Economy and Society

Unit 12 INLAND TRADE*

Structure
12.0 Objectives
12.1 Introduction
12.2 Trade and Commerce under the Delhi Sultanate
12.2.1 Inland Trade
12.2.2 Commercial Classes
12.2.3 Means of Transport
12.3 Trade and Commerce under the Mughals
12.3.1 Inland Trade
12.3.2 Inter-Regional Trade
12.3.3 Exports and Imports
12.3.4 Trade Routes and Means of Transport
12.3.5 Administration and Trade
12.4 Personnel of Trade and Commercial Practices under the Mughals
12.4.1 Merchants
12.4.2 Moneylenders and Sarrafs
12.4.3 Brokers
12.4.4 Commercial Practices
12.4.5 Banking, Usury, Rate of Interest and Partnership
12.4.6 Insurance
12.5 Merchants, Trading Organizations and the State
12.6 Summary
12.7 Keywords
12.8 Answers to Check Your Progress Exercises
12.9 Suggested Readings
12.10 Instructional Video Recommendations

12.0 OBJECTIVES
In this Unit, you will study the expansion of trade under the Delhi Sultanate.
In the Delhi Sultanate three interrelated developments occurred: a considerable
increase in the size and possibly in the number of towns, a marked rise in craft
production, and a corresponding expansion in commerce. Here, we will also
discuss the inland trade of India during the Mughal period. You will also learn
about the mercantile groups involved in trade and commercial practices of the
period. After going through this Unit, you should be able to:
• understand the pattern of local, regional and inter-regional trade during the
period of our study,
• know about the major merchant groups involved in trading activities,
• list the main commodities of inland trade,
• analyze the role of brokers, sarrafs and moneylenders in commerce,

* Prof. Shireen Moosvi, Centre of Advanced Study in History, Aligarh Muslim University, Aligarh
and Prof. A.R. Khan, School of Social Sciences, IGNOU, New Delhi. The present Unit is taken
from IGNOU Courses EHI-03: India: From 8th to 15th Century, Block 6, Unit 21, and EHI-04: India
250 from 16th to Mid-18th Century, Block 5, Unit 20 and Block 6, Units 23 & 24.
• have an idea about the pattern of India’s foreign trade, especially the overland Inland Trade
trade, and
• know about the bills of exchange, commercial lending, rate of interest and
partnership in business.

12.1 INTRODUCTION
In Unit 11, we have discussed the commodity production in different regions of
the empire. We also noticed that the volume of production was higher than the
local consumption. Large amounts of this surplus production were used for trading
purpose. Trade in agricultural products started from the field itself. Similarly,
commercial transactions of craft products also started from artisan’s household.
All this took place at various levels – local, regional, inter-regional and outside
the country. In this Unit, we will discuss the pattern of inland and foreign trade.
During this period, political stability and enhanced production gave a fillip to
trading activities. The volume of trade increased manifold. With the increase in
commercial activities, a number of specialized groups involved in trade also grew.
At the same time, some basic commercial practices were also established. In the
whole commercial process, certain specialized groups of merchants, brokers
and sarrafs played their role at various levels. Large-scale trading operation
strengthened some of the existing practices and institutions and gave rise to new
ones. Systems of banking, bills of exchange and lending of money were important
ones. Trading partnership and insurance were also in vogue.

12.2 TRADE AND COMMERCE UNDER THE DELHI

SULTANATE
There emerged some considerably big flourishing towns as well as numerous
townships during the 13th-14th centuries. These towns naturally needed to be
fed and supplied raw material for craft production. At the same time, there was
growing practice of land revenue realization in cash. By the time of Alauddin
Khalji, the cash-nexus came to be well developed and the ruling class tended to
claim almost the entire peasant surplus by attempting to reduce the share of rural
intermediaries, as we have seen in the previous Units.
Both these factors were conducive for the development of inland trade. To pay
the land revenue in cash, the peasantry was forced to sell its surplus produce
while merchants had a market in newly emerged towns for agricultural products.
This trade resulting from the compulsions of land revenue system is termed as
‘induced trade’.
12.2.1 Inland Trade
The inland trade developed at two levels: (a) the short distance village-town trade
in commodities of bulk, and (b) long distance inter-town trade in high value goods.
The village-town trade, as already explained, was a natural consequence of the
emergence of towns and realization of land revenue in cash. The urban centres
were dependent for supply of food grains and raw material for manufactures from
the surrounding villages whereas the villages had to sell the agricultural products
to receive cash for meeting the land revenue demand. The peculiar nature of this
trade was the one-way flow of commodities. While the towns received grains
and raw material from the villages in the vicinity, they had no need to send their
products in exchange to the villages which were by and large self-sufficient. This
one-way trade was owing to the land revenue demand imposed upon villages 251
Economy and Society which naturally led to a continuous drain on rural sector and made the towns
dependent on villages. The turnover of this trade was high in terms of volume
but was low in terms of value. The commodities were food grains, that is wheat,
rice, gram, sugarcane, etc. and raw material like cotton for urban manufactures.
The inter-town trade was mainly in luxury articles and was thus a high value
trade. The manufactures of one town were taken to another. For example: Barani
reports that Delhi, the capital itself, received distilled wines from Kol (Aligarh)
and Meerut, muslin (fine cloth) from Devagiri and striped cloth from Lakhnauti
(Bengal), while, according to Ibn Battuta, ordinary cloth came from Awadh and
betel-leaf from Malwa (twenty-four days’ journey from Delhi). Candy sugar was
supplied to Multan from Delhi and Lahore and ghi from Sirsa (in Haryana). The
long distance inter-town trade also carried goods coming from other countries
from entry-point towns to other urban centres as well as the export goods to exit-
points. Multan was perhaps the great entrepot for overland foreign trade and served
as a centre of re-export, while Gujarat port towns such as Broach and Cambay
were exchange centres for overseas trade (as shall be discussed in Unit 13).
Overland Trade
During the Sultanate period, overland trade was in a flourishing state. Multan
was the major trading centre for overland trade. India was connected to Central
Asia, Afghanistan and Persia through the Multan-Quetta route. But on account of
repeated Mongol turmoil in Central Asia and Persia, this route was less preferred
by the merchants.
12.2.2 Commercial Classes
Two types of merchants are mentioned in the sources of the Delhi Sultanate: the
karwanis or nayaks and Multanis. The merchants specializing in carrying grains
were designated by Barani as karwanis (a Persian word meaning those who
moved together in large numbers). The contemporary mystic, Nasiruddin (Chiragh
Delhi) calls them nayaks and describes them as those ‘who bring food grains
from different parts to the city (Delhi) – some with ten thousand laden bullocks,
some with twenty thousand’. It can be said with a degree of certainty that these
karwanis were the banjaras of succeeding centuries. As is clear from the Mughal
sources, these were organized in groups and their headman was called nayak.
The other important group of merchants mentioned in our sources was that of
the Multanis. Barani says that the long distance trade was in the hands of these
merchants. They were engaged in usury and commerce (sud-o-sauda). It appears
that the sahas and Multanis were rich enough to give loans even to nobles, who,
according to Barani, were generally in need of cash. The sahas and Multanis
were generally Hindu, but at least some Muslims were also among the Multani
merchants. For example, Hamiduddin Multani was called by Barani as malik-ut
tujjar (the great merchant). Besides these well defined merchant groups, others
who had so chosen could take to trade. Thus, a Sufi (mystic) from Bihar became
a slave-merchant trader between Delhi and Ghazni, and a number of pious men
from Central Asia came to Delhi and became merchants.
Another important commercial class that emerged during the Sultanate period
was that of the dallals (brokers). They worked as a link between the buyer and the
seller and took commission from both the parties. Barani says that they were the
‘masters of market’ (hakiman bazar), they were instrumental in raising prices in
the market. Alauddin Khalji used to consult them about the cost of production of
every article in the market in order to fix prices. The reference to ‘Chief’ brokers
252
(mihtran-i dallalan) by Barani also suggests a somewhat well established guild Inland Trade
of brokers, though the details are lacking. However, during Alauddin Khalji’s
reign these 'Chief brokers were severely dealt with. But by Firuz Tughlaq’s
reign, they seem to have regained their position. Firuz Tughlaq had abolished
dalaiat-i bazarha (a tax on broker’s license; a cess on brokers). Besides, even
if a deal between the buyer and the seller failed to materialize, the brokers were
not supposed to return the commission money. This also shows that during the
Tughlaqs ‘brokerage’ became a fairly well-established institution.
Sarrafs were yet another mercantile group whose economic role was no less
important than the brokers. As money changers, they were most sought after by
the merchants, especially the foreign ones who came to India with their native
coins. The sarrafs tested the metallic purity of the coins (indigenous and foreign)
and established the exchange-ratio. They also issued bills of exchange (Hindi:
hundi; Persian: suftaja) or letters of credit, thereby acting as ‘bankers’. The
introduction of paper by the Turks into India accelerated the institution of bill of
exchange. For all these troubles, the sarraf naturally charged his commission.
Thus, both the brokers and the sarrafs occupied a pivotal position in the
commercial world of their period. They were the custodians of several basic
economic institutions. Indeed, no merchant could have dispensed without their
services.
12.2.3 Means of Transport
It appears that the goods were transported, both, by pack animals and on bullock-
carts. Perhaps the share of the pack animals was more than the latter. Ibn Battuta
mentions 30,000 mans of grains being transported on the backs of 3,000 bullocks
from Amroha to Delhi. Bullock-carts were also used, according to Afif, for
carrying passengers on payment. The pack-oxen were of course a cheap mode of
transport travelling slowly, grazing as they went and moving in large herds, thus
reducing the cost of transportation specially along the desert routes. Ibn Battuta
describes that highways ran through the empire marked by minarets spaced at set
distances. On the testimony of Shahabuddin al-Umari, the author of the Masalik
al-Absar, we may infer that efforts were made to create conditions conducive to
trade. Inns were built at each stage (manzil). In Bengal, Iwaz Khalji built long
embankments as a safeguard from floods. Boats were employed for riverine routes
to carry bulk goods, while large ships were used for seaborne trade.
Check Your Progress-1
1) Write short notes on the following:
a) Banjaras ................................................................................................
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b) Multanis .................................................................................................
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c) ‘Induced Trade’ ......................................................................................
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d) Brokers and sarrafs ...............................................................................
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2) List major overland trade routes of the 13th-14th centuries.
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Economy and Society .......................................................................................................................
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3) Discuss the factors responsible for the expansion of trade under the Delhi
Sultanate.
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12.3 TRADE AND COMMERCE UNDER THE

