(51)     Cane Bamboo Making:

           In 1981-82, 3 units were engaged in the industry which gave employment to 3 persons and produced mulberry baskets, chicks, etc. worth Rs. 0.9 lakhs.

(52)     Ban and Rope Making:

           This is an old industry of the district which has been developed very much.  Its production has gone up.  the essential raw materials of the industry are munj and buggar. Some of the units have also installed foot-driven and power-driven machines, etc.

           In 1981-82, 11 units were engaged in the industry, which gave employment to 12 persons and produced goods worth Rs. 0.30 lakhs.

(h)      Role  of  Industrial  Co-operative

           The main aim of industrial co-operatives is to give employment to the weaker section of the society on the basis of which industrial societies are organized of artisans.  Poor artisans with meager money unite together and from an industrial co-operative society.  In 1981-82, there were 285 industrial co-operative societies in the Kapurthala District, out of which 25 were handloom weaving societies, 48 were khadi and village industries, 173 were small-scale societies and 3 of handicraft.  Small-scale societies, mostly situated at Phagwara, are engaged in manufacturing motor spare parts, diesel engines, pumping-sets and material relating to defence purposes.  These societies are the only source for the poor artisans through which they avail of the facilities such as financial assistance, supply of raw material, technical guidance and marketing.

           The particulars regarding the industrial co-operative societies in the district, during 1981-82, are given in the following tables:-

Number and Membership of the Industrial Co-operative-operative Societies and the value of goods produced by these in the Kapurthala District, 1981-82

Name of Industry

No. of Industrial Co-operative Societies

Membership

Value of goods produced

(Rs. in lakhs)

Union

-

-

-

Handloom Weaving

25

423

1.07

Khadi and Village Industries

84

1,056

8.77

Small-scale Industries

173

2,046

84.95

Handicraft

3

90

-

           (Source:          Assistant Registrar, Co-operative Societies, Kapurthala)

           The industrial Co-operatives in the State were under the control of Co-operative Department up to April 1963, when the industrial co-operative wing was transferred to the Industries Department.  In 1974-75, the industrial co-operative was retransferred to the Co-operative Department.  The Assistant Registrar, Co-operative Societies, Kapurthala is in charge of the industrial co-operative societies in the Kapurthala District.

The amount of loans and subsidies given by Government  to the industrial co-operative societies in the district, during 1976-77 to 1981-82, is given below:

(Rs. in lakhs)  

 

1976-77

1977-78

1978-79

1979-80

1980-81

1981-82

Loans advanced

1.95

2.91

7.98

-

0.10

0.10

Subsidies given

-

3.43

6.53

0.27

0.06

0.08

           (Source:          Assistant Registrar, Co-operative Societies, Kapurthala)

           The following table shows the progress made by the industrial co-operatives in the district, during 1976-77 to 1981-82:-

Particulars

Year

1976-77

1977-78

1978-79

1979-80

1980-81

1981-82

No. of Industrial Co-operative

Societies

271

276

287

288

289

290

Membership

3,626

3,636

3,659

3,604

3,615

3,615

Share Capital

(Rs. in lakhs)

17.03

13.56

17.80

19.82

19.89

20.38

Working Capital

(Rs. in lakhs)

41.85

55.98

59.31

57.24

56.31

59.41

Production

(Rs. in lakhs)

29.32

32.92

40.20

59.19

84.22

94.79

Sales

(Rs. in lakhs)

30.32

40.12

38.08

59.19

84.22

94.79

 

           (Source:          Assistant Registrar, Co-operative Societies, Kapurthala )

(i)       Labour  and  Employers’  Organizations

Labour  Organizations:

           Prior to 1919, the labour legislation in India was rudimentary and related only to factories, mines and migration.  The first Act which gave recognition to the right of the labourers to combine themselves into a union to secure redress of their grievances was the Trade Union Act of 1926.  This Act recognized the All India Trade Union Congress, which had been holding annual sessions since 1920 and had a number of unions affiliated to it.  The representation given to labour, first by the Government of India Act, 1935 and later by the Constitution through special constituencies comprising registered Trade Unions, has been responsible for not only an increase in the number of the unions but has also promoted the efficiency of their working by ensuring maintenance of proper books of account and registers of members.  The compulsory recognition by the employees of the trade unions (made possible by the Indian Trade Unions Amendment Act, 1947) has given further impetus to the movement by imparting more strength and vitality to the unions.  In spite of the stupendous difficulties in the way of the movement because of the peculiar conditions prevailing in the country such as the floating character of the labour population, its heterogeneity, indiscipline, poverty, illiteracy, etc., the trade union movement has made considerable headway.  There are 36 registered trade unions in the Kapurthala District.  The particulars of trade unions, registered under the Indian Trade Unions Act, 1926, functioning in the district are given in the Appendix at the end of this chapter at pages 124 to 125.

