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·CONFIDENTIAL.]
INDIAN STATES'
OPIUM COMMITTEE
1927-1928
VOLUME I.-GENERAL REPORT
CALCUTTA
GOVERNMENT OF INDIA PRESS
1928

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·CONTENTS OF GENERAL REPORT. PAGE, 1 1 SECTION I PRELIMINARY. PARAGRAPII 1 The Committee's tour and the States visited . 2 Agreed reports signed for all States except Bhopal 3 Attitude of the permanent Members of the Committee 4 Reasons for writing a General Report 5 Statistical results 6 Division of subject matter 1 2 2 3 3 4 6 5 6 7 SECTION II -OLD STOCKS OF OPIUM 7 Quantity and present arrangements for control 8 Distinction between ball and biscuit opium 9 Market for stocks of ball opium 10 Probable future production of ball opium 11 Necessity of a comprehensive scheme for purchasing and Warehousing old stocks of ball opitun 12 Conditions to be fulfilled 13 Cost of production in the States 14 Cost of purchasing the old stocks 15 Cost of warehousing and issuing 16 Interest charges and selling price 17 Provisional character of present estimates 18 Export duty 19 Inferior opium 20 Stocks in Bhopal > 21 Stocks of biscuit opium in Kotah 22 Stocks of biscuit opium in Jhalawar and Tonk 7 8 8 8 9 9 10 10 11 SECTION III.-PRODUCTION OF OPIUM IN THE STATES . (1) AGRICULTURE 23 Extent of cultivation 24 Method of cultivation, rotations, soil and irrigation 25 The liability of the yield of the poppy to fluctuate 26 The advantages of poppy cultivation to the cultivator 27 The possibility of substituting other crops for the poppy 28 Comparison of the money value of crops 29 Substitute crops 30. Difficulties involved in substitution 12 12 13 13 15 16 16 (11) FINANCE 31 Number of States financinlly affected 32 States producing for Government Total losses anticipated of opium production is abandoned 18 19 ·. PARAGRAPE. 33. Loss of profit on sale of opium to Government 34. Loss of land revenue 35. Incidence of loss upon State revenues 36. Losses of Jagirdars 37. States producing for export to other States 38. Losses due to the closing of the China trade PAGE. 19 20 24 26 3 26 26 • (iii) THE POSSIBILITY OF STOPPING OPIUM PRODUCTION IN THE STATES. 39. The attitude of the States 40. Conditions of stopping opium production 27 29 33 o . . (iv) ALTERNATIVES TO THE DISCONTINUANCE OF OPIUDI PRODUC- TION IN THE STATES. 41. Production in the States for the States 42. Division between the States and British India of the opium production required for India as a whole 43. Conditions of opium production in the States under the latter alternative 34 . 35 SECTION IV.-FINAL ARRANGEMENTS FOR THE SUPPLY OF OPIUM TO THE STATES FOR INTERNAL CONSUMPTION. 37 37 38 44. Presumption that supply will be from Ghazipur 45. Conditions of supply from Ghazipur 46. Conditions regarding cost 47. Conditions regarding quality 48. Supply depôts in the States 49. Duty on excisable articles imported into the States 50. Conditions required by the Bhopal Darbar 39 42 42 43 SECTION V.-THE POSSIBILITY OF INCREASING OPIUM TAXATION IN THE STATES. 51. Conditions under which the Darbars are prepared to increase taxation 52. Opium consumption in the States 53. Conditions likely to limit the policy of high taxation 54. Possible results 43 44 49 51 SECTION VI.---SMUGGLING. 55. Smuggling into the States 56. Smuggling from the States 52 52 SECTION VIT.-SUMMARY. 57. Possible results 53 ·iii APPENDICES Page 1 List of States and their representatives on the Opium Coin mittee, and the permanent Members of the Cominattes 55 2 Tour of the Opium Committee 57 3 Map of the Committee's tour (Not printed) 4 um in possession of merchants Central India and Rajputana, 69 6 Statement showing production of opium in the States of Central India and Rajputrna, Gralior and Baroda 60 6 Statement slowing the effect upon the States' revenue of abandoning opiuin production 61 7 Statement showing opium consumption and taxation in the States 02 8 Summary of conditions under which States are prepared to purchase from " central stocks" the opium required for internal consumption G6 9 Estimates of the cost of producing a seer of hard opium supplied by the chief producing States 69 10 Note on the cost of staff, labour, etc, required for purchasing hard Malwa opium 71 11 Note on the cstimated cost of warehousing and issuing 20,400 maunds of old opium 73 12 Calculation of the recoupment of capital expenditure of Rs 69,36 000, and the interest at 5 per cent on annual outstanding balances, by, 10 annual instalments of Rs 8,84,000 and one instalment of Rs 1,76,800, 1c, by issuing 2,000 maunds at Rs 442 annually for 10 years and 400 maunds in the 11th year 74 13 Statement showing areas under poppy, total outturn and average eld per acre in the States of Kotah, Tonk and Jaora 76 14 A Statement prepared from information supplied by the Sitamau Darbar showing the present economics of a culti vator owning ono plough or samad 77 B e Tonk Durbar worked with 78 15 List of crops found on irrigated land in Central India and Rajputana 79 16 Summary of conditions under which States are prepared to purchase from the Ghazipur Factory the opium required for internal consumption, after the stocks of old opium in Central India and Rujputana are exhausted 80 17 Summary of conditions under which States are prepared to enhance the selling price of opium to a degree correspond ing as nearly as possible with that in force in British India 83 18 Note on the methods of calculation employed in this Report, with statement owing the re of bigha to acré in each of tho chief producing States 85 19 Terms of Reference of the Cominittee 86 TO

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·Indian States' Opium Committee. 1927-28. General Report by the Permanent Members of the Committee. 1. PRELIMINARY, 1. The Committee's tour and the States visited.The Opium Committee has held discussions with the representatives of 51 States. Appendix 1 to this Report gives a list of these States and their representatives on the Committee, Appendix 2 gives details of the Committee's tour and Appendix 3 contains a map showing the tour. 2. Agreed Reports signed for all States except Bhopal.- The Committee's Reports for individual States represent, according to the decisions made at the Simla Conference, the unanimous conclusions of the Committee as a whole including a Member appointed by the State concerned. We have formulated agreed reports with all States except one, the single exception being the State of Bhopal. It appeared to the permanent Members of the Committee that this Darbar's proposals, as advanced after full discussion by their representative, on the one hand included unjustifiable financial claims upon the Government of India and on the other hand contained no element of practical assistance towards the solution of the problems at issue. In the circumstances it was decided that no joint Report could be signed and that in its place the papers and correspondence should be forwarded to Government, 3. Attitude of the permanent Members of the Committee.The individual Reports have been drawn up, for the sake of uniformity and convenience, in the same general form, but they necessarily contain among themselves a considerable variety of subject matter and treatment, this variety being dictated by the circumstances of each State and by the views of its representative. The attitude of the permanent Members of the Committee in subscribing to these individual reports requires a brief explanation. A part of the Committee's work consisted in ascertaining with as much accuracy as circumstances permitted the facts and figures relevant to the questions at issue, and the Committee in recording in the body of the Report its opinions under this head has acted Fith unanimity, the conclusions reached in each case representing the agreement of all four Members. A second part of the inquiry consisted in ascertaining the views and intentions of the Darbar in regard to the 'main questions of opium policy in the future. In discussions under this hend the permanent Members of the Committee hare endeavoured to secure full consideration of all relevant factors and to ·2 suggest the adoption of lines of policy suitable to the broader issues involved; bat ire have necessarily failed to secure consistency of agreement on the part of the State Members. The Darbar's views as represented by the State Members vary greatly and we have subscribed to a statement of these views in the Reports without necessarily implying agreement with them. 4. Reasons for writing a General Report. It seems desirable, therefore, that an attempt should be made both to summarise the results detailed in the individual Reports and to indicate the views of the permanent Members ou the more important questions of future policy. 5. Statistical results. The chief statistical results of the Committee's inquiries are embodied in the statements which formi Appendices 4-7. Appendix 4 contains an estimate of the old stocks of opium in the hands of merchants and private persons and also the stocks • belonging to Darbars in cases in which such stocks are considerable. Appendix 5 shows the area under poppy in each cultivating State in 1926-27, the quantity of crude opium produced, the estimated noi mal production in present conditions and the method of disposing of the produce. Appendix 6 contains an estimate, for each of the States that produce on a large scale, of the immediate loss likely to be inflicted upon the Darbar's revenues under different heads if cultivation were abandoned; the extent to which this loss will be reduced by economy in establishment charges, and by the absence of illicit practices due to cultivation; and the percentage of the net loss upon the total revenue of the State. Appendix q shows the estimated present consumption of the States, Estates and Administered Areas of Central India and Rajputana, of Ajmer-Merwara and of the Gwalior, Hyderabad and Baroda States, and the present incidence of consumption per 10,000 of population. It shows also, for the States included in the Committee's inquiries, the present total revenue from opium taxation ; the present retail sale price per seer and taxation revenue per seer; and the taxation incidence per head of population. 8. Division of subject matter.-In the individual Reports it has been impossible owing to limitations of space and time to deal seriatim with each item in the Committee's Terms of Reference. The Reports include, as accompaniments, the information furnished by the Darbars in reply to the Terms of Reference, and the subject matter of the Reports themselves has been confined to the more important of the questions at issue. These were dealt with under the following heads : (1) Old stocks of opium, and the feasibility of a scheme for placing these stocks under control and passing them into consumption as quickly as possible.

·3 (2) Production of opium in the States, including the views of the Darbar (generally stated in the Darbar's accompanying note), and an attempt to estimate the loss involved to the major producing States of cultivation were discontinued (3) The final ırrangements for the supply of opium to the States, after the old stocks are exhausted, involving con. sideration of the Government of India's proposal that the States sliould be supplied from Glazipur (4) The possibility of increasing taxation upon opium, and the probable financial results of doing so The above four sub divisions of the whole subject matter are necessarily interconnected The policy adopted in regard to one of them will affect the rest, so that the task of disentangling the different factors, of giving to each its due weight and of formulating any clear and comprehensive scheme for the future is beset with difficulties In attempting this tash in the pergraphs that follow we have thought it best to retain the classification into four mam sub divisions already adopted in the individual Reports II -OLD STOCKS ON OPIUM - 7. Quantity and present arrangements for control The stocks of hard opium in the States are estimated (omitting small quantities in the possession of Darbars), at 29.270 maunds (Appendıs 4) Out of this total 2,830 muunds together with the small quantities not enumerated are in possession of the Darbars under State lock and hey The stocks so held are not in excess of immediate requirements except in a few States, of which Barocla 18 the most noticeable, and they need sot concern 119 further The balance of 26,440 muunds is held by merchants and prirate persons in conditions of control which vary considerably, the opium in the merchants' godowns being in some cases hept under the seal or lock of State officers but in others being subject only to certain account regulations and to a periodical inspection shich must often be somen hat perfunctory and ineffective No less than 17,000 maunds out of the total are held in the Mewar State, and it must be noted that the control over those stochs is nominal and thnt the estimate of their quantity is still provisional only, no complete or accurate enumeration kring been effected (vide Howar Report, paragraph 1) 8 Distinction botwoon ball and biscuit opium - In considering the question of old stocks, as also that of demand and production, it is necessary to differentinte betrecn ball and biscuit opium The former mas the staple opium of the China trade and the closing of that trade left large stochs of lull opium in the hands of merchants and private persons The supply thereafter hewg much in excets of the dumud thc mlue of tliis opiun kas ·4 declined greatly in recent years, the price realised per chest of 140 lbs. being Rs. 1,800 in 1918 compared with Rs. 600 or less at the present time. The current price is in fact below the cost of production, and the present tendency in States that consume ball opium is to obtain their supplies increasingly from the old stocks rather than by new production. The manufacture of this opium has however been kept alive by three factors; first, the fact that some consumers prefer a comparatively soft opium, recently matured; secondly, the fact that some States have retained through habit or for political reasons the production of opium even when it has ceased to be economically justified; and thirdly, the fact that the States which supply opium to Government retain and manufacture into excise balls or cakes the opium rejected as unsuitable for Government use. On the other hand the demand for biscuit opium has, we believe, been confined always to certain States of Rajputana. It is consumed in the western States of Jaisalmer, Bikaner, Jodhpur, Sirohi and Kishangarh; in three quarters of Jaipur; in Ajmer- Merwara; and of the eastern States in Bundi and Rotah, and about half of Karauli. Biscuit opium is produced mainly by Kotah but to some extent also by Tonk and Jhalawar. The market has not been influenced, like that of ball opium, by the existence of excessive stocks, and the price is consequently governed by the present cost of production and is higher than the price of old ball opium. It rules at present from Rs. 13 to 15 per seer compared with Rs. 7 to 9, the present cost of old ball opium. The stocks are probably more than the trade actually requires, on account of failure to regulate production in Kotah, but they do not amount to much more than three years' demand. 9. Market for stocks of ball opium.--The stocks of har ball opium in the hands of merchants and private persons are estimated at 20,400 maunds (Appendix 4, column 2). The present annual demand for this opium is about 2,200 maunds (Appendix 7), so that if there were no new production the stocks would suffice for about 97 years. The demand, however, is partly met by new production and in order to estimate the extent to which this is likely to occur in future it is necessary to analyse the figures given in Appendix 5. In 1926-27 there were 24 opium producing States and the outturn of crude opium was 11,686 maunds. Thirteen out of the 24 States produced for an external market, 10 sending opium to the Ghazipur Factory, one (Tonk) producing both for Ghazipur and for export to other States and two (Kotab and Mewar) producing for export to other States. The Mewar State has now, however, prohibited cultivation for opium, so that the States which normally produce for an external market are now 12 in number. The remaining 11 States produced in 1926-27 for their own internal consumption only. Two out of these 11 have since prohibited cultivation and 7 have in our discussions agreed under certain conditions to discontinue opium production, as a temporary measure, in order to facilitate the absorption of the old stocks; one State (Baroda) is unwilțing to discontinue production; another (Banswara) has agreed to reduce culti·vation by 50 per cent to 100 acres Assuming therefore, as the present basis of calculation, the continuance of cultivation by 12 States in the first category and 2 in the second, the output estimated as normal in the future is found to be 9,333 maunds of crude opium (column 9 of Appendix 5) Of the total 6,450 muunds represent production for Government under the present agreements, 2,381 maunds represent biscuit opium produced for internal consumption in the States and 502 maunds represent production of ball opium for the States But it must be noted that the States which produce for the Government of India retain annually for internal consumption a çertuin quantity of opium which is rejected as unsuitable for the Ghazipur L'actory or in excess of the quantity specified in the agree ment with Government The quantities so ietuned vary with the season and cannot be exactly calculated, but they serve to increasa the renl total of opium produced in the States for consumption in the States We may perhaps allow about 100 mounds for this factor, thus increasing the annual estimated bill output from 502 to 600 maunds of crude opium, representing nearly 450 maunds of hard opium At this rate of production the annual demand upon the old stocks of ball opium would be reduced to 1,750 mrunds and about 11% years would pass before the old stochs were consumed 10 Probable future production of ball opium - We anticipate, however, that whatever may be the final settlement in regard to opium production in the States, the production of opium for consumption in States that use ball opium will_m futuje be somewhat less than 450 maunds in the mature form There appear, for reasons to be developed in later paragraphs of this Report, to be two probable alternatives Either production in the States will be discontinued altogether, or production will continue under some arrangement which will give the States a definite share in supplying the opium demand of India as a whole In the former caso the opium demand of the States using ball opium can be concona trated entirely upon the old stochs, until they are exhausted, this would happen as stated above, in about 14 years In the latter case at will be possible, we think, to make it a condition of the settlement that the States shall cease to manufacture ball opium for consumpa tion in the States until the old stocks are exhausted If an agreement of this lind were effected with the major producing States, production of ball opium for internal consumption would continue only in Baroda and Banswara, and the total produced (allowing also for the retention of rejected or excess opium) would probably not exceed 160 maunds of crude opium equivalent to about 120 maunds of hard opium The demand upon the old stocks would then be roughly 2,000 maunds annually and the stocks would disappeır in a little more than 10 yeurs 11 Necessity of a comprehensive scheme for pur. chasing and warehousing old stocks of ball opium We thus anticipate for the old stocks of ball opium : marhet in the consuming States of 2,000 to 2,200 maunds annually, which would ·8 purchase price (incluand purchasing expenses) as high as Rs. 578 per chest, equivalent to Rs. 8-8 per seer or Rs. 340 per maund. The price to be paid for 20,400 maunds will then be Rs. 69,36,000. The cost of purchasing, establishment, etc., according to the rough estimate given in Appendix 10, will be about Rs. 3-4 per maund, and the railway freight to the warehonses (assuming them to be in Central India) and labour charges may bring the purchasing cost up to Rs. 6 per maund. This comparatively small item is assumed (as stated above) to be included in the purchase price of Rs. 340 per maund. The time required for purchasing, if the operations are continuous, is estimated in Appendix 10 to be about 16 months. Payment should be made to the owners as soon as the testing and purchasing operations are complete in each individual case, and it will be desirable to arrange financial provision in such a way that this can be done and that the operations can be carried on from one financial year to another rithout intermission. 15. Cost of warehousing and issuing. It will be necessary to provide godown accommodation, a watch and card establislıment and an issuing establishment. It is probable that suitable godowns for the Mewar opium could be hired at Necmuch, and the remainder could be warehoused in the present Government godown at Indore. A rough estimate of the cost involved is given in Appendis 11; it amounts to Rs. 17.490.annually. If 2,000 maunds are issued annually, according to the lower estimate giren in the first sentence of paragraph 11 above, the cost of warehousing and issuing may safely be reckoned as a charge not exceeding Rs. 10 upon every maind issued. 16. Interest charges and selling price.-The remaining item to be considered, and by far the most serious in its incidence on selling price, is the interest charge on the capital expenditure of Rs. 69,36,000. On the assumption that interest will be chargeable at 5 per cent. annually on the outstanding balances, and that issues will be 2,000 maunds annually for 10 years and 400 maunds in the 11th year (thus totalling 20,400 maunds), a selling price of Rs. 442 per maund will almost exactly recoup the capital and interest charges, as shown in Appendix 12. It thus appears that if the underlying assumptions in regard to the quantity of opium to be purchased, the purchase price, the interest to be charged on capital, the establishment expenses and the annual sales are accepted, then a selling price of Rs. 452 per maund (including the Rs. 10 set off against establishment charges) will place the scheme on a sound financial basis. The price is less by Rs. 68 per maund than the maximum limit of Rs. 520 indicated in paragraph 13. There is thus an ample margin to meet the freight and insurance charges from the godowns to the consuming States. Such charges are not likely to exceed Rs. 10 per maund and will generally be much less. 17. Provisional character of present estimates. It cannot of course be claimed at this stage that the calculation given in Appendix 12 represents anything more than a rough guide to financial results. The actual quantity of the Mewar stocks is itself ·still a matter of uncertainty. The purchasing of the opium would probably take more than a year to complete, so that interest would not in fact be chargeable on the full capital expenditure from the first year. The extent of the annual demand is also a matter that can only be determined exactly by actual experience. When these factors are more fully known it will be the task of expert accountancy to determine what selling price is required. We claim to demonstrate only that in the light of present knowledge, and upon a conservative estimation of the factors involved, it appears that Government could safely tindertake to find the necessary capital. 18. Export duty.—The calculations given above assume that the States in which the stocks are held will forego the customs duty at. present levied on opium exports. This question tras discussed with the Devar representative, who however iras able to commit the Darbar only to a reduction of the duty from Rs. 100 to Rs. 50 per chest, “ without prejudice to a further discussion of this point when the scheme has been placed upon a more definite basis" (Herrar Report, page 3). If the Darbar insisted upon a levy of Rs. 50 per chest on 10,000 chests, the cost of purchase would be increased by Rs. 5 lakhs, and the financial basis of the scheme would be materially affected. We cannot suppose that the Darbar will in fact insist. The scheme is calculated to put into the pockets of merchants and private persons in the State some Rs. 57 lakhs, in exchange for a commodity which is nearly unsaleable at the present time and losing market value with every year that passes. The setting free of this capital for profitable uses must greatly increase the prosperity of the State; and this is likely to react favourably upon the Darbar's revenues from customs imports. Moreover when the stocks are brought under control the Darbar will be able, and will doubtless take steps, to obtain excise revenue from opium consumption. By imposing taxation of only Rs. 10 per seer consumed a revenue could probably be obtained exceeding Rs. 1 lakh. The Darbar's export duty on opium on the other hand has averaged in the last five years only Rs. 30,840 annually. It should, we think, be inade plain at the outset of any negotiations with the States in which stocks are held that a claim to export duty on the opium purchased by Government cannot be conceded. Two of the consuming States (Řewa and Bikaner) have themselves insisted upon this stipulation as a condition of purchasing from the central stocks. 19. Inferior opium.-It is possible that some of the old opium will be found to be much adulterated and inferior in more phine content. Whether age in itself produces a loss of morphine rontent appears to be a question still undecided; we believe that recent experiments tend to show that opium even 20 years old or more may give a comparatively high morphine content. However it is fairly certain that the old stocks contain a proportion, and perhaps a high proportion, of definitely inferior opium, and any scheme for wholesale purchase must take this factor into account. The difficulty clearly cannot be solved by rejecting the bad opium anl leaving it in the owners' hands. To do so, when all avenues of ·10 legitimate sale are simultaneously closed, would merely invite illicit disposal. It seems necessary therefore that no opium should be rejected out-right, that the price should be adjusted to morphine content and that (if it is possible) a distinction should be drawn as regards adulterated opium between adulteration which is harmless from the consumer's point of view and that which definitely makes the opium unfit for consumption. Adulterated opium of the second class would be paid for at a rate based upon its value for extraction of alkaloids and might be sent to the Ghazipur Factory for that purpose. Opium fit for consumption might be graded according to morphine content and the issue price adjusted according to the grade. It seems probable that some States will be ready to purchase the weaker grades on account of their cheapness. In the Hyderabad State consumers have long been accustomed to opium with a low morphine content and it appears that a low content has actually been prescribed by the State in its contract for supply. If the selling price is graded in this way, the price of Rs. 452 per maund arrived at in the calculations in paragraph 16 above will represent the average price charged. 20. Stocks in Bhopal. We have to note one further point in connection with the scheme of purchasing old stocks of ball opium. Stocks amounting to 539 maunds are held by merchants in the Bhopal State. They are not secured by proper arrangements for State control and instances have occurred of theft and smuggling from these stocks. The Darbar have represented on several occasions in the past their desire that Government should purchase the opium. In our discussions with the Bhopal representative the condition was however imposed by the Darbar that if the stocks are purchased the State shall receive from the Government of India, in addition to the purchase price paid to the merchants, a sum equivalent to onehalf of the taxation revenue that would be realized on the sale of the opium if it were sold in a province of British India. In other words the Darbar claim, in addition to the market value of perhaps Rs. 8-8 per seer, or Rs. 1,83,260 altogether, a taxation value of perhaps Rs. 43 per seer, or Rs. 9,27,080 altogether. (Rs. 43 represents half the average present taxation revenue of the Bombay Presidency, the United Provinces and the Central Provinces.) We are forwarding to Government a correspondence with the Dárbar's representative which contains a full discussion of this very surprising demand. So long as it is maintained there can of course be no question of purchasing these stocks. The Darbar have signified also that they are prepared to warehouse the opium only if it is subsequently purchased by Government on the terms stated above. We can only record, with regret, our failure in this instance to obtain any measure of co-operation from the Darbar. 21. Stocks of biscuit opium in Kotah.The stocks of biscuit opium amount to 6,040 maunds, out of which 5,351 maunds are the property of Kotah merchants. The estimated annual consumption of biscuit opium in the States is about 1,900 mauris. The attitude of the Kotah Darbar in regard to their stocks is perhaps ·11 not unfairly summarized by saying that they would like to see tho merchants relieved of surplus stocks but are strongly opposed to the closing down or restriction of tho trade or to the stopping or restric tion of the cultivation in the State from which the trade draws its supplies They are prepared, however, to insist upon the manufacture and export of opium by licensed dealers being carried out in future in State godowns under State supervision We see no reason at present to advocate the purchase of these stocks by a central authority If manufacture of biscuit opium in the State ceases, the stocks will be automatically absorbed within a few years If manufacture continues, it seems reasonable to require that the Darbar should take the necessary steps to diminish the stochs, by temporarily restricting cultivation, and to bring them into adequate control The control is not in fact likely to be satisfictory until the licensed wholesale dealers are abolished and the full State nonopoly system is introduced, the crude opium being handed over by the cultivators to State officials and the manufacture being taken over by the Darbar That, however, 18 a course which the Darbar do not at present admit to be practicable It 18 worth noting in this connection that biscuit opium appears to be manufactured by some dealers out of ball opium which is broken up, softened and remade in biscuit form This 19 a process which might conceivably be applied in the Gov. ernment godowns to a part of the stocks of hard ball opium If this could be done successfully, the resulting biscuit opium could be supplied to some of the biscuit consuming States and the marhet for the old stocks of ball opium could thus be enlarged It is not impossible that the Kotah Darbar, when faced with the possibility of thus losing a considerable part of their normal market, might as a condition of retaining it be able to reconsider their position, to restrict cultivation until the old stocks were absorbed and then to cancel their wholesale dealers' licenses and enforce a State monopoly Ur manufacture 22 Stocks of biscuit opium in Jhalawar and Tonk -There are also stocks of about 300 maunds of biscuit opium in Jhalawar and about 350 maunds in Tonk Manufacture in the Jhalawar State has been carried out in the past mainly irom imported opium The Darbar have now prohibited import, so that the manufacture of biscuit opium 18 likely in future to be restricted to very small dimensions, the only material being crude opium which has been produced in the State and rejected as unsuitable for Ghazipur The stocks will probably disappear in a few years, and the Darbar are prepared at once to warehouse the stocks and to permit future manufacture only in a State godown In Tonk there is a regular export trade to other States of both ball and biscuit opium, supplied by cultivation in the Chhabra purgana und carried out under the licensed dealer system The trade is not very large but it is valued by the Darbar, who tre prepared, if it continues to enforce the State monopoly system of production and manufacture The old stocks of biscuit opium in both States will thus in any event be absorbed or brought under contiol before rery long D ·12 III.-PRODUCTION OF OPIUM IN THE STATES. (i) AGRICULTURE. 23. Extent of cultivation. The figures of cultivation in 1926-27 are shown in Appendix 5. Three of the States which cultivated in that year have now, however, abandoned cultivation, and seven others have provisionally agreed to abandon it. There remain 14 producing States with an estimated normal area under poppy of 36,866 acres and an outturn of 9,333 maunds of crude spium. The States The States may be classified as follows:- Acres. Maunds. 1. Gwalior, Indore, Partabgarh, Jaora, Sitamau, Jhalawar, Tonk, Ratlam, Dewas Junior Branch, Sailana and Piploda, producing for the Government of India 26,545 6,450 2. Kotah and Tonk, prodncing, ball opium for States' consumption 1,710 445 3. Baroda and Banswara, producing ball opium for their own consumption only 321 57 4. Katah and Tonk, producing biscuit opium far States' consumption 8,290 2,387 TOTAL 36,866 9,333 24. Method of cultivation, rotations, soil and irrigation. It is not necessary for the purposes of this Committee to detail at length the operations of poppy cultivation. A considerable amount of literature is available on the subject. The seedi is sown about November in small beds about 6 feet x 4 feet and the poppy gets from 7 to 8 waterings. Garlic, onion, etc., are sown on the small bunds between plots and sometimes other plants are sowe with the poppy and removed when the poppy gets bigger. Seed is sown broadcast and thinning takes place when the young plants are close together. The surface of the soil is kept friable by, band and the skin or papry", left after irrigation, is broken by hand cultivation. The capsules when ripe are lanced by special fourbladed knives and the chik'scraped off. It is usual in Central India and Rajputana to grow. maize, ir kharif and poppy in the same land in rabi. This, rotation may continue year after year on the same land, fairly heavy manuring being carried out. On some land“ hemp is. grown as: a manurial erop in kharif. Poppy is sometimes grown after baji:i ' on light land. and it is also found in the ground in which sugarcane has been sun 80wn. Generally opium is cultivated on a good class 6 garden soil*** In Baroda it was found that poppy was grown on very liglit sandy soil of poor quality to which numerous waterings were given. The poppy plant seems to be very adaptable but prefers rich well drained loam.

