Economics of Kautiliya Shukra and Brihaspati.pmd

Regulation of Trade and Protection of Consumers
Trade and commerce were regulated in public interest.
Panyadhyaksa (The Superintendent of Commerce), who was state
officer, appointed to promote and regulate trade had to control prices
and profit so that common man was not hurt. Commodities which
were freely available and essential for day-to-day use were allowed to
be freely traded. Consumers were protected against cornering and
hoarding of goods. Traders found cheating or deceiving consumers
were heavily punished. Market hours were regulated. Weighs and
measures were standardized. Wages were prescribed for different types
of jobs. Good workers given incentives while those not performing
well were penalized. (Kautilya's Arthashastra, 1967, 2.26)
International Trade
Kautilya advocated the promotion of international trade and
commerce. Imported goods were allowed to be sold in the market
through distribution centers under control of the Superintendent of
Market. The margin of profit was kept reasonable as it was thought
that high margins would be determined to the people. Foreign traders
we rot to be harassed. In case of a dispute between a local and a
foreign businessman, it was not advisable for the later to go to court.
Mutual settlements were preferred.
The Superintendent of Commerce was required to protect the
interest of businessman going abroad to sell the goods produced in the
country. In case of emergency he was supposed to help them. Most
of the trade during those days was through roadways. Waterwaysrivers
and seas was second important transportation. Traders were
supposed to have fair knowledge of the routes and the people with
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whom they had to deal in foreign markets.(Ibid) Export of the items
banned was punishable with fine and seizure of goods. Such items
include selected armaments, chariots, precious metals, food grains,
and livestock. Foreign goods useful to the country were allowed without
any restrictions. But the entry of goods harmful to people was strictly
prohibited. (Shukranitisar, 2008, 1.128) The traders required to
disclose full identity of goods at the entry gate. Customs certification
was a must. Spies were appointed to collect details about the goods
entering into the borders. Concealment of facts was reported by them.
If traders failed to pay the duty asked for goods were seized. Customs duty
on important goods was called pravesya. One fifth of the value of the
products was charged as pravesya.(Kautiliya Arthashastram, 2009, 2.22)
Transportation
Development of transport was state responsibility. Road
transport developement was responsibiity of village heads, mayors and
The Superintedent of New settlements. Different types of roads and
their width as recomended by Shukra and Kautilya is presented in the
table 4.1.
Table 4.1. Road width in Kautiliya Arthashastra and Shukra-niti
Road Shukra-niti Kautiliya Arthashastra
High way 45 ft. 48 ft
Link road 30 ft. 48 ft.
City road 22 ½ ft. 24 ft.
City-village link road 15 ft. 13 ½ ft.
Source: (a) Shukranitisar, 2008,1.262-64
(b) Kautilya's Arthashastra, 1967, 2.4
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