2023 · Paper II · 10 marks

Explain Alauddin Khilji's market regulations and discuss their impact.

In short

Alauddin Khilji set up three regulated markets in Delhi under shahnas, fixed prices, registered merchants and banjaras, stored grain and collected revenue directly to feed a large army against Mongol threats. Prices stayed low for soldiers and townspeople, but peasants paying up to half their produce bore the strain.

Model answer

Ghissu Editorial · Verified 4 Oct 2026

Introduction
Alauddin Khilji’s market regulations in the early 14th century were a landmark in medieval India’s economic governance, aiming to stabilize prices and support a large standing army during Mongol invasions.
Administrative Framework and Enforcement
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Centralized Market Control

Alauddin established three specialized markets in Delhi, each overseen by shahnas who enforced price controls and maintained merchant registers.

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Direct State Revenue Collection

He mandated direct land revenue collection in the doab, assessed through precise land measurement to prevent elite exploitation.

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Strict Official Oversight

Amils and local officials received adequate salaries but faced audits and harsh punishments for corruption, enhancing accountability.

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Anti-Hoarding Measures

Banjaras were registered and held collectively responsible for price violations; state warehouses ensured foodgrain supply during shortages.

Socioeconomic Outcomes
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Merchant Resistance and Benefits

Hindu merchants resisted price controls, but the army and common citizens gained affordable goods, reflecting a trade-off between commerce and welfare.

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Decline of Local Elites

Village khuts and muqaddams lost privileges and illegal levies, reducing peasant exploitation and altering rural power structures.

Legacy and Way Forward
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Precedent for State Intervention

Alauddin’s reforms exemplify early state intervention in Indian economic policy, balancing military and civilian needs.

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Modern Regulatory Lessons

Strengthening transparent market oversight with digital tools and balancing price controls with incentives can build on his model.

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Protecting Producers

Taxation systems should safeguard small farmers, promoting equitable rural growth.

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Regional Adaptation

Expanding regulatory reach requires local adaptation for uniform benefits.

Conclusion
Alauddin Khilji’s market regulations laid foundational principles of administrative rigor and social equity, echoing India’s constitutional commitment to welfare and economic justice.

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Hand-drawn diagram: Alauddin's market control. Alauddin's market control. Flow: Need for large standing army → Three Delhi markets under shahna → Registered Banjaras, state warehouses → Low fixed prices → Army fed; merchants, peasants strained
Diagram: Alauddin's market control

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Early Medieval & Medieval India - Pallavas to Cholas, Delhi Sultanate, Bhakti & Sufi, Kakatiya-Vijayanagara-Bahmani-Qutubshahi13 questions

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Question from the official APPSC Group-I Mains 2023 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.

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