·1 18 Irr most cases the poppy is irrigated froth Wells which are equip- Dell withi mots for raising the water. Å detailed description of the mot is unnecessary as it merely consists of a leather bucket which is drawn up the well by bullocks walking down a ramp: Tie Hells throughdut the poppy growing trart ire very apt to rüh dry, tlieexperise of water raising is heavy and one twell is generally sdid tos iligate ouly, 2 to 4 acres giving some 8 irrigations during the rabr season. Owing to the restrictiofi in area in recent years poppy is now generally confined to the best of the irrigated villages. Th practice a cultivator nunlly has both itrigated and non-irrigated lantis in addition to grazing rights on comblon lantls. Nofl-irrigated fands getierally groit khart crops such as jorcar, Bajri and cotton and sometimes, in rabi, wheat, while a cultivator contentrates tilost of his manire bn the irrigated portion. 25. The liability of tho yidid of poppy to fluctuate. Poppy on the whole seenis to be a hardy trup and not sttbject to mycological or entomologicat enemies. Unséasonable rain delaying sowing or preventing cultural operatiotis sometimes dbės considerable damage. Severe frost is also dreaded. Figures of actual outturns supplied by three representative States are given in Appendix 13. The period for poppy cultivation begins from October and ends by the month of Marcit, z.e., just after the rainy season is over and before the summer sets in. This period for poppy cultivation is the best and the most suitable one. Although the yield does fluctuate owing to seasonal conditions, viz., frost, excess of winter showers or deficienť rainfall as also hail storm, all of which adversely affect the crop, yet these, calamities equally affect other crops. From figures supplied by the Tonk State for 22 years (Appendix A to the Dar bar's Note accompanying the Tonk Report) it appears that the average yield per bigha in this period was 5 seers 14 chhafaks, the maximum being 134 seers. The result of an examination of the figures is inconclusíte. I're only year (1909) where there was no frost or hail there was a bumper crop, averaging 13 4 scers, but in 1911 when there was no apparent reason for a bad year the average wa's owly 4.15 seers per acre. Drought appears to be the serious danger, as shown by the year 1912 with a yield of 1 11. The only conclusion that can be drawn from the figures is that opium is in most cases neftler more nor less susceptible than other ralı crops, and is less susceptible to frest than Thania which is being grown as an alternative crop. 26. Tře advantages of poppy cultivation to the cultivator.–Apart from the question (discussed in the next paragraph) of the higher money value of poppy compared with other efops, the following advantages are noted. (1) The great advantage which poppy has over all other crops to the cultivator in Central India and Rajputana is that he receives ir casłt the price for the "chik" or crude opium on delirery to the State official. This price is uniform year by year and does not fluctuate like that of other crops, especially export crops. All other crops are sold to middlc-mea and the transaction is generally bound B2 ·14 ៩ ap with money lending business. This rendy pioney supply is a very important item in the cultivator's economic circumstances. For other cultiration he nust borrow money to finance his operations and le frequently has to sell his produce to the money lenders and so is hit in two ways. Even a small area of poppy and the cousequent supply of ready money is valuable to him and it enables him to finance his other cultivation. The absolute extinction of poppy cultivation is thus a serious matter to the cultivator and the value of poppy cultivation increases as the area diminishes. It is not correct to say that because there has been a great decrease in the area of poppy cultivation without very visible harmful effect then therefore poppy cultivation can be iotally extinguished without considerable clamage. (2). The more crops that the cultivator has got the better is his financial state. If all his eggs are in one basket naturally his financial state is more precarious and the extinction of one really useful стор is quite a serious matter. (3) Poppy seed contains a valuable edible oil and is a useful drying paint oil'. There is a considerable export as well as a local demand. The value is increasing as thic area under poppy decreasing. Eridence before the Committee shows that up to 8 maunds of seed can be produced per acre in addition to the opium and this may fetch Rs. S a mauud. (4) It is customary to grow, as already stated, subsidiary crops along with the poppy such as garlic, cumin, fenugreek, etc. luch importance has been put on this point br most States, but the value of these subsidiary crops is generally exaggerated and in any comparison with other crops it must be remembered that subsidiary crops can also to a certain extent be groin with them. It seems to be generally considered among cultivators that poppy cultivation las a manurial effect on the soil and that better crops are produced in the land in which poppy is cultivated. This view is probably due to a misconception between cause and effect. The cultivator generally manures the poppy to the best of his ability and cultivates his ground as well as he can. The fertility of the land is increased by these means but not by the poppy growing. Except a little humus which is returned to the soil by the falling of leaves and by the roots there is no manurial effect; on the contrary, when the seed is esported there is a heavy drain on the land. (5) The young poppy plant is also edible and is used in the forn a spinach. The plants veeded out during the thinning operation are used for this purpose. 27. The possibility of substituting other crops for the poppy.--This raises first of all the question whether it is possible to replace the poppy with other crops equally paying to the cultivator. The question has been discussed at length with all the more important producing States. In the earlier Reports the point was reserved for further consideration after the Committee had been able to visit the chief poppy areas and to arrive at provisional conclusions. It became apparent, however, as the discussions with ·15 producing States progressed, that there was no prospect of the Committee as a whole (including the State's representative) being able to formulate any agreed conclusions on the subject It was decided finally, as the best method of focussing and presenting to Government the views of the different producing States, that a Note on the subject by Mr Henderson (representing the views of the permanent members of the Committee) should be circulated to the States, that they should be inated to express agreement with or to criticise the Note, and that the Note with the States' replies should be forwarded to Government along with the individual Reports This has accordingly been done The conclusions which we record below are in the main an amplification of those already advanced in Mr Henderson's Note 28 Comparison of the money value of crops --All the chief producing States have given figures showing the loss to the cultivator of substituting other crops in the areas at present under poppy These statements which will be found either in the 10- companiments to the individual Reports or in the replies to Mr Henderson's Note, in most cases go into considerable detail, but on the whole they cannot be said to carry much conviction In fact in many cases the figures given are wholly inaccurate In actual practice when poppy is stopped, in good garden land, a mixture of cops tahe its place By gaiden land is understood land which is suitable and generally used for growing garden crops, i e, minor irrigated crops in contradiction to the major staple crops It is fairly obvious th it as subsidiary crops are already grown along with the poppy the subsıdıury ciops are suitable for the land and have a local marhet The States have generally based their figures of loss by comparing with the poppy crop rotations which are improbable and against the rules of good husbandry, such as muze and wheat grown in successive years In one case fallow in Tharif and wheat in ravi were shown as substitutes, and the figures given made out that if poppy were left out of the poppy rotation, and only maize in Tharif and subsidiary crops grown, the resulting yield would be greater than the substitute rotation, i e, the poppy side lines without the poppy were shown to give more profit than if the land were sown in staple crops This result is clearly absurd The difficulty of accepting the States' figures is shown again in the two statements, reproduced in Appendix 14, which contain examples based on the figures supplied by two States, Sitamau and Tonh, of tho economics of typical holdings In statement A (of Sitamyu) the total profit made by a cultivator with an average holding of about two acres irrigated and 20 acres dry crop is given as about Rs 162 On the other hand in statement B of the Tonk State, nich cer. tuinly has not the reputation of having such fertile land is that of Sıtımıu, the profit of a cultivator from a similar holding is put at Rs 304 Such examples can be multiplied indefinitely It 19 not, in fact possible to gue a definite figure in rupees per acre which would represent the loss to the cultuator from the stoppage of opium cultivation and the substitution of any crop or crops, ·The factors which govern the substitution vary not only from State to State but even from village to village. To draw up figures for each village through the whole of the present poppy growing area would involve an expenditure of time and labour altogether beyond the powers of the Committee. It would probably entail more work than an ordinary Settlement Revision, for which, in a single State only, an expert and highly paid official is generally on special duty for some considerable time. Even in a single village a comparison between the value of opium and that of other staple produce will he aftected by market fluctuations. While the money value of opium remains fairly constant-a fact which itself gives the poppy a great advantage to the cultivator-that of other staples and especially of the chief export crops depends upon market conditions which may vary greatly froni one season to another. An exact assessment of comparative economic results would therefore be difficult in a limited area; it is quite impracticable in the case of a large number of States -embracing wide varieties of agricultural and economic conditions. It is only possible, in dealing with this subject, to indicate in general terms that substitute crops are available and what are the chief difficulties that stand in the way of substitution. 29. Substituto crops.-We consider that there is no single crop under ordinary conditions which can be immediately and profilably substituted for the poppy. Inspection of poppy areas does showerer l'eveal a large number of alternative irrigated crops which are cultivated at the present time. Appendix 15 contains a list of 42 varieties of crops actually found growing on irrigated land in Central India and Rajputana. It is obvious from this list that there is a considerable amount of material for selection under differen! conditions. The more important of the substitute crops may be placed in the following order--cane, cotton, chillies, groundnut, tobacco, wheat, onions and garlic, general vegetables and umbelliferae of various kinds. Given proper advice, seed and marketing facilities, there seems to be no reason why a mixture of staple and garden crops should not be grown in place of the poppy; and when the substitution has been effected, it will probably be found that the cultivator's profit is not seriously diminished. His position will in fact be stronger if in place of a single predominant irrigated crop, the market for which is uncertain and tends to diminish, a large variety of crops and rotations is eventually substituted. But the process of substitution is by no means easy, and until it has been successfully carried out the cultivator will unquestionably suffer loss. 30. Difficulties involved in substitution. It is evident in the first place that the substitution on anything like a large scale of one crop for another must be attended by considerable economic difficulty. It has to be a gradual affair. For example take the case of sugarcane. The seed required for an acre of cane weighs about 50, maunds and it is perishable and difficult to transport. For making this cane into gur mills are required and pans for boiling. Consequently the “ bandobast” required for growing, ·17 say, 500 acres of cane in a new district is very considerable. The same applies to other crops to a larger or smaller degree. The cultirator will also have other difficulties to face during the transition stage. The chief olxstacles to substitution may be classified under the following heads:- (1) Superstitions and prejudices of the cultivators. (2) The inferiority of the wells. (3) The local State Customs Tariffs. (4) Want of knowledge, technique and supply of suitable seed. (5) Difficulties in marketing produce. (1) Superstitions. The cultivators seem to have, in Central India and Rajputana, some very rigid superstitions and traditions, For example, it is considered unlucky in some places to grow chil. lies; tobacco is often only grown by one particular caste; turmeric is considered to be very unlucky. The eradication of these superstitions needs a considerable amount of propaganda work. (2) IVells.--In many cases the wells practically run dry in April and May. This creates a difficulty for the cultivation of sugarcane. Some of the new Coimbatore canes might be found suitable for gur making. They can grow with much less irrigation water. Some work has been done with cotton suitable for irrigation and Pusa wheats have penetrated into many States, generally in a very deteriorated condition. (3) Customs Tariff.-Nearly all States have an internal Customs system which beats hardly on cultivators and prevents them from obtaining the proper market prices for their produce. In some cases the esport of wheat, etc., is prohibited. This ucts very harshly on the grower while benefiting the town dweller. It wag found in one case that there was a duty of Rs. 1-8 per maund on kapas' or seed cotton, which is a terrible burden for cotton to bear. Many States have State gins to which all the kapas must be bent. (4) Want of knowledge and good seed.-For want of knowledge and good seed the general standard of agricultural technique in the States visited is considerably below that found in the better parts of British India. A great deal of propaganda is urgently required, also seeds, agricultural implements and general care for the production of clean produce. There is urgent need for the supply of good seed true to type of all kinds. The smaller States speciallý have great difficulty in getting proper seed. For example, in the present year damage by rust in wheat has been very extensive, especially in Bundelkhand. Where Pusa rust-resisting wheats were grown the damage was nominal. One State gives evidence to show that the growing of Pusa wheat meant an increased gain to the State in the present year of two lakhs of rupees. Much could be done by "line " sowing, instead of broadcasting. Simple irón ploughs and wooden drills and intercultural implements are Ide quired.