MUGHALS
In this Section, we will discuss the inland trade at local, regional and inter-
regional levels.
12.3.1 Inland Trade
As discussed in Unit 10, land revenue was realized in cash. This meant that the
surplus agricultural produce was to be sold. Bulk of this produce was sold in
the village itself. Most of this purchase was made by banjaras – the traditional
grain merchants. They, in turn, carried it to other towns and markets. Tavernier, a
French traveller who came to India in the second half of the 17th century, says that
in almost every village could be bought rice, flour, butter, milk, vegetables, sugar
and other sweets. In some villages even sheep, goat, fowl, etc. were available.
According to him, every big village would have even a sarraf or money-changer.
In addition, every locality had markets in the nearby towns where people from
the surrounding areas would come to buy and sell things. Apart from these
regular markets, there were hats and penths where people from the villages could
exchange or buy things of their daily need. These hats or penths were periodic
markets which were held on fixed days in a week. Sometimes there were hats
for specific goods.
In these local markets, foodgrains, salt, simple tools and equipment of wood and
iron for agriculture and domestic needs, and coarse cotton textiles were available.
These markets existed in all small townships and bigger villages. Banarsi Das
writing about Jaunpur around the middle of the 17th century noted that, it had 52
parganas, 52 markets and 52 wholesale markets or mandis. This may suggest
that almost every pargana had a market and a wholesale market.
It seems that a network of small and big markets viz., hats, penths, mandis, and
the merchants in their individual capacities took care of the commercial activities
in various localities. According to Tapan Raychaudhuri, individual village was
probably part of a narrow circuit of exchange which encompassed the mandis
mediating the distribution of commodities. These local trading centres were linked
to bigger commercial centres in a region.
If we take Mughal provinces as regions, we notice that each of them had bigger
commercial centres serving as nodal centres for all the commodities produced in
various parts of the suba. Generally, these big towns also served as administrative
headquarters of the suba. Patna, Ahmadabad, Surat, Dacca, Agra, Delhi, Lahore,
254 Multan, Ajmer, Thatta, Burhanpur, Masulipatnam, Bijapur, Hyderabad, Calicut,
Cochin, etc. are a few examples of such trading centres. Our sources refer to these Inland Trade
places as big commercial centres not only for the products of their respective
regions, but also for serving as emporia for inter-regional and foreign trade. Each
had a number of markets. Ahmadabad alone had as many as 19 mandis in and
around it.
If income accruing to a town from commercial taxes levied in its market is any
index of the size of the market, we may note that the income of Ahmadabad
in the second half of the 17th century from commercial taxes was estimated at
around 42,86,000 dams per annum. Similarly, cities like Delhi, Agra, Dacca and
Lahore had separate markets for specific commodities. It is said that a noble’s
son in Delhi could spend one lakh of rupees in a day without making much ado.
J. Linschoten writing about Goa around the end of the 16th century says auctions
were held every day in the principle street of the city. He further adds that there
is one street that is full of shops selling all kinds of silks, velvet, satin, works of
porcelain from China, linen and all sorts of cloth. These cities had large number
of merchants, brokers and sarrafs. There were a large number of sarais (rest-
houses) in these cities for the convenience of merchants and travellers.
The products from nearby towns, suburbs and villages found their way to these
centres. Patna, for example, had silk from Baikanthpur, cotton clothes from
Nandanpur and Salimpur; fruits vegetables, opium and sugar from different other
parts of the suba.
There were some towns that specialized in the trading of specific commodities:
for example, Burhanpur (cotton mandi), Ahmadabad (cotton textiles), Cambay
(gems market), Surat-Sarkhej (indigo), Agra for Bayana indigo, etc. All these
commercial centres had mints which struck silver, copper and at some places
gold coins.
12.3.2 Inter-Regional Trade
During the period of our study, trade between different regions of India was quite
developed. Considering the time consuming and expensive mode of transport,
such large scale inter-regional trade was phenomenally high in volume. Goods
produced at one place were carried to long distance of hundreds and in some
cases thousands of miles for the purposes of trade. The main commodities of
large-scale interregional trade were foodgrains and various sorts of textiles.
Luxury items, metals and weapons also occupied a prominent place in the long
distance trade. It would not be possible for us to list the details of this trade in
various kinds of commodities. Here we will give only a brief idea about some
important commodities.
In the east, Bengal had well developed trade relations with all parts of India. The
important trading centres of Bengal were Hugli, Dacca, Murshidabad, Malda,
Satgaon, Tanda, Hijili, Sripur, and Sonargaon. Of these Hugli was one of the
most prominent centres of trade.
Here products from Bihar, Orissa and some parts of Bengal were brought. Bengal
supplied foodgrains to all parts of the country. Rice and sugar from Patna also
was brought to the market of Bengal. Textiles of all sorts from Bihar, Benaras and
Jaunpur could be bought in Bengal. Textiles produced in Lakhawar, a small town
near Patna, were bought by merchants coming from all parts of India and even
abroad. The Bengal textiles were available at Patna and as far as Ahmadabad in
Gujarat. The large-scale silk manufacture in Gujarat and Bihar was completely
dependent on the raw silk from Bengal. The silk cloth produced from this raw silk
255
Economy and Society found its way to all parts of India and abroad. Saffron from Kashmir was freely
available in the markets of Bengal and Bihar. Bengal procured certain varieties
of cotton chintz from as far a place as Burhanpur. Bengal also had trade links
with Agra, Benaras and various other towns in the north.
In the west, Ahmadabad and Surat, the biggest commercial centres of the period,
attracted textiles from south, north and the eastern parts of India. Here they were
bleached and dyed for onwards sale. The silk manufactured in Gujarat from the
raw silk of Bengal was again taken to the markets in the north. Gujarat received
all its supply of pepper and spices from Malabar coast. Textiles were taken from
Gujarat to Multan and Lahore. Gujarat received lac from Bengal; the Sarkhej
indigo, famous for its quality, was also taken from Gujarat to all parts of India.
Large scale trade carried on between the towns of Gujarat, Konkan and Malabar.
In the north, Agra received large quantities of silk from Bengal. Carpets and
textiles from the Awadh region were taken to Gujarat, Bengal, Patna, Lahore and
Multan. The saffron, wood products, fruits and woollen shawls, etc. from Kashmir
found their way to the markets of north, west and east India. Kashmir supplied
ice to Lahore, Multan, Agra and Delhi. Paper from Shahzadpur (near Allahabad)
was taken to all parts of India. The famous indigo from Bayana (near Agra) was