(j)       Welfare  of  Industrial  Labour

           Labour Welfare is one major aspect of national programmes towards bettering the lot of labour and creating a life and work environment of decent comfort for this class of population.  Broadly speaking, measures and activities undertaken by the State, employers and associations of workers for the improvement of workers’ standards of life and for the promotion of their economic and social well-being are labeled as welfare work.  It also includes work for improving the health, safety, general well being and the industrial efficiency of the workers beyond the minimum standards laid down by the Factories Act and other labour legislation.

           For the first time the establishment of canteens in factories was statutorily laid down by the Factories (Amendment) Act of 1947.  The period subsequent to 1947 also saw the framing of laws to promote welfare facilities in several industries.  In the Factories Act, 1948, the Plantation Act, 1951, and the Mines Act, 1952, provision has been made for canteens, crèches, rest shelters, washing facilities, medical aid and for the appointment of labour officers, if the industrial establishments covered by them employ the minimum number of workers prescribed.  Thus, there has been a steady expansion of activities relating to workers’ welfare, not only in quantum but much more significantly in regard to its content and spirit.

           There are two labour welfare centers in the district, one each at Kapurthala and Phagwara.  These centers provide training and recreational facilities to the workers and their families, organize indoor and outdoor games, conduct sewing, knitting and embroidery classes, and organize entertainment programmes like dramas, music classes, radio broadcasts, etc.  Besides, there are two balwadis at Phagwara, which have on its roll 40 children each.  These children are in the age group of 3 to 6 years and are also provided with mid-day meals.

APPENDIX

List of Registered Trade Unions in the Kapurthala District, as on 31 March 1982

 

Serial No.

 

Name of Trade Union

 

Date of registration

 

1

Jagatjit Distilling Mazdoor Union, Hamira

6-1-1953

2

Jagatjit Sugar Mill mazdoor Union, Phagwara

24-10-1956

3

Jagatjit Kapra Mill Mazdoor Union, Phagwara

8-10-1958

4

Jagatjit Cotton Textile Mills Mazdoor Samaj, Phagwara

8-10-1958

5

Sukhjit Starch and Chemical Workers’ Union, Phagwara

26-10-1962

6

Muneem Union, Kapurthala

1-1-1963

7

General Metal and Engineering Workers’ Union, Kapurthala

11-4-1963

8

Jagatjit Kapra Mill Trade Union Congress, Phagwara

1-1-1964

9

Rubber, Leather and General Industries Workers’ Union, Kapurthala

8-8-1968

10

Sugar Mill Labour Union, Phagweara

30-1-1967

11

E.P.T. Mazdoor Sabha, Phagwara

9-2-1967

12

Trade Employees’ Union, Phagwara

11-4-1967

13

Labour Union, Jagatjit Industries Hamira

1-4-1967

14

General Mazdoor Union, Phagwara

6.2.1969

15

Mechanical Karamchari Sangh, Phagwara

6.2.1969

16

Punjab Bone Mill Mazdoor Union, Chaheru

26.4.1969

17

Metal Mazdoor Union, Phagwara

24.9.1969

18

Leather and Rubber Karamchari Sangh, Kapurthala

8.10.1969

19

Mechanical Karamchari Sangh, Kapurthala

8.10.1969

20

Galla Mazdoor Union, Phagwara

25.8.1975

21

J.J. Sugar Mill Workers’ Union, Phagwara

3.1.1976

22

Starch Mill Labour Union, Phagwara

12.11.1976

23

Co-operative Consumer Store Employees’ Union Phagwara

15.3.78

24

Municipal Water Supply and Sewerage Employees’ Union, Phagwara

8-5-1978

25

All India Ex-Servicemen Bank Employees’ Federation, Phagwara

20.1.1979

26

Painter Employees’ Union, Phagwara

17.6.1979

27

Sainik School Class IV Employees’ Union, Kapurthala

18.10.1979

28

Amritsar Bank Employees’ Union, Phagwara

..

