Economics of Kautiliya Shukra and Brihaspati.pmd

Profit rates were also to be rigidly fixed by the state so as to
avoid uncertainty and to prevent traders from profiteering. The
Superintendent of Commerce was to fix a profit of 5 percent over and
above the fixed price of local commodities and 10 percent on foreign
produce. Merchants who enhance the price or raise profit even to the
extent of half a Pana more than the above in the sale or purchase of
commodities shall be punished. (Kautilya's Arthashastra, 1967, 4.2)
Kautilya directs to The Superintendent of Commerce to control traders
by taking large profits because it can harm the consumers. In short,
according to Kautilya and Shukra shares of land, labour, capital and
entrepreneur are 16.67 percent, 58.33 percent, 15.00 percent, and
10.00 percent respectively. They were of the view that 16.67 percent
regular saving should be gone to state treasury. The table 5.4. presents
the share of different factors of production fixed by Kautilya and Shukra.
Table 5.4. Shares of Factors of Production
Factors Kautiliya Arthashastra Shukra-niti
Land 16.67 percent 16.67 percent
Capital 15.00 percent …
Entrepreneur 10.00 percent …
Labour 58.33 percent …
Land, Capital, Entrepreneur … 66.67 percent
Saving … 16.67 percent
Source: Gewali, 2011 b : 139
Conclusion
The analysis above can be summarized as follows-
1. Cost of production was the basis of long run price determination.
2. In short run market price and value of the commodity may be
different. The difference depends on availability and non-availability
effect.
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3. The share of land, labour, capital and entrepreneur in the national
income was considered 16.67, 58.33, 15, and 10 percent. 16.67
percent of National income was considered the subject of national
saving.
Notes
1 cfud+ lgu{d+ :yfg+ tyf j[l4Ifofj'ef} .
ljrfo{ ;j{k0ofgf+ sf/o]Tqmoljqmof} ..
k+r/fq] k+r/fq] kIf] kIf] cyjf ut] .
s'jL{t r}if+ k|ToIfdwd{ ;+:yfkg+ g[kM ..
(Compare the value of commodities purchased and commodities sold,
estimate its loss of value and then determine the price. The price should
be determined in such a way that both side buyer and seller should be
satisfied. After every five nights or in each fortnight prices should be
revised regularly.) Manu-smriti, 1991, 8.410-02)
2 sf/0fflb ;dfof]ufTkbfy{:t' ej]b\e'lj .
o]g Joo]g ;+l;4:tb\Joo:t:o d"Nosd .. Shukra-niti, 2000. 2.146
3 One Pala = 10 dharana and one dharana = 10 seeds of bean
4 Nisk = Gold coins in Vedic period
5 The price of per 10 grams of gold is Rs. 32000 and silver was Rs. 620
on an average for the year 2010 in Kathmandu. Thus the present
proportion of these two metals is 1 gold : 52 silver. Gewali, 2011 b: 120
6 k|If]k+ k0olgiklQ+ z'Ns+j[l4djqmod\ .
JoofgGof+Zr ;+Vofo :yfko]b3{d3{ljt\ .. Kautiliya Arthashastra, 2003, 4.2.36
7 Euler's Theorem is a mathematical concept expressed in terms of
derivative. If land, labour and capital are paid according to
their contribution the total production will be exhuasted, or
u = f d + f d + f d , where f , f and f are marginal productions (shares)
x x y y z z x y z
of land, labour and captial; d , d and d are change in respective factors
x y z
and u is total derivative.
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