ECONOMIC TRENDS

Price Trends.

The information about prices in the district is available for the period beginning with 1860 to 1905. Tile Yeotmal District Gazetteer published in 1908 gives a vivid account of price trends over the period mentioned above, which is reproduced below [Central Provinces District Gazetteers, Yeotmal of, Vol. A, 1908. pp. 123—127.]: —

Price of juar.-—"It is very difficult to get reliable information about prices, mainly because returns are not made with sufficient intelligence. The chief sources of information are the Settlement Reports, the Revenue Administration Reports, and the official returns of ' Prices and Wages in India'. In the case of juari, the most common of all the articles concerned, there is sometimes over 100 per cent difference between the figures of the three authorities. The Settlement Reports arc probably the most trustworthy, but even they are certainly often wrong, their information being chiefly drawn from returns, formerly badly checked, in the different tahsil offices. A difficulty also occurs in choosing representative periods. The first Settlement Reports were written between 1872 and 1874. They give prices for the preceding ten or twelve years for Yeotmal, Darwha, and Wun. The average price of Juari was 20 seers (of 2 lbs.) in Wun, and 25 in Yeotmal and Darwha. The Revision Settlement Reports were written thirty years later, between 1900 and 1905. They give the average prices for the last ten years of that period as varying from 18 seers in Wun to 23 in Pusad, or if the two famine years to be omitted on account of being so exceptional, as being from 20 to 25 seers. The average price of juari was therefore very much the same at the end of the settlement period as it was at the beginning. It may be repeated that meanwhile the cultivation of juari had been extending at the rate of three per cent a year and population increasing at the rate of one per cent a year. The price had nevertheless been by no means constant from year to year. The ten years immediately preceding the original settlement were at the time considered a period of high prices. In 1874 the price fell in Wun to 67 seers to the rupee, and in Yeotmal to 62. By 1878 it had risen in Yeotmal to 17 seers. From 1880 to 1886 it was generally low, often 40 or 45 seers in one taluk or another: but then in one taluk, Darwha, it rose from 40 to 18 seers in a year. These changes were caused partly by varying season within the District and partly by a changing demand outside. Since 1886 the average price of a year has never in any taluk sunk below 33 seers, or, except in the famine years, risen above 16. Thus. the price has become very much steadier during the last twenty years. There used, thirty years ago, to be sometimes twenty seers' difference between the prices of this District and those of other parts of Berar, or between Yeotmal and Wun or Wun and Kelapur. In 1875 there was 25 seers' difference between Darwna and Pusad. During the last few years there have seldom been more than 3 seers between the four eastern taluks. Apparently a great market has been opened outside Berar, and the price is steadied from year to year and from place to place by good communications. During the last two years, 1906-1907. the price has risen to amounts varying in different taluka from 14 to 19 seers for a rupee. In both years the season were unfavourable. "

Prices of Cotton.—" The difficulty of getting trustworthy statements of prices occurs again in regard to cotton. The question is discussed in the reports of the recent revision settlements of the different taluks. In each case the Settlement Officer considered that the price of cotton had been falling during the thirty years of the settlement period, but in each case the quotations given by the Tahsildar showed that it had either remained fairly constant: or had risen. In one case the examination of account-books on the subject by two enquirers, both official, gave results differing year after year by an average of more than Rs. 40 a khanai, that is, by about 30 per cent. The prices given by the Settlement Officers, which are deduced from prices quoted by the Bombay Chamber of Commerce, are probably correct. They refer to the value of average Berar cotton, cleaned but not pressed, in Berar, per khandi of 784 pounds. The value was, from 1870 to 1880, about Rs. 190; from 1880 to 1890 about Rs. 164; and from 1890 to 1900, about Rs. 150. The price has fallen because people have deliberately chosen to grow an inferior kind of cotton. The yield is so much greater that this more than compensates for the lower price obtained. During the last two or three years the price has again risen owing to changes in the demand for Indian cotton. The cultivator sells his cotton by the khandi unclean-ed, that is, before the seeds have been removed from the lint. Prices in the Yeotmal cotton market during the last four years have varied chiefly between Rs. 48 and Rs. 55 a khandi of 560 lbs. for unginned cotton, and Rs. 120 and Rs. 140 a khandi (of the same weight) of ginned cotton; but in 1904-1905 the price of ginned cotton was only Rs. 104. It is estimated that the cleaning or ginning of the cotton turns out nearly three-quarters of the original weight: as seed, and a little over one-quarter as lint. The seed, sarki, is of value not only for sowing but also as a food for cattle."

Prices of wheat, linseed, and gram.—" The cultivation of the autumn crops went on extending while the price of juar was stationary or rose comparatively little and that of cotton actually fell. The area under spring crops has decreased, while the prices have been rising. So much is clear, though the exact figures are again doubtful. Wheat and linseed were apparently very cheap during the first ten years after the Assignment. The price of wheat in 1862 was 29 seers to a rupee. The average from 1863 to 1880 was between 13 and 17 seers; from 1880 to 1890 it was between 16 and 19: from 1890 to the famine of 1896-1897 it was 13; since 1900 it has been nearly 11. In Pusad it once fell to 34 seers, that is, about 68 pounds to a rupee. It has on various occasions risen to 8 seers, and in some taluks to 7 or even 6. The price of linseed from 1880 to 1890 was between Rs. 3 and Rs. 4 per maund of 80 pounds. From 1890 to 1900 it varied between Rs. 3 and Rs. 5. Since 1900 it has risen to Rs. 7 and Rs. 9. The average price of gram was about 17 seers for a rupee from 1860 to 1890. Since then it has been between 12 and 13. The lowest price recorded was 26 seers in 1876, and the highest was 7 seers in 1878. The price of the last two years, 1906 and 1907, has been dearer than 11 seers. Rabi crops would be very profitable at present prices if only there were a good rainfall, but the last dozen years have been a period of scanty rain ".