29

Flour and Oil Mill Labour Union, Phagwara

..

           (Source:          Labour Commissioner, Punjab, Chandigarh )

 
 
CHAPTER   VI
BANKING,  TRADE  AND  COMMERCE

(A)      Banking  and  Finance

 

v     History of Indigenous Banking

v     General Credit Facilities

v     Insurance and Small Savings

v     Currency and Coinage

v     Trade and Commerce

v     Course of Trade

v     Trade Centers

v     Co-operation in Trade

v     State Trading

v     Merchants’ and Consumers’ in Associations and Organs for the Dissemination of Trade News

v     Weights and Measures

v     Storage and Warehousing

 

(a)       History  of  Indigenous  Banking

Kautilya—the prime minister of Chandragupt Maurya-in his politico-economic treatise ‘Arthashastra’ refers to the existence of indigenous banking in Bist Doab of which the district of Kapurthala is a part.  Indigenous banking institutions had significant impact on the trade and commerce in the district as in the whole of the Doab.  The system of hundis—an instrument of credit—was prevalent.

           In early periods, lending money was easier and simple as it was only the sahukar (the indigenous money-lender), who financed his clients closely known to him.  Very little documentation was involved.  The money-lenders, who at some state were known for fulfilling the emergent needs of the people, later on came to be regarded as usurious for their malpractices.  Exorbitant rates of interest were charged and fictious entries worked to the detriment of the illiterate borrowers.  The interest was compounded at short intervals and it soon exceeded the principal, creating circumstances under which the borrower had to part with all his land and belongings.  The stability brought by the British led to rise in the nature of land which became first-rate investment.  The money-lender misused his position by accumulating capital, and, finding its investment more and more lucrative got the cultivator into his clutches with increasing ingenuity and finally ousted him from his land in numerous instances.  He imposed hard terms in mortgages and land became the property of the sahukar with alarming frequency.

           The malpractices of money-lenders attracted the attention of the government and the Punjab Alienation of Land Act of 1990 (XIII of 1900) was passed to safeguard the interests of the borrowers.  Since then, the money-lender had been content with the produce, and a new class, the agriculturist money-lender came to the force.  The Act, however, did not improve the lot of tillers.  Since the money-lender could not lend up to the limit of what could be repaid from the produce, the new agriculturists money-lender (to whom the Act did not apply)  could lend up to the value of land.  He was, therefore, at liberty to offer attractive terms to the tiller, and he proved more usurious than the moneylender and was always on the look out for the borrowers’ misfortunes. Thus, the Act aggravated the difficulties of the borrowers.  The government, therefore, brought fresh legislation like the Punjab Regulation of Accounts Act, 1930, the Punjab Debtors’ Protection Act, 1936, and the Punjab Registration of Money-lenders Act, 1938, which, however, affected the village money-lenders Act, 1938, which, however, affected the village money-lenders adversely by restricting their credit operations as well as the peasantry.  Therefore, the urgency of creating an agency for providing finance to the agriculturists was felt.  The Royal Commission on agriculture recommended the development of co-operation as the only hope  of rural India.  The first step in this direction was the passage of an Act in 1904 which pioneered the movement in rural India.  It was inadequate to meet the increasing needs of the co-operation movement and to meet the deficiency, the Co-operative Societies Act of 1912  was passed.  Although this Act widened the scope of the movement by permitting the registration of secondary societies like non-credit societies and central financing institutions, viz. central co-operative banks, provincial banks and unions, its scope remained simply a credit movement.  Despite the various flaws in the 1904 and 1912 Acts, the number of co-operative societies, formed for principal purposes like consumption, sale, insurance, purchase and production, has been steadily on the increase.  Still, the credit side of the co-operation movement continues to occupy the dominant position.  During 1981082, there were 140 agricultural  credit societies in the district with a membership of 64,919.

 

(b)   General  Credit  Facilities

(i)       Indebtedness,  Rural  and  Urban

           Amounts borrowed for improvement in agriculture, are often not used for the purpose and are partly spent on extravagant living, pursuit of orthodox customs and ceremonies.

           Urban indebtedness which means the amount borrowed by industrialists, traders and the business communities, is on the other hand properly used.

