Alauddin Khilji, the Sultan of Delhi (1296–1316), is often credited with implementing one of the most structured and regulated market systems in medieval India. His market reforms were revolutionary for their time and had elements that hinted at early modern economic governance. Here’s how his market system can be viewed as a step toward modernism:
1. Price Control and Regulation
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Alauddin Khilji introduced a strict price control system, regulating the cost of essential commodities like grain, cloth, sugar, and livestock.
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He fixed the prices of goods to ensure affordability for both the military and common people.
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A network of officials, known as Diwan-i-Riyasat, was set up to monitor market prices and prevent hoarding or black marketing.
2. State Intervention in Economy
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The state directly intervened in the economy by storing grain in government granaries to prevent price fluctuations.
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Traders were required to register and follow fixed price structures, reducing economic exploitation.
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Officials kept strict records of market transactions, similar to modern government monitoring of inflation and pricing.
3. Regulation of Supply Chains
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Markets (mandis) were established where goods were sold under government supervision.
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Merchants and suppliers had to follow regulations, ensuring a stable supply of commodities.
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Transportation and storage of goods were also controlled to avoid artificial price hikes.
4. Wage and Labor Regulations
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Alauddin Khilji fixed the wages of laborers, artisans, and soldiers to ensure affordability of goods and a stable livelihood.
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This policy resembles modern wage regulations aimed at reducing economic disparity.
5. Anti-Hoarding and Anti-Corruption Measures
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Hoarding of goods was strictly prohibited, and violators faced severe punishments.
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Spies and inspectors (Munhiyans) were appointed to report malpractices, similar to present-day economic oversight bodies.
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False weights and measures were also checked to maintain fair trade practices.
6. Military and Economic Link
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His market regulations were closely linked to his military needs, ensuring that soldiers received provisions at affordable prices.
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This military-economic nexus is a precursor to modern war-time economic planning.
Impact and Legacy
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Alauddin Khilji’s market system helped control inflation, ensured stable food supplies, and reduced economic disparity.
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While it was rigid and based on authoritarian principles, it showed early signs of modern economic regulation.
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Many of these policies—such as price control, supply chain management, and anti-hoarding laws—are still part of modern economic systems.
His market reforms were an advanced step for medieval India and laid the groundwork for future economic governance.