taken to Lahore, Multan and southern parts. The famous marble from Rajasthan
was taken to all parts of the country, especially to Agra and Delhi. Foodgrains
from north were taken to Gujarat.
Most of the trade from south was along the coast. Large quantities of Bengal
indigo were sold in Masulipatam. Pepper and spices of the Malabar coast were
taken to Bijapur, Coromandel, the Konkan coast, and the Gujarat tobacco from
Masulipatam was taken to Bengal. Diamonds from Golconda mines were taken
to all parts of India.
Minerals and metals which were produced at select places only were taken to all
parts of Mughal India. Salt produced mainly in Rajasthan and Punjab was taken
to all parts of north and south India. The coastal areas however produced it from
sea water by evaporation. The main sources of iron were Gwalior in central India,
Rajasthan, Punjab and Sind. Good quality steel was made in Cutch in Gujarat,
some places in Deccan and South India. The bulk of copper was produced in
Rajasthan. Bihar, Sind, Rajasthan and parts of north India were important places
to procure saltpetre.
12.3.3 Exports and Imports
For centuries India had maintained trading relations with other countries. The
pattern of trade and commodities underwent changes over the period. During
the 16th and 17th centuries also India had a flourishing trade with a large number
of foreign countries. The significant aspect of foreign trade during this period
is the coming of the Europeans. This increased India’s foreign trade manifold.
Most of this trade was in the form of exports of Indian goods. The imports were
very small. In this Section, we will take account of this overland foreign trade.
Exports
Textiles, saltpetre and indigo formed the major share of Indian exports. Other
important itmes were sugar, opium, spices and other sundry commodities.
Textiles
Textile production in India had reached new heights during this period. The
256 increasing exports contributed to the increase in production.
Before the coming of the Europeans, the main purchasers of Indian cotton textiles Inland Trade
were the Mughals, Khorasanis, Iraqis and Armenians who carried them to Central
Asia, Persia and Turkey. These goods purchased from all parts of India were taken
by land route via Lahore. It is difficult to have an idea about the total volume of
this trade. The Dutch and English concentrated on Indian textiles from the 17th
century onwards. The main varieties of cotton fabrics were baftas, Samanis,
calico, Khairabadi and Dariabadi, Amberty and Qaimkhani and muslin and other
cotton cloths. Later on, various varieties of cotton textiles from Eastern coast were
also procured. Chintz or printed cotton textiles were the most favourite items of
export. Carpets from Gujarat, Jaunpur and Bengal were also bought.
Saltpetre
Saltpetre, one of the important ingredients for making gunpowder was much in
demand in Europe. There are no references to its export in the 16th century. In the
17th century, the Dutch started exporting it from Coromandal. Soon the English
also followed. During the first half of 17th century, the Dutch and the English
were exporting moderate quantities from Coromandal, Gujarat and Agra. In the
second half of the 17th century, its trade from Bihar via Orissa and Bengal ports
started. Soon Bihar became the most important supplier.
After 1658, the English were procuring more than 25,000 maunds of saltpetre per
year from the Bengal ports. The quantity increased after 1680. The Dutch demand
was much higher (almost four times). The English demand for this commodity
continued during the 18th century.
Indigo
Indigo for blue dye was produced in most of northern India – Punjab, Sind
and Gujarat. The indigo from Sarkhej (Gujarat) and Bayana (near Agra) was
much in demand for exports. Prior to its supply to Europe, large quantities of
this commodity were exported to the Persian Gulf from Gujarat, and to Aleppo
markets from Lahore.
The Portuguese started its export around the last quarter of the 16th century.
Europe’s demand was very large for dyeing woollen cloths. The Dutch and
English started exporting it in the 17th century. Besides, merchants from Persia
purchased it for Asiatic markets and Eastern Europe. The Armenians were also
buying substantial quantities. In the 17th century, the Dutch, English, Persians,
Mughals, and Armenians competed to procure the commodity. Around the middle
of the 17th century, the Dutch and English were procuring around 25,000 or 30,000
maunds per annum. The demand continued to increase during the following years.
Other Commodities
Apart from the commodities listed above, a large number of other commodities
were exported from India. Opium was bought by the French, the Dutch and
the English Companies. The main sources of supply were Bihar and Malwa.
The Bengal sugar was also taken in bulk by the Dutch and English Companies.
Ginger was exported to Europe by the Dutch. Turmeric, ginger and aniseed
(saunf) were exported by the Armenians. Large-scale trading operations were
conducted between the ports of Gujarat and Indonesian archipelago. From here
cotton textiles were taken in bulk to Indonesia and spices were brought in return.
Brightly coloured cotton cloth and chintz from India were in great demand. A
large part of this trade was later on taken by Coromandal from where textiles
were exported to Indonesian islands and spices were imported from there.
257
Economy and Society
Imports
As compared to exports from India, the imports were limited to only a few select
commodities. Silver was the main item of import as it was brought to finance the
purchases of European Companies and other merchants from different parts of
Europe and Asia. Copper, too, was imported in some quantity. Lead and mercury
were other important commodities brought to India. Silk and porcelain from
China were imported into India by the English. Good quality wine, carpets and
perfumes were brought from Persia. Some items like cut glass, watches, silver
utensils, woollen cloths and small weapons from Europe were in demand by the
aristocracy in India. Horses from Central Asia were imported in large number
for military uses. The state was the main purchaser. Besides, India had trade
relations with its immediate neighbours in the hill kingdoms. Musk was brought
from Nepal and Bhutan to India where it was bought by the Europeans. Borax
was also imported from Tibet and Nepal. Iron and foodgrains were supplied in
return to these hill regions.
Check Your Progress-2
1) Describe the role played by hats and penths in the local trade.
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2) List ten places that worked as focal points for regional trade.
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3) Describe the inter-regional trade from other parts of country to Gujarat.
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4) List the main commodities of export to European markets.
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5) Write a brief note on indigo export from India. Also, list the main items of
import in India.
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12.3.4 Trade Routes and Means of Transport
To meet the demands of the large volume of interregional and foreign trade,
there was a need for a network of routes and a developed transport system. In
this Section, we will take note of these two aspects which were crucial to the
commercial activities.
258
Inland Trade Routes Inland Trade

