauddin's son, overturned the reforms immediately after his father's death

MCQs

1. What was the primary reason behind Ala-ud-din Khilji’s market control measures?

A. To increase the wealth of traders

B. To maintain low prices for his army's supplies

C. To promote foreign trade

D. To establish a free market economy

2. Who were the officials responsible for enforcing price regulations in Ala-ud-din Khilji's market system?

A. Amirs

B. Kotwals

C. Shahna-i-Mandi

D. Mansabdars

3. Which of the following commodities was not regulated by Ala-ud-din Khilji’s market reforms?

A. Grains

B. Silk

C. Horses

D. Slaves

4. What role did the state granaries play in Ala-ud-din Khilji’s market control system?

A. To sell grains at higher prices during scarcity

B. To store surplus grains and release them during scarcity to stabilize prices

C. To provide food exclusively for the royal family

D. To export grains to foreign markets

5. How did Ala-ud-din Khilji prevent traders from manipulating the prices of goods?

A. By allowing free trade

B. By appointing inspectors to monitor the markets

C. By banning trade altogether

D. By encouraging hoarding

GS Mains Questions and Model Answers

Q1: Discuss the significance of Ala-ud-din Khilji's market reforms in medieval India and their impact on the economic stability of his empire.

Answer: Ala-ud-din Khilji's market reforms were among the most significant administrative innovations of medieval India. His objective was to maintain strict control over prices, especially of essential commodities like food grains, cloth, horses, and cattle, to ensure a stable supply of goods for the general populace and his large army. These reforms helped prevent inflation, ensured the smooth functioning of the army at lower costs, and kept prices affordable. The Shahna-i-Mandi enforced regulations rigorously, while state granaries acted as reserves to stabilize prices in times of scarcity. The economic stability brought about by these reforms ensured that Ala-ud-din Khilji could focus on military expansions without facing significant internal disruptions.

Q2: Analyze the role of the Shahna-i-Mandi in enforcing Ala-ud-din Khilji's market control measures and maintaining law and order in the markets.

Answer: The Shahna-i-Mandi played a pivotal role in the enforcement of Ala-ud-din Khilji's market control policies. These officials were tasked with ensuring that traders adhered to the fixed prices set by the administration. They conducted regular inspections, curbed illegal activities such as hoarding and black marketing, and ensured that essential commodities were available at the regulated prices. The presence of these inspectors in every market helped maintain law and order, ensuring that traders could not exploit consumers or manipulate the market. The Shahna-i-Mandi thus contributed significantly to the smooth functioning of the economy and the stability of Khilji’s regime.

Q3: Evaluate the effectiveness of Ala-ud-din Khilji’s market reforms in addressing the economic needs of both the state and the general populace.

Answer: Ala-ud-din Khilji’s market reforms were highly effective in addressing the economic needs of the state as well as the general populace. His reforms ensured that essential commodities like grains, horses, and cloth were available at affordable and fixed prices, preventing inflation and providing economic relief to both civilians and the military. By establishing state granaries and regulating trade through the Shahna-i-Mandi, Khilji’s administration could prevent hoarding and speculation, thus maintaining market stability. For the state, these reforms helped manage the economic burden of maintaining a large army, while for the general populace, it ensured protection from exploitation by traders and merchants.

Previous Year Questions on Marketing System of Ala-ud-din Khilji 

1. UPSC CSE Prelims 2020

Question: Ala-ud-din Khilji’s market reforms were primarily aimed at:

A. Encouraging foreign trade

B. Controlling prices of essential commodities

C. Expanding the empire through trade routes

D. Establishing an open economy

Answer: B

Explanation: Ala-ud-din Khilji's market reforms were primarily aimed at controlling the prices of essential commodities such as food grains, horses, and cloth. The objective was to ensure that these goods were available at affordable, fixed prices for his large standing army and the general populace. The strict price control measures, along with the establishment of state granaries and market inspections, helped stabilize the economy by preventing inflation and protecting against exploitation by traders. These reforms were not focused on promoting foreign trade or expanding trade routes, but rather on maintaining economic stability within the empire, making option B the correct answer