Rate of Interest:

           As in other districts of the State, the interest rate in the Kapurthala District varies from place to place, from one lending agency to another.  Its variation also depends upon the purpose for which the amount is borrowed.  In the district, the joint stock banks and commercial banks charge interest as fixed by the Reserve Bank of India from time to time.  the rates of interest of these banks also differ in respect of different classes of persons and according to the amounts advanced for different purposes.  The co-operative societies advance loans on interest ranging from 2½ per cent to 8 per cent.  Amounts advanced under the State Aid to Industries Act, 1935, carry interest from 2½ per cent to 6½ per cent.  Moneylenders on the other hand, charge interest varying from 12 per cent to 25 per cent or even more.  Although the government has restricted transactions by unregistered moneylenders, they continue to exist and function on a small-scale.  In the rural areas, interest is calculated in kind when the loan is advanced in kind.  For instance, a moneylender advances loan in the form of a quintal of wheat and in return, he recovers a quintal and a half at the time of harvest.  Such practices are disappearing rapidly as large number of money-lending institutions are coming up in the rural areas which extend financial assistance to the cultivators and farmers are gaining in monetary strength.

           The system of usury has become outdated because extensive banking facilities have been provided in all areas of the district.  There are just a few registered moneylenders who charge reasonable rates of interest.

(ii)      Role  of  private  moneylenders  and  Financers

Moneylenders:

           Despite numerous banking facilities in the rural areas of the district, the moneylender or the bania still holds an important position.  Although the co-operative movement has considerably reduced malpractices of these money-lenders, they have  not been eliminated.  The rural moneylender adopts several methods of advancing loans such as on personal surety, against produce and land, ornaments, property, etc.  The rural moneylender mainly advances loans to the needy and is responsible for the good amount of banking credit available in the district.  He generally runs a grocery shop in the village and advances loans to the ruralities for consumption purposes.  He recovers the loan advanced at the time of harvest.  Thus, the village moneylender still continues to have an important position for the indigent cultivator in times of need.

           Under the provisions of the Punjab Registration of Moneylenders Act, 1938, the moneylenders are required to get themselves registered with the concerned Sub-Divisional Officer (Civil) and obtain a license.  Besides, they are required to keep regular accounts in the books prescribed under the Act.  The number of registered moneylenders in the district, as on 31 March 1982, was 13 (8 in the urban and 5 in the rural areas).

(iii)     Government  and  Semi-Government  Credit  Agencies

           The moneylending business of the indigenous bankers like sahukars and moneylenders has been adversely affected during recent years, because the Government  and Semi-Government Credit agencies advance loans and provide finances in the rural and urban areas of the district.  The loans are advanced through the agencies like the Punjab Financial Corporation, the Khadi and Village Industries Commission, Joint Stock Banks, Co-operative Banks and Co-operative Societies.  Established in 1953, the Punjab Financial Corporation provides medium and long-term loans to industrial concerns established in the State.  It provides finances upto Rs. 20 lakhs in the case of public limited company or a registered co-operative society and up to Rs. 10 lakhs in other cases.  The corporation charges rate of interest from 3 per cent above the bank rate with a minimum of 9 per cent per annum.  The loans advanced by the corporation are repayable in 10 years.  These loans are advanced against hypothetication of land, buildings, plant and machinery, etc. with a margin of 40 per cent of the net assessed value.  In case of the Government guarantee, the margin is reduced from 40 percent to 20 per cent.  The Khadi and Village Industries Commission and the Industries Department also advance loans.  Whereas, the former meets the requirements of the village industries by advancing short-term loans, the latter gives financial assistance to the industries for setting up new industrial units and for extension/modernizing of existing units under the State Aid to Industries Act, 1935, on nominal rates of interest.  Besides, the Government and the Co-operative Societies advance loans to the agriculturists for the purchase of agricultural  implements, seeds, fertilizers, etc. against promissory notes.  The Joint Stock Banks and Co-operative Banks advance loans against gold, shares and securities, agricultural  commodities and other easily marketable goods.

(iv)      Joint  Stock  Banks:

           Although banking was efficiently practiced in India in early times, joint stock banking started developing on organized pattern in the early part of this century.  There was an enormous growth of these banks during the first decade of the twentieth century.  But later on there were bank failures on a large scale.  In the circumstances, the inefficient and uneconomic banking units were closed down and the weaker ones were merged into the stronger ones, which was instrumental in strengthening the banking structure.

