THE OPIUM POPPY 



PAP AVER 



SOMNIFBRUM % 



Production. 



districts, is licensed and money advances made to him (if he so desires) 

 to enable him to prepare the land for the crop in accordance with the 

 somewhat expensive system recommended. As the advances on opium 

 are made at the very time the rent has to be paid, they are much valued, 

 and the profits may pay the rent of the entire holding. The cultivator 

 is next required to deliver the whole produce at a fixed price to the 

 Government local agents, by whom it is dispatched to the factories. 

 The fields are surveyed when under the crop and a fairly accurate fore- 

 cast of production obtained as a check on deliveries. 



Price Paid. The price paid had for some years been fixed at Es. 5 per two pounds, 

 but it was raised recently to Ks. 6. Still, at the former figure the value to 

 the Bengal and United Provinces cultivators may be judged of by the fact 

 that the average payments for some years have exceeded 1,500,000, and 

 occasionally as much as 2,000,000. The opium is specially prepared both 

 for the home and foreign markets in accordance with long-established 

 custom at the Government factories. The foreign supply is sold by 



Sold by Auction, public auction at monthly sales which take place at Calcutta ; but, in order 

 to check speculation and steady prices, the exact amount to be offered at 

 each sale is previously notified for twelve months. The amount to be 

 manufactured each year is also determined beforehand, the area necessary 

 for the production fixed, and permits issued accordingly. The opium 

 used up in India is technically designated " Excise Opium," that which 

 is exported being called "Provision Opium." In 1888 and some time sub- 

 sequently, the estimate of required production was 57,000 chests of pro- 

 vision opium per annum. In 1896 the standard was reduced to 54,000 

 chests ; and at present it is 48,000 chests. The excise opium fluctuates 

 considerably ; during the past thirty years the minimum has been 2,243 

 chests, and the maximum 5,554 chests. This represents the total Indian 

 consumption, less the supplies produced within the Native States. 



Most of the Native States assimilate their internal opium arrange- 

 ments to those prevalent in the British districts, and, moreover, make 

 strenuous efforts to prevent contraband dealings. Still, there must be a 

 considerable personal traffic from the Native States into British territory. 

 Were greater restrictions placed on the production and supply within 

 British territory than presently prevail, illicit traffic would assume political 

 importance and become a danger of no ordinary magnitude. As now 

 administered, the Native States levy heavy dues on opium exported from 

 their territories for the China market, and such opium, moreover, pays to 

 the Indian Treasury a transit duty which in 1894 was 43 per chest 

 of 140 lb., in 1896 became 40, and in 1897 33 per chest. The 

 decline stated in the exports of Malwa opium is attributed to Chinese 

 production directly competing, and successfully so, with all inferior grades, 

 none but the finest and purest Bengal opium finding a steady market. Thus 

 at every stage the Government directly controls production and manu- 

 facture. There can be no doubt that with a commodity that bears such 

 heavy taxation, an infinitely higher price could easily be paid to the 

 cultivator than the amount actually received from Government, were the 

 traffic free from all restraints and regulations. Here the first check is. 

 given by the prevention of the profits of production becoming an incentive 

 to illicit traffic. The yield per acre may be put at from 6 to 8 seers, so that 

 the profits of the cultivators are not materially greater than with other 

 crops. It has been pointed out that the consumption locally of Govern- 



852 



Speculation 

 Checked. 



"Excise." 

 " Provi- 

 sion." 



Estimates 

 Provided for. 



Native States. 



Illicit Traffic. 



Transit 



Duty on Malwa. 



Effect of 



Chinese 



Production. 



Check on 

 Profits. 



