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Paper I · 2022 · Q 6(a) · 15 Marks

The market regulations of Ala-ud-din Khilji were useful for the Sultan’s military might but harmful for the economy of the Sultanate. Comment.

16. The Fourteenth Century › Alauddin Khalji: agrarian and economic measures

Answer:

Ala-ud-din Khilji’s market regulations were introduced mainly to support a large standing army at low cost. They helped strengthen the Sultan’s military and political authority, but their rigid control over prices, traders and supplies also placed pressure on the normal functioning of the economy.

Usefulness for Military Might

Maintaining a large army:

  • Ala-ud-din needed a strong army to face Mongol invasions and pursue expansionist campaigns.
  • By keeping prices low, he could pay soldiers moderate salaries without reducing their purchasing power.
  • This directly strengthened the military capacity of the Sultanate.

Organised market control:

  • Separate markets were created for grain, cloth, horses, slaves and other commodities.
  • Officials like the shahna-i-mandi supervised prices and supplies.
  • Hoarding, black marketing and cheating were severely punished.

Control over horse supply:

  • Good horses were essential for cavalry.
  • Regulation of horse markets ensured availability at controlled prices.

Harmful Effects on Economy

Suppression of market freedom:

  • Prices were artificially fixed below normal market levels.
  • Traders had little freedom to earn profit.
  • This discouraged commercial initiative and created fear among merchants.

Coercive administration:

  • The system depended on spies, punishments and strict state supervision.
  • Such regulation could work only under a strong ruler and could not become a normal economic system.

Pressure on producers and traders:

  • Low prices benefited soldiers and the state, but they could hurt cultivators, merchants and suppliers.
  • The economy was subordinated to military needs.

Balanced Assessment

Barani describes the system as highly effective but also authoritarian. Therefore, Ala-ud-din’s market regulations were successful as a military-fiscal measure, but harmful as a long-term economic policy. They strengthened the Sultan’s army and central authority, but did so by distorting market forces and restricting commercial freedom.

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