Inland trading was conducted primarily through barter in busy market places by merchant associations and commercial lending institutions.
Pepper, pearls, ivory, textiles and gold ornaments were exported from Tamilakam, and the main imports were luxury goods such as glass, coral, wine and topaz.
The state played an important role in building and maintaining infrastructure such as roads and ports—funded through taxation—to meet the needs of economic and social activity.
[3] The Tamils cultivated paddy, sugarcane, millets, pepper, various pulses, coconuts, beans, cotton, plantain, tamarind and sandalwood.
Farmers believed that ploughing, manuring, weeding, irrigation and the protection of crops must be done according to a specific method in order to obtain a good yield.
In addition to silk and cotton fabrics, cloth made of wood fibre called Sirai Maravuri and Naarmadi was used by the priestly class.
Ocean craft of varying sizes, from small catamarans (logs tied together) to big ships, navigated Tamil ports.
The kingdoms of northern India sought pearls, cotton fabrics and conch shells from Tamilakam in exchange for woollen clothing, hides and horses.
Honey and roots were exchanged for fish liver oil and arrack, while sugarcane and rice flakes were traded for venison and toddy.
Poems in Purananuru describe the prosperous house in Pandya land well stocked with paddy that the housewife had exchanged for grams and fish.
Garment shops sold clothing of various colours and patterns made of cotton, silk or wool, with the merchandise neatly arranged in rows.
The jewellers, who conducted business from a separate street, sold precious articles such as diamonds, pearls, emeralds, rubies, sapphires, topaz, coral beads and varieties of gold.
[citation needed] Since merchants from various places thronged the bazaar, each package for sale had the name and details of its owner written on it.
These inscriptions also mention that the various commodities traded by such merchants included cloth, salt, oil, plowshares, sugar and gold.
Literary, archaeological and numismatic sources confirm the trade relationship between Tamilakam and Rome, where spices and pearls from India were in great demand.
With the accession of Augustus in 27 BCE, trade between Tamilakam and Rome received a tremendous boost and culminated at the time of Nero who died in 68 CE.
[36] The exports from the Tamil country included pepper, pearls, ivory, textiles and gold ornaments, while the imports were luxury goods such as glass, coral, wine and topaz.
His method was later improved upon by merchants who shortened the voyage by sailing due east from the port of Cana or Cape Guardafui, finding that by this way it was possible to go directly from Rome to Tamilakam.
Strabo writes that every year, about the time of the summer solstice, a fleet of one hundred and twenty vessels sailed from Myos Hormos, a port of Egypt on the Red Sea, and headed toward India.
Pliny writes that if the monsoons were blowing regularly, it was a forty-day trip to Muziris[39] from Ocelis located at the entrance to the Red Sea from the south.
The ships returned from Tamilakam carrying rich cargo which was transported in camel trains from the Red Sea to the Nile, then up the river to Alexandria, finally reaching the capital of the Roman empire.
[citation needed] Coins of all the Roman emperors from Augustus (27 BCE) to Alexander Severus (235 CE]) have been discovered, covering a period of nearly three centuries.
Sometimes, the men of the household undertook a long journey to the north of the Venkata Hill or the northern boundary of Tamilakam, to earn wealth.
The Maduraikkanci by Mankudi Maruthanaar and the Netunalvatai by Nakkirar contain a detailed description of the Pandyan capital Madurai, the king's palace and the rule of Nedunj Cheliyan, the victor of the Talaialanganam battle.
The Periplus of the Erythraean Sea (c. 60 – 100 CE) an anonymous work, gives an elaborate description of the Tamil country and the riches of a 'Pandian Kingdom'.
Remnants of irrigation structures like reservoirs and ring wells and charred remains of seeds attest to the cultivation of different varieties of crops and knowledge of various agricultural techniques.
Cave inscriptions found at places such as Mangulam and Alagarmalai near Madurai, Edakal hill in Kerala and Jambai village in Villupuram district record various donations made by the kings and chieftains.
[83] Brief mentions of various aspects of the Sangam society such as agriculture, trade, commodities, occupations and names of cities are found in these inscriptions.
Numismatists have used these coins to establish the existence of the Tamil kingdoms during the Sangam age and associate the kings mentioned in the legends to a specific period.
[85] A large number of Roman coins have been found in Coimbatore and Madurai districts, providing more evidence for the brisk maritime trade between Rome and Tamilakam.