CHAPTER 26 - Grain Medium of Exchange in India

Abstract

This chapter describes the use of grain as a medium of exchange in India. One of the primitive currency that has been used until recently as a medium of exchange is grain. Until recently the use of modern money in remote villages was rare, whether for effecting exchanges or remunerating services. Grain was the standard of value, and it was used by the villagers in their exchanges with each other. Even now, grain is to some extent used as a medium of exchange in remote districts. Grain is also used even now as a standard of deferred payments. A large proportion of loans in backward rural areas are contracted in terms of grain. In districts where rice is the staple product it plays a part somewhat similar to that of grain in other districts. Strings of broken shell beads alternating with pieces of bamboo are said to have also been currency in the Sema country. Strings of brass heads were also used. Most trade is done, however, by barter. Animals are loaned and their value is determined by the length of their horns and by the girth behind their shoulder. The debtor is required to pay interest by returning to his creditor's animals with slight longer horns and greater in girth.