clvii 



made their calculations, the cost of salt in Madras was found to be 

 more than 3 annas a maund, and salt was sold by Government at the 

 Madras dep6t really at a loss. Assuming, however, for the sake of 

 argument, that 3 annas correctly represented the cost price of salt at 

 the time when the monopoly system was displaced by the excise, it 

 will be seen that no fair comparison can be made between that rate 

 and the present excise prices without taking the following considera- 

 tions into account and making due allowances for them : — 



1st. — Since 1881 the sales of salt in consequence of demand from 

 tracts outside the Presidency, chiefly Orissa, and increase of popu- 

 lation which amounts to 15'6 per cent., have increased from 56 to 

 69 1 lakhs of maunds or by 24 per cent., while the number of factories 

 at work was greatly reduced shortly before 1881. The increased 

 produce would to some extent have had to be raised at more than 

 proportionate cost, even if the monopoly system had been continued 

 throughout the Presidency. That this must be the case is clear 

 from statements contained in the administration reports of the Salt 

 Department which go to show that the oflBcers of the department find 

 very great difiiculty in procuring labour for working the extensions 

 of factories recently sanctioned. 



2nd. — The prices of excise salt include three items of charges 

 which the monopoly rate of 3 annas excludes, though these charges 

 fall eventually on the consumers under either system. The items 

 are — 



(a) The additional price paid to the producer at the factory 

 instead of to the trader on account of the inadequacy of stocks to 

 meet the demand as pointed out in paragraph 9 supra. 



(6) The additional price paid for light salt (paragraph 6 supra). 



(c) The additional price paid for good salt (paragraph 4 supra). 



For example, the price of excise salt at Surl4 in the Ganjam 

 district was 4 annas 3 pies a maund in 1890-91. The high price was 

 due to the restriction, owing to insufficient stocks, of inland sales at 

 Ganjam (which by the way is a monopoly factory) and the consequent 

 diversion of trade to Surla. Salt at Ganjam is sold by Government at 

 a fixed price of 4 annas {not 3 annas), and sales are allowed only on 

 certain days and in restricted quantities to prevent depletion of stocks. 

 The consequeuce is that traders have to go to Surld and get their salt 

 at an enhanced price incurring probably enhanced cost of carriage at 

 the same time. All this enhanced cost is recouped by the traders by 

 enhancing the price of salt to the consumers whether the salt has 

 been obtained from Ganjam or Surld. Nevertheless the factory price 

 of a maund is only 4 annas at Ganjam, while that at Surld is 4 annas 

 3 pies, and this shows that the factory price of excise salt may be 

 higher than the monopoly rate though really the price paid by the 

 consumer may be less under the former than under the latter system. 

 Examples of cases of salt commanding higher or lower prices accord- 

 ing as they are light or heavy abound in the Madras dep6t, where 

 the price of salt varies from 4 to 7 annas a maund. The reason for the 

 preference for light salt has already been explained. In the Madras 

 retail market also salt is sold at different prices with reference to the 

 quality of the article. 