It is to the credit of Mughal Emperors that we find an elaborate network of trade

routes linking all the commercial centres of the Empire by the beginning of the
17th century.
Generally, the roads were looked after by the state or chieftains through whose
territory they passed. In certain regions, these roads were obstructed by a large
number of rivers which were crossed by fords or sometimes bridges had to be
built. The fords and bridges were also built and maintained by the state or nobles.
However, the condition of these roads during the rains was a bad commentary
since long stretches became unusable during the monsoons. We have records
from travellers lamenting the bad muddy condition of Surat-Burhanpur route
during the rains. To mark the alignment of roads as also to indicate the distance
travelled, the state provided towers known as kosminars. However, our sources
tell us that only those routes which were traversed more frequently had kosminars.
All the prominent routes had sarais at short intervals. These sarais were used by
the merchants and travellers as halting places. Apart from residential quarters,
big sarais also provided to the itinerant traveller space for storage of goods.

Map 12.1: Major Land Routes in India in the 17th century

Source: EHI-04: India from 16th to mid-18th Century, Block 6, Unit 23, p. 31

To give you an idea of some important trade routes we have listed a few of them
below:
259
Economy and Society Agra-Delhi — Kabul Route
Agra-Faridabad-Delhi-Sonepat-Panipat-Karnal-Ambala-Ludhiana-Fatehpur-
Lahore-Rohtasfort-Rawalpindi-Shamsabad-Peshawar-Fatehabad-Kabul.
Agra-Burhanpur—Surat Route
Agra-Dholpur-Gwalior-Narwar-Sironj-Handiya-Burhanpur-Talner-Nandurbar-
Kirka-Surat.
Surat-Ahmadabad-Agra
Surat-Broach-Baroda-Ahmedabad-Palampur-Jalore-Merta-Ludana-Hinduan-
Fatehpur Sikri-Agra.
Agra-Patna-Bengal Route
Agra-Firozabad-Etawa-Sarai Shahzada-Allahabad-Banaras-Sahasram-Daud
Nagar-Patna-Munger-Bhagalpur-Rajmahal-Dampur-Dacca.
The river route from Agra to Bengal ran almost parallel to the land route.
Routes for Foreign Trade
Foreign and Indian merchants traded through the overland routes.
Overland Route
The most frequented overland route during the medieval period was the one
connected with the ‘great silk route’. The ‘great silk route’ beginning from Beijing
passed through Central Asia via Kashghar, Samarqand, Balkh and Kabul. Indian
hinterlands were connected with this great route at Lahore. It passed through
Multan, Qandahar (and then entered Persia via Yezd, and Isfahan), Baghdad,
and after crossing the Euphrates it reached Aleppo. From there, the commodities
were taken to Europe aboard ships.
Means of Transport
Here we shall confine our discussion to the means of transport in use for
commercial purposes only.
Land Transport
Oxen played a major role. They were used as pack animals for carrying load
on their backs. We get references to grain merchants travelling with 10,000-
20,000 pack animals in one caravan called tanda. Apart from the banjaras, other
merchants also used them for transporting goods. Oxen-drawn carts were also
used to transport goods. An ox could carry four maunds and a cart 40 maunds.
The oxen which drew carts could travel 20 or 30 days without break, covering
on an average 20-25 miles per day. Camels were commonly used in the western
part of the country for carrying goods. They carried goods by land to Persia and
Central Asia.
On high mountain regions, mules and hill ponies were used to carry heavy loads.
Here human labour was also employed.
River Transport
Large number of rivers provided a network of river routes. The most frequent
use of boats was in Bengal and Sind. There was regular traffic of goods between
Agra and Bengal through boats. The boats carrying goods from Agra via Yamuna
joined Ganga at Allahabad and went to Bengal. Contemporary sources refer to
the plying of hundreds of boats between Agra and Bengal. Manrique noticed
around 2,000 boats in anchor at Rajmahal. Our sources refer to around 40,000
260 boats in Sind.
 Inland Trade