·18 It may be added that while visiting the States the cattle population was carefully observed and it was found that some areas had most excellent raw material, but mixing and consequent deterioration is going on rapidly. It is true that some of the States have agricultural departments, but the efficiency of these seems to vary considerably. The existence of a large number of non-co-ordinated agricultural departments scattered over Rajputana and Central India is not a sound proposition. Even under the best conditions the areas are too small and the want of inter-State communication is badly felt. (5) Marketing. Before much improvement in the agriculture of the tract under observation can be accomplished market facilities will have to established for agricultural produce. Those States which put a very heavy customs duty on staple agricultural crops are really hitting at the base of their Stațe prosperity, as they are depriving the cultivator of the benefit of outside markets. (ii) FINANCE. 31. Number of States financially affected. The estimated effect upon the States' revenues of abandoning poppy cultivation is shown in Appendix 6. States that cultivate for their own internal consumption only are not included in this Appendix, nor do the individual Reports of these States contain a detailed examination of the profit or loss from cultivation. We believe, as stated in paragraph 8 above, that opium production in their case is not in fact economically profitable; because the cultivation is too small to affect land revenue returns or to benefit the cultivator to any appreciable extent, and because so long as stocks of old opium are available it is cheaper to purchase from the old stocks than to produce The States that produce opium for an external market stand in a very different position. Cultivation being now prohibited in Mewar,-- the number of these States is twelve, eleven of which (including Tonk) produce for government and two (Tonk and Kotah) produce for export to other States. The Ratlam Darbar have recently entered into a contract for five years to supply opium to the Hyderabad State. Should the Darbar enlarge their cultivation for the purpose of this contract as they claim the intention of doing—then there will be three States producing for an external State market. As however cultivation in Ratlam (alone of the States that produce for Government) has never hitherto sufficed to produce the full quota prescribed in the agreement with Government, and as the purchase of hard opium to meet the contract is more profitable than its production in the State, it is unlikely that Ratlam will produce opium for supply to Hyderabad within the five years of the present contract. We have therefore to consider, at present, the case of twelve States, eleven of which produce for Government and two for consumption in the States. The former class may be considered Srst. 1 ·19 32 States producing for Government Total losses anticipated if opium production is abandoned --Appendıx 6 shows that the total revenues of the 11 States that produce for Government are approximately Rs 3,70,00,000 and that the total loss involved in abandoning this production is estimated at Rs 7,60,000, or 21 per cent of the revenues, It is calculated that the gross decrease in State revenues will be Rs 9,03,000, but that this loss will be reduced by Rs 1,43,000 by reductions in establishment charges and by the gain in ercise opium revenues to bo expected if cultivation ceases 33 Loss of profit on sale of opium to Government. -The chief item of loss (Rs 7,38,000) is that of the States' profit on the sale of opium to Government The profit averages at present from Rs 2 to Rs 3 per seer of crude opium sent to Ghazipur, and represents the difference between the factory valuation and the price paid by the Darbars to the cultivators It has been recognised, since the scheme of production for Government was started, that the States were entitled to receive a margin of profit Its justification therefore is not likely to be challenged, but it may be noted in passing that this profit when analysed from the point of view of the previous history of opium production in the States resolves itself into the three components of land revenue, middleman's profit and export duty The element of land revenue appears in the case of certain States which levied, in the time of the China trade, a special cess upon poppy cultivation but abandoned the cess when cultivation temporarily ceased about the year 1913 Ie a few other States there was no special cess but in land revenue Settlements effected during this period of non production the irrigated rates, previously pitched high in view of the profits of poppy cultivation, were reduced When cultivation was resumed in 1916 17 the poppy cess was not reimposed or the general irrigation rate increased, but the States retained instead a larger share of the sale price of the crude opium by paying the cultivator less As a con crete example, a State which previously levied a cess upon poppy lands of Rs 8 per acre might decide instead of the cess to retain out of the sale price received from Government Rs 3 instead of Rs 2 per seer On an average production of 8 seers per acre the cultivator would thus, by losing Re I per seer, be paying the exact equivalent of the previous cess Specific instances of this arrange ment are quoted in the next paragraph As regards middleman's profit it was made a condition of production for the Government of India that the State monopoly system should be enforced The wholesale dealers who, in the days of the China trade, collected the crude opium from the cultivators were therefore replaced by State officials As regards expoit duty, this was levied by the States in the time of the China trade at varying rates on every chest of opium sent to Bombay or to other States It was agreed in 1916 17 that this export duty should not be charged upon opium sent to Ghazipur The Darbars consider the profit upon sales of opium to Government to be in part a substitute for the small export ·20 duty which they regard as rightfully claimable; and in view of the immense profits made by the Government of India as exporters of opium it is not casy to challenge the equity of this claim. 34. Loss of Land Rovenue.--(1) The loss of land revenue anticipated if production for Government were to cease amounts to Rs. 1,34,000. The calculation of this item has been by no means easy; and the total would be higher if in some States land reveline had not been replaced, as explained in the preceding paragraph, by the Darbars taking a larger margin of the price paid by Government for the opium. The actual loss of land revenue will occur chiefly in those States which still retain high irrigated rates based upon the profits .of poppy cultivation. But many Darbars have also argued, and we think with justice, that if poppy cultivation is stopped a certain amount of land at present paying irrigated rates till rerert to dry crops. The question of land assessment is inportant not only in its direct bearing upon the Darbars' revenues from poppy cultivation but also because it gives indirect evidence of the cultivators' profits and of the effect of prohibiting poppy in reducing the toțal of land under irrigation. It seems worth while, therefore, to reproduce from the individual Reports and their accompanying statistics the more important eridence placed before the Committee in this connection. (2) In the Gwalior State prior to 1913 the assessment on poppy lands is stated to have been higher by Rs. 16 per acre than the assessment on other irrigated lands. This cess however was not reimposed when opium production for Government was started in 1916, the Darbar deducting instead a full Rs. 3 per seer from the purchase price paid by Government. (3) In the Devas State, Junior Branch, the irrigation rate charged on land cultivated with the poppy is stated to be higher by Rs. 6 to 7 per acre than the rate for other irrigated land. (4) In the Jaora State a Settlement was carried out in 1912-13, the year in which the China trade ended. The Settlement of that date took no account of the profits of poppy cultivation in assessing the ordinary rates of rent on irrigated land, but provided that in the erent of any land being cultivated with poppy a special additional assessment varying from Rs. 8 to Rs. 9-9 per acre should be levied. The Darbar however have foregone this extra cess upon lands cultivated with poppy for the purpose of the agreemezt with Government. Instead they deduct Rs. 3 per seer from the purchase price paid by Government, and out of the total so realized they credit in the accounts Re. 1 to land revenue and Rs. 2 to profit on the production of opium for Government. In this State between 1916 (the year of least opium production and 1926 the number of wells increased by 17 per cent; but the number of wells in existence in the time of the China trade could not, unfortunately, be ascertained. (5) In the Ratlam State there was a special cess, in the days of the China trade, of Rs. 8 per acre on land cultivated with the poppy. When, cultivation was. resumed for Government this cess ·21 Tras not roimposed, but in its place an extra assessmont of Rs. 4 per acre was imposed upon all urigated land, on the understanding that a cultivator with irrigated land in his holding could crercise the right of growing poppy. Nevertheless poppy cultivation in this State has norer been equal to the Gororament demand, and it amounts nt present to about one-tenth only of the irrigated area This example is interesting as showing, first, that poppy lands could no longer in the Darbar's opinion bear the special poppy cess, and secondly, that even when no special tess was imposed but all irrigated lands were given cqual treatment the poppy did not make Special lead-say. The circumstances of Ratlam are however some What orceptional. The land is particularly fertile for any kind of crop, and cotton production has reached a high level in the State, the Ratlam cotton obtaining a better price in the local market than that of any other State. (6) In the Partabgarh State the number of vells in lhalsa areas in the State is non 1,370, of n lich.308.had fallen into disuse after the China trade tras abolished but have been repaired since 1910, When cultivation for the Government of India began. Tlierc arc 734 wells now in disrepair, all of which were probably in use when tho China trade flourished. The extinction of that trade was therefore followed in a few years by the abandonment of 1,042 wells or soughly one-half of the total of 2,110 wells known to lave been in existence when the trade flourished (7) In the Indore State the Committee ras informed although definite figures have not been placed on the record--that in the Sarer pargana, in which poppy cultivation has altogether ceased, 50 per cent. of the aroa at one time under porry has relapsed mto dry land, (8) In the Jhalawar State the following figures were obtained relating to the year 1905-6, when prodluction for the China trado was at its height, the year 1916-16, when production renched its lowest point, and the year 1926-27:- Year Acres ander poppy Acrca nnder irrigation. Mamber of wells Acres irrigated per well 1903-6 . 3,5 1 8,056 1:19 1915-16 715 0,05 6,129 9,703 4,053 209 1926 27 2,145 00 It nppears from these figures that after the Chinn trade was stopped nearly 60 per cent. of the wells ncre abandoned. But the irrigateu aren decreased by only 10 per cent., presumably because the crops substituted for the poppy required less intensiie watering. Each surviving well thus conimandod a bigger area than beforo; and it appears that this change is perninnent, because the subsequent rein. troduction of poppy cultiration did not affect the agerar arca commanded by cach well but merely added to the irrigated area ·22 and number of wells approximately the acreage and wells required for the revived poppy cultivation. (9) In Kotah, a State which does not produce opium for Government but is still producing for export to other States, it so happens that the 2nd Settlement was introduced in 1906-07 before the closing down of the China trade, and the 3rd Settlement is now nearly completed. The 2nd Settlement was carried out by Mr. (now Sir Harcourt) Butler, who recorded the opinion at that time that if poppy cultivation were to be abandoned the average rate for well irrigation throughout the State would require to be reduced by about Rs. 2-8 per acre, from Rs. 11-8 to Rs. 9-1. (The assessment rates are noticeably moderate in Kotah compared with those of many other States.) The Kotah Darbar claimed in our discussions that if poppy cultivation were to be abandoned now, one-third of the total irrigated area in the State would revert to dry crops, and the irrigated rates on the remaining two-thirds would require reduction by Rs. 2-8 per acre, according to Sir Harcourt Butler's estimate. The loss was accordingly calculated by the Darbar to be Rs. 2,12,727, the figure shown (with a cautionary note) in column 3 of Appendix 6 to this Report. An actual comparison of figures of the 2nd and 3rd Settlements (escluding two Nizamats in which the 3rd Settlement is not yet completed) shows:- 1906-07 1926-27. Vecrease. Por cent. 22,814 8,863 61 Ares under poppy in acres (these figures are for the whole State.) Irrigated area in acres 42,578 42,1:5 1 Number of volls 15,623 11,968 Assessment on irrigated lands Rs. 4,96,037 RA 4,78,942 11-10-5 11-5-9 Rs. 0-4-8 por acro. Average rate of assessmont per arro on irrigafed lands. These figures do not seem to support either the forecast of loss in irrigation assessment made in 1906-7 or the supposition that the abandonment of poppy cultivation now would cause one-third of the irrigated area to revert to dry crop. But a more detailed analysis shows that in regard at least to the reversion of irrigated land to dry crop the result may be serious. This may be inferred by comparing the figures of three divisions of the State, of which Division I (8 Nizamats) has retained poppy cultivation, Division II (5 Nizamats) has partially retained it, Division. III (4 Nizamats +2 for which figures are not yet available) has lost it altogether.

