Economics of Kautiliya Shukra and Brihaspati.pmd

1. All the expenses in the process of production,
2. All the materials used to produce, and
3. All the efforts involved.
Thus the ratio of the metal prices are as follows-
1 Gold = 16 Silver = 1280 Copper = 7680 Iron5 In Shukra-niti prices of some commodities have been listed in
terms of alternative cost. These are listed in the table 5.1. (Shukra-niti
4.2.71-129)
1 camel = 9 buffalos = 18 goats
Table 5.1. Alternative Prices
Cattle Alternative price
1 buffalo 2 goats
1 goats 2 sheep
1 camel 2 buffaloes
Source: Shukra-niti 4.2.71-129
Not only the alternative price but also the market price of
cattles is given. According to Shukra, the selling price of one young
sheep is one Pala3 , one horse is 500 Nisk4 and one elephant is 2000
Nisk. This schedule of market price reveal that there was a well defined
price theory or price policy in Shukra economy.
Price is determined by the expenditure incurred to produce
the article. This is the cost of production theory of prices. The price
depends upon the abundance or scarcity of the articles in the economy.
This is the supply side of price theory in economics. Further, price is
determined by the intensity of desire to have the commodity. This is
the demand side of the theory of price. This guidance has been defined
by the teacher Shukra 2400 or more years before Adam Smith.
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Price theory is the anchor of economics. We have now
developed equilibrium price as the concept, when the supply and demand
are equal. The great teacher Shukra has stated that the market
prices move upward only because of the wicked policies of the
king. (Bokare, 2009: 80)
Price Theory/Policy in Kautiliya Arthashastra
In the Kautiliya economy The Superintendent of Commerce
was entrusted with the task of enforcing the pricing policy. The prices
of different commodities were to be fixed by him. He however did not
fix prices arbitrarily. In fact, a uniform rule was followed throughout
the country to determine the just price of each commodity. To quote
from Kautiliya Arthashastra, 'The Superintendent of Commerce should
be conversant with the differences in the prices of commodities of
high value and of low value and the popularity, or unpopularity of
goods of various kinds, whether produced on land, or in water and
whether they have arrived along land routes, or water routes, also
(should know about) suitable times for resorting to dispersal, or
concentration purchase or sale'. (Kautiliya Arthsastra-2, 2003:
2.16.1) 'And that commodity which may be plentiful, he should collect
in one place and raise the price (ibid: 2.16.2) or, when the price is
reached he should fix another price'.
According to him, The Superintendent of Commerce should
establish in one place trade in state commodities that are produced in
his own country, in many places in those produced in foreign lands.
And he should cause both to be sold so as to favour the subjects. And
he should avoid even a big profit that would be injunctions to the
subjects. He should not create a restriction as to time or the evil of a
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