In the early 14th century, the Delhi Sultanate ruler Alauddin Khalji (reigned 1296–1316) instituted price controls and related reforms in his empire.
He banned hoarding and regrating, appointed supervisors and spies to ensure compliance with the regulations, and severely punished the violators.
[2] Barani's account, at least his narration of Alauddin's price control measures, is corroborated by other writers who mention the reforms with lesser detail.
[3] The 16th century chronicler Firishta also describes the reforms, and besides Barani, his account seems to be based on Shaikh Ainuddin Bijapuri's now-lost Mulhiqat-i Tabaqat-i Nasiri.
This anecdote was mentioned by the 14th century writer Hamid Qalandar, and is originally said to have been narrated by Malikut Tujjar ("Prince of Merchants") Qazi Hamiduddin to the Sufi saint Nasiruddin Chiragh Dehlavi, during the early reign of Firuz Shah Tughlaq (r. 1351–1388).
[5] Contrary to these accounts, Barani states that Alauddin (who was a Muslim) introduced these reforms to be able to maintain an unprecedentedly large army, and to subjugate his Hindu subjects.
However, much of Delhi's overland trade with Western and Central Asia was controlled by Khorasani and Multani merchants, many of whom were Muslims, and were impacted by Alauddin's reforms.
[13] The Delhi Sultanate chronicles do not elaborate how these numbers were arrived at, but both Khusrau and Barani state that the prices were not allowed to increase during Alauddin's lifetime, even when the rainfall was scarce.
The Sultan granted Malik Qabul extensive territories as iqta', and placed a large cavalry and infantry under his charge.
[15] According to Barani, the government's share of the grain in the crown territory (khalisa) in the Doab region was collected in kind, and taken to the government-run granaries in Delhi.
Alauddin asked Malik Qabul to keep them in chains until they collectively agreed to abide by certain conditions imposed on them, and gave sureties for each other.
[2] Alauddin's administration allowed the cultivators to take limited quantity of grain from fields to their homes for personal consumption.
[18] Barani states that the cultivators were also given the option of taking the surplus grain to the market themselves, and selling it there for a profit, at the prices fixed by Alauddin.
[18] Alauddin sought daily reports about the grain market from three independent sources:[19] The 16th century chronicler Firishta states that although Alauddin was illiterate at the beginning of his reign, he gradually acquired the ability to read these reports, which included hastily scribbled notes written in Persian script.
[20] Alauddin established the Sera-i Adl on an extensive piece of unused land near the Green Palace (Koshak-i Sabz), on the inner side of the Badaun Gate.
The merchants of Delhi were required to sign a written agreement promising to bring the imported commodities to Sera-i Adl, and to sell them at the officially fixed rates.
[24] The supply of horses in Delhi had improved as a result of Alauddin's conquest of Gujarat, which was an important hub for the Indian Ocean trade.
However, only Alauddin's government was allowed to buy good quality horses, which were important for raising and maintaining an efficient army.
Taking advantage of this situation, several wealthy people entered into the business of purchasing and rearing horses, and colluded with the brokers to raise prices.
[4] According to Barani, Alauddin's Ministry of Commerce (diwan-i riyasat) dictated the prices of all the goods sold in the general markets spread across Delhi.
[24] Barani mentions that Alauddin's price control measures were directed at all kinds of goods, "from caps to socks; from combs to needles; from vegetables, soups, sweetmeats to chapatis.
The Minister appointed a superintendent for every market to ensure that the shopkeepers adhered to the price list sanctioned by Alauddin's administration.
[25] Yaqub Nazir regularly checked the prices in the general markets, and meted out humiliating punishments to the erring shopkeepers.
However, the shopkeepers used other methods to make illegal profits, including use of false weights, sale of low-quality commodities, and lying to young and ignorant customers.
To address this problem, Alauddin started sending child employees of the royal pigeon-house to make test purchases, which would be reviewed by Yaqub Nazir.
[25] Barani states that Alauddin's market reforms (such as price control) were implemented in the city of Delhi, the capital of the empire.
[27] He states that the low fixed prices of grains and supply from the royal granaries benefited the public during the times of scarce rainfall.
[3] According to an anecdote mentioned by the 14th century writer Hamid Qalandar, even after the Sultan's death, people respected Alauddin for reducing and fixing the price of grains: they made pilgrimages to his tomb to have their prayers fulfilled.
Hamid Qalandar, who wrote during the early reign of Firuz Shah Tughluq (r. 1351–1388), quotes Nasiruddin Chiragh Dehlavi as follows:[28] In those days entertainments were common.
[28] According to historian Banarsi Prasad Saksena, the contemporary Muslims had limited participation in the business because of Islamic restrictions (see riba).