           In the Kapurthala District, modern organized system of banking was introduced for the first time with the opening of the Kapurthala Central Co-operative Bank at Phagwara in 1920.  Prior to the opening of this bank, there was the Phagwara Co-operative Union Ltd., which financed both the agriculturists and industrialists.  But this union was merged with the Kapurthala Central Co-operative Bank in 1920.

           There are a good number of Joint Stock Banks which are operating their branches in the district.  For instance, State Bank of Patiala opened its first branch at Kapurthala on 1 October 1950.  The Punjab National Bank was the second Joint Stock Bank to open its branch at Kapurthala on 22 June 1951.  The Central Bank of India opened its branches at Phagwara and Kapurthala in 1958 and 1972 respectively.  With the passage of time, all the banks engaged themselves in expansioning their establishments, thereby, opening their branches at various places in the district.  At present, the Punjab National Bank is the ‘lead bank’ in the district.

           The different leading Joint Stock Banks, which have their branches in the district, are as under:

1.                State Bank of India

2.                State Bank of Patiala

3.                Punjab National Bank

4.                Central Bank of India

5.                Allahabad Bank

6.                United Commercial Bank

7.                Indian Overseas Bank

8.                United Bank of India

9.                Bank of Baroda

10.             Indian Bank

11.             New Bank of India

12.             Punjab and Sind Bank

13.             Oriental Bank of Commerce

14.             Hindustan Commercial Bank

15.             The Lakshmi Commercial Bank Ltd.

16.             Vijay Bank

The number of banking offices in the district, as in June 1980, is given in Appendix India, on page 143.

           The total deposits and banking credit in the district, as on the last Friday of March 1982, amounted to Rs. 11,972 lakhs and Rs. 3,620 lakhs, respectively.

(v)       Post  Office  Savings  Bank  Account

           In 1981-82, the number of depositors who opened new accounts with the post office savings bank in the district was 3,371.  The gross deposit in all the accounts with the post office savings bank in the district, as on 31 March 1982, amounted to Rs. 3,55,86,454.

(vi)      Co-operative  Credit

           With the passage of the first Co-operative Societies Act, 1904, the cooperative movement was launched in the country.  The main defect in this Act was that it allowed the formation of only credit societies.  To remove the inadequacies of the Act, a new Act was passed in  1912 which accelerated the development of the movement by permitting the formation of non-credit societies and central institutions.  Since its inception, the movement has passed through phases of rectification and cautious expansion, thereby expanding its scope to marketing, processing and many other aspects of economic and social life in the country.  The co-operative movement was introduced in the Kapurthala District in 1913 with the formation of an agricultural co-operative society at Bholath Sharki.  Gradually, the movement spread in whole of the district.  Consequently, the co-operative societies were set up at various places in the district.  The passage of the Acts of 1954 and 1961 further gave a fillip to the movement, thereby resulting in the multiplication of co-operative societies.   In 1980-81, there were 953 co-operative societies in the district, of which 184 were co-operative credit societies.  Besides, a central Co-operative Bank functions at Kapurthala with 20 branches (including Head Office) at different places in the district.

Co-operative Credit Societies:

           Usually the moneylender advanced loans and other essential commodities on credit to the borrowers and preferred to buy the produce of the latter, in lieu thereof, at concessional rates.  This exploitation of the cultivators acted like a double-edged blade, i.e. high rate of interest on the loans advanced to the poor cultivators, and the low price given for their produce.  The powers of the moneylenders were curtailed considerably with the passage of the Punjab Registration of Money-Lenders, Act 1938.  the co-operative societies aim at eliminating the moneylender as a class.

           During 1980-81, there were 184 co-operative credit (140 agricultural  and 44 non-agricultural) societies in the district.  These societies mobile savings of the members and advance loans at reasonable rates of interest for productive purposes.

           The details regarding the membership and the working of the agricultural  and non-agricultural  societies, functioning in the district, during 1976-77 to 1981-82, are given in Appendices II and III on pages 144 and 145.