Map 12.2: Major Trade Routes 16th-17th century

Source: EHI-04: India from 16th to mid-18th Century, Block 6, Unit 23, p. 32

Each ‘patella’ (a kind of flat boat) plying between Patna and Hugli had a carrying
capacity of around 130 to 200 tons of load. The other goods carrying boats had
a capacity of 1,000 to 2,000 maunds each.
While moving in the direction of the flow of the river, it was much faster.
Generally, it took less than half the time than by road. At the same time, river
transport was cheaper also. For example, from Multan to Thatta the goods by
river would cost Rs. 3/4 per maund, while for a shorter distance by land it would
cost around Rs. 2 per maund.
12.3.5 Administration and Trade
The Mughal Emperors took keen interest in the trading activities. Their policy
was to encourage trade and offer concessions to merchants from time to time.
Taxes other than Land Revenue
It is very difficult to ascertain the exact share of taxes other than land revenue in
the total income of the Empire. Shireen Moosvi (1987) has calculated them to
be around 18% and 15% for the subas (provinces) of Gujarat and Agra, while in
rest of the subas it was less than 5% .
The main sources were tolls and levies on craft production, market levies, customs
and rahdari (road tax) both on inland and overseas trade, and also mint charges.
Apart from these, the state treasury received huge amounts by way of war booty,
tributes and gifts from various quarters. 261
Economy and Society Almost everything sold in the market was taxable. The main articles taxed were
clothes, leather, foodgrains, cattle, etc. Every time the merchandise was sold, a
certain tax was to be paid. We do not have enough data to calculate the exact rate
of taxation. The general accounts suggest that these taxes were quite harsh. Peter
Mundy (1632) complains that the governor at Patna was harsh in realizing taxes,
and even women bringing milk for sale were not exempted. Another contemporary
writer says that every trader – from the rose-vender down to clay-vender, from
the weaver of fine linen to that of coarse cloth – had to pay tax.
Apart from merchants, all the artisans also paid taxes on their products.
Katraparcha was a tax levied on all sorts of cotton, silk and wool cloth. Indigo,
saltpetre and salt were other important commodities subjected to taxation. In
some cases, as in Punjab, the tax on salt during Akbar’s time was more than
double the prime cost.
Customs and Transit Dues
When the goods were taken from one place to another, a tax was levied. We have
some information on the rate of custom levies. All merchandise brought through
the ports was taxable. Abul Fazl says that during Akbar’s time the duties did not
exceed 2½ per cent. One early 17th century account suggests that at Surat the
charges were 2½ per cent on goods, 3% on provisions and 2% on money (gold and
silver). Towards the close of the 17th century, the customs ranged from 4% to 5%.
Aurangzeb levied separate transit taxes for separate groups. The rate fixed was
2½ from Muslims, 5% from Hindus and 3½ from foreigners. These rates were
applicable throughout the Empire.
The articles valued at less than 52 rupees were exempted. For some time,
Aurangzeb exempted the Muslims from all custom dues but after a short period
the levy of 2½ was reimposed.
Inspite of the Emperor’s instructions, the merchants were often charged more
than the prescribed customs. We find the foreign merchants complaining about
the custom dues. The English in 1615 complained that three separate duties were
collected on goods brought from Ahmadabad into Surat. Time and again the
English and the Dutch obtained farmans for the exemption of customs, but they
were made to pay duties at the custom-houses. Apart from the Mughal territory, the
autonomous chieftains also levied customs and duties on goods passing through
their territories. Moreland says that it is not possible to define the burden on
commerce in quantitative terms, since any one might claim a tax of any amount,
even if goods had paid taxes in an adjoining jurisdiction.
Apart from customs, another tax called rahdari or transit tax was collected. This
was a road-toll collected on goods passing through various territories. Though
the amount at each place was small, the cumulative charge became heavy. Even
the zamindars used to collect tools on goods passing through their territories.
According to one contemporary account of the 17th century (Khafi Khan), rahdari
was considered illegal but large amounts were collected from merchants and
traders. This tax was collected on river routes also.
We would like you to note that the policy regarding these taxes changed
periodically. At times customs were exempted on certain items. For example,
Jahangir abolished customs on the trade with Kabul and Qandahar. During the
famine of Gujarat, tax on a number of commodities were remitted. Aurangzeb
262 at his accession in 1659, abolished tolls and taxes on food stuffs.
We come across a number of royal orders and decrees abolishing taxes and Inland Trade
customs on certain items. Almost all the European companies – the British, Dutch
and French – procured royal orders for carrying merchandise without paying
transit dues. Aurangzeb at one stage abolished all road tolls. According to the
decrees of the Emperors, the state policy towards trade appears to be liberal but
in actual practice the case was different.
Attitude of the Administration
The provincial governors, subordinate officers of the markets and customs
officers were most of the time reluctant to enforce liberal policies. They were
always looking for ways to fleece the merchants. The dues collected were often
appropriated by officials themselves. The problem was further aggravated when
the officials themselves indulged in trade. Nobles and high officials frequently
tried to establish monopolies on certain articles of trade.
Prince Shuja, the son of Shah Jahan, had wide ranging trade interests. Mir Jumla,
a high noble, tried to establish his monopoly in Bengal. The English first tried to
resist it but finally surrendered agreeing to procure all saltpetre supply through
him. Shaista Khan, another prominent noble, also forced the English to sell all
their goods and silver to him in return of which they were assured free supply of
saltpetre. Shaista Khan’s daily income was estimated around Rs. two lakhs. His
son, Buzurg Umed Khan, also had extensive interest in overseas trade.
Apart from these high placed nobles, subordinate officers also indulged in trade.
Legally, the officers and nobles were not debarred from undertaking business
activities. The problem was that competition was replaced by coercion and
exploitation by those in power.
We come across a number of petitions and requests by foreign Companies,
merchants and individuals complaining against official high-handedness. There
are innumerable royal orders and decrees granting relief. Because of the poor
means of communication and long distances the relief was delayed or at times
not implemented at all. The struggle continued throughout the period. In spite
of these hurdles, trade kept growing, attracting merchants from many countries.
Check Your Progress-3
1) List the main towns on Agra-Ahmadabad and Agra-Dacca route.
........................................................................................................................
.......................................................................................................................
........................................................................................................................
2) Why the imperial Mughal policy regarding commerce was not fully
implemented?
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.......................................................................................................................
........................................................................................................................