·23 The following figures compare the result of the 3rd Settlement with that of the 2nd in the 17 Nizamats foi wluch figures of the 3rı Settlement are available -- D1718100 IDCT 280 or decreaso of irrigatod arca Decrease in number of wolls Redaction in irrigation rato per acro Per cent Per cent . 1 +39 1 4 2 II 108 7 1 III 20 7 12 It seems clear that the abandonment of poppy cultivation has lind a marhed effect in reducing the number of wells and the irngated area in Division III, but the assessment even in this Division has been reduced by only 8 annas per acre (10) An official forecast report of the Settlement of the Manpur pargana, a portion of British territory near Mhow in which the poppy was previously grown but is now prohibited, gives tho following figures ACTCs tinder Acres irrigated Number of wells Acree irrigated צי pol por el 165 227 9G 24 At provide Sottic. mont 1926 27 93 13 W. poppy, a great dccrense in in the number of wells-- · war figures quoted aborc It is possible that the prosimity of Mhow in this case has provided the well owner with a marhet for vegetables, etc , luchi, grown in small plots, have kept the greater number of wells from falling into disuse The poppy has thus perhaps in this rather exceptional instance been replaced by crops requiring less land or more intensive watering (11) The two instances last quoted show the difficulty of drawing genernl conclusions without local knowledge and detailed study of the statistics But the facts given above, tahen as a whole and drawn as they are from a large number of States, seem to justify the following broad generalizations (1) At the time of the China trade most popps producing States placed a very high assessment either upon poppy lands sporifically or, on account of the great value of the popri crop, upon irrigated Lines generily The crop was therefore of special value both to the producing cultivator and to the rent-recensing Durbar ·24 (ff) The closing down of the China trade caused a high pertentage of wells to be abandoned; a good deal of land to revert tự dry crop, and a loss to the Darbars of the special popívy cess, wliere it was imposed, or alternatively a reduction of irrigated rates in new Settlements as well as much loss of irrigated assessment jir lands that reverted to dry crops. It is evident therefore that the poppy was not easily replaced at that time by other irrigated crops and that its discontinuance caused much loss to the cultivators and the Darbars. (III) It seems certain that the discontinuance of poppy cultivation now would cause some losses to the cultivators and Darbars and the reversion of some irrigated lands to dry crops. But the losses and the disuse of wells would probably be less marked than they were, or were expected to he, a decade ago. The poppy, in other words, las not tlie same pre-eminent positiou now that it lad before. In some States the rents have been adjusted to ordinary irrigated crops. In others, where the adjustment has not yet been effected, the reduction of rates required by the absence of poppy cultivation will be less severe than was formerly the case. Fron the cultivator's point of view some advance has been made in finding other irrigated crops to replace the poppy. That further advance is necessary, and that considerable difficulties have still to be over-- come, are conclusions already suggested in the agricultural Section of this Report. It is also shown there that from the point of view of the agriculturist it is the last and not the first step that brings the most loss. It is not improbable that the abolition of the last twenty acres of poppy cultivation will do more to upset the economic system of a village than the loss of the previous eighty. 35. Incidence of loss upon State revenues.--The incia dence of net loss upon the total State revenues varies greatly in different States. The loss would be entirely disastrous to the revenues of two States and would be serious in the case of at least four more: State. Estimatod not loss. Porcentage of not decrease in State rovovues. Rs. Sitaman. 64,579 23.8 Partabgarh . 1,00,981 19'1 Jhalawar 65,785 80 Piploda. hos 9,396 83,875 Jaora Ratlam 40,950 5.3 TOTAL 3,65,566 ·25 income The cus- It is the smaller States that will suffer most, and it is of course thr smaller States, with their predominantly agricultural populations and restricted sources of revenue, that will least be able to make good the losses We have discovered in the course of our discus- 810ns no obvious means of expanding existing sources of revenue or of finding additional sources In Partabgarh and Jaora, two typical States and the only two of which we have detailed revenue figures, land revenue accounts for 56 per cent of the total combined This will be adversely affected by abandoning poppy cultivation Customs receipts account for 17 per cent toms duties, although indispensable to the budgets of most States, are probably a form of taxation that would be better abolished or much restricted We have noted in paragraph 30 above that they handicap agricultural development Ereise, the next biggest head of revenue, accounts for 8 per cent , leaving 19 per cent of the total to Torests, Stamps, Registration, Law and Justice and other miscellaneous heads, all of which are comparatively small and offer no evident prospect of expansion With regard to Excise, it 18 possible that taxation on liquor could be somewhat increased and it is probable that the excise opium revenues would be much improved if cultivation were abolished and the policy of maximum revenue from minimum consumption adopted The possibility of increasing opium taxation in the States generally is discussed in a later section of this Report But as regards the six States in particular whose losses will be most serious, it is evident from the figures given below that this policy will have a very limited effect upon revenue Apart from any difficulties in the way of increasing taxation, the populations are so small that even if a maximum increase were effected the gain in receipts would not be considerable The present total opium revenue of these States is Rs 29,079, representing an average incidence of 1 anna 3 pies per head of the total population of 370 878 The incidence of opium revenue in the major provinces of British India (escluding Barma and Assum) in 1921-25 mried from 3 annas 1 pie per head in the Central Provinces to 7 pies per head in the United Provinces * The six States in question are not States in which consumption 18 naturally very high, and the populations are generally poorer than those of Britisia India, but if we assume for the present purpose an ultimate inci. dence as high as 4 annas per head, the total opium revenue will then be Rs 92,719, showing an increase on the present figure of R$ 63,640 The estimated total net loss in revenue in these States from discontinuing opium production 18 Rs 3,65 566, so that on the average little more than one sixth of the lost revente is likely at the most optimistic estimate to be made up by increasing opium taxation Moreover it is probable that some ten or fifteen years at least must elapse before the maximum taxation revenue can bo realized Memorandum on Excise Administration in India Opiam 1995-96, pago 51 The figures for 1995-26 are not quoted because many of them includo the cost price of opiunt in the revenue ·26 . 36. Losses of Jagirdars.-In calculating the loss of land revenue likely to be caused by the extinction of poppy cultivation the loss of revenue on Jagir lands has generally been included in the figures given for the State as a whole. In the case of two States, Sitamau and Partabgarh, figures of assessment levied in Jagir lands were not available. The following extracts are reproduced from the Reports of these States.-- Sitamau.--" In the losses detailed above no account has been taken of the diminution of land revenue in Jagir areas. This would amount, on the same calculation as that adopted for State lands, to Rs. 19,703, a very severe loss to the Jagirdars, whose revenues are derived almost entirely from land rents. Partabgarl.-" The loss to the Jagirdars through reduction of rents, calculated on the same basis as for the Darbar, would be about Rs. 60,000. This figure is accepted as a rough estimate, and the Committee is impressed by the very serious reduction in Jagir revenues which the loss connotes. The Jagirdar's revenues are solely those derived from the land. He does not, like the State, obtain revenue from customs, excise, etc., and the proportionate diminution of Jagir incomes would therefore be much heavier even than that of the State revenues There is thus to be added to the figures given in Appendix 6 a total provisionally estimated at about Rs. 80,000 on account of losses to Jagirdars in these two States. It may be added in this connection that in the Jhalawar State about 22 per cent. of the poppy cultivation is in Jagir lands, and it is possible that in other States, for which figures of Jagir cultivation are not separately available, a comparatively large portion of the total estimated loss of land revenue will be borne by Jagirdars. As the extracts quoted above indicate, these losses will be particularly serious and difficult to make good. 37. States producing for export to other States.- Only Kotah and Tonk fall under this category: The estimated net losses to these Darbars if export ceases are shown in Appendix 6 as Rs. 2,58,000; but the figure given for the loss of land revenue in Kotah is the estimate of the Darbar and is open to question for the reasons already given in paragrpah 34 (9) above. In the discussions at Kotah we were unable to agree with the Darbar's representative on the subject of the value of opium production to the State and the losses likely to be incurred if it were discontinued. The Darbar estimate the total annual loss at more than Rs. 18 lakhs, a figure which includes losses to cultivators, labourers, merchants and the Darbar. We consider this figure to be greatly exaggerated, but we failed to secure any modification of the Darbar's claim, and the section of the Kotah Report dealing with this subject records copies of correspondence in place of an agreed conclusion. 38. Losses due to the closing of the China trade.-- Before leaving this branch of the subject it is perhaps desirable to examine the argument, which is sometimes advanced, that if the ·27 States survived without apparent difficulty the diminution of opium production caused by the cessation of the China esports, they are not likely to be seriously affected by the final loss of the present restricted output The effect upon the States' prosperity of the loss of the Chut trade is by no means easy to ascertain or to express in any statistical form It has been obscured by a variety of factors The losses to cultivators have probably never been ventilated beyond the boundaries of their own States, or even in some cases beyond their own fields and villages But reasons are given above for thinking that they were most serious The losses to merchants were undoubtedly considerable, but they are shown in no income tax returns, and they can be demonstrated to the outside investigator by little evidence beyond the bare statement (not infrequently made) that such and such a town which formerly boasted a dozen " lakhpatıs,' o» merchants owning a lakh of capital, has now few or none The loss of Durbars' revenues was mitigated by the fact that Govern ment made over in 1912 13 to the producing States a share in the final zenlizations from China sales amounting to nearly 1 crores of fupees And a few years later the present scheme of production foi Government was inaugurated It must be remembered also that the land revenue and financial systems of most States in those days were less rigidly organized, and certainly less exposed to publicity, than those of British India Tew States, we believe, worked to ? budget or published an admipistration report It was thus duo to the action of Government, and perhaps in part to their own elastıcity, that the States' finances were not seriously disorganized by the loss of the China trade, and it is the merit or perhaps the defect of the autocritic principle of government that the losses endured by State subjects were accepted with resignation and wero realized imperfectly, if at all, by the world at large (111) The rOSSIBILITY OF STOPPING OPIUM PRODUCTION IN THE STATES 39 The attitude of the States –The States that produce opium for an external market desire unanimously to continue production The reasons have been detuled at length in practically all the representations by the Darbars which ale necorded as accompaniments to the individual Reports They may be summarized briefly as follows (1) Opium production gives to the States a source of revenue which cannot ensily le replaced The justice of this contention is cuident from the facts and figures already quoted in this Report (2) Opium production gives to the cultivators a source of profit which is given by no other crop This 19 more debatablo ground, but for the reasons already giren at length in this Report we think that the discontinuince of poppy cultivation must Cause serious immediate loss to the cultivators, and that if the loss is to bo made good at will be necessir to wahe organized provision on a large scale for propigands, secil, markets and for ·28 raising the general standard of cultivation, which at present is backward in most of the producing States and is much dependent upon the poppy as a staple irrigated crop. (3) Malwa has been for centuries one of the chief opium producing tracts in India; and its prosperity is more dependent upon opium than that of any other part of India. The former part of this argument is correct, but it is an appeal only to history and sentiment and it seems probable that if more material difficulties can be settled in a manner satisfactory to the States the sentimental aspect of the question will not be found to stand in the way. The latter part of the argument is probably correct in the light of present conditions. But if-measures could be taken successfully to raise the general standard of agriculture in the States, the resulting benefit would almost certainly far outweigh the loss of the poppy as a staple crop. The application of this remedy is however beyond the generally restricted resources of the Darbars and the limited scope of the Agricultural Departments, where they exist. (4) The measures taken in the past by the Government of India in connection with opium production in India and opium export from India justify the States in claiming a reasonable share in the future production of India as a whole. This summarizes, in a form intentionally vague, a large body of arguments of a political and somewhat controversial character. It does not seem necessary to consider them in detail in this Report. But it has not been possible in our discussions to exclude the political aspect, and as the views held by the Darbars will influence the action they take, it is desirable to outline the arguments under this head which have been chiefly pressed and which seem to carry most weight. We reproduce the arguments without discussing their validity. It is generally conceded by the Darbars that the abolition of China exports was a measure that was forced upon India by the pressure of outside events and that in regard to its execution the Government of India did much to assist the producing States. Nevertheless it is claimed that the losses incurred by the States on this account were severe. It is fully realized that the sacrifices of British India also in the interests of opium policy have been very great; but the sacrifices were in proportion to the previous profits, and the profits were very great because British India used her. geographical position and her control of the sea ports to secure a maximum revenue from all opium, whether of the States or of British India, that was sold over-seas. The States' losses might have been further mitigated if the States bad been given a share in producing opium for the.sk non-China markets outside India. The States were definitely promised by Government the opportunity of finding a footing in these markets. The proinise was never made good, and the whole of this very valuable trade was reserved for the Government of India and the opium ·29 tracts of the United Provinces. It is true that agreements were subsequently made with the chief producing States as a result of which the States obtained a generous share in the production of opium for internal consumption in India. But the argument has been advanced that these agreements were of a purely business character and are terminable at will by the Government of India. If that argument is correct, then the pledge made with regard to the non-China trade was broken without explanation or excuse. If, on the other land, the intention of Government in making the agreements was in fact to substitute for a share in the non-China markets a share in the internal market of India as a whole, then it is fair that the settlement thus effected should be honoured at least so long as the profit acoruing to Government from the non-China markets continues to be realized, When export of opium from India has entirely ceased it is clear that a new situation will be established. The producing areas in India will then have no market except the internal demand of India and the market for medicinal exports. It is suggested that the past sacrifices of the States and the continuing importance to their prosperity of opium production entitle them to ask for a share in this market-a share which British India, the richer partner, commanding, as before, the avenues of export from the States, can well afford to concede. This concession, the Darbars believe, could be made under conditions which would fully safeguard the opium production of India from international criticism. 40. Conditions of stopping opium production. (1) If opium production is to be discontinued altogether in the States, it seems that the following conditions must be fulfilled :- (I) The States that produce for an external market must be compensated for loss of revenue. It is, of course, possible for Government by a stroke of the pen to put an end to the present agreements under which the States produce opium and send it to Ghazipur. But if this were done, and no compensation were given, the finances of several States would be very seriously embarrassed, most of them would be left with a strongly felt political grievance, and they would continue to cultivate for their own internal consumption and perhaps for that of other non-producing States. To achieve the end of total abolition it is necessary to stop not only the production for Ghazipur but also that of excise opium for the States. This can be done only if, in the first place, the major producing States consent; in other words, if terms are offered which seem to them adequate. The question what compensation would be necessary is one that for obvious reasons we have been unable to discuss openly with the Darbars; the point is not included in the Committee's Terms of Reference, and to sugo gest that Government might be willing to pay compensation would have been to exceed our authority and might also have produced claims of a nature calculated to embarrass future negotiations. We can only suggest as a tentative basis that the States might be 5 ·30 offered a lump compensation equal to ten times the annual loss of revenue involved in stopping their present production. The total amount payable would then, on the figures given in Appendix 6 with the added compensation to Jagirdars suggested in paragraph 36, be about Rs. 1,10,00,000. A settlement on some such basis as this would perhaps give to the larger States, whose revenues will be less seriously affected, a disproportionate share in the total compensation paid. But it does not seen likely that these States will agree to differential treatment which places them at a disadvantage. We think that the majority of the States that produce for Government would accept the compensation suggested, coupled with the promise of agricultural assistance proposed in the next sub-paragraph. It is obviously doubtful whether the Kotah Darbar, whose bill for annual loss amounts to Rs. 18 lakhs, would accept the compensation of Rs. 24,30,000 payable on the proposed method of calculation. We can only hope that other negotiators might be more successful than ourselves in securing recognition of economic realities. It may be suggested also, for reasons already given at the end of paragraph 21, that the Darbar might be ill advised in relying as a negotiating counter upon the permanent retention (if they refuse reasonable compensation) of their present export trade to other States. (II) The States that produce for an external market must be given assistance in improving agricultural conditions. We are strongly of opinion that if poppy cultivation is prohibited compensation in kind should be given to the cultivators. Their losses will be severe; they can only be remedied by organized effort and the expenditure of money; and the Darbars in general are not able to supply or to finance the necessary organization. It is important, therefore, that this should be treated as a separate item in the compensation to be given and that it should be given not in money credited to individual State treasuries but in kind. The assistance to be given should take the form of seeds, propaganda work and advice and marketing facilities. The loss to the cultivator varies very considerably from tract to tract and it is not an easy matter to suggest the total espenditure that would be necessary. It may perhaps be estimated provisionally at a year's assessment at an average rate for irrigated lands of about Rs. 15 per acre, on 36,545 acres which are shown in column 8 of Appendix 5 (excluding Baroda and Banswara) to be the normal cultivation of the States in question. This would therefore involve additional expenditure of about Rs. 5} lakhs. The scheme would have to be carefully worked out and it is difficult at this stage to supply detailed particulars. It It may be noted however that the present poppy cultivation area, with a few exceptions, is readily accessible from centres such as Indore, Neemuch or Mandsaur. Where there are no railways, generally good motor roads are available. The staff required would be as follows:-one Deputy Director of Agriculture, three trained graduated Assistants, clerical staff, and one trained Kamdar for each State in the scheme, ·31 It is proposed to heep the staff for three years, by which time the hole sum will be espended The total cost of this establishment with travelling allowance and contingencies would be about R$ 75,000 If it is estimated that the total grant available amounts to some Rs 5} lal hs, this lenves about Rs 1: Inl hs per annum for purchase of seeds, etc The States rould be asked to help as far as possible in regard to laboui, transport, stornge and chorl idarı, etc The Deputy Director of Agriculture would mail o up specific schemes for each State in consultation with the Darbnr, giving complete details of expenditure for ench of the three years and the actual programing for seed distribution for ench tiact The actual work Trould como mainly under the following lends 1 Sced Distribution -The chief seeds dealt with would be cotton, whent, maize, vegetables and garden ciops, sugar cine and miscellaneous 2. Implement Distribution -Light iron ploughs, 'deshi ' drills and 'deshi ' intercultivators 3 IVell Boring --Assistance in well boring and construction of tanks 4 Cattle Distribution of cattle 5 Propaganda -Propaganda, demonstration and village to village itinerant instruction 6 Marketing --Under this hend, bugers would be brought in touch with producers, c9, where good quality cotton 18 grown, particulars would be distributed to users in Bombny, etc General ly big buying firms fight shy of the smaller Indian States and all transactions seem to pass through a chain of middlemen with the consequent reduction of prices to the grower Probably a great deal can be done in this direction with very simple means Of course, there is no question of guaranteeing that the growers crops will be bought, it is only a case of advising as to means of disposal Under this also, information would be distributed is to current market prices of staple commodities There is no reason why the price of wheat in the smaller States should not bear some relation to the price of wheat at Karachi and other ports The distnbution of such information will probably lead to lessening the influence esercised by the present close rings of middlemen The scheme for agricultural assistance is open to the obvious objection that it may involve some interference with the internal administration of the States We have reason however to believe from informal discussion, that the objection 18 not insuperable In order to secure real and effective results it is evident that a centralızation of effort is essential but the centralizing authority, in its relations with individu il States will act only as an advising body and need not assume definite executive functions Indents for the seed, implements and other maternal required may be made by the Diwan or other State official after consultation with the Deputy Director of Agriculture and in accordance with a general scheme ·82 approved by the Darbar. With the exercise of reasonable tact it should be possible to carry out the details of the scheme without friction or loss of efficiency. If, however, the proposal on these lines should prove unacceptable to any Darbar, the fact that the offer has been made will at least have demonstrated the desire of Government to prevent agricultural lose and to deal with the question on broad lines. For reasons already given it seems unlikely that equally effective results can be achieved by the individual action of Darbars, and we think that it should be made clear that this item of compensation will be given only if a general scheme of the kind outlined above is accepted by the participating States. (III) Suitable arrangeidents must be made for supplying opium to the States from the Ghazipur Factory. Even if opium production entirely ceases in the States, it will be 9 or 10 years before the stocks of hard ball opium are exhausted. The stocks of biscuit opium will last for 3 or 4 years. No immediate arrangements will therefore be necessary for supply from the Ghazipur Factory. It will be desirable, however, to formulate certain conditions, particularly regarding price, under which Government will agree to supply, and the States to receive, Ghazipur opium. These conditions should be included in the general agreements relațing to the discontinuance of cultivation and the grant of compensation. The nature of the conditions is discussed in Section IV, paragraphs 45-50 below, and it is only necessary to note here that opium must be supplied on terms which will satisfy not only the major producing States (who are the less likely to make difficulties about this, if the more important question of compensation is settled to their satisfaction, but also the States that at present produce, or are capable of producing, the opium they require for their own internal consumption. The latter States will receive no compensation for stopping cultivation, and it is important that they should not be tempted by too great a disparity in cost between their own and Ghazipur opium to resume cultivation for their own requirements. In the course of our discussions practically every State that has ever produced opium has emphatically asserted its retention of the right to produce. That right however is not likely to be exercised so long as old stocks are available at a price less than the cost of production. When the stocks are exhausted, a good many years hence, the habit of production will to some extent have lapsed and the assertion of political rights in a matter primarily economic will perhaps appear less important than it does at the present time. (2) The suggestions made in this paragraph regarding payment of compensation to States that produce for an external market, i.e., the 12 States included in Appendix 6, do not provide for the cases of Banswara and Baroda. As we have stated in paragraph 9 above, these are the only two States at present producing only for their own internal consumption that have not provisionally agreed to discontinue production. If all other States in Central India and Rajputana prohibit cultivation it seems unlikely that the Banswara ·33 Darbar will insist upon its continuance. The case of Baroda stands on a different footing. The State has for many years assimilated its opium taxation and send arrangements with those of the Bombay Presidency, it maintains a comparatively large opium establishment and it has invested a considerable amount of money in Factory buildings. It appears that the Baroda Darbar attach much im portance to the political aspect of the opium question. There are thus serious obstacles to the discontinuance of opium production in Baroda. The question can hardly be settled by the payment of compensation--even if the Darbar were prepared to accept a settlement of this kind--without creating demands for compensation from other States in Central India and Rajputana which, like Baroda, confine production to their own needs. If the policy is adopted of concentrating in the United Provinces the production of opium for the whole of India, it is certainly not desirable that any State should stand out as an exception; but in view of the circumstances mentioned above the exception could be more easily justified in the case of Baroda than in that of any other State. (3) We conclude this paragraph by briefly stating the advartages of the total prohibition policy:-- (1) The chief producing States would ex-hypothesi be satisfied. (2) Their prosperity, and that of their cultivators, would in the long run be increased. (3) There would be no obstacle towards the consumption by the States of the old stocks of opium. (4) The Ghazipur Factory would no longer receive States' opium and the excessive stocks at the Factory could be quickly reduced. (5) Government would be free from the annual charge on account of payments for opium from the States which is no longer required. (6) Opium production and manufacture would be concentrated in British India and carried out under conditions most likely to satisfy international opinion, Against these evident advantages must be set only the question of cost. The total figure suggested of Rs. 1,15,50,000 may seem to be excessive; but it is doubtful whether Government can secure a complete monopoly of opium production in India at a smaller price. (iv) ALTERNATIVES TO THE DISCONTINUANCE OF OPIUS PRODUCTION IN THE STATES. 41. Production in the States for the States.-Should it prove impossible on financial or other grounds to secure the total discontinuance of opium production in the States, there seeno to be two alternative arrangements. The first would consist in limiting production in the States to the opium required by the States. This ·34 policy could be enforced by the Government of India by cancelling the agreements regarding production for Ghazipur and by refusing to permit export of opium into or through British India. The produeing States would then be left with a total market which amounts at present to about 4,000 maunds of ball and biscuit opium together (Appendix , column 4). The present normal output is estimated at about 9,333 maunds of crude opium (Appendix 5, column 9) equivalent to nearly 7,000 maunds of hard opium. The total reduction in output would therefore amount to 43 per cent ; and the States that produce ball opium would find their market reduced from nearly 7,000 maunds of crude opium or 5,200 maunds of hard opium to 2,200 maunds of hard opium, a reduction of nearly 58 per cent. It does not seem that a settlement on thiese lines will produce satisfactory results. It would indeed make the payment of compensation unnecessary. But the finances of many of the producing States would be seriously affected; the cultivators would suffer and nothing would be done to assist them; the States would be left with a strong sense of grievance; the present conditions of production would not be improved but would probably deteriorate in the absence of the standard not enforced for production for Ghazipur; and the acquiescence of the States in proposals for dealing with the old stocks, for abolishing wholesale merchants and for assimilating their taxation with that of British India would be either impossible or more difficult to secure. 42. Division between the States and British India of the opium produotion required for India as a whole. -(1) The second and in our judgment the better alternative would be to allot to the producing Sțates a definite share in the total opium demand of India as a whole. We are not in possession of exact figures regarding this demand, but Appendix VII to the Report of the Opium Department for the 11 months ending September 30, 1927, shows that the expenditure of opium from the Ghazipur Factory in the season 1926-27 amounted to 20,724 maunds at 700 consistence. The demand for Provision cakes, amounting to 8,684 maunds, must be excluded, leaving 12,040 maunds as the expenditure of excise opium for consumption in India and of medical opium and alkaloids. If to this is added the excise opium demand of the States which at present are not supplied from Ghazipur, amounting to about 4,000 maunds of hard opium or 5,400 maunds at 70°, the total demand of India excluding export of Provision opiuin is found on this basis to be 17,440 maunds at 700. If half of this demand could be allotted to the producing States the production required from the States would be 8,720 maunds, a figure little short of the present estimated normal production of 9,333 maunds. (2) But the demand of the States will not be effective until the old stocks have been absorbed. In the meantime the demand for Provision opium is decreasing yearly and the balance of stocks at Ghazipur amounts to more than 40,000 maunds and requires to be reduced. It is clear that some reduction in the quantity of opium sent by the States to Ghazipur will be desirable uatil the old stocks ·35 have passed into consumption. We are not able to estimate what the extent of this reduction should be; it depends in part upon future production in British India and the extent to which that production also can be reduced. But it is erident that the States will suffer more easily a reduction in the quantities to be sent to Ghazipur if they can be assured that the reduction is temporary and that they will enjoy a definite and continuing share in the opium production of India as a whole. Moreover the reduction could be 60 arranged that the States financially most dependent upon opium production should retain the larger proportion of cultivation, (3) The advantages likely to be realized by this arrangement may be briefly summarized as follows:- (1) Political grievances regarding opium will be removed. (2) Losses to the Darhars and tire cultivators will be reduced to a minimum, short of payment of compensation. (3) It will be possible to concentrate the demand of tho States upon the old stocks until they are exhausted. (4) It will be possible to enforce conditions regarding opium production in the States. (4) Should a settlement be effected on these lines, it is essential that the price paid for the opium should leave to the Darbars a reasonable margin of profit (vrde paragraph 33 above). The price should be determined on the basis of the cultivating cost in Central India and Rajputana together with a profit to the Darbars approximately the same as that obtained under present conditions. 43. Conditions of opium production in the States under the latter alternative.-(1) The fourth of the advantages suggested above is of great importance. In return for the concession of a share in producing opium for consumption in British India, Government could insist upon all production, manufacture and distribution being carried out under satisfactory conditions. We think that it would be possible, and it is certainly desirable, that manufacture should be carried out at Ghazipur; z.e. that all opium produced in the States should be sent, as soon as it is collected from the cultivators, to the Ghazipur Factory. In that case the system in all producing States would be the same as that at present in force in the States that produce for Government, with the modification hoverer that no rejected or excess oprum would be retained by the States and with further modifications, if necessary, designed to ensule greater strictness of control. (2) The two main objects of control are, of course, to prevent adulteration by the cultivator and to prevent the illicit retention of crude opium. As regards adulteration, the States' Opium Officers should be armed with the same powers as those of British India. Adulteration not detected in the field is likely to be detected at the Factory, in which case the price paid will be reduced or payment will be refused. It is therefore to the interest of the Darbars to take adequate steps, and we see no reason to anticipate ·36 trouble in this matter. As regards the illicit retention of crude opium, this is a practice generally recognised as impossible to prevent entirely. But it is a practice again which directly affects the Darbar's interests, both because it reduces the Darbar's profit on deliveries to Ghazipur and because it decreases the State revenue from sales of opium in State shops. There is probably no reason to fear that crude opium retained by cultivators will ever be used as the material for smuggling on any large scale. A cultivator can retain a few tolas of opium without fear of detection by the opium officer, and he can use it for his own consumption or that of his friends without fear of the fraud coming to light. But a smuggler requiring, say, 10 seers of opiuin must either collect it in small quantities from a large number of cultivators, thus organizing a widely ramified conspiracy, or he must induce one or two cultivators to retain large quantities, exposing these men to great risk of detection when their output is compared with that of the rest of the village. The crude opium, again, is more difficult for a smuggler to handle and more easy to detect than hard opium owing to the stronger smell. It follows that while on the one hand an opium staff of the highest efficiency can never entirely prevent the retention of crude opium in small quantities, on the other hand an only moderately efficient staff, using ordinary safeguards, should be able to prevent smuggling, i.e., the collection from cultivators and illicit export of crude opium in comparatively large quantities. The Darbars contend that opium production in the States is not in itself likely to create abuses giving any handle to international criticism; and we believe that this contention is fully justified. If licensed dealers are abolished, if stocks are confined to the State opium stored in State Warehouses, and if crude opium is collected by State officers and sent to Ghazipur for manufacture, it is extremely improbable that smuggling on any large scale will result. Smugglers can, of course, buy opium from State shops, and they will continue to do so until the price is high enough to make this form of smuggling unremunerative. But that abuse is in no way connected with poppy cultivation. (3) If the States' opium is all sent to Ghazipur for manufacture, the arrangements required for control of cultivation will be practically the same as those already prescribed in the current agreements of States that produce for Government. In a few minor points it may be desirable to tighten control. There should continue to be a Joint Opium Officer for the smaller States. That officer's duties are now confined, in practice, to the carrying out of opium weighments and the giving of general advice and assistance when called upon to do so. It seems desirable that definite executive functions should be assigned to him in regard to the inspection of poppy cultivation and the checking of areas cultivated. He should also have full power to punish suspected or proved adulteration, the use of oil or the retention of crude opium, by the refusal of a license to cultivate in the future. It is not probable that the exercise of these functions will cause friction, but it might be provided that in the event of disagreement between the Joint Opium Officer ·37 and the Diwan in regard to certain specified matters, such as those mentioned above, an appeal should lie to the Agent to the Governor General, whose decision should be final. This proposal, we think, will probably be accepted by the Darbars concerned. As regards the States not subscribing to the Joint Opium Officer scheme (i.eu, Gwalior, Indore and possibly Kotah), it is desirable that the Opium Officer employed by the State should receive some period of training both in field work in the United Provinces and at the Ghazipur Factory. There should also be a definite arrangement by which the area to be cultivated with poppy in each year should be ap; proved on behalf of Government. If further control is considered necessary, in order to satisfy international critics or for any other reason, it might be feasible to appoint an officer of Government with powers limited only to inspection and advice, somewhat following the analogy of the Inspecting Officers of Imperial Service Troops. (4) The objection most likely to be raised by the States with regard to these proposals will be based upon the extra expense involved in sending crude opium to Ghazipur for manufacture. This lifficulty will not arise until the stocks of old opium are consumed. We discuss the validity of the objection and the possible ways of meeting it in the next Section. IV.-FINAL ARRANGEMENTS FOR THE SUPPLY OF OPIUM TO THE STATES FOR INTERNAL CONSUMP- TION. 44. Presumption that supply will be from Ghazipur.-In Section 11 of this Report, dealing with the old stocks of opium, it is suggested that the States will obtain from the old stocks the opium they require for internal consumption, until the stocks are exhausted. The stocks of ball opium will probably last for 9 or 10 years and those of biscuit opium for 3 or 4 years. In Section III, dealing with opium production in the States, it is suggested that production will either cease altogether or that it will continue under an arrangement by which the crude opium produced in the States will all be sent to the Ghazipur Factory for manufacture. In either case, therefore, the Factory is likely to be the final source of supply to the States, after the old stocks are exhausted. 45. Conditions of supply from Ghazipur.-Appendix 16 contains a summary of the conditions, reproduced from paragraph III of the individual Reports, under which the States are prepared to take opium from Ghazipur when the old stocks are exhausted. Five of the major producing States (Gwalior, Indore, Jaora, Kotah and Partabgarh) as well as of Baroda and Banswara do not agree to také Ghazipur opium, but declare the intention of producing their own excise opium in all circumstances. We think, however, for reasons already stated, that it adequate compensation is arranged all these States except Baroda will agree to stop cultivation, and that alternatively if a sufficiently large permanent market is assured to them they will agree to produce only for ·38 > Ghazipur and to take their excise opium take their excise opium from Ghazipur. Other major producing States (Dewas, Junior Branch, Ratlam, Sailana, Sitamau, Piploda, Jhalawar and Tonk) are already prepared to take Ghazipur opium if a satisfactory settlement is reached on the subject of production in the States. These and the smaller producing States and the non-producing States attach to their agreement various conditions, the most important of which are discussed below. 46. Conditions regarding cost.-(1) The cost of Ghazipur opium must not be very much in excess of the cost at which the States can produce and manufacture for themselves. The present cost of production in the States is estimated in paragraph 13 above to be about Rs. 13 per seer, assuming the most favourable conditions. The present cost of Ghazipur opium is 'understood to be Rs. 23-5-0 per seer ex-Factory (vide paragraph 13 of the Opium Department Report, 1927). The difference is therefore something like Rs. 10 per seer; and it is obvious that the effect upon the States' finances of this extra cost of excise opium would be considerable. Upon an estimated consumption of about 4,000 maunds annually it would represent a total loss to the States of Rs. 16 lakhs of opium revenue every year. (2) The question of cost has naturally assumed prominence in our discussions with the States. The Darbars argue that as opium can be produced much more cheaply by themselves it is uneconomical to go all the way to Ghazipur for their supplies, and particularly uneconomical to send from Central India and Rajputana crude opium for manufacture at Ghazipur and subsequent return to the States. It is to be noted, however, that the freight charges to and from Ghazipur would not add materially to the cost. The railway freight on crude opium sent in whole wagons from Indore to Ghazipur is less than Rs. 4 per maund. The freight on bard opium sent in whole wagons from Gliazipur to Bikaner, one of the most distant of the Rajputana States, is less than Rs. 5 per maund. The average incidence of freight charges by rail, assuming bulk consignments, would thus not exceed Rs. 10 per maund or 4 annas per seer. The reason why Ghazipur opium is more expensive than opium produced in the States is that the cost of the former includes very heavy charges on account of the cost of establishments and the interest on capital invested in buildings and in reserve stocks of opium. These causes are likely to continue in operation. On the other hand the payment by the Darbars of a somewhat higher price for Ghazipur opium than the cost of production in the States can be justified by three considerations; first, that the States are guaranteed against shortage of supplies; secondly, that the States are paying in effect for greater efficiency of control and manufacture, and that if in the alternative they were to manufacture for themselves it is possible that the conditions of manufacture imposed by international obligation might involve increased cost; thirdly, that the measures now in contemplation will enable the States to derive a higher revenue from opium taxation, so that the ·90 or uot " extra cost of the opium can be made good and no actual loss of revenue need result. (3) The Dai bars in general recognise the force of these contentions. It will be seen from Appendix 16 that the majority of the Darbars will be satisfied if the opium is supplied at cost price, if the extra cost can be met by increased taxation, and if the cost is zot " excessive" greatly in excess of that of any alternative source of supply. The interpretation of the terms in inverted commas will of course rest with the Darbars; and it is possible that some may object to paying for Ghazipur opium a price as much as Rs. 10 in excess of the cost of local production. If therefore, when the time comes, the disparity in price is as great as it is at piesent, some concession to the States will probably be required. This might perhaps take the form of a concession rate to the States based upon the actual expenses of purchasing and manufacturing the States' opium, but excluding expenses on account of the field establislıment in the United Provinces or the buildings, staff and stochs maintained primarily for the purpose of supplying opium to British India. If the cost were thus reduced to perhaps Rs. 18 per seer, the question of price would probably not be an obstacle to the success of the scheme. (4) We think it important that the States should have full access to the calculations fixing the cost price. This has been definitely stipulated by two Darbars, Rewa and Bharatpur, in regard to Ghazipur opium, and by the Jodhpur Darbar in regard to the opium of the “ central stocks". Many others have required the assurance that the opium shall be supplied by Government or by the central authority at a price calculated so as only to cover expenses and to leave no profit. Rightly or wrongly, many Darbars appear to entertain some misgivings regarding an opium millennium in which manufacture, if not production, will be the monopoly of British India and the cost of the opium will be determined by an accounting department at Delhi or Simla. The stipulation that accounts should be shown seems to be reasonable in itself, and the concession will do much to reconcile the States to any increase of cost that may be involved. 47. Conditions regarding quality:-(1) Practically all the Darbars have stipulated that the opium shall be of good quality and suitable to the taste of consumers in the State. Many Darbars have expressed, in our discussions and in their replies to the Terms of Reference, apprehension that Glazipur opium will be disliked by their consumers. We think that such apprehension will prove un justified when put to the test. The fact seems to be that the opium eater dislikes a change, in much the same way that a smoker of Egyptian cigarettes dislikes, at the outset, a change to the cheaper American variety; but he soon becomes reconciled and generally ends by preferring the new variety whien accustomed to it. The following two opinions expressed in 1922 hy the late Mr. Cox, Excise Commissioner for Central India, an achpovledged ·40 authority on the subject, are interesting. In the first he is stating the reasons why some Darbars dislike the State monopoly and auction system of retail vend, i.e., the system under which opium is purchased by State agency and issued to a strictly, limited number of retail licensces : “ In certain States of Rajputana opium still occupies much the same position in the domestic and social life of many members of the dominant caste as is occupied in European society by mild alcoholic stimulants. The rising generation is, perhaps, to some extent being educated on different lines, but there is many a middle-aged or elderly Rajput who takes his modicum of opium with the same regularity with which the English squire of fifty years ago took his glass of port, and who offers it to his guests with the same hospitality. He is as keen a connoisseur of opium as the squire was of port, and his preference for his own particular brand is as strong as that of the squire for his favourite vintage. In ceremonial gatherings opium plays much the same part as the wedding breakfast or the funeral" lunch of Europe. On the other hand, its abuse is probably much less frequent than the abuse of alcoholic stimulants in Europe. In these circumstances, the view on which the provisions of the International Opium Convention are based meets with little sympathy either from the people or from their rulers. One outcome of this attitude is that even States which do not produce opium, and in which a State monopoly would otherwise be practicable, are unwilling to create either a State monopoly in opium, or such local monopolies as result from the system (generally in force in British India) of licensing only a limited number of shops at a considerable distance from each other. State monopoly would result in the fixation of one or two standard brands of opium which might be as repugnant to certain palates as the caporal of the French Government monopoly is to certain smokers of tobacco. And a local monopolist left at liberty to import or purchase his own supplies would probably force on his customers such varieties as afforded him the largest profit, regardless of the tastes of consumers. Accordingly, the systems in force provide for such competition as will compel vendors of opium to consider and to cater for the tastes of consumers. Retail vendors of opium are required to take out licenses, and endeavours are made to restrict the grant of these licenses to respectable traders. But the license fees are comparatively small, there is nothing to prevent more than one license being taken out for the same village, and a local monopoly detrimental to the convenience of the public is thus impossible." The passage next quoted is from a demi-official letter, addressed to the ruler of a Rajputana State, in which Mr. Cox is explaining the advantages of the State monopoly system in connection with certain draft Opium Rules forwarded to the Darbar: “I fully realize the special difficulties that stand in the way of their adoption--broadly speaking, that there might be ·41 difficulty in securing the purity of the opium imported on State account, that certain classes in............are extremely particular about the quality of their opium,.. and that a system of State supply might thus lead to dissatisfaction. How far these difficulties are insurmountable, I do not know. They, have not been experienced in Central India or in the States in Rajputana which have adopted a system of State supply. I think it possible, from what I heard in....... ..in 1910, that people in............may have more marked tastes in the matter of opium than people in Central India. On the other hand, I doubt these tastes for particular brands of opium are very deeplyrooted. Up to, the last decade of the 19th century, British provinces had always been supplied with Benares opium, which is oil-free. A failure of the crop compelled Government to obtain supplies,of Malwa opium, which contains a good deal of linseed oil. There were universal complaints, the Malwa opium being described as bad, barmful to the throat and generally injurious to the health. Malwa opium continued to be supplied for two or three years, and on it being again replaced by Benares opium the latter was the subject of very much the same complaints as had been made against Malwa opium when first introduced. The fact seems to be that one is as good as the other, that every one prefers the brand to which he is accustomed, but that if he cannot get the brand he will substitute and get accustomed to the alternative brand.” (2) The progress achieved in modernizing their opium arrangements by not a few of the Rajputana States in the period since Mr. Cox wrote' appears to confirm the correctness of his anticipations. The introduction of the system of State monopoly and the "limitation of shops has not apparently caused difficulties or complaints. Traditional habits in regard to opium are changing (this point is more fully discussed in the next Section), and the old fashioned connoisseur has disappeared in many parts of Rajputana or' been forced to adapt himself to the limitation of supply: A considerable degree of standardization has thus already been effected, and there seems to be no reason why the process should not be carried further by suitable stages and the whole of the opium consumed in the States be supplied ultimately in a standard form from the Ghazipur Factory. (3) There would however be obvious danger if the process were hurried unduly. The change from ordinary Malwa ball opium to the standard Ghazipur opium is not likely to be difficult. We have been informed that in some States bordering upon the United Provinces consumers actually prefer the Ghazipur opium sold in the, United Provinces shops to the Malwa opium sold in the State shops and are deterred from using the former only by the much greater retail sale price. Ghazipur opium is likely on the average to have a higher narcotic quality than Malwa opium owing to the absence of oil and other possible adulterants. Consequently as soon as the consumer's taste is reconciled to the absence of oil he is ·40 authority on the subject, are interesting. In the first he is stating the reasons why some Darbars dislike the State monopoly and auction system of retail vend, i.e.,. the system under which opium is purchased by State agency and issued to a strictly limited number of retail licensees : In certain States of Rajputana opium still occupies much the same position in the domestic and social life of many members of the dominant caste as is occupied in European society by mild alcoholic stimulants. The rising generation is, perhaps, to some extent being educated on different lines, but there is many a middle-aged or elderly Rajput who takes his modicum of opium with the same regularity with which the English squire of fifty years ago took his glass of port, and who offers it to his guests with the same hospitality. He is as keen a connoisseur of opium as the squire was of port, and his preference for his own particular brand is as strong as that of the squire for his favourite vintage. In ceremonial gatherings opium plays much the same part as the wedding breakfast or the funeral lunch of Europe. On the other hand, its abuse is probably much less frequent than the abuse of alcoholic stimulants in Europe. In these circumstances, the view on which the provisions of the International Opium Convention are based meets with little sympathy either from the people or from their rulers...... One outcome of this attitude is that even States which do not produce opium, and in which a State monopoly would otherwise be practicable, are unwilling to create either a State monopoly in opium, or such local monopolies as result from the system (generally in force in British. India) of licensing only a limited number of shops at a considerable distance from each other, State monopoly would result in the fixation of one or two standard brands of opium which might be as repugnant to certain palates as the caporal of the French Government monopoly is to certain smokers of tobacco. . And a local monopolist left at liberty to import or purchase his own supplies would probably force on his customers such varieties as afforded him the largest profit, regardless of the tastes of consumers. Accordingly, the systems in force provide for such competition as will compel vendors of opium to consider and to cater for the tastes of consumers. Retail vendors of opium are required to take out licenses, and endeavours are made to restrict the grant of these licenses to respectable traders. But the license fees are comparatively small, there is nothing to prevent more than one license being taken out for the same village, and a local monopoly detrimental to the convenience of the public is thus impossible. The passage next quoted is from a demi-official letter, addressed to the ruler of a Rajputana State, in which Mr. Cox is explaining the advantages of the State monopoly system in connection with certain draft Opium Rules forwarded to the Darbar:- “I fully realize the special difficulties that stand in the way of their adoption-broadly speaking, that there might be ·41 difficulty in securing the purity of the opium imported on State account, that certain classes in............are extremely particular about the quality of their opium,.. and that a system of State supply might thus lead to dissatisfaction. How far these difficulties are insurmountable, I do not know. They have not been experienced in Central India or in the States in Rajputana which have adopted a system of State supply. I think it possible, from what I heard in............in 1910, that people in..... ..may have more marked tastes in the matter of opium than people in Central India. On the other hand, I doubt if these tastes for particular brands of opium are very deeplyrooted. Up to the last decade of the 19th century, British provinces had always been supplied with Benares opium, which is oil-free. A failure of the crop compelled Government to obtain supplies of Malwa opium, which contains a good deal of linseed oil. There were universal complaints, the Balwa opium being described as bad, harmful to the throat and generally injurious to the health. Malwa opium continued to be supplied for two or three years, and on it being again replaced by Benares opium tho latter was the subject of very much the same complaints as had been made against Malwa opium when first introduced. The fact seems to be that one is as good as the other, that every one prefers the brand to which he is accustomed, but that if he cannot get the brand he will substitute and get accustomed to the alternative brand." (2) The progress achieved in modernizing their opium arrangements by not a few of the Rajputana States in the period since Mr. Cox wrote appears to confirm the correctness of his anticipations. The introduction of the system of State monopoly and the limitation of shops has not apparently caused difficulties or complaints. Traditional habits in regard to opium are changing (this poiut is more fully discussed in the next Section), and the old fashioned connoisseur' has disappeared in many parts of Rajputana or been forced to adapt himself to the limitation of supply. A considerable degree of standardization has thus already been effected, and there seems to be no reason why the process should not be carried further by suitable stages and the whole of the opium consumed in the States be supplied ultimately in a standard form from the Ghazipur Factory. (3) There would however be obvious danger if the process were hurried unduly. The change from ordinary Malwa ball opium to the standard Ghazipur opium is not likely to be difficult. We have been informed that in some States bordering upon the United Provinces consumers actually prefer the Ghazipur opium sold in the, United Provinces shops to the Malwa opium sold in the State shops and are deterred from using the former only by the much greater retail sale price. Ghazipur opium is likely on the average to have a higher narcotic quality than Malwa opium owing to the absence of oil and other possible adulterants. Consequently as soon as the consumer's taste is reconciled to the absence of oil he is ·42 likely with the purer drug to get better narcotic value from the same bulk of opium and to be better satisfied. The difference however between biscuit opium and Ghazipur opium is more marked. It appears that biscuit opium not only has a very high percentage of oil but is also particularly hard ; its action against the teeth gives additional pleasure to the consumer. It is possible, therefore, that the supply of opium in the biscuit form will continue to be necessary. There seems to be no reason why the Ghazipur Factory should not undertake its manufacture successfully, and it may be advantageous to experiment on a small scale, with the help perhaps of expert manufacturers borrowed from Kotah, Jhalawar or Tonk, some little time before the demand upon the Factory for this opium will materialize. Several of the Darbars that require biscuit opium have offered to test opium from the Factory by issuing it as an experiment to State shops. We have been assured by the Opium Agent that the Factory can manufacture biscuit opiuin in any shape or form desired by a State. 48. Supply depôts in the States. If opium is supplied to the States from Ghazipur it may be desirable to maintain one or two supply depôts in Central India and Rajputana. This would reduce transit charges by enabling opium to be sent from Ghazipur goods train in full wagons. It would also be convenient to the States by facilitating prompt compliance with indents. Several Darbars have suggested that supply depôts will be necessary, and it should be possible to arrange for their maintenance at such centres as Indore, Neemuch or Ajmer without incurring heavy expense. 49. Duty on excisable articles imported into the States.-The Rewa Darbar have stipulated, as a condition of taking Ghazipur opium, that the principle of duty following con-' sumption shall be applied to the import into the State from British India of all intoxicating drugs or Indian manufactured liquors, and that the provinces of export shall cease to levy internal duties on such drugs and liquors imported into the State. The point has been raised also by the Alwar Darbar and a reference to it is included in the Alwar Report. It has been raised by other Darbars in discussion, although not incorporated in the Reports; and we have reason to think that the grievance is strongly and widely felt. It is most noticeable in the case of charas and Baluchar qanja. Neither of these drugs can be produced in the States, and in the case of both of them the Province of export uses its position of monopoly to enforce against importing States a very heavy internal duty, so that in effect consumers in the States are paying taxation which is credited to the excise revenues of the Provinces. We not aware of any justification for this procedure at the present time, when nearly all States have adopted excise systems similar to those of the Provinces. The Darbars suffer from the monopoly enjoyed by British India in regard to charas and Baluchar qanja and they think it reasonable to ask that this grievance should be redressed before the right of are ·43 opium production or manufacture is abandoned and a monopoly of opiuni supply conceded to British India. 50. Conditions required by the Bhopal Darbar.–A9 no Report is forwarded for the Bhopal State there is no entry against that State in Appendix 16. The Darbar however formulated in the course of our discussions the conditions under which the State would agree to tale Ghazipur opium. They appear to be as follows:- (1) The old stocks in the State must be purchased by Goverament on the terms already noted in paragraph 20 above. (2) All cultivation in Malwa must be discontinued. (3) The opium must meet the taste of consumers in the State. (4) The price must not be greater than the cost of production in the State. The Darbar nevertheless claim the right to manufacture and export morphia, and they reserve the right to cultivate the poppy " whenerer they feel the need for doing so ", with the proviso that they will not cultivate “ unless obliged to do so by any action of the neighbouring States 01 of the Government of India. As these terms were formulated at a late stage, when exhaustive discussions had already taken place, we were unable to ascertain their exact implications. There has been no poppy cultivation in the State since the year 1915. V-TIIE POSSIBILITY OF INCREASING OPIUI TAIATION IN THE STATES. 51. Conditions under which the Darbars are propared to increase taxation.-Appendix 17 gives a summary, of the conditions under which the States are prepared to increase the sclling price of opium to a degree corresponding ns pearly as possible with that in force in British India. The Darbars' vieta shoir a considerable degree of unanimity. They are nearly all in sympathy with the policy of maximum revenue from minimum consumption, and they are prepared to give effect to this policy provided that the enhancements of price are carried out gradually, that all neighbouing States enforce the same price, and that the Darbars are satisfied that 10 undue hardship will result to legiti. mate consumers of the drug. A fex Darbars express the opinion that prices in the States can neser he raised to the full lovel of prires in British India, on arenunt of the comparative poverty of State subjects and the extended_hse of opium for legitimate and qunsi-medical purposes. A feir Darbars express apprehension that increased taxation upon opium mnv bring about the substitution of other more harmful intoxicants. The latter point has been #pecinllr emphasized in the Tonk State with reference to cocaine. The following crtract is reproduced from the Tonk Report : "The second limitation (affecting in the Darbar's opinion tho policy of maximum rerenue froni uninimuoi consumption) is that D ·44- 1 1 the use of opium must not be discouraged by high prices with the result that consumers take to cocaine instead, As regards the second point the Committee is much'impressed with the evidence of increased consumption of cocaine in the State. This is a habit infinitely more harmful to the individual than opium eating. The illicit traffic in cocaine is exceedingly difficult to keep in check and can only be properly prevented if international opinion enforces control in countries where cocaine is produced. The Committee fully endorses the Darbar's view that international efforts to diminish the production and use of opium in opium eating countries are worse than useless if they bring about the substitution of the cocaine habit for that of opium eating". The stipulations summarised above are reasonable in thenselves, but it is evident that progress in raising the retail sale price of opium in the States will generally be the progress of the slowest and most conservative State. It is clear, also, that the Darbars in general will not be willing to raise prices unless they are satisfied bath that legitimate consumers will not be unduly penalised and that higher taxation will produce a positive increase of revenue. An attempt to gauge the possibility of increasing taxation in the States therefore involves consideration of the present standards of consumption. 52. Opium consumption in the States.-(1) Information regarding the various uses of opium and the methods of consumption has been, fur ished by most Darbars in their replies to Section II of the of Ref The information is not generally of a ve cha d we'were not able in the time available dent investigation. The conclusions s sed upon evidence less meur ouall b India of 22 - ey musta arded cachott tates in this ligb included in a gr he populations ut: il, propulations: he the Kumbi deserts of J plateau to the y (2) Opium in Buidelkhan Central India, lowest and the he cominon in a 50 per cent of in the western to bo infrequent; onlv tvo Státés, practised, and to The mixture olilained by boili e, tomplete, th luar, 7 1 con Ia Io a 0. Bages 1 ·45 sometimes compounded from opium mixed with parched barley husks or the leaves of the babul and acacia trees. Smokers ara said to lose their energy and health, and the use of foreign ingiedients is said to make the practice more injurious. (3) Opium ealing. We may distinguish the use of opium by addicts, its occasional use for ceremonial or festive purposes, its use for quasi-medicinal purposes and its use for children. The first three divisions however tend naturally to merge into each other. (4) The habitual use of opium in large quantities is generally conceded to be undesirable. It is naturally found most frequently in the communities which chiefly practise the moderate use of opium as a mild stimulant, a preventive of illness or a form of hospitality. Addiction, or constant use in fairly large quantities, may even be a natural and not necessarily injurious development of moderate use, the opium eater's system being gradually adjusted to large doses and suffering little harm except when deprived of its accustomed stimulant. In such cases the practice is chiefly to be condemned because the opium eater has made himself the slave of an expensive habit; but the slavery, as that of all intoxicants, tends to tighten its grip and to lead in the end to definitely morbid results. "It is supposed to produce some laziness among habitual eaters" (Chhatarpur). "No remarkable physiological change is marked ainong the moderate consumers. Habitual consumers who take to excess do show signs of emaciation. Their number is insignificant (Partabgarl). The physiological effect of its regular use upon the consumer is to make him dull, slothful and inactive." (Jodhpur): “Those who use opium for intoxication are generally weak and leau (Orchha) It weakens the people, making them lose flesh and constipated” (Maihar). On the other hand we are informed that the consumption of opium does not seem to produce any injurious effects" (Kotah). "The physiological effects upon the consumers are not bad " (Barwani). 'It is not known to produce any injurious effect on the consumers, except that it acts as a slight intoxicantes (Sitamau). “Opium according to those here who use it produces a sort of refreshing effect on their minds and also infuses energy in those used to it" (Rajgarh-this opinion evidently ignores the period of reaction between doses). “ Considering the enormous number of people eating opium, the effect on the con- (sumers is negligible. Only one case of a heavy opium eater has come to my notice. He eats 4 annas of opium, approximately five unashas, a day and can do no work without it. His age is about 64 years. As long as he has his opium he is a hard worker" (Captain Webb, Revenue Member, Tonk). On the whole it does not appear from the evidence before us that cases of excessive and morbid development of the opium eating habit are at all common, even in the Rajputana States where the habit of consumption is most widely spread. Outside Rajputaria it is frequently stated that habitual consumers are decreasing in number and are chiefly old • The number of habitual eaters is gradually diminishing" (Chhatarpur and Deras Junior Branch). “ The di ug is popular 1 2 Inen.