 

(c)       Insurance  and  Small  Savings

Insurance:

           So far as the life insurance business is concerned, the Kapurthala District has not remained far behind.  It was only after the establishment of the Life Insurance Corporation of India on 1 September 1956, that its first branch was opened in the district at Phagwara in March 1961.  Later on, another branch of the Corporation was opened at Kapurthala in August 1972.

           The Life Insurance Corporation covers the life risk.  It also advances loans to the policyholders as well as to the Government   and semi-Government concerns.  It charges rates of interest, i.e. 9 per cent and 11 per cent against policies and houses, respectively.

           The number of Development Officers and Agents in the district, as on 31 March 1982, was 11 and 146 respectively.  The following statement shows the branch-wise business secured by the Life Insurance Corporation of India in the district, during 1979-80 to 1981-82:

Business secured by the Life Insurance Corporation of India in the Kapurthala District from 1979-80 to 1981-82

 

 

Name of Branch

Year

1979-80

1980-81

1981-82

 

No. of policies

 

 

(‘000 Rs)

 

No. of policies

 

(‘000 Rs.)

 

No. of policies

 

(‘000 Rs.)

Kapurthala

1,191

22,225

1,061

24,948

1,140

35,619

Phagwara

952

16,084

1,040

22,988

788

17,740

(Source:          Senior Divisional Manager, Life Insurance Corporation of India, Divisional Office, Jalandhar)

           The district has remained backward so far as the general insurance business is concerned.  Before the establishment of the Life Insurance Corporation of India, there was neither any office of any Insurance Company nor any Chief Agency in the district.  The insurance business was procured by the agents and inspectors of various Insurance Companies.  Prior to the nationalization of the general insurance companies, on  1 January 1973, the Life Insurance Corporation had already started general insurance business besides private insurance.  But after their nationalization the general insurance companies emerged as an apex body known as the General Insurance Corporation. Under this Corporation, 4 general insurance companies, viz; The Oriental Fire and General Insurance Company Ltd., do general insurance transactions.  According to the working of these companies, the general insurance policies of all types are issued for a period of only one year and these are renewable every year.  Under the general insurance, the risks covered are of three types, viz.; fire, marine (transportation of goods), and miscellaneous insurance.  Under miscellaneous insurance, there are nearly 20 to 25 types of insurance including motor insurance besides other types of insurance like fidelity guarantee, aviation insurance, burglary, personal existence, etc.   In the district, only one general insurance company i.e. The National Insurance Company Ltd. is functioning at Phagwara.  It was opened on 8 February 1978.

Small Savings:

           Small Savings Scheme is sponsored by the Central Government with a view to inculcating in the masses the habit of thrift and raising funds for the economic development of the country.  This scheme is controlled by the department of Economic Affairs, Ministry of Finance, Government of India.  Since its inception, the scheme has gained lot of popularity especially among the ruralities.  In the States, the National Savings Organization is headed by the Regional Director, National Savings, Government of India.  The Regional Office for the Punjab State is stationed at Jalandhar.  Its Regional Director has under him 3 Assistant Regional Directors, National Savings, one each at Jalandhar, Patiala and Amritsar.  In the Kapurthala District, there is a District Savings Officer who promotes the objects of the scheme in the district.  All these officers are under the direct control of the National Savings Commissioner.

           With a view to having effective coordination between the Central Organization and the State Governments, Directorates of Small Savings have been set up in various States.  The Director, Small Savings, Punjab, Chandigarh, is the head of the Small Savings Department in the State.  At the district level, the District Savings Officer is the effective coordinator between the Central Organization and District Authorities in the promotion and growth of the scheme.

           The number of accredited agents, who worked for small savings on commission basis in the district, as on 31 March 1982 was 79.  The number of agents under Mahila Pradhan Rashtriya Bachat Yojna was 56.

           The gross and net collections under the small savings scheme in the district, during 1976-77 to 1981-82, are given below:

Year

Gross Collection

(Rs in Lakhs)

Net Collection

(Rs in Lakhs)

1976-77

197.50

(-) 4.51

1977-78

131.35

17.35

1978-79

223.31

107.25

1979-80

375.61

136.05

1980-81

432.39

121.87

1981-82

646.21

161.20

           (Source:          District Savings Officer, Kapurthala )

 

(d)       Currency  and  Coinage

           During the Sikh rule, the coins consisted of the silver rupee and the gold buqti in the Kapurthala area.  Besides, copper coins of smaller denominations were also in circulation.