12.4 PERSONNEL OF TRADE AND COMMERCIAL

PRACTICES UNDER THE MUGHALS
Personnel of Trade
In the whole commercial process, certain specialized groups of merchants, brokers
and sarrafs played their role at various levels. Large-scale trading operations 263
Economy and Society strengthened some of the existing practices and institutions and gave rise to
new ones. Systems of banking, bills of exchange and lending of money were
important ones. Trading partnership and insurance were also in vogue. Increasing
commercial activities attracted a large number of people to these professions.
However, the above trading groups were not necessarily divided into watertight
compartments. At times the same person did two or more tasks at the same time.
Here we will study them in separate groups according to the roles performed by
them in trade and commerce of the period.
12.4.1 Merchants
Theoretically, Vaisyas were supposed to indulge in commercial activities, but in
actual practice people from a wide range of background could and did participate
in it. During the period of our study we notice that certain groups and castes
dominated in particular regions.
Banjaras
In our sources we get innumerable references to the banjaras as a trading group
who carried on trade between villages and between villages and towns in a region
and even at inter-regional level. They were an important link for rural-urban
trade. The banjaras confined their trading activities to some limited commodities
like grain, pulses, sugar, salt, etc. They procured a number of animals (mainly
oxen to carry the load) and moved from place to place buying and selling goods.
Jahangir in his Tuzuk-i Jahangiri records: ‘In this country the Banjaras are a
fixed class of people, who possess a thousand oxen, or more or less, varying in
numbers. They bring grain from the villages to the towns, and also accompany
armies’. The banjaras generally moved with their families and household in
groups. These groups moving together were called a tanda. Each tanda had its
chief called nayaka. At times a tanda could have upto 600-700 persons (including
women and children), each family having their oxen.
The banjaras were both Hindus and Muslims. Some scholars divide them into
four groups on the basis of commodities they traded in: grain, pulses, sugar, salt,
and wood and timber.
The banjaras operated in many parts of North India, but there were other similar
traders known by different names. The Nahmardis was one such group of traders
operating in Sind. Another such nomadic traders were the Bhotiyas operating
between the Himalayas and plains.
Merchants in Different Regions
An important Vaisya sub-caste, that is, the Baniyas were the leading merchants in
North India and Deccan. They belonged to the Hindu and Jain (mainly in Gujarat
and Rajasthan) communities. Their counterparts were the Khatris in Punjab and
Komatis in Golconda.
The word Baniya is derived from a Sanskrit word vanik meaning merchant.
Many of the Baniyas carried surnames pointing to the place of their origin. The
Agarwals came from Agroha (in present Haryana) and the Oswals from Osi in
Marwar. Marwar gave probably the highest number of traders who are generally
referred to as Marwaris. They were to be found in all parts of India and were the
most eminent merchant group during the period of our study. There was a close
caste bond between these merchants. They had their own councils.
Contemporary European travellers (Linschoten, 1583-89; Tavernier, 1656-67)
marvelled at the skills of the Baniyas as merchants and had all praise for their
264
accounting and book-keeping. The Baniyas, unlike Banjaras, were involved in Inland Trade
all sorts of trading activities. At the village level, they traded in grain and other
agricultural produce. They also acted as moneylenders, giving loans to peasants
and other people including state officials and nobles. In towns they dealt in grain,
textiles, gold, silver, jewels, spices and sundry other commodities. Some of them
possessed assets of millions of rupees. They owned ships also. The community
as a whole was known for simplicity and frugality.
In the region of Punjab, the Khatris were a major trading community. Guru Nanak,
the founder of Sikh religion, was also a Khatri. Many of them were converted to
Islam. This community had in its fold Hindus, Muslims and Sikhs.
The Multanis were an important trading community of Delhi, parts of Punjab
and Sind in the 13th-17th centuries. We get occasional references to them in the
period of our study also.
The Bohras were important merchants of Gujarat. They were mostly Muslims.
They were an urban community mainly based in Gujarat and other western
parts. Apart from Gujarat, they had some settlements in Ujjain and Burhanpur.
The Bohra merchants like Mulla Muhammad Ali and Ahmad Ali had assets of
millions of rupees. Among Muslims, other merchant communities operating on
the western coast were Khojahs and Kutchi Memons of Gujarat.
South India
In the southern part of the sub-continent, various merchant groups played a
prominent role. The Chetti was one such group. This term is derived from Sanskrit
shreshthi (seth). Perhaps the Chetti were very wealthy merchants. The merchants
along the Coromandal coast up to Orissa were known as Kling. The Komatis were
the merchants belonging to a trading caste. They mainly worked as brokers for
textiles and were suppliers of various products from hinterland to the port towns
on southern coast. They were mainly Telugu speaking.
Like the Chetties another merchant group called Chulias, they were also divided
into four sub-groups. Of these, the Marakkayar were the wealthiest merchants
dealing in the coastal and South East Asian trade. This was a very mobile group
and many had settled in Ceylon, the Maldives, Malacca, Johore, Javanese coast,
Siam and Burma. In India, they were most active in South Coromandal, Madura,
Cuddalore, Porto Nova, Nagole, Nagapatnam, Koyalpatnam etc. They mainly
dealt in textiles, arecanuts, spices, grain, dried fish, salt, pearls and precious metals.
Chrutian Paravas were active in trade from Coromandal to Malabar and Ceylon.
They specialized in coastal trading and brokerage.
Among the Muslims, the Golconda Muslims were involved in overseas shipping.
They were prominent in south of Madras and were the main merchants in the Bay
of Bengal region. The Mopilla Muslims of Indo-Arab origin were also important
merchants in the region.
Some Gujarati merchants had also established themselves in the Madras region.
Foreign Merchants
We get a large number of references to the presence of foreign merchants in
almost all commercial centres of the period. Among other foreign merchants,
the Armenians were the most prominent. They dealt in all sorts of commodities
from textiles to tobacco. They were settled in Bengal, Bihar and Gujarat. The
Khorasanis, Arabs and Iraqis also frequented Indian markets.
265
Economy and Society 12.4.2 Moneylenders and Sarrafs
In large parts of Northern India, the traditional merchants played a dual role as
traders as well as moneylenders. In villages we hear of traditional Baniya lending
money to individual peasants to pay land revenue. In towns and bigger places
also, merchants acted as moneylenders.
Another category among the personnel of trade which played a significant role
was that of the sarrafs. They performed three distinct functions: (i) as money-
changers; (ii) as bankers; and (iii) as traders of gold, silver and jewellery. The
first two functions need some elaboration.
As money-changers, they were considered as experts in judging the metallic purity
of coins as well as their weight. They also determined their current exchange
rate. According to Tavernier, ‘In India, a village must be very small indeed if it
has not a money changer, called ‘Cherab’ (Sarraf), who acts as banker to make
remittances of money and issue letters of exchange’.
The sarraf was also a part of Mughal mint establishment. Every mint had a sarraf
who would fix the purity of bullion. He also verified the purity of coins after
minting. As bankers, they would receive deposits and give loans on interest. They
used to issue bills of exchange or hundis and honour the ones issued by others.
12.4.3 Brokers
Dallals or brokers as specialized mercantile professional trading group seem to
have been active in the wake of the Turkish conquest of North India. They worked
as middlemen in various commercial activities and transactions. With increasing
inter-regional and foreign trade, they became crucial. Merchants from foreign
lands and distant regions heavily depended on them. According to A. Jan Qaisar,
the foreign merchants – who were unacquainted with the centres of production,
pattern of marketing and language – had to depend on the native brokers for their
trading transactions. The need for brokers in India was mainly due to (i) centres
of production for the same commodities were scattered all over the country;
(ii) individual output of these centres was small (some centres specialized in
particular commodities only), and (iii) large number of buyers competing for the
same commodities in the same markets. We get innumerable references to the
transactions done through brokers. The English East India Company records refer