Miscellaneous Prices.—" Between 1860 and 1900 the price of salt varied between 7 and 12 seers for a rupee, being dearest between 1870 and 1880. Since 1900 it has become almost steadily cheaper. In 1907 the price was over 14 seers for a rupee, the greatest number on record. Local enquiries in the five taluk headquarters give the following prices for February 1908. Salt is 16 seers for a rupee in Yeotmal and Kelapur, 15 in Wun, 14 in Darwha, and 12 in Pusad. Rice varies from 4 to 9 seers, according to its quality, but the best rice is from 4 to 5 seers. Wheat varies from 6 to 8 seers, juari from 10½ to 15, and gram (unground) from 7 to 9; while in each case the flour is about 1 seer dearer than the grain. Ghi is 1 seer for a rupee or a little dearer; sarki from 18 to 20 seers; gram, bhusa, from 10 to 16 seers; sugar from 2½ to 5; gur from 4 to 6; and milk from 6 to 8 seers the rupee. A sheep costs Rs. 3, a goat Rs. 4, and a chicken or fowl from As. 2 to As. 8. Eggs are from 42 to 64 for a rupee. It is difficult to form any general conclusion about the relative dearness of the different towns ".

The data regarding prices for the period between 1908 and 1920 however is not available. The Census Report of 1931 gives the statistics of prices of staple foodgrains for each year in the decade 1921-30, prevailing over the Maratha Plain Division of which Yeotmal formed a part.

PRICES OF STAPLE FOODGRAINS

(In terms of Imperial seers of 80 tolas per rupee).

The figures for 1930 show the extraordinary slump in the prices of agricultural, produce which has been noticed as a feature of the world-wide depression at the end of the decade. As the economies of Great Britain, U.S.A. and France were disrupted on an unprecedented scale there was a slump in respect of the prices of agricultural produce in the international markets. India an exporter of agricultural produce experienced a slump of prices in the domestic markets too. The prices revived after 19.53 and were fairly stable till the outbreak of the World War II.

With the outbreak of war in 1939 the prices of almost all goods started rising. The price situation deteriorated from 1941 when the War was at it's height. There was acute shortage of consumers goods, as a bulk of the goods were channelised for the use: of the armed forces by the British Government. Black marketing was rampant in respect of cloth, kerosene, foodgrains, sugar and other articles of daily use. This gave rise to rationing of consumers' goods which brought numerous difficulties. The cessation of hostilities in 1945 brought down the prices to some-extent. The next important event which caused a steep rise in prices was the Korean War boom of 1951. The rising prices in the international markets during the war affected the price situation in India which in turn affected the price situation in the district. After this boom period, the prices ruled slightly lower for some time. The favourable harvests during 1953, 1954 and 1955 brought down the prices of agricultural produce. This had a natural impact on the prices of manufactured goods as well. The situation, however, took an undesirable turn after 1956. The year 1959-60 registered a high level of prices which showed a downward trend in 1960-61 and 1961-62.

In the context of the general price situation it will be of great interest to analyse the trend of farm harvest prices which are particularly important to the agriculturist. The statistics of the farm harvest prices of principal agricultural commodities during the harvests of 1956-57. 1957-58 and 1958-59 in the district are furnished below.

TABLE. No. 4

FARM HARVEST PRICES OF PRINCIPAL AGRICULTURAL COMMODITIES DURING HARVEST SEASONS OF 1956,1957-58 AND

1958-59. IN YEOTMAL. DISTRICT

(Price in Rs.and paise per Bengali Maund)

The Chinese aggression on Indian territory in October 1962 aggravated the economic difficulties of the country which brought in a trail, of shortages, inflation and rising prices. After the declaration of the national emergency in October 1962. the State Government decided to keep a watch on the price situation and information regarding retail prices was collected. The statistics of prices compiled by the Bureau of Economics and Statistics which are furnished below will throw a light on the price trend over 1963, 1964, 1965.

TABLE No. 5

(Price in Rs. per kilogram except otherwise specified)

It becomes evident that the prices of all commodities, except gul and dry chillis, increased in 1965 over those in 1962. The price rise was very steep in the case of wheat (113 per cent). bajra (140 per cent) and gram dal (169 per cent). Rice was not available in the open market in 1965. but its price increased by 58 per cent during 1964.

The price situation, however, took the most adverse turn after the Indo-Pak War of September 1965. The prices of almost all commodities started shooting up from December of that year and assumed dangerous proportions after April 1966. The price rise was the result of many factors, such as, shortage in production, hoarding, inflationary pressure and the adverse impact of the war. The Government took numerous measures for stabilising prices. However, the market situation did not respond much to the measures.

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