           During the British regime and after the Independence (1947) upto 1 April 1957, the coins consisted of the silver rupee and eitht—anna (dheli or athani) and four—anna (pauli or choani) pieces, the nickel two—anna (dwani) and one—anna pieces, besides the copper pice and pies.  A rupee consisted of 16 annas or 64 pice or 192 pies.  An anna equaled 4 pice or 12 pies, and a pice equaled 3 pies.

           From 1 April 1957, the decimal coinage was introduced in the country to bring about uniformity with currencies of countries abroad. This has made easy the system of calculation and keeping of accounts. The decimal coinage completely replaced the old coinage system from 1 April 1964. Although at the initial stage, the people, especially in the rural areas of the district felt enormous difficulty in transactions, now they are fully conversant with this system.  Naya paisa, named so in the beginning, came to be called as paisa with effect from 1 June 1964 when the old coinage was completely withdrawn.

           Although all monetary transactions are spoken of in terms of decimal coinage, yet there are still many old traders in the district who have not abandoned the use of words dheli or athani (for 50 paise), pauli or choani (for 25 paise) and dwani (for 12 paise).

           Under the decimal coinage system, a rupee consists of 100 paise with different coins of the denominations of 1, 2, 3, 5, 10,  20,  25, 50 paise and one rupee.  Currency notes are issued in the denominations of 1, 2, 5, 10, 20, 50 and 100 rupees

 

(B)      Trade  and  Commerce

           For a long time, the district has been a focal point of regional trade. During British regime, it was a beg centre of trade in metals, textiles and agricultural  commodities.  The principal items of export to distant places were excellent brass, copper and bell-metal bronze.  These were manufactured at Phagwara in the district.  Besides, sugar of excellent quality was manufactured here.  Sultanpur Lodhi was widely known for the manufacture and trade of gabrun cloth, and bed sheets locally known as satrang.  Besides, tobacco, chillies and dates were largely grown.  These commodities had their markets all over the country.  In addition, cloth curtains, chintz, chicks and jazams (floor covering) of excellent quality were produced here and exported to other countries).

           In tehsil Phagwara, the place known as Kala was widely known for trade in cotton and carded cloth.

           Thus in the district, Phagwara, Kapurthala and Kala have had been important centers of trade.  The partition of the country in 1947, the Indo-Pakistan conflicts of 1965 and 1971 did not affect trade in the district much.  In recent years, all the commodities manufactured in and exported from the district right from the British period up till the Independence of the country, have flourished.  The main items exported from the district are sugar, khandsari, wheat, maize, gram, cotton, paddy, rice, and textiles.

 

(a)       Course  of  Trade

           As in other districts of the State, the usual course of trade in the Kapurthala District is through the dealers who are the members of the regulated market committees.  As the economy of the district is primarily agrarian, the course of trade is mostly done in agricultural  produce.  The cultivators bring their agricultural commodities to the nearest mandi (market) where the dealers sell it to the traders who export it by different modes of transportation.  In the villages also, transaction of foodgrains is done where kutcha arhtias charge cheaper rates.  So far as trade is concerned, the district is not so advanced as other districts like Amritsar, Jalandhar and Ludhiana.

           There are 22 grain markets ( 5  regulated markets and 17 Sub-yards ) in the district, where the agricultural  commodities are marketed.  The regulated markets are located at Kapurthala, Sultanpur Lodhi, Phagwara, Bholath and Dhilwan.  The sub-yards are located at New Mandi  Bholath, Begowal, Nadala, Ramgarh, Ibrahimwal, Sabzi Mandi Kapurthala, Chara Mandi Kapurthala, Baler Khanpur, Khalu, Surkhpur, Sabzi mandi Phagwara, Manak Wahad, Ranipur Raputan, Sabzi Mandi Sultanpur Lodhi, Tibba, Kabirpur and dhalla.  Kapurthala and Phgwara are the biggest grain markets where large quantities of wheat, paddy, maize, gur, etc. are marketed.

 

(b)       Trade  Centres

(i)       Regulated and Unregulated Markets:

           With a view to saving the agriculturist from the evils of unhealthy market practices and to ensuring a fair price for his produce, the State Government enacted the Punjab Agricultural Produce Markets Act, 1939. The Act provides for the regulation of markets through market committees, which represent growers, commission agents and trades, local bodies and the State Government. The market committees have been very useful in the standardization of various market practices and charges. These enforce the use of standard weights and measures and thus ensure a fair deal to the agriculturists. There are only three regulated markets in the district at Kapurthala, Sultanpur Lodhi and Phagwara.