·40 are seen Or a . ever with old people only. Its use is constantly diminishing as young and educated people do not like it” (Dhar). No new addicts (Indore). On the other hand three Darbars (Ratlam, Banswara and Tonk) refer to the use of opium by young men as a “ stimulant luxury (The purpose in this case is probably aphrodisiac.) From the Rajputana States there is inore cridence of habitual use. - The Darbar consider about 40 per cent. of the population to be opium eaters.... .....cases are not unknown in which it is taken in such big doses as two tolas at a time" (Jhalawar). " There are men who take habitually twice a day a dose of opium weighing 3 tolas at a time" (Jaisalmer. But these men must spend at least Rs. 60 a month on opiuw. Only the comparatively wealthy could afford it, eren at the present low selling rate in the State.) " It is taken sometimes upto one tola a day, but such cases are rare (Karauli). The Jaipur Darbar estimate that 27/30 of the opium consumption in the State is due to labit and only 1/30 to marriages and entertainments. In this estimate howhabit apparently includes the use for quasi-medicinal purposes. It is thus noticeable that while many Darbars agree that the policy of reducing consumption would be beneficial, and some evidence is produced of excessive derelopment of the habit, there is little evidence of acute moral, mental or physiological disorder resulting from extreme indulgence. Indeed the eridence on the whole points the other way. The extreme addict inay be dull, slothful, lean and constipated, but he remains (for all evidence to the contrary) a tolerably good citizen and even, so long as he gets his opium, a good worker. (5) The use of opium on ceremonial and festive occasions is still common in Central India and Rajputana. It is then generally drunk in a liquid form known as kasumba. This practice, in Rajput communities especially, plays an important part in the celebration of betrothals, marriages, funerals, religious festivals and reconciliations; in Rajput States it finds a place in the ceremonials of Darbars. Eight States in Central India specifically mention the practice, two record that it is now disappearing, in four it is stated that no such ceremonial use of opium exists. It is still practically universal in the States of Rajputana, the only recorded exception being the predominantly Jat State of Bharatpur. On such occasions “ the opium beverage is freely circulated all round, and to refuse to take a sip of opium juice from the hand of the host is deemed bad manners, if not as a positive sign of ill will and hostility. People who are not addicted to the opium freely indulge in this beverage on such occasions, and opium from 4 to 10 tolas is easily consumed in a gathering of 50 persons. The total quantity consumed waxes large when Rajputs, Charans and other landed zamindars congregate together on such occasions, as they are reported to be able to stand large dose of opium (Bikaner). This custom may do something to encourage the use of opium, but it is perhaps more properly regarded as the outcome and symbol of the widespread habits of a community, thus taking the part played by ·47 > 66 97 pan, tobacco, wine or spirits in social and ceremonial observinces elsewhere Even in Rajputana the practice 18 probably on the decrease, partly because the convivial use of opium in the community generally is diminishing and partly beciuse it must, lile many customs peculiar to self-contained communities, give way in the end before the advance of 'civilization' and wider contact with the outside world If the custom should disappear for this reason, or if opium is tared out of common consumption, the place of hasunba will probably be filled in part by country spirit, some form of hemp drug, or foreign " liquor, Indian or Europe'ın, according to the ineans and socni position of the consumer and to the kind of stimulant that happens to be substituted in popular use (6) The quasi-medicinal use of opium is wide spread and undoubtedly valuable It is used by" old, real and asthmatic people" (Ali-Rajpur), by "weak and sich persons, especially in the cold season (Karuli), by old people, as it is supposed to make them fit for sustained work and remove depression " (Narsinghgarh), as ? preventive of certain diseases of old age" (Bharatpur), ** to relieve the ulments of cough and rheumatism and to counteract the adverse effect of injurious water" (Baraundha), "to revive fainting nature, to relieve pain and soothe nervous trouble (Mewar) " It is used by the old and imbecile as a tonic It is also prescribed as a sedative towards cure internally as well as externally in different ailments Men, women and children alıhe tale opium (Kotah) "Its use increuses to some extent during an epidemic" (Nagod) In Narsinghgarh it is used “ to avoid the efrect of a damp climate", in Rujgarh, Karauli and Alwar its use is said to increase in the winter, and the Jaipur Darbar record that in Rajputana it is said that the climate requires the use of opium medı. cally opinions which seem to indicate that opium is commonly regarded as a safeguard against all kinds of climatic severity Opium is used as a panacea for all alls It is eaten extensively for curing colds, coughs, fever, etc It is taken internally and plastered on the body to ease gout and rheumatism It appears to be the universal poor man's medicine The cultivators whose staple foods are jowar, makka, vegetables and oil eat it to remove the effects of a continuous diet of these foods, they cannot afford expensive commodities and opium is their substitute, which is inexpensive and helps them digest an otherwise monotonous dietary The oil extracted from the opium seeds is extensively used for coughs (Tonk) “It is taken before food” (Jaorn) It is used externally for alleviating pain" (Bundı). Opium in fact is very widely used as a help to endure fatigue and exposure, particularly by the old and infirm whom necessity compels to keep at work, as a means of warding of disease, and as a remedy for pain and sickness by all classes of the community, Its value to those who are not within reach of medical help and suffer from accidental injury or painful disease must be immense The common belief in the sovereign properties of opium may contain an element of superstition, but its efficacy in relieving pain and giving endurance against fatigue ·48 and exposure is, the believe, fully supported by medical authority. In many States there is little or 10 provision for inedical help within reach of the greater part of the population. The loss of opium as an easily found remedy against pain, disease and exposure would be a real calamity. A considerable increase in price might be severely felt. (7) The majority of States record that opium is used extensively for children. Some however state that the practice is rare or is decreasing. It is commonly given to babies in pills containing very small doses, in order to kcep them quiet while teething or while their niothers are at work. ** It is given to children after covering with ashes, so as to minimise the bitter taste" (Narsinghgarh). It is rubbed on sandstone and then given mixed in milk or Frater (Jaisalmer). " To most of the chillren it is administered upto The age of 3 years as a presentive against disease and also to send ihem to sleep while their mothers are at work. In fine, it is to them almost their inother's milk (Kotah). " Formerly in Malwa it was customary to give opium to children of tender age. But now this practice is abandoned to a great extent. To begin with opium is administered to children as much as a poppy seed. With the growth of the child the quantity of opium is also increased, and opium is given every morning and evening in the quantity of a mung seed. When the child becomes 4 or 5 years of age the use of opium for him is discontinued. Women born and residing in Malyva consider the use of opium for children good and beneficial. The reason is that the children under its influence sleep well and cry little. Generally the labouring classes administer opium to their children; because the children being intoxicated with opium do not give much trouble" (Jaora). “ Children are given it froin the age of 2 months to 2 years.... ...but there appear to be po serious after effects and the children and people in Tonk are in the main healthy” (Tonk). It is given from 3 months to 3 years (Baraundha); " until weaned » (Bikaner and Partabgarh). Alost Darbars deprecate this use of opium. It is probable that high prices would have some effect in discouraging it, not so much by placing the remedy out of reach of the cultivator's pocket, since the quantity required is infinitesimal, but because a decrease in the general consumption of opium and its absence from the ordinary stock of household remedies would tend to make indulgence in the practice less easy. But it is not likely to disappear until more advanced views of infant hygiene become general among the poorer classes. (8) There is evidence that opium is commonly administered to cattle, especially in Rajputana. " It is administered as a curative drug to cattle and horses?! (Ali Rajpur); "to elephants for medi. cinal purposes (Samtliar); "to horses and bullocks when they get tired during a journey. It gives them a fresh start” (Sirohi). * Most of the people in Jaisalmer are camel and cattle breederg and they use opium medicinally-internally and externally-in certain ailments of their live stock" (Jaisalmer). “It is zsed as a ·40 66 medicine for cattle and horses (Kotal) Opium 19 ficely given to drrught cattle, bullochs, camels and horses, as well as to come, calves and buffnloes Tor Horses it 18 used as embrocation for massige and rubbing their chests with and it is given to bullocks ind camels then they are out of condition and as a restorative against fatigue Opium up to one tola is given to camels after long or forced marches (Bihaner) A State representative on the Conmittec had himself seen a team of bullochs ploughing a long field against time When the bullochs renched the end of the field, after ench double row, they were given a ball of opium mixed with ghee to keep them going The use of opium for cattle probably accounts in part for the very high consumption in Bihaner and Jai snlmer In these and some other States an increase in the cost price might affect the cattle owner's pocket appreciably 53 Conditions likely to limit the policy of high taxation (1) Most intoxicants in general use hare three classes of consumers, a small class that consumes very seldom, and for reasons of a medical kind, a large class that consumes frequently but in moderation, for reasons partly social and partly cprourean, and a much smaller class that consumes to excess, by reason of uncontrollable habit The third class dovelops for the most part out of the second, and the prohibitionist and the advocate of high prices and minimum consumption bellove that the second class should be sacrificed, wholly or partly, in the interests mainly of the third The policy they advocate does not usunlly affect the interests of the first class of entirely legitimate consumers The uso of opium in the Statos may be classified on the same lines, but it 18 ovident that in this case the number of consumers in the first class is very large and that the enforcement of a policy of restriction must affect their interests to a considerable and perhaps an undo- Bulable extent It is arguable also that the number of consumers in tho third class 18 comparatively small A further difficulty in enforcing a policy of restriction in the States lies in the fact that opium may be replaced by other drugs which in the capacity of anolyno or tonio are less efficacious but as intoxicants are much more hniniful In some parts of Rajput1u7, as for instance in the Jaisalmer State, opium is practically the only intoxicant in common use Villnges scattered in the desert are not ensily subject to orcise org? niention and control If the price of opium in the States is raised to a high level and imports restricted it is lihely that illicit importa of chams or cocuine will be stimulated I'rnally the general standard of living is loner in many States than in British India There are fewer large towns, wiges are lower, and the enforcement of biglı prices for escisible articles is more severely felt (2) There are thus, in many of the States and particularly in Rajputana, argunble grounds both for 1 standard of opium con sumption much higher than thnt contemplated by the League of Nations, and for the enforcement of loner prices on those of British India It follons that the stipulation made lugemins 17r Lars that the raising of price must not cause undue wardship to ·50 legitimate consumers has some justification, when viewed in the light of present social and economic conditions, and is likely in its operation to retard progress towards the goal of equalized prices. As we have pointed out, progress in general will be that of the slowest State, and the Darbars that have most concern for their legitimate consumers will to a large extent dictate the policy of their neighbours. (3) A second retarding influence will in some cases be that of finance. The Darbars are not inclined to pursue a policy of increased taxation unless it shows a definite gain in revenue; and this consideration is likely to govern every stage of increase. It is true that the policy of maximum revenue from mininium consumption " has secured in British India a very general and striking increase in the provincial excise revenues from opium. Between 1912-13 and 1924-25 the total revenue of the Provinces under this head rose from Rs. 1,80-60 lakhs to Rs. 269.19 lakhs, an increase of 49 per cent.* But in estimating the real increase allowance must be made for the general rise in prices since the war. The price level in Bombay in 1927, as compared with 1914, was 156.7 The rise in prices in India as a whole has perhaps been smaller, but it is clear that if the war and the consequent depreciation of the value of money had not intervened the real increase in the provincial realizations from opium would have been much less than 49 per cent. The present opium revenue in the 51 States visited by the Committee is estimated at Rs. 25,06,468 and the present consumption at 1,35,759 seers (Appendix 7), giving a present average taxation per seer of about Rs. 18. In the four surrounding Provinces of Bombay, the United Provinces, the Punjab and the Central Provinces the average taxation per seer has risen from Rs. 24 in 1912-13 (representing more than Rs. 24 in present values) to Rs. 81 in 1924-25. The States, therefore, have a longer way to go before taxation can be equalized with that of surrounding Provinces than that traversed by the Provinces themselves since 1912; and the law of decreasing returns may be expected to operate sooner in the comparatively poor populations of some States than in British India. There is evidence of this in a few States in Bundelkhand in which opium taxation is already high. The following figures show that these States, with a lower selling price, have a smaller consumption per head than British India States. Retail sale price. Rs. Orchha Panna Charkhari Bijawar 100 90-100 70-80 80 Consumption per 1.000. Rs. 6.0 4.4 17.8 10.0 * The figures here and below rf the Memorandum on Excise Admi + India in 1926-27, page 111, Brit:* U are taken from m-1925-26.