to brokers being employed at their different factories. Fryer (late 17th Century)
says that ‘without brokers neither the natives nor the foreigners did any business’.
Ovington (1690) also commented that, ‘For buying and selling Company’s goods
brokers are appointed who are of the Bania caste and are skilled in the rates and
value of all the commodities’.
We hear from Manrique (1640) that there were around 600 brokers and middlemen
at Patna. Their number might have been much larger in bigger commercial centres
like Surat, Ahmadabad, Agra and other coastal towns.
Indian brokers were to be found in foreign ports also. They were operating at
Gombroon (Bandar Abbas), Basra, Bandar Rig, etc. Sometimes, the whole family
worked as brokers in partnership. Bhimji Parak, a prominent broker, had a joint
business with his brothers. He had 8 shares, Kalyandas 5, Kesso and Vithaldas
4 each.
A. Jan Qaisar has divided brokers into four categories: (i) those employed by
Companies or merchants, (ii) those who worked for several clients, (iii) those
who worked on an ad-hoc basis as broker-contractors, and (iv) state appointed
266 brokers at commercial centres to register sale and purchase of articles.
The brokers operating independently can be divided in various groups on the basis Inland Trade
of their areas of partnerships. Some dealt only in one specific commodity like silk,
saltpetre, cotton, textile, indigo, etc. Others dealt in more than one commodity.
Some worked as sub-brokers or under brokers for a well-established broker.
Brokers’ fees or commission was not strictly fixed. It depended on the commodity
and the efforts of the broker to strike the deal or the labour involved in procuring
the commodity. In ordinary dealings, the brokerage was 2% of the value of
transaction, 1% was charged from each of the parties (buyers and sellers).
Brokers who were in regular employment were paid fixed salaries and also some
commission in some deals. We do not have much information on their total
emoluments. However, a few references in English Company records show the
salaries of their brokers between Rs. 10 and Rs. 38 per month.
Besides helping their clients in procuring and selling goods, the brokers played a
key role in the organization of production. Most of the money advanced (dadni)
to the artisans were made through brokers.
12.4.4 Commercial Practices
In this Sub-section, we will discuss various commercial practices employed in
trade and commerce during this period.
Bills of Exchange (Hundi)
During this period hundis or bills of exchange became an important form of
monetary transaction. Hundi was a paper document promising payment of
money after a period of time at a certain place. To begin with, the practice
started because of the problems involved in carrying large amounts of cash for
commercial transactions. The merchants interested in carrying cash to a particular
place would deposit it with a sarraf who would issue a hundi to the merchant.
The merchant was to present it to the agent of the sarraf at his destination and
encash it. This started as a safe and convenient method of transferring money.
In due course, hundi itself became an instrument of transaction, which could
be presented against a transaction. It could also be freely bought or sold in the
market after endorsement.
According to Irfan Habib, ‘the negotiability of hundi led to a situation in which
large number of hundis were simply drawn and honoured against other hundis
without the intermediation of actual cash payments’. In this process, it became
a medium of payment.
The use of hundi was so widespread that even the imperial treasury and state were
using it. In 1599, the state treasury sent Rs. 3,00,000 to the army in the Deccan
through a hundi. Tributes paid by Golconda (Rs. 10,00,000) and Ghakkar chief
(Rs. 50,000) to the Mughal Emperor were also transferred through hundis.
We get quite a few references where provincial officials were instructed to
transfer the revenue through hundis. Even the senior nobles would take the help
of the sarrafs to transfer their personal wealth. Muqarrab Khan, the governor of
Bihar, when transferred to Agra, gave Rs. 3,00,000 to the sarraf at Patna to be
delivered at Agra.
Many big merchants also issued hundi. Such merchants and sarrafs had their
agents at important commercial centres. At times, members of one family (father,
son, brother, nephew) worked as agents for each other. Big firms had their agents
even outside the country.
267
Economy and Society A commission was charged by the sarrafs on each hundi. The rate of exchange
depended on the rate of interest prevalent and the period for which it was drawn.
The period was calculated from the date of issue to its presentation for redemption.
The rate fluctuated as it also depended on the availability of money at the time
of issue and maturity. If money supply was good, the rate would drop. In case
of scarcity, the rates used to rise. According to Irfan Habib, ‘a sudden spurt of
payment in any direction might create pressure upon the sarrafs for cash at one
place, while leaving more in their hands at another, a situation that they could
rectify by discouraging remittances from the former to the latter and encouraging
reverse remittance by modifying the exchange rate’.
To give you a rough idea, a few rates are provided. In normal times 1½ % was
charged for hundis from Patna to Agra and 7%-8% from Patna to Surat. For the
hundi drawn at Ahmadabad for Burhanpur 7¼ % was charged in 1622.
12.4.5 Banking, Usury, Rate of Interest and Partnership
Banking
The sarrafs, apart from issuing bills of exchange, also received money for safe
deposit. This was returned to the depositor on demand. The depositor was paid
some interest on his deposits. The rate of interest payable to depositors kept
changing. The rates available for Agra, for 1645 and Surat for 1630 works out
to be approximately 9½ % per annum. The bankers in turn would give money
on loan to the needy on a higher rate of interest. We get a number of references
where state officers gave money from treasury to these bankers and kept the
interest with them. Tapan Raychaudhuri writing about the Jagat Seth of Bengal
says that, ‘their rise to financial eminence was partly due to the access they had
to the Bengal treasury as a source of credit’.
Sujan Rai (1694) says that the sarrafs who accepted deposits were honest in
dealings. Even strangers could deposit thousands for safe keeping and demand
it at any time.
Usury and Rate of Interest
Moneylending for personal needs and commercial purposes was an established
practice. Much of trading was conducted through the money taken on interest.
Generally, the sarrafs and merchants both indulged in moneylending. Sometimes
the moneylenders were called Sah, a distinct category. The loans were taken for
various purposes. The money was taken on loan by peasants for paying revenue
and repaid at harvest. Nobles and zamindars would take it for their day-to-day
expenses and repay it at the time of revenue collection. Moneylending for business
purposes was also very common.
The rate of interest for smaller loans is difficult to ascertain. It depended mainly
on the individual’s need, his credit in the market and his bargaining power. Tapan
Raychaudhuri shows that peasants took loans at a high rate of 150% per annum
in Bengal in the 18th century. For commercial loans, the rate of interest differed
from one region to another. Our sources generally refer to interest rates per month.
Irfan Habib says that the rate of interest expressed for the month suggests that
the loans were generally fixed for short duration.
The rate of interest for Patna in 1620-21 is given as 9% per annum, while around
1680 it seems more than 15%. At Qasimbazar (Bengal) the rate of interest in
1679 is given as high as 15% per annum while the rates for the corresponding
period for Madras (8% per annum) and Surat (9% per annum) were much less.
268 The English Factory kept a vigilant eye on the interest rates and would supply
money to their factories in various regions after taking loans from the places Inland Trade
where interest was lowest. The rates at Agra and Surat during the 17th century
ranged between 6% and 12% per annum. On the Coromandal coast much higher
rates (18% to 36%) seem to have prevailed.
The difference in interest rates in various regions suggest that the integration of
financial market had not taken place.
Partnership
In partnership, the merchants pooled their resources to carry on trade. Banarsidas
described his partners in jewels trade during 1611-16. Even brokers at times
carried joint ventures.
12.4.6 Insurance
Another important commercial practice prevalent in India on a limited scale was
that of insurance or bima. In many cases, the sarrafs used to take responsibility
for the safe delivery of goods. The English Factory Records also refer to the
insurance of goods, both inland and overseas. At sea, both the ship and the goods
aboard were insured. The rates for insurance are also quoted in Factory Records.
By the 18th century, the practice was well-established and widely prevalent. The
rates are also available for different goods for different destinations. The rates of
insurance for sea voyages were higher than goods going through land.

