Monday, 7 July 2014

The Price Control Policy of Allauddin Khalji

Allauddin Khalji ruled from 1296 to 1316. When he ascended the throne the kingdom was in complete disorder, trade and agriculture were paralyzed, and prices of commodities were soaring
He took strong steps to check inflationery price rise and reduce prices. These were :

(1) Prices of most commodities were fixed e.g. for grain, pulses, meat , fish, vegetables, sugarcane, dry fruit, cloth, cattle and horses, needles, etc

(2) Strict action was taken against hoarders, speculators, and black marketeers. On receiving any complaint about violation of these regulations, thorough investigation was made and harsh punishment given to violaters of these regulations.

(3) Dalals and middlemen who raised prices artificially were eliminated. Only those traders registered with the state were allowed to purchase grain,etc from peasants and other producers.

(4) Godowns were established where grain was stored in reserve to be released in times of scarcity e.g. famine.

(5) A department called Diwan -e-Riyasat was set up to enforce these regulations.

(6) Daily reports of prices had to be submitted to the Sultan who kept a watch on prices
According to Ferishta : " To the end of Allauddin's reign these prices remained steady, and there was no change in them owing to lack of rain or other causes that bring famine. It was a unique and remarkable achievement. Nothing like this had been achieved before, and no one can say whether it will be possible again".

The historian Stanley Lanepool writes : " What made Allauddin distinguished from other monarchs was his price control policy".Another historian, S.M. Ikram writes : " His price control policy was the marvel of the age ".B.P. Saxena writes : " The economc regulations of Allauddin were the greatest administrative achievement of the Sultanate period ".

Like Napoleon, Allauddin believed that the supreme talisman of statesmanship was providing cheap bread to the people.

In view of the present alarming price rise in India, the Government may consider the steps taken by Allauddin Khalji


  1. The price control system followed by Khalji was effective due to its wonderful implementation.
    Hopefully the government will do the same.

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  2. Thanks for sharing this wonderful post, It is awesome.

  3. Justice Katju is a brave man much vilified who speaks the truth nevertheless. Kannan Srinivasan

  4. I am Murhty from USA. Real Estate Brokers are regulated in most of the Developed Countries. I was reminded about this, from your section number 3, that the Traders needed to have a registration with State in your writing above. In the modern days, why none of State Government has realized to regulate the Real Estate, bring the Real Estate Brokers under registration. When Complaints received, de-license such brokers. So, a sense responsibility will be automatically be there. Also, this will create more Organized Labor, if you add condition that All Real Estate Brokers licensed do need a PAN id.
    Add another condition that they must sign agreement with Buyer or Seller and keep such records for 3 Years for GOvernment auditing if ordered one. This is a simple legislation in USA there in every state.

  5. This great policy was there only bcoz he wanted to reduce expenditure on raised army to expand his kingdom in the 1st place.. so no benefit of doing all this to normal junta but only fr satisfaction of his personal ambition of conquering more land and spreading islam .. his policy's were effective no doubt about that..