           The marketing system in all the regulated markets is almost the same. The local market committees frame rules and regulations for the transaction of food grains.  These rules and regulations are regarding hours of work, and incidental charges to be collected from the sellers and the buyers of produce.  In the regulated markets, offers of rates are determined by open auction or through secret bids.  In many  cases, the arhtias advance loans to the agriculturists who bring their produce to their shops for sale.  However, the sellers reserve the right not to sell their produce below a particular price.  The commission agents charges their commission which includes sundry charges such as commission, weighing and cleaning charges.  The main commodities for which the transaction usually takes place in the regulated markets are: wheat, maize, rice, groundnut and potatoes.

(ii)      Fairs ( Melas ):

           Fairs and festivals, which mark the religious, social, recreational and seasonal occasions, are held at various places in the district.  At these fairs and festivals, people sell and purchase sweets, fruit, general merchandize, etc.  Thus, some kind of trade takes place.  The important fairs and festivals celebrated in the district are mentioned in Chapter III ‘people’.

Cattle  Fairs:

           The cattle fairs bring the breeders and buyers close to each other and hence serve a very useful purpose.  The Government charges fee on sale/purchase of cattle and other animals.  These fairs are, thus, a source of income to the Government.  The cattle fairs are held only at Subhanpur, tehsil Kapurthala, in the district every month excepting April.

 

(c)       Co-operation  in  Trade

(i)        Co-operative Marketing:

           There is a District Wholesale Co-operative marketing and Supply Society at Kapurthala.  It was registered on 15 November 1957.  This society undertakes wholesale business of Government supplies of agricultural implements, seeds, fertilizers, insecticides and some other essential goods like oil, sugar, etc.  Besides, the following, are the registered co-operative marketing societies in the district: -

 

 

Name of Society

 

Date of Registration

 

 

Working/Defunct

1

The Sultanpur Co-operative Marketing-cum-Processing Society Ltd., Sultanpur Lodhi

17.2.1951

Working

2

The Phagwara Co-operative Marketing-cum-Processing Society Ltd., Phagwara

16.4.1956

3

The Kapurthala Co-operative Marketing-cum-Processing Society, Ltd., Kapurthala

11.12.1957

4

The Nadala Co-operative Marketing-cum-Processing Society, Ltd., Nadala

31.3.1960

5

The Hargobindgarh Co-operative Marketing-cum-Processing Society Ltd., Hargobindgarh

7.2.1966

 

6

The Bassi Co-operative Marketing-cum-Processing Society Ltd., Bassi

27.9.1957

Defunct

7

The Pajjian Co-operative Marketing-cum-Processing Society Ltd., Pajjian

9.12.1953

8

The Grain Dealers Co-operative Marketing-cum-Processing Society Ltd., Association, Kapurthala

9.11.1948

9

The Grain Dealers Co-operative Association, Sultanpur

13.4.1947

          

Co-operative marketing has proved very useful in removing the difficulties which the cultivators had to face in selling their produce in the markets.  For instance, before the introduction of co-operative-operative marketing the commission agents embarrassed the cultivators in many ways in respect of correct weights, fair rates and prompt payments.  Now the marketing societies charge a lower commission.  these societies have constructed godowns, in the rural and urban areas, where members are provided with storage facilities.  These godowns are much useful in collecting the produce in the villages.  Arrangements are made for transportation of produce to the nearest marketing society.  The storage charges in these godowns are very nominal.  The marketing societies at Kapurthala, Sultanpur Lodhi, Phagwara and Bholath also do processing of foodgrains.

           The membership of co-operative marketing societies covers primary societies and individual members.  Besides marketing agricultural  produce, these societies supply and distribute improved seeds, fertilizers, agricultural  implements, insecticides and other consumer goods, i.e. kerosene, sugar, salt, etc. to the cultivators.  The cultivators now receive fair prices of their produce and are no longer at the mercy of the commission agents.

           The work done by the co-operative marketing societies in the Kapurthala District, during 1976-77 to 1981-82, is shown in  Appendix IV on page 146.

 

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