12.5 MERCHANTS, TRADING ORGANIZATIONS

AND THE STATE
We have already discussed the taxes charged by the state on trading activities.
The merchants were also charged customs and toll taxes on the movements of
goods. However, the income from these sources was very small as compared to
the land revenue.
Since towns were the centres of commercial activities, the administrative officers
there looked after the smooth conduct of trade. The maintenance of law and order
and providing peace and security were important for better business environment.
This was the responsibility of the kotwal and his staff in the towns.
The rules and laws governing the day-to-day business were generally framed by
the business community itself. Merchants had their own guilds and organizations
which framed rules. We get references to such organizations in our sources. In
Gujarat, these were called mahajan. In the first quarter of the 18th century, we get
evidence of 53 mahajans at Ahmadabad. The mahajan was the organization of
traders dealing in a specific commodity in a particular area irrespective of their
castes. The term mahajan was at times used for big merchants also probably
because they were the heads of their organizations. There were separate caste
based organizations as well.
The most influential and wealthy merchant of the town was called the nagar seth.
Sometimes treated as a hereditary title, nagar seth was a link between the state
and the trading community.
If there were certain disputes among the merchants, the mahajans resolved them.
Generally, their decisions were respected by all. The Mughal administration also
recognized these mahajans and took their help in matters of conflicts and disputes
or to seek support for administrative policies. The merchant organizations were
strong and fought against high-handedness or repressive measures of the officers
of towns and ports. We get a number of references where traders’ organizations 269
Economy and Society gave calls for hartal (closing business establishments and shops) against
administrative measures. The huge loss of revenue made administrators respond
to the protests. One such serious conflict arose in Surat in 1669. A large number
of businessmen along with their families (a total of 8,000 people) left Surat to
protest against the tyranny of the new governor. They settled at Broach and sent
petitions to Emperor Aurangzeb. The trading activities in the town came to a halt.
The Emperor quickly intervened and the problem was resolved.
In 1639, Shah Jahan invited Virji Vohra, one of the biggest merchants of Surat, to
enquire into the grievances of merchants against the governor of Surat. During the
war of succession among Shah Jahan’s sons, Murad raised Rs. 5,50,000 through
Shantidas, the nagar seth of Ahmadabad. After Murad’s death, Aurangzeb owned
the responsibility for paying it.
While merchants kept away from court politics, the nobles did venture into
trading. Many big nobles used their official position to corner the profits from
trade. Shaista Khan tried to monopolize a number of commodities, especially
saltpetre. Mir Jumla, another prominent noble, was a diamond merchant. A number
of subordinate officers at the local level also indulged in business activities using
coercive methods.
Check Your Process-4
1) Describe the role of banjaras in inland trade under the Mughals.
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2) Name four merchant groups operating in different parts of India.
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3) What different roles were performed by sarrafs?
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4) Who were brokers? List different categories of brokers.
.......................................................................................................................
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5) Write a brief note on:
a) Hundi .....................................................................................................
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b) Usury .....................................................................................................
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c) Insurance ................................................................................................

270 ................................................................................................................
 d) Trading Organization of Merchants ....................................................... Inland Trade

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12.6 SUMMARY
In this Unit, you have studied the fact that with the coming of the Turks trade
and commerce increased. You have also come to know about the main overland
trading routes. We have discussed the main articles of imports and exports, means
of transport and above all the nature and functions of the existing commercial
classes – the karwanians, brokers and sarrafs. We have also reviewed the currency
system under the Delhi Sultanate and the Mughals. During the closing years of
the 15th century, a new factor – the Portuguese – was also introduced with the
discovery of new route via Cape of Good Hope that gradually transformed India’s
trading relations with the world in the coming year. This will be discussed in the
next Unit.
Here we have also discussed inland and foreign trading activities under the
Mughals. At the local and regional level, the commercial or trading transactions
were confined to foodgrains, coarse cloth, salt, equipment of daily use and some
other commodities. It was mainly conducted through hats or penths – the periodic
markets. Small town markets also played a role. We notice that in such trading the
flow of commodities was mainly from the village to towns. Different regions of
India had developed trade links. Commodities from one region to another were
carried through a network of land and river routes. The foreign trade balance was
favourable to India. Large-scale export of Indian goods was carried to various
parts of Asia and Europe. The main articles of export were textiles, indigo,
saltpetre, sugar, etc.
The coming of English and Dutch gave an impetus to foreign trade, especially
indigo and saltpeter (for details see Unit 13). Imports to India were limited. The
main articles of import were silver, woollen cloth and various luxury items. The
Mughal administration levied certain taxes and customs on the items of trade.
Trading ventures of the Mughal nobles and high ranking officials at times created
problems for merchants and European companies.
In this Unit, we have also studied the activities of a number of specialized groups
concerned with trade. The banjaras played their role at regional and inter-regional
levels. They, with a large number of pack animals, moved in groups buying and
selling mainly grain, salt and sugar, etc. In different regions of the country various
merchant groups and castes operated. Prominent Indian merchant groups were the
Baniyas, Bohras, Khatris, Chettis, etc. The English, Dutch, French, Portuguese,
Armenians, Khurasanis and Iraqis were important foreign merchants. Brokers,
sarrafs and moneylenders were specialized groups. System of bills of exchange
and money lending was well developed. The interest rates were quite high.
Merchant guilds and organizations were also well established. They generally
made rules and regulations for the trading and commercial activities.

12.7 KEYWORDS
Hundi Bills of exchange or letters of credit
Induced Trade Trade resulting from the compulsions of land revenue
system
Rahdari Transit tax
Sarraf Money changers 271
Economy and Society
12.8 ANSWERS TO CHECK YOUR PROGRESS
EXERCISES
Check Your Progress-1
1) See Section 12.2
2) See Sub-section 12.2.1
3) See Section 12.2
Check Your Progress-2
1) See Sub-section 12.3.1
2) See Sub-section 12.3.1
3) See Sub-section 12.3.2
4) See Sub-section 12.3.3
5) See Sub-section 12.3.3
Check Your Progress-3
1) See Sub-section 12.3.4
2) See Sub-section 12.3.5
Check Your Progress-4
1) See Sub-section 12.4.1
2) See Sub-section 12.4.1
3) See Sub-section 12.4.2
4) See Sub-section 12.4.3
5) See Sub-sections 12.4.4 and 12.4.5

12.9 SUGGESTED READINGS

Fukazawa, H., (1991) The Medieval Deccan: Peasants, Social Systems and States,
Sixteenth to Eighteenth Centuries (Delhi: Oxford University Press).
Moosvi, Shireen, (1987) The Economy of the Mughal Empire c. 1575: A Statistical
Study (New Delhi: Oxford University Press).
Raychaudhuri, Tapan & Irfan Habib, (ed.) (1982) The Cambridge Economic
History of India, Vol. I: c. 1200-1750 (London: Cambridge University Press).
Singh, M.P., (1985) Town, Market, Mint and Port in the Mughal Empire (1556-
1707): An Administrative-cum-Economic Study (New Delhi: Adam Publishers
& Distributors).
Stein, Burton, (1989) The New Cambridge History of India, Vol. I: Vijayanagara
(New York: Cambridge University Press).

12.10 INSTRUCTIONAL VIDEO

RECCOMENDATIONS
Delhi Sultanate: Industry, Trade and Commerce | Vidya-mitra
https://www.youtube.com/watch?v=TCbkw8Gl0Ag

Talking History |11| Delhi: The Trade Routes of Capital | Rajya Sabha TV
https://www.youtube.com/watch?v=UDMM20q2kK4

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