·51 1 but pro- 16 0 48 23 0 niet te fisgal Provinces" (1925-26). Retail sale Consumption price. per 1,000. ht. Bombay (not known, bably above Rs 100) Tidnited Provinces 120 Staff Punjab 80-120 180 Central Provinces 80---280 These, however, are States in which the opium habit is not strongly developed, so that the figures do not necessarily serve as a guide to taxable capacity in Rajputana. (4) There are thus two obstacles in the way of raising prices in the States to the full level of British India; the first, that Darbars may be'unwilling to penalize by very high prices consumption which they consider legitimate; the second, that very high prices may "result in positive loss of revenue 54. Possible results.If, however, the final goal of equa- ‘lized selling rates of opium in the States and in British India appears to be distant and difficult to achieve, there is good reason to anticipate at least considérable advance in the future In a "large part of Rajputana and in the western States of Central India progress is hampered at present by conditions in the Mewar State. The presence of very large uncontrolled stocks in the State and the absence of any taxation has hitherto prevented neighbouring Darbars from taxing opium at even moderately high rates, owing to the fear of illicit imports from Mewar. If the stocks in Mewar can be bought up and placed under control, that Darbar will impose taxation, and a general advance will be possible. The present opium revenue of the States varies from 4 pies per head of population in Mewar to 14 annas 1 pie in Jaisalmer. The average for all the 50 States (excluding Baroda) is 2 annas 1 pie. The taxation per head in the United Provinces in 1924-25 was 7 pies, in tho Bombay Presidency 2 annas 3 pies, in the Punjab 2 andas 4 pies nd in the Central Provinces 3 annas 1 pie. In comparing the tates'. figures with those of British India it is necessary to make lowance for the fact that in some States the present sales of excise bium are inflated by purchase of opium for smuggling. The real nsumption of the population of these States is probably somewhat aller than the figures in column 4 of Appendıx 7 indicate; and - taxation actually paid by consuming State subjects 18 correendingly smaller than that shown in column 7. In so far, again, the States' populations are poorer than those of British India Pq are likely to have a smaller taxable capacity. But against must be set the facts that the States' populations have in ral a stronger habit of opium consumption, that in some States -intoxicants are less easily procured, and that the use of opium nedicinal and veterinary purposes is generally greater, than itish India. Taking all these factors into consideration it is Ps not imposſible (assuming the most favourablo result) that ·52 23 seers. the present taxation revenue of 2 annas ) pic per annas ) pic per head may be doubled eventually. The total opium revenues would then risc from Rs. 25 to Rs. 50 odd lakhs. T'he present average consumption per 10,000 of population in the 50 States is 71.2 scers. In the United Provinces in 1924-25 it was 5 seers, in the Bombay Presidency 16 seers, in the Punjab 16 seers and in the Central Provinces If it be assumed that higher taxation in the States might reduce consumption by about 50 per cent. to 35 seers per 10,000 the total annual consumption would then be 66,690 seers, giving a taxation revenue per seer (on an assumed total revenue of Rs. 50 lakhs) of Rs. 75. This is not far short of the taxation imposal per seer in British India. In other words, if the premisses are true that the taxable capacity for opium of State subjects is fairly high and that consumption will remain high, in comparison with British India, in spite of high taxation, (although reduced to half the present figure), then there is a reasonable prospect that the selling price of opium in the States will ultimately approximate to that of British India. The premisses are of course extremely hypothetical. The issue depends chiefly upon the readiness of the Rajputana Darbars to increase taxation, and the capacity of their subjects to retain a comparatively high standard of consumption in spite of increased taxation. If the second condition is not fulfilled is probable, for reasons stated in the preceding paragraph, that the Darbars will prefer to retain a lot scale of taxation rather than to force a drastic decreasc in consumption upon their subjects and to incur possible loss of revenue themselves. VI.-SLIUGGLING. 55. Smuggling into the States. It is probable that there is little smuggling of opium into State territory because it is far more profitable to the smuggler to take it into British India or to the sea-ports. There may however be local smuggling, generally on a small scale, from a State in which the price of opium is low to a State in which it is higher. The Jaipur Darbar estimate that consumption in the State would increase by 60 maunds if smuggling from adjacent States were prevented; if the estimate is correct the State loses Rs. 48,000 annually of opium revenue from this cause. The Shabpura State has supplied figures showing that consumption is smaller in the parts of the State bordering on Mewar than "elsewhere. It is probable that all the States adjacent to Mewar will benefit to some extent if the stocks in Mewar are brought under control. 56. Smuggling from the States.-Little information of real value has been obtained under this head, and indeed it was hardly to be expected in view of the composition and procedure of the Committee. Information received from the Darbars regarding the steps taken to prevent smuggling has been recorded in the accompaniments to the individual Reports. The State excise and police staffs are not as a general rule sufficiently numerous or well paid to ·53 rabe able to cope successfully with the problem If the old stocks can be brought under control a most important preventive step wall have been achieved But smuggling cannot be finally prevented so long as the price of opium in the States remains comparatively low and the smuggler can obtain supplies from State shops The States themselves could however give valuable assistance by tioning " the shops, i e, by fixing a normal demand for each shop based upon the consumption of the population it serves, and by enforcing strict inquiry into cases in which the ration is much exa ceeded, in addition to surveillance and checking of shop accounts by the excise staff at all times A few Darbars have taken steps in this direction already At the present time smuggling is a trade bringing in enormous profits, supplied wath much raw material ready to hand, and financed by “big money in the bach ground It may be hoped that 18 the raw material decreases and becomes less accessible the trade will contract, its risks will increise, the principals will gradually be frightened out and the bribery and demoralization of police, excise and railway staffs will diminish A healthier tone will be established in the public generally and the detection of smuggling wall become easier The impetus of the movement will thus be reversed, the motto “ vires acquirit eundo" hitherto flaunted upon the contrabandist flag will belong more appropriately to the forces of law and order VII-SUMMARY 57. Possible results. If the suggestions made in this Report are found possible to carry out, the opium arrangements in the States will, we venture to think, be placed within a few years upon a satisfactory basis The stocks of opium will be removed from the hands of dealers and private persons, and will be lodged entirely in State or Government warehouses All transactions will be curied out under the State monopoly system through the medium of State officials Production will either be confined to British Indın or be shared between British India and the States under arrangements which should leave no reasonable ground for international criticism will be clear foi a general increase in opium taxation in the States within the limits imposed by their particular social and economic conditions The prosperity of the States should suffer no serious diminution Political controversy on the subject of opium should disappear with the evolution of a settlement of opium problems at once economically satisfactory to the States and conforming with the international obligations of the Indian Empire The way JA POPE GS HENDERSON AZIZUDDIN AHMED

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·65 APPENDIX 1. List of States and their representations on the Opium Committee, and the permanent Members of the Committee. State. 1. Baroda Representative Rao Bahadur Govindbhai Hathibhai Desai, B.A., LL.B., Naib Divan. Rao Sahib L. B. Mulye, Member for Education. 2. Gwalior . STATES IN CENTRAL INDIA, -3. Ajaigarh Thakur Sukhdeo Singh, Diwan. 4. Ali-Rajpur Khan Sahib Sorabji Cowasji Dotiwala, Diwan. 5. Baoni Pirzada Mohammad Hasan, B.A., LL.B., Chief Secretary. 6. Baraundha Saiyed Abdul Mabud, Diwan. 7. Barwani Khan Sahib Meherjibhoy Hormusji, Judicial Minister. 8. Bhopal Khan Bahadur Mohammad Hasan Khan, Secretary in the Finance Department. 9. Bijawar Qazi Amiruddin Ahmad, B.A., Diwan, 10. Charkhari Diwan Bahadur Munshi Raushan Lal, B.A., Diwan, 11. Chhatarpur Rai Bahadur Pandit Sukhdeo Behari Misra, B.A., Diwan. 12. Datia, Babu Bishan Dass Chopra, B.A, LL.B., Super intendent of Customs and Excise. . 13. Dewas. Senior Branch Mankari Raghunath Parashram Tipnis. 14. Dewas Junior Branch Mr. T. N. Roy, M.A., LL.B. (at the earliet meetings). Mr. K. Subba Rao, B.A. (at the final meeting) * 15. Dhar Rao Bahadur K. Nadkar, Ditan. 16. Indore Muntazim Bahadur Lala Nehal Chand, M.A., Member for Abkari. 17. Jaora Pandit Amarnath Katju, B.Sc., LL.B., Revenue Secretary. 18. Jhabua Pandit Mankameshwarnath, Superintendent of Offices. 19. 'Khilchipur Sahibzada Azizur Rahim Khan, Diwan. 20. Maihar Mr. N. N. Majumdar, M.Sc., B.L., Diwan. 21. Nagod Rai Sahib Babu Chheda Lalji Sachiva Ratna, Diwan. 22. Narsinghgarh Rao Sahib Pandit Nagesh Abaji Kathavate, Judicial Member. 23. Orchha Khan Bahadur Syed Asgar Ali, Madar-ul- Moham. 24. Panna BIr. Blorarji Anandji Tana, B.A., LL.B., Dispan. . 1 ·56 Stato. Representativo. . 25. Rojgarli 26. Ratlain 27. Rewa STATES IN CENTRAL INDIA-contd. Khan Sahib Syed Shaukat Ali, B.A., Diwan. Rai Balladur Pandit Brijmohan Nath Zutshi, O. B. E., Diwan, Rao Sahib Pancholy Keshri Singh, Industries Commissioner, Rai Bahadur Pandit Raj Kishan Kaul, Diwan, Kunwar Sujan Singh, Diwan, Ar. Motilal Himmatlal Avashia, B.A., LL.B., Diwan. Mr. Brijlnl Sharma, Rerenue Officer. 28. Sailana 29. Samtliar 30. Sitamau 31. Piploda 32. Alwar 33. Binswara 34. Bharatpur 35. Bikaner . . . 36. Bundi 37, Dholpur . 39. Dungarpur 39. Jaipur . . 40. Jaisalmer 41. Jhalawar STATES IN RAJPUTANA. Rai Bahadur B. Sardar Singh, M.B.E., Revenue Minister, Mr. Zalim Singh Kothari, Diwan. Pandit Maya Shankar, Nazim. Sir Manubhai Nandshankar Mehta, Kt., C.S.l., Prime Dlinister. Mír. N. Bhattacharya, M.A., Prime Minister. Rai Bahadur Munshi Kunj Behari Lal, Revenuo Secretary Rai Sahib Pandit Kishon Nand Joshi, Diwan. Klian Baliadur Maulvi Muhammad Ashfaq. Hasan Khan, Member of the State Council for P.W.D., Trade and Excise. Rao Bahadur Murarji Raoji Sapat, Diwan. Lieut.-Colonel R. A. E. Benn, C.I.E., Chief Minister. Mr. D. L. Drake-Brockman, C.I.E., I.C.S., Revenue Member, Rao Sahib Pandit Shankar Nath, Chief Member. Rao Bahadur Roop Singh Powar, Judicial Nember. Major-General Ap. Onkar Singh, C.I.E., Member of the Mehkmakhas. Mr. C. G. Chenevix Trench, I.C.S., Revenuo and Settlement Officer. Mr. Dhanjishah Dinshah Mehta, I.S.O., Diwan. Babu Raghunath Singh, District Magistrate, Rajya Ratan Mr. Sadashiy Ram N, Mehta, Chief Minister. Captain W. F. Webb, I.A., Revenue Member. Rao Bahadur D. B. Kaveeshwar, Kamdar. 42. Jodhpur . 43. Karauli 44. Kishengarh . 45. Kotah . 46. Mewar . 47. Partaligarh 48. Shahpura 49. Sirohi + • 50. Tonk 51. Kushalgarh PERMANENT MEMBERS OF THC COMMITTEE. Mr. J. A. Pope, I.C.S., Excise Commissioner in Central India and Adviser on Opium Affairs for Central India and Rajputana. (President). Mr. G. S. Henderson, N. D. A., N. D. D., Imperial Agriculturist, Pusa. Khan Bahadur Qazi Azizuddin Ahmed, C.I.E., O.B.E., I.S.O., Ditan of Datia Stato.

·57 'APPENDIX 2. Tour of the Oprum Committee. Date. Place of halt. States met. Indore. Indore and Dewas J. B. November, 16th to December, 5th. December, 6th 7th to 9th 10th to 12th 13th to 15th Sallana Sitamau Partabgarh Jaora Neemuch 1 16th 17th to 2180 January, 4th to 7th 8th to 14th 15th to 17th 18th to 20th 21st Udaipur Gwalior Agra Alwar Jaipur Ajmer » 97 37 22nd and 23rd 24th to 26th 27th 28th to 31st February, 1st and 2nd 3rd to 6th 7th to 10th. » 11th to 14th 15th to 18th 19th to March, Ist March, 2nd 3rd to 7th Kishangarh Bikaner Jaipur Tonk Bundi Ratlam Jhalrapatan Kotah Baroda Indore Dhar Indoro Saulana. Sitamau. Partabgarh. Jaora, For discussion with Joint Opium Officer, Malwa States. Mewar. Gwalior. Dholpur. Alwar. Jaipur. For discussion with tho Superintendent of Excise, Ajmer Marwara. Kishangarh, Bikaner, Jaipur. Tonk. Bundı. Ratlam, Sailana and Pıploda. Jhalawar. Kotah. Baroda. Barwani and Dewas S B. Dhar. Raigarh, Narsinghgarh, Khiichi. pur, Deway S B. and Dowas İ. B. Bhopal Rewa, Maihar, Nagod and Bar. aundha Orchha, Datta, Samtbar, Panna, Charkharı, Ajaigarh, Bijawar, Baoni and Chatarpur. Jodhpur Banswara, Dungarpur, Jatsalmer, Karauli, Bharatpur, Sirohi, Shahpura and Kushal. Jhabua and Al Rajpur. Rajgarh, Narsinghgarh and hhulcbipur Kotah Banswara ) » 8th to 11th 12th to 14th Bhopal Sutna >> » 15th to 20th Nowgong 218t to 24th 25th to April, 3rd Jodhpur Mount Abu : garh Apr, sth 5th to 13th Dohad Indore » 14th and 15th 16th Kotah Indoro

·58
APPENDIX 3.
Map showing the Tour of the Opium Committee in the States of
Central India, Rajputana, Gwalior and Baroda.
(Not printed.)

·59 APPENDIS 4. Statement showing stocks of opium in maums in possession of incrchants and Darbars in the States of Central India and Rajputana, Gwalior and Baroda. (York-Stocks la possession of Darbars not exceeding one year a consumption of the state hapa generally been ignored BALL ORTUM BISCOIT OPIUM State. With mer chante Total of ball and blscult opluma Dar. bars with mer chants Total Dat bars Total 1 2 3 4 5 6 7 8 Gwalior 943 220 1 169 1469 Baroda 1,236 1 230 1 930 Indore 560 580 500 39 39 30 Dewas (Senior Branch) Dewes (Junior Branch) 20 20 20 Joora 295 15 340 840 102 19 121 121 Ratlam Sitamau 12 8 20 20 Ballana 20 24 24 Dhar 135 77 212 639 539 539 60 60 60 пhopal Hajgarh Narsinghgarh Dangwara 131 131 181 202 202 208 Dundi 36 10 10 ta 50 59 59 Dungarpur Jhalawar 256 256 297 297 653 Karault 12 1" 11 11 23 Kotah 872 873 5 351 6351 6 223 Mewar 17 000 17 000 120 15 15 Partabgarh Tonk 242 212 350 356 698 TOTAL 20 400 2 803 2309 6010 1 O 061 og 40 L ·60' APPENDIX $. Statement showing production of apium in the States of Central India, Rajputana, Gwalior and Baroda. ESTIMATED FUTURE NORMAL PRODUCTION. Production in 1026-27. FOR GOVERXUTXT. Stato. FOR CONSVIPTION IN TIIE STATES. TOTAL. Outturn. Araa, Arca, Qutturn. Arca. Outturn, Area. Outturn. 1 2 3. 6 :0 7 8 Acrcg. . Maunde. Acres. Siaunds, Acrcs. Mnunds. Acrcg. Maunds. Gwalior 0,000 2,500 1,150 7,450 2,000 3,033 1,173 841 792 (aj350 (0)2,210 i Kotah Indore Partabgarh Jaora Sitamau Jhalawar Dictyar 10,007 8,863 3,770 2,811 2,789 2,203 2,140 (c)2,000 3,400 2,320 3,000 2,000 2,300 850 580 750 580 400 0,000 8,000 3,400 2,320 3,000 2,000 2,300. 2,500 2,500 850 680 750 580 400 543 .. 582 (c)500 • & .. 500 Tonk 1,001 116 700 146 05 (e) 141 2,100 381 . 840 - 1,500 (300 300 . (a) (9221 30 30 319 21 60 00 83 103 50 1,500 221 675 375 375 135 075 376 375 135 75 75 75 Ratlam Dungarpur Baroda Dewas J. B. Saila na Piploda Rajgarh Banswara Laraull Dlar Narsinghgarh Alinipura Downs S. B. Kushalgarlı Lundi 1,160 460 424 416 307 330 270 216 132 78 75 15' 2 2 100 100% (1918 28 (n) .. . .. 34 17 20 1 1 1 (3) . . on (1) (1) PATVA TOTAL 41,228 11,630 20,545 0,450 10,321 2,883 30,800 9,333 Ball Opium Discuit Opium : :: 2,031 8,290 502 2,381 Cros (a) Represents 200 majinds of: Lard ball opium annually exported (figures of 1926-27) requiring 1,150. (0) Represents 1,558 maunds of hard biscuit opium annually exported and 110 maunds of hard biscuit opinı, the annual consumption in the State, requiring 7,450 acres. *) Estimated acrcage and producc; exact figures are not available., (1) Cultivation now, proliibited le) The cultivation and production of the Tonk State are estimated as follors: Tor Government 700 acres in Ninbahcra producing 145 Mds. For ball opium 500 ncrcs in Chhapra producing 05 Mids. For: biscuit opium 840 acres in Chhabra producing 1411 Ads. The Eguros of cultivation and production in Chhabra are based on the average of the last 5 years. (1) The agreement with Government provides for producton of 350 maunds, but the actual outturn has always been lcss. (9) The actual consumption in the Baroda State, on the average of the last 5 years, is 177 maunds. annually of bard opium, equal to 238 mauods of crude opium, and roquiring 1,360 acres. But owing to tla presence of a large reserve of 1,236 maunds in the Darbar's possession, cultivation has been rcduced recently and lias averaged 221 acres in the last 3 years, giving an average output of 39 maunds. (h) The Darvar have agreed, subject to certain conditions, to. prohibit cultivation. li) Catimalci output of 100 acres, to which the Darbar bave agreed to restrict cultivation. U) No ugurcs available, ·65.CAS APPENDIX V. Statement showing the effect upon the States' revenues of abandoning poppy cultivation. ESTDUATED ANNUAL LOSS TO STATE REFERUES, IF POPPY ESTIMATED ANNUAL GAIN TO STATE Net annual CULTIYATION WERE ABANDONED, ON ACCOUNT OP REVENUES, IF POPPY CULTIVATION loss to State WERE ABANDONED, 04 ACCOUNT OF relexues, в poppy Reduc. Proft on cultiya Gain In sale of tlon were tlon la Otetoms land feyenities Others orii a to abandoned Total estab front dutics Tatal. terenue Governrevemips. (Colasan 6 Listiment ercise minus rent charges oplum Colunr 9) Total present 222ual revenue State. Percentage > of column 10 OD columa 11. of the • State. * 1 4 5 6 7 8 9 10 11, 12 Gwallor hotan Indore l'attabgarh Joora Bitamau Jhalawar 33,018 5,500 5,400 16 5-6 0-8 29-1 70 19 91,900 75,268 5,625 83,875 10,089 23-8 5700 80 Tonb {® 6,448 18,084 4,48013 12,010 7,593 3,00,000 14 050 3.14,050 (a)2,12,727 : (0341,897 (0)13,156 3.07, 780 1,02,000 11,600 2,43,600 58,000 44,646 4,375 1,07,021 90,000 1,900 59,450 12 800 2,157 (e)861 55 2070 18 847 857- (1,882 78,816 12 295 2 210 2,620 17,055 (1985 36,000 9,000 1,000 46,000 6,400 11600 10,500 9,037 300- 10 237- 10,156 100 10,236 7,38,438 3,50 840 81,805 17 484 | 11 88,567 7,38,438 1,33,633 27,433 3,343 9,09,783- 2,17,207 54,510 14,141 2,85,864 0,750 52714 2145 3,375 1,694 8374 656 Ratlam Dewas, Junior Branch Sanind Pirlodn 15,636 2,449 3,194 15,100, 48,01841. 2,66,032: 1,69,49,500 (2)25,223 5,223 2,42,552 43,69,104 35,000 40,500 1,03,100 1,380,50,618 640 6,040 1,00,981 5,27,969 2,400 8,025 12,00,000 939 1.net 2,71,130 14,031. 8,22, 95 23,08,592 2,675 5,050 40,050 7,69,000 7,306 6,32 595 2371101 8,528 3,51,733 201 880 0,396 1,20,174 98,018 1,70,387 10,16,180 4,13,€9,750 70,340 1,49,7111 7,59,992-(k)3,70,00,596) 27,676 27,670 2,58,188 (+)66,74,746 4,500 1,500 7741 1.4 24 78 TOTAL 72,371 25 72,371, 21 TOTAL FOR COLTIVATION, FOR GOVERN. MENT. TOTAL FOR COLZIYATION FOR CXPORT TO OTHER STATES. 39 E 2 (a) Darbar's estimate not accepted by the Committee as a whole (0) Avenge of last 5 years, ride Aprendix VI on page 8 of Appendices to Kotah Darbar's rrinted note accompanying the Kotah Report (c) Wholesale dealers' fees, confiscations and ines, average of last 5 years, vide as above. (d) Taxation at Rs. 14-0 per weer on 43 mundo 35 Beers at present untaxcdds paragraph IV of Lotah Report () Municipal tar. Fines and confiscations. Origures relating to cultivation in Nitbahera for Government (a) Figures relatiog to cultivation in Chhabra for export to other States. ( Licetisc fces, This item was omitted by oversight from the calculation ip paragraph 11 of the Tonk Report (6) The revenue of the Took State Is 22cluded in both these figures.

·1 1 62 APPENDIX 7. Opium consumption and taxation in the States. (Columns 5-8 nre Alled in only for the States visited by the Committee.) Population, State. Annual consump. tion in seers. Consumption in seers per 10,000 of population. Retail Total sale price. revenue. Taxation per seer of CODsumption. Taxation per head RENARKS. of population, 3 2 3 4 5 6 7 8 9 Rs. Rs. Rs. Rs. A. P. Gwalior 3,195,476 12,852 40-2 35 to 55 {3,50,119 27 0-1-9 CENTRAL INDIA. Indore 1,107,615 8,000 72.2 45 12,71,000 . 34 0-3.11 Southern States and Alalwa Agency. Ratlam 85,489 320 37.4 40 8,000 25 0-1-6 Jaora 85,778 320 37-3 40 9,600 30 0-1-10 Sitamau 26,549 26 9.8 26-10-8 313 12 0-0-2 Sailana. 27,165 72 26 5 40 1,548 21-8 0-0-11 Piploda 22 22.5 26-10-8 468 12 0-0-9 9,760 77,005 Dewas Senior 736 95.6 35 to 40 19,279 26 0-4-0 Dewa Junior. -,60,098 533 79:5 40 14,794 28 0-3-6 Dhar . . 230,333 1,780 77.2 40 48,134 27 0-3-4 Barwani 120,150 971 80-8 45 34,000 35 0-4-0 Jhabua 123,932 1,044 84.2 40 24 0-3-3 25,000 9,584 Al-Rajpur 89,304 382 42-7 40 25 0-1-9 Jobat 183 89.0 .. 18,296 5,200 Kathiwara 114 210-2 . Mathwar . 2,695 18 60-8 Nimkhera 3,440 98 284.8 Ratanmal 1,700 08 379.9 Jamnia 853 19 222.7 . . Panth Piploda 4,406 20 45.3 . Total 070,200 6,706 08-4 ..

·63 Opium consumption and taxation in the States--contd. Taxa . tion Рег State. Popolation. Con- Bump- Annual tiopia COD seers sumpe thon in 10,000 Beers. of popu. lation, Per Retall Total sale price. revenue. seer of Taxation per head of poplation, REMARK. consumption. 1 2 S 4 5 8 7 B 0 Rs. Rs. Rs. Rs. A. P. 662 45 29 0-21 892,448 114,972 101,426 3,890 1,578 1,178 1373 35 15-8 0-3-11 91,700 28,000 28,707 7,680 115.9 35 24 CENTRAL INDIA -cunud, Bhopal Agency. Bhopal Rajgarh Narsinghgarh Khlichipur Kurwal Mohammadgarh Basoda Pathari 0-4-6 40,013 820 800 35 24 0-3.1 19,851 136 685 .. + 2,647 20 75.5 .. 4,242 80 188-5 9,404 27 79 3 7,227 738 170 69 0-0-7 • Not fred. 215 42 0-0-11 191 60 100 10,000 145 65 8,774 57 5 61 7,250 4.4 00 to 100 0,700 17-8 70 to 80 12,750 88 0-3-6 86 77 0-0-7 220 50 0-1-8 60 81 85 9,150 45 0-0-7 112 100 80 5.406 48 88 807 7,027 80 154 02 70 7,100 47 0-0-0 0-5-8 t Norical selling rata, 0-0-9 apparcntly much crceeded fa practice. 30 493 Total 079,033 Bundelkhand Agency. Orchha. 284,948 Datla 148,659 Samthar 33,216 Panna 197,600 Charkhari 123,405 Ajaigarh 84,790 DlJawar 111,723 Baon: 10,734 Chhatarpur 166,540 Barila 8,081 Allpura 14,580 Perl 4,621 Bihat Caraull, 4,817 Gaurihar 0,486 Bljda 1,451 Dhurral 1,880 Torl-Fatehper 6,680 Lughaat 6,182 Jigul 3,012 WagavadRebol 2,113 Banka Pihart. 1,018 Total 1,30,136 . 10 68 .. 25 641 4,786 6 10-4 20-7 10 20 21-0 3 2006 42 5 13 22 8 13 21-0 0 1G-+ 25 118 3 Xil 1,435 1130 ·64 Opium consumption and duration in the States--conld. Taxntion Popula. tion. State. Annual con. fump. tlon lui uccre, Con sunip. flon in HCCTS ԻՐ 10,000 of popie Intion. Retall Total fale price. (renul Taxa . Ilon per sccr of COIL ៤រ• tlon. per lılad REARE8. of popie lation, 1 2 12 7 8 0 Rs. 19. No. Ns. A. 1'. CENTRAL 1: DIA --- concld. Baghirland Agencil. . Rorn 028 0.0 75 to SO 51,265 69 0.0.7 1,101,072 10,012 1 Barnundlia 1410 89.0 03 4,010 y! 29 0-1-1 03,106 60 7.3 80 CO 0-0-8 Nogod. Malhar, 2,073 3,850 60,540 70 105 60 56 0-0-11 Kotli GO 23-8 .. 20,087 38,078 Sohnsol 80 . 21.1 11.0 Jaso 7,221 8 .. Paldco 1,033 20 22.1 3,183 10 125.0 . Pahra Phalsaundi Kamta-Rajaula 1,300 12 05.0 . & 22 20S5 .. 1,055 3,420 Taraon. 10 20:1 . .. .. Total 1,038,771 1,470 8.0 Total for Cen: 1,835,081 tral India. 24,878 61.5 RAJPUTANA. Newar 1.380,003 13,8011 1000 Not Osca 3,0001 0-3-0 Dungarpur 180,272 1,561 82.0 33-5-4 . 28,192 18 Bansara 190,362 . 2,852 15164 20-10-8 49,757 17 07,114 130 203 26-10-8 . 1,300 10 Partabgarh Kushalgarh 0-0-4 * Estimato only ; no 0-2-5 figuras available. 0-4-4† At present thcro ig 0-0-4 only & rcvenuc from 0-1-3 licenSC fees. 0-0-7Biscuit opium. 0-1-7 & Import duty. 0-1-4 20,102 187 04.1 30 2,216 12 Bundi 187,069 2,3331 1247 22 7,000S 3 Donk 287,898 1,200 41.7 25 to 45 23,407 21 Shahpura 48,190 287 590 7-4-0 4,000 14 520 Tarauli 133,730 77.7 26-10-3 11,235 12 0-1-4 5201 Kotah t 630,0GO 69.8 37,914 8 0-1-0 4,4001 840 Jhalawar 96,182 87.3 40 9,338 11 0-1-7 Carried over 3,239,011 . 28,607 ..

·05 Oprum consumption and taxation in the States-concld Taxa tion State Popula tion Annual con sump tion in seers ber Con sump tion in всега 10 000 of popu lation Retall Total sale price revenue Per Taxation per head of moru sect of con REMATES lation qump tion 1 2 3 4 5 6 7 B 0 Rs R$ t's 113 AT Brought forward 3 23) 041 28 667 HAJRUTANAcontd 27601 Jaipur 402 45 12,23 480 2 036 647 ! 20 9 2801| v TY W 01 41Not Includ In? Icon BC [cc rcvcnuo tihen by Salguzars 0-02 : Biscuit opium. 0-3-0 77 734 2 112 271 7 32 30 000 Kishangarh Siroht 186 639 1 000 837 40 41 000 * 1,841 612 24 9171 135 3 17 0-37 230 183 320 139 40 4 18,078 30 4 800 27-8-0 59 479 15 Jodhpur Dholnar Jalsalmer Bharatpur 0-04 67 701 7 0-14 1 496 437 80 31 264 40 0-1-0 8,3737) 1236 8 792 16-0 089 141 20 431, 303-8 $ Alwar 701 154 60 46 000 48 0-11 Bikaner 050 885 30-8-0 3 88 207 17 0-0 5 LAW 2330 1838' Total for Raj 10 139 207 09,287 putans 07 0 Total for Cen]14 074,291 124 105 tral India and Rajputana Baroda 2 120 522 7 065 332 100 6 16 617 87 0-1-8 6.71,507 15 913 212 495 271 1 200 64-0 Il yderabad Ajmer Merwara Administer c d Areng of Central Inand Mappur 8 40.3 9.00 1918 dis GRAND TOTAL 37 441 532 164 1511 598 4103 31 md: Scer 87 930 •*2160 tots Consumption of ball on Consumptk n of biscuit op hez 76 169! Set of mods 9 were 71 2 2,500 4051 19 Total for States 19 01,951 133 759 visited by the Committee tesluting Baroda) ·66 APPENDIX 8. Summary of conditions under which States are prepared to purchase from " central stocks " the opium required for internal consumption. NOTE,-'The following five conditions, which are frequently repeated, are referred to in the summary below as A, B, C, D and E respectively :- A. The opium shall be of good quality and suitable to the taste of consumers in the State. (This condition is made by 34 States.) B. The authority responsible for purchasing and reselling the opium shall make no profit on the transaction. (This condition is made by 19 States.) C. The price at which the opium is sold to the State shall not exceed the cost of local production. (This condition is made by 9 States.) D.--The price at which the opium is sold to the State shall not exceed tho cost of any alternative source of supply, including production in the State. (This condition is made by 3 States.) E.-The price shall be such that the extra cost compared with the present price can in the Darbar's opinion be covered by increased taxation. (This condition is made by 9 States.) State. Conditions. Baroda Gwalior (Is not prepared to purchase.) B. The present opium production for the Government of India shall not be seriously diminished. The Government shall concede to the States a share in the total opium production of India as a whole in proportion to the present areas cultivated with poppy. CENTRAL INDIA STATES. A. E. A. B. A. D. A. E. A. B. Ajaigarh --Ali-Rajpur Baoni Baraundha Bartani Bijawar Charkhari Chhatarpur Datia Dewas Senios Branch A. E. . A. E. . Dewas Junior Branch A. D. A. The price shall not be excessive. A. B. The right of the State to produce opium shall be safeguarded under all conditions. The Darbar desire to continue production for the Government of India, and retain in all circumstances their inherent right of production, but will temporarily abandon production for internal consumption in order to assist the absorption of the old stocks. A. C. The Darbar retain the inherent right of production but will abandon production until the old stocks are consumed. Dhar ·07 Stato, Conditions, Indoro Jagra Jhabua Kulcbipur CEVTRAL IYDIA STATYS--contd. The Darbar till refrain from cultiration for internal consumption provided that (1) the States which do not produco at present, or produco in nominal quan. titics, shall conso producing until tho old stocks are consumed; (2} the States possessing stocks shall tako all reasonable measures for limiting and controlling production, distributton and solo of onim. Tho Gosernment of India should ho invited to tako some of their supplies from the central Blocks. (Tho Darbar karo largo stocks in hand and cannot materially assist ) A. D. A. 3. C. The Darbar shall cxcrciso the right of proxłucing option of, in their opinion, cultivation of opiun in a neighbouring Stato 19 a CA 950 of opium xung smuggled into Khilchen per territory. A. B. E. A. E A, BC Tho Darbar shall exerciso tho right af producing optum if, sn their opinion, cultivation of opium in a neighbouring Stato 18 a causo of opium being smuggled unto Narsinghgarh territory. A, C. A. The price shall not bo greatly in ascess of any alternative source of supply А в с The Darbar shall oxorci80 tho right of producing apram af, in their opinion, cultivation of opium in a neighbouring State is a CRUSO of onium being smuggled into Raigarh territory. . Narhar Nagod Narsinghgarh . Orchha . Panna Raigard Ratinm News Sarlans The States in which the stocks aro held should forego the levy of export duty on thoso stocks D The agreement to purchase from old stocks shall bo limited to a definite persod te g, 5 years) with full right reserved to the Darbar to cultivate after that period A B, (The Darbar havo largo stocks in hand and cannot materially assist) (The consumption is only 22 seers annually ) BD The price shall not in any caso exceed Rs 15 per scer ez-godova Samthar Sitamau Pipioda ·66 APPENDIX 8. 6 Summary of conditions under which States are prepared to purchase from central stocks " the opium required for internal consumption. Note. The following five conditions, which are frequently repeated, are referred to in the summary below as A, B, C, D and E respectively :- A.--The opium shall be of good quality and suitable to the taste of consumers in the State. This condition is made by 34 States.) B.-The authority responsible for purchasing and reselling the opium shall make no profit on the transaction. (This condition is made by 19 States.) C.--The price at which the opium is sold to the State shall not exceed tho cost of local production. (This condition is made by 9 States.) D.-The price at which the opium is sold to the State shall not exceed tho cost of any alternative source of supply, including production in the State. (This condition is made by 3 States.) L.--The price shall be such that the extra cost compared with the present price can in the Darbar's opinion be covered by increased taxation. (This condition is made by 9 States.) State, Conditions. Baroda Gwalior (Is not prepared to purchase.) B. The present opium production for the Government of India shall not be seriously diminished. The Government shall concede to the States a share in the total opium production of India as a whok in proportion to the present areas cultivated with poppy. CENTRAL INDIA STATES. A. E. A. B. . A. L. . A. E. A. B. Ajaigarh Ali-Rajpur Baoni Baraundha Barwani Bijawar Charkhari Chhatarpur Datia Dewas Senios Branch A. E. A. E. . Dewas Junior Branch A. D. A. The price shall not be excessive. A. B. The right of the State to produce opium shall be safeguarded under all conditions. The Darbar desire to continue production for the Government of India, and retain in all circumstances their inherent right of production, but will temporarily abandon production for internal consumption in order to assist the absorption of the old stocks. A. C. The Darbar retain the inherent right of production but will abandon production until the old stocks are consumed. Dhar ·87 State. Conditions Indore Јарга Jhabua Khilchipur Maihar Nagod Narşınghgarh CENTRAL INDIA STATES--contd The Darbar will refrain from cultivation for internal consumption provided that- (1) tho States which do not produce at present, or produce in nominal quan Eities, shall cease producing until the old stocks are consumed, (2) the States possessing stocks shall take all reasonable measures for limiting and controlling production, distri. bution and sale of opium The Government of India should be invited to take some of their supplies from the central stocks. (The Darbar have largo stocks in hand and cannot materially assist) А в A B C The Darbar shall exercise the right of producing opium if, in their opinion, cultivation of opium in a neighbouring Stato is a cause of opium being smuggled into Khilchipur territory. A B E. A E А вс The Darbar shall exerciso tho right of producing opium if, in their opinion, cultivation of opium in á neighbouring Stato is a cause of opium being smuggled into Narsingh. garh territory. A, E А The price shall not be greatly in excess of any alternative source of supply ABC The Darbar shall exercise the right of producing opium if, in their opinion, cultı. vation of opium in a neighbouring State is a cause of opium being smuggled into Raigarh territory c A B C The States in which the stocks aro held should forego the levy of export duty on those stocks D The agreement to purchaso from old stocks shall be limited to a definite period (e 0,5 years) with full right reserved to the Darbar to cultivate after that period А в (The Darbar hare large stocks in hand and cannot materially assist) (Tlie consumption is only 22 seers annually ) BD The price shall not in any caso exceed Rs 15 per seer er godora . Orchha Panna Rajgarh Ratlam . Rewa Saulana Samthar Sitamau Piploda Alwar ·08 Stato, Conditions. Banstvara . Bliaratpur Bikaner Bundi Dholpur Dungarpur Jaipur Jaisalmer Rafrutara STATES. A. C. Thic Darbar sliall be furnished with aji annual statement of sales and balances of stock in the central goclowns. The Darbar will continuc cultivation of not more than 100 acres but will use the opium so produced only after tho central stocks aro exhausted. A B. Thic cost shall not bo much in excess of any alternativo source of supply. A. B. The Customs or Excisc duty lcvied on all such imports of opium shall belong to the Bikaner State. A. The inlcront right to produco opiuin shall ho maintained. The prico shall lcave an adequato margin for State taxation without unduly increasing the price of retail rond. Thc Darbar agree to purchaso from the central stocks. A. B. A. B. The price shall not escecd Rs. 15 pcr sccr cx-godown for ball opium or a prico which the Darbar do not consider excessive for biscuit opium. The Darbar do not undertake to purchase ball opium for consumption in tracts which at present consume biscuit opium. A. Tho cost shall not be much in excess of any alternativo source of supply. The Darbar .are prepared to assist the scheme generally. A. The price shall not exceed Rs. 16 per seer of biscuit opium, or if it excecds Rs. 16, the Darbar shall be satisfied that the price is reasonable and shall be entitled to receive and criticize copies of the cost accounts. A. The Darbar shall be able to come to an arrangement with their opium contractor inrohring no loss to themselves. A. B. C. The Darbar will consider the question of facilitating the sale of as much of their stocks as may be necessary to the central authority. But they are in no ray prepared to concede to tlie central stocks a prior right to the market for biscuit opium (and therefore will not purchase themselves from the central stocks). (The question was not definitely considered.) (The Darbar have large stocks in hand and cannot materially assist.) A. B. C. Poppy cultivation shall be prohibited in the Mewar State. A. (The question was not definitely considered.) A. B. E. The inherent right of producing opium in the State shall be retained in all circumstances. Jhalatar Jodlipur Karaulinen Kishangarh Kotal . Mervar Partabgarh Shahpura . . Sirohi Tonk Kushalgarh ·APPENDIX 9. Estimates of the cost of producing a seer of hard opium supplied by the chief opium proll. REARES. Establishment and rent charges. Total cost per seer of hard opium. Intorest charges. P Dryage. Price paid to cultivator per socr of crude opium. Rs. A. P. 1 $ Rs. A. P. State. Rs. A. P. Rs. A. P. 16 3 1 Rs. A. P. . 16 0 0 .. 7 80 Gwalior No estimate supplied. Cost to Darbar of purchasing hard biscuit op!um from mer. chants. Stated to be selling price of hard biscuit opium-lide figures on page 19 of printed accompanie ment to Kotah Report. This price includes Rs. 3-5 stated to be the wholesale dealers' profit per seer on manufac. ture. Vide Indore Report page 2. Rs. 9 13 the cost of crade opium delivered at the Factory at Indare. No interest charges included. No details given. No estimato supplied. 7 8 0 Kotah 12 0 0 100 3 00 1 il 70 Indoro .. Vide statement 19 un accompanie ment to Sitamau Report No estimate supplied. .. '18 0 0 $50 Partabgarh O'O 0 JAOTA Sitamad Jhalawar ·State. Price paid to cultivator per seer of crudo opium, ldtes of the cost of producing a seer of hard opium supplied by the chief opium producing States--contd. Dryage. Interest charges. Establish ment and rent charges Total cost per scer of hard opium. REMARKS. Rs. A. P. Rs. A. P. Tonk Rs. A. P. Rs. A. P. 08 0 0 13 2 Rs. A. P. Solo 17 10 10 0 0 4 10 Ratlam Dungarpur Baroda 10 0 0 7 10 11 7 0 20 12 3 Dewas J. B. Sailana Piploda Cost to Darbar of purchasing from merchants in the State. Cost of manufacture by Darbar. No interest or permanent cs. tablishment charges included. No details given. No details given. Vide Baroda Report pages 2-3. The total calculated cost in. cludes interest charges for 5 ycars and the whole cost of Factory cstablishment for ono year. No details given. No details given. No details given. 70 0 Rajgarh Banswara Karauli 13 0 12 0 0 10 0 0 11 0 0 4 8 0 8 0 0 100 :: 10 S 0 10 12 0 Dhar Narsinghgarh 10 00 2 8 0 1 12 0 No details given. Rs. 8 is the price paid by tho opium contractor to the culti. vator. No further details are available. 2 12 0 Opium Committee's estimate of lowest normal cost. 700 17 00 10 8 0 1 12 0 1 12 0 No details given. 2 8 0 13 0 0 Interest calculated nt 5 per cent. for four years on Rs. 8-12-0, the initial cost of the crudo opium.

