500 



Indian Wheat Trade. 



Commenting on these figures Mr. O' Conor states that it 

 was not until the year 1893-94 that, in consequence of indif- 

 ferent and bad harvests in India, the exports fell to a level not 

 before known since the trade first developed, and that it may 

 be reasonably hoped that, in ordinarily good years, India 

 may on an average export as much wheat as on the average 

 of the years before 1893-94, or more. 



In connection with this question Mr. O'Conor observes, 

 however, that from the close attention given to the 

 Indian wheat trade by critics of Indian economics and finance, 

 it might be inferred that they believe it to be the most im- 

 portant part of the trade of the country, and this inference is 

 strengthened by the persistency with which attention is drawn 

 to the fact that there has been no real increase in the export 

 price of wheat. The fact is usually ignored, he continues, 

 that the export price of rice has increased by more than 50 

 per cent., and that the trade in that grain is of far greater im- 

 portance than the trade in wheat, as regards both quantity and 

 value. Internally, too, the cultivation of rice is of much greater 

 importance. The area under wheat is only a third of the 

 area under rice, the harvest yield is about a fifth of that of 

 rice, , and for one person in India who habitually eats wheat 

 at least five persons habitually live on rice. The question then 

 suggests itself, why are the facts of the wheat trade so closely 

 studied (and to so little purpose) for the purpose of drawing- 

 general inferences as to the economic position of India and the 

 rice trade so entirely ignored r The answer seems to lie in the 

 point of view of the observer. When he is a student or 

 observer of European economics he dwells most largely on 

 the incidents of the trade which most materially affect the 

 condition of European people. The wheat trade of the 

 world is to him a trade of enormous importance, and he is apt 

 to think, looking at the quantities exported from India, that 

 the trade is as important to the supplier as it is to the con- 

 sumer, or as it is to the supplier from other countries from 

 which wheat is largely exported. The rice trade does not 

 affect the European observer in the same degree. Less than 

 half the Indian export is carried to Europe, whereas all the 

 wheat exported is taken to Europe, and rice does not 