·71 APPENDIX 10 Malwa opium Fote on the cost of staff, labour, etc , required for purchasing hard In 1927 when 412 maunds of hard opium were purchased for Government, the expenditure on purchasing staff, labour and incidental charges amounted to Rs 1,894, giving an incidence of Rs 49 7 per maund The Joint Opium Officer acted as purchasing officer and received a special allowance at tho rato of Rs 250 per mensem The special allowance is included in the expenditure, but not the Joint Opium Officer's ordinary pay In 1921, 4,390 maunds were purchased and the expenditure was Rs 22 098, giving an incidence of Rs 5-0-6 per maund The expenditure however included a contribution mado to the Malwa States of Rs 15,000 towards the cost of the Joint Opium Officer, who was employed as purchasing officer but whose salary during the actual period of purchasing was much less than this If the item of Rs 15 000 19 reduced to Rs 3 000, representing approximately the purchasing officer's pay during the operations, the expenditure is then Rs 10,098, giving an incidence of Rs 2-4 9 per maund In the purchases on a large scale now under consideration it will probably bo necessary to employ a whole time purchasing officer In the estimato given below the salary of this officer is calculated at Rs 1 200 per mensem Tho scales of pay and numbers of the subordinate staff employed are estimated somewhat above those of 1927, on account of the more prolonged and extensivo character of the operations and the assumption that every chest will bo subjected to the morphine test On this assumption, the establishment should be able to deal with about 30 chests in a working day or 750 chests, equal to 1,275 maunds, in a month (In purchases where the morphine test 19 not applied the rate of purchase will probably bo 1,000 chests or 1,700 maunds monthly ) Tho monthly cost of staff, etc , may be provisionally estimated as follows Particulars Amount Rs АР Pay of Opium Purchasing officer 1,200 OO One Extra Assistant 250 0 0 Ono Head Clerk and Accountant 150 0 0 One Test Scale Clerk 125 00 2 Sirdars for morphine test at Rs 60 each 120 00 2 birdars for Steam Table Work at Rs 60 each (Consistence test) 120 00 Ono Sırdar for Chashni work at Rs GO (Adulteration test) 60 00 Ono Sirdar for Chashını work at Rs 50 50 0 0 ? Werghmen at Rs 60 cach 120 00 2 Carpenters at Rs 60 each 120 00 2 Watermen at Re 1 per day each GO 0 0 5 Zilladors at Rs 29-3 cach 147 80 2 Jammals for cutting opium balls at Rs 1-4 75 00 per dig ench 2 507 80 Carried orer ·72 Particulars. Amount. YI 1 Rs. A. P. : 2,597 80 75 00 75 00 75 00 37 8 80 Brought forward 2 Hammals for carrying samplo boxes of opiùin at Re. 1-4 per day each 2 Hammáls for putting opium into trays at Ro. 1-4 per day each": 2 Hammals, for. cleaning ulatés, sauce páns, etc., at,Re. 1-4 per day, cach Oñ'e Häinmal for marking on outer gunny bags at Re. 1-4 per day 4 Hammals at wõighing scale at Re. 1-4 per day each 4 Hammals at Test Scale at Ro. 1-4 por dáy each 10 Hammals for packing, tying_ropes and sewing outer gunny, etc., at Re. 1-4 per day :each Travelling Allowances of the Opium Purchas- "ing Officer and his staff (monthly incidenco of cost of journeys to and front the purchas.. ing centre) Contingencies, including chemicals, packing material, etc, 150.00 150 00 150 . . 375 00 00 . 100 0 0 500* 0 0 TOTAL 4,135 0 0 The monthly expenditure of Rs. 4,135 on the estimated purchase of 1,275 maunds gives an incidence of Rs. 3-3-11 per maund: At the rate of 1,275 maunds per mensem the whole quantity of 20,400 maunds could be purchased in 16 months. It is possible that the staff could work up to a higher rate, when practised in the work, and thus reduce the total time required' and the cost of purchasing per maundr ·73 APPENDIX 11. Note on the estimated cost of warehousing and issuing 20,400 maunds of old oprum Note ---It is assumed that the Mewar stocks, amounting to 17,000 mounds or 10,000 chests, will be marchoused at Necinuch and that the balance of 3 400 'mrunds or 2,000 chests will be stored in the Government opium godown at Indore At Neemuch rent will be payable for luring godown accommodation, wluch is believed to be available A guarding and issuing staff will also be neces sary At Indore there is already an issuing staff employed in connection with the arrangements under which opium is stored in the godown by a contractor and is issued by tho Excise Commissioner in Centrni India to States requiring it These arrangements will cense, and the prosent issuing staff will be available for issuing the Government opium A guard will howover Dc required, and provision has been made of Rs 50 per mensen for suppio menting the pay of the issuing staff or for hiring additional labour, in view of the probable increase in the issue work Cost per adoum. Rs Neemuch Rent of godowns at Rs 150 per Incnscm 1,800 Guards 1 llavıldar at Rs 30 per mensem 300 2 Naiks at Rs 24 cncli per menscm 576 12 Chnukidnrs at Rs 16 each per mcnsem 2,301 Dress lowance Ilavildar and Nails at Rs 30 per annum DO -- Chaukıdars at Rs 25 per annum 300 Issuing establishment Allowance to issuing officer at Rs 200 1-clerk at Rs 60 per mensem 720 I weighman at Rs 25 per mensem 300 1 carpenter at Rs 25 per mensem 300 8 hammals at Rs 20 1 020 Contingencies at Rs 50 per mensem GOO Total cost for Neemach 11,670 2,400 360 1,162 Indore Guards 1 Havıldar at Rs 30 per mensem 6 Chaukidars at Rs 16 per mensem Dress allowanco Hapildar at Rs 30 per annum Chaukidars at Rs 25 per annum Issuing establishment Total cost for Indoro 160 600 2 292 Packing materials and transport to strtron at Rs 3 ner chest on total issues from both centres of 2,000 maunds or 1,176 chests annually TOTAL 3 529 17,490 ·74 APPENDIX 12. Calculation of the recoupment of capital. ecpenditure of Rs. 69,36,000, and the interest at 5 per cent. on annual outstanding balances, by 10 annual instalments of Rs. 8,84,000 and one instalment of Rs. 1,76,800, i.e., by issuing 2,000 maunds at Rs. 442 annually for 10 years and 400 maunds in the 11th year. Rs. Ist year.-Balance Interest 69,36,000 3,46,800 TOTAL 72,82,800 8,84,000 Receipts . 2nd year,---Balance Interest 63,98,800 3,19,940 TOTAL 67,18,740 8,84,000 Receipts 3rd year.-Balance Interest 58,34,740 2,91,737 TOTAL 61,26,477 8,84,000 Receipts 4th year.-Balance Interest 52,42,477 2,62,123.85 TOTAL . Receipts 55,04,600-85 8,84,000 . 5th year.- Balance Interest 46,20,600.85 2,31,030.04 TOTAL Receipts 48,51,630.89 8,84,000 6th year.-Balance Interest 39,67,630-89 1,98,381.54 TOTAL Receipts 41,66,012:43 8,84,000 Balance 32,82,012-43 ·75 --- 7th year,--Balance Interest Rs. 32,82,012 43 1,64,100 02 TOTAL Receipts 31,46,113 C3 8,84,000 8th year.--Balance Interest 25,62,113 05 1,28,105 65 TOTAL 26,90,218 70 8,84,000 Receipts 9th year-Balance Interest 18,06,218 70 90,310 93 TOTAL Receipts 18,96,529 63 8,84,000 10th year --Balance Interest 10,12,529 63 50,626 48 TOTAL 10,63,156 11 8,84,000 Receipts 11th year-Balance Interest 1,79,156 11 1,791 56 (for year) Total Receipts 1,60,947 67 1,76,800 Balance 4,147 67 E ·APPENDIX 13. Statement showing areas under poppy, total outturn and average yield per acre in the States of Kotah, Tonk and Jaora. AREA UNDER POPPY CULTIVATION IN AORES. OUTTURN IN MAUNDS. AVERAGE YIELD PER ACRE IN SEERS. Ycar. Kotah. Tonk, Jaora. Kotah. Tonk, Jaora. Kotah. Tonk. Jaora. 1917-18 6,903 4,228 1,072 387 3 6 1918-19 4,333 2,654 918 356 8 5 . 76 1919-20 8,679 4,566 1,394 370 6 3 .. 1920-21 9,069 4,723 2,766 908 12 8' . 1921-22 9,760 4,010 2,540 728 10 7 1922-23 10,473 4,982 5,118 3,391 796 1,293 13 6 10 . 1923-24 8,828 4,696 4,458 2,445 836 900 11 7 8 1924-25 7,346 2,679 4,172 2,097 525 928 11 8 9 1925-26 6,927 1,702 2,412 1,810 260 339 10 6 6 1926-27 8,863 1,901 2,790 3,083 415 722 0 14 9 10 NOTE. - It must be noted that as the area under poppy decreases, the tendency is to confine its cultivation to the best lands, so the yieldo per acre naturally show an increase.

·APPENDIX 14. 4.-Statement prepared from information supplıcd by the Sitamau Darbar showing the present economics of a cultivator owning one plough or Samad" NOTE -Ono plough or "Samad" can cultivate 2 acros of irrigated, and 20 acres of non irrigated land. f Particulars. Expenses. Outturn in Maunds. Value of out. turn. Net gain, REMARKS. $ Rs. Rs. Re. Manuring 20 Makka 21 + 63 162 The nct gain of the cultivator at the end of the year 19 Rs. 162 15 Jovar 36 100 .. Lancing and extracting poppy juice Woeding 10 77 Cotton 24 . 200 Wheat growing 5 Oprum 15 (scere) 135 Sowing, etc., of cotton and jowar crops 40 Ioppy seed 4 30 Miscellaneous 25 Wheat 6 . 30 100 Miscellaneous . . 10 Cost of maintaining ono plough Repairing charges of leather buckets Adan 4 bighas=2 acres . Land Tax Mal 40 bighas =20 acres 66 TOTAL 573 80 TOTAL 411 ·B.-Estimates based on information supplied by the Tonk Darbar of crpcnditure and income of on holding worked with one pair of bullocks in Chhabra Pargana. Noi 1 Dry land 183 acres ; et land 11 acma. Crop. Cultivation. Arca in acrcs. Dry Surd. or Land Roycwet. nic. Weight. Janarc. Price, Sorting secdl. ITIVITET OLITI1,8. Hindain. Ilir (llicle vetinha In). cic. 1 Toll CTION C. Kharif Jorrar Ra, mit to il cultivitu.3. 2 . 6.25 ds. Sr. Welt. Paluc. Malzo Dry 113, 3 10 0 12 R. TII 02 99 1 N. 4 0 1 1 I!s. 5 Groundnut 10 0 26 Rabi 02 2 2 1 20 Vhcat 1 3 0 0.25 20 Shop 1 Gram 9 7 15 7 3 os 3.75 0 1 1 10 Linscca 9 ny 13 1 1.25 23 3 8 11 78 3 .. Opium 1 15 02 Yot 4 formed Osium 10 Dhania 31 10 Zcera 03 21 3 0 ניזון*t*1 7 20 11 Vogetables 1 1 0 10 ܝܝ 1 1 0 1 1 TOTAL honda S. 1 20-01 10 50 1 . 01 0 13 13 184 ·79 'APPENDIX 15. . . . List of crops found on irrigated land in Central India and Rajputana. RABI Cnors Vheat Triticum vulgare, Villars Barley Ilordeum vulgare, Linn. Tobacco Nicotiana Tabacum, Linn Tobacco (Doshi) Nicotiana rustica, Lind Turmerio Curcuma Longa, Linn Ginger Zingibar officinalo, Roscoo Arums Colocasia ontiquorum, Schott. Castor Ricinus communis, Linn Carrots Daucus carota, Linn Raddish Raphanus sativus, Linn Turnips Brassica campestris, Rapa, Linn. Mint Monthn sylvestris, Linn Ru-Jira Amarantus Candatus, Linn Onions Allium Cepa, Linn Garlic Alliurn Satıfum, Linn Mustard Brassica juncea, I Rape Brassica campestris, Napus Potatoes Solanum tuberosum, Linn Cauliflower Brassica oleracea, Botrytis, Linn. Cabbago Brassica oleracon, Capitata, Linn. Peas Pisum sativum, Linn (Garden peas). Pisum Arvenso, Linn (Field poaa) Field bcans Tenugreck (Botha) Trigonella rocnum Graccum, Linn. Umbelliferae of sorts 09.-- Dhania Coriandruin wativnm Linn Zira Cuminum cyminum, Linn Saunf Tocniculum vulgaro, Gacrta EIIARIF Cnora Joiar Sorghum vulgaro, Pero Inferior Millots Panicums, etc Cotton Sugarcino Succhirum officinarum, Linn Brinjals Solanum mclongen', Linn Dhendi Ilibiscus esculentus, Linn Chillies Capsicum annuum, Linn Polak Beta Benghalensis, Linn Groundnut Arnchis hypogea, Lann Surcot potatoes Ipomen Batatas, Lark Vetches Vicia, etc. Pulses of sorts Cuccurbitaceno of sorts Sunn Hemp Crotninria Juncra, Linn. Tigeon pea Chinus indiciis, Spring Luccrno Medicngo satira, Linn Miscellancous rectables G ·80. APPENDIX 16, Summary of conditions under which States are prepared to purchase from the Ghazipur Factory the opium required for internal consumption, after the stocks of old opium in Central India and Rajputana are exhausted. NutiThe following 5 conditions, which are frequently repeated, aro referred to in the summary below as A, B, C, D and E respectively :- A.-The opium shall be of good quality and suitable to the taste of consumers in the State. (A condition of this kind is made by 37 States.) B.--The opium shall be supplied by Government at cost price. (This condition is made by 13 States.) C.-The price shall be such that the margin of taxation available to the State, represented by the difference between the cost price of the opium and the warehouse rate, will not be less than the present margin of taxation. (This condition is made by 22 States.) D. The price shall not be excessive, or shall not be greatly in excess of the cost of any alternative source of supply. (A condition of this kind is made by 15 States.) E.-The inherent right of the State to produce opium is retained. (This condition is made by 10 States.) · State. Conditions, . Baroda Gwalior (Is not prepared to purchase.) (Is not prepared to purchase.) . . CENTRAL INDIA STATES. 'Ajaigarh Alirajpur Baoni Baraundha Barwani Bijawar Charkhari Chhatarpur, . A. C. A. C. A. C. A. C. A. B. C. The supply shall not involve a very large immediate increase in the cost of opium to the State. A. C. A. O. The Darbar shall be treated in all respects not less favourably than any other State or Estate in Bundelkhand. Any necessary increase in price shall be restricted to the lowest possible limit. A. D. A. B. D, E. B. D. The agreement shall be restricted to a specified period of years. The terms shall be the same as with other States, The claims of the Darbar shall be considered if any other State, which like Dhar at present has no external trade, finds a market for its opium. (Is not prepared to purchase.) Datia Dewas, Senior Branch Dewas, Junior Branch Dhar Indore ·81 Stato. Conditions. Jaorn CENTRAL INDIA STATŁs--contd. (Is not prepared to prirclase ) Claims a slno in supplying the demand for C\CISO opruin of Indın 113 & whole. . Jhbua Khilchpur Maik ir Nagod Narsinghgarh Oruhn l'anna Rasach Ratlan Rew A B D 1 AB An increase in the retul selling prico shall lo cirried out in the neighbouring status as well as in duhr in order to make good tho increased cost price, if any C. A B C D. Ас AD ABCC ADI The Darbur desire that cultration 11! the State blould continue, but aro rond, if cultation (15c, to obtiin the opium re quired for internal consumption and for their Ilyderabad contract froin any genorally approved sourco Tho principle of duty following consumption sluill be applied to tlo import into tho Stato from British India of all into cating drugs or Indian manufactured liquors, and tho Provinces of crport shall caso to los internal duties on sucli drugs and liquors imported into the State Should thio cost price of Ghazipur opium bo Increased at any tinio, the Dirbar shall bo ontitled to obtain from the Government of Indu for their own sntistaculun the facto anal figurac justifying tho increase 'Thero shall lo no poppy cultivation in the United Provinces "closo to the border of the Kuwa Stato, a border zono being left frco froin cultivation sido cnough to prevent tho possibility of illicit import of crude opmun into the Stato 1 D The Dirtar desiro that cultivation in the Statu should continue, but aro ready, if cultivation ciscs, to obtain opium required for internal consumption from any generally approud source A B Tho price shall not bo increased without special reison and shall not ordinarily exceed Rs 20 per seer Sillana Simtir 1 Sitamau Piploda. and 10 me olhei Dill Vals LoNLi litu A D The Stuto desires that cultivation in the Stato should continue, but is ready, if culti ation ceists, to obtain tho opiuni rcquired for interul consumption froin any gunerally approved sout ce HI ·82 State. Conditions. Alwac . Ganswara Bharatpur 1S 13 kanon . Bundi Dholpur Dungarpur . RAJPUTANA STATES. A. The cost of Ghazipur opium shall not exceed Rs. 20. (is not preparod to purchase.) A. 3. C. The Government shall placo nt the Darbar's disposal, if they so desiro, all accounts and other data required in order that they may satisly themselves that the price reasonable. The Darlar are not jrepared to purchase opium from Ghazipur so long as opium of suitable kind continues to be produced in Rajputana aud is available for purchase at a lower prico. The Darhar considor that any production in Rajputana for their supply should be carried out under the State Monopoly Systein, wholesale dealers being cntirely abolished. Sliould such production cease, the Stato will be ready to purchase from Ghazipur if conditions A and I) are fulfilled and the State docs not choose to grow its own opitt under State control. A. C. E. A.D. A. B. C. D. In view of the fact that the minimum distance froin Dungarpur to a Railway Station is 65 miles and the roads are not suitable for cart traflic during the rainy season and that the State has to pay railway and cart fares, thic State will, should it be absolutely necessary, resumé cultivation on a very small scale, for purely medical purposes. A. B. D. A. D. A. 0. The production of opium in Central India and Rajputana shall be discontinued by an arrangement agreeable to the Jhalawar Darbar and the other Darbars concerned. C. The opium shall be supplied in biscuit form of substantially the same quality, consistency and morphine content as that now in use in the Stato. A. C. E. A. D. (Is not prepared to purchase.) (Is not preparcd to express an opinion at present regarding the fonsibility of purchasing opium from the Ghazipur Factory.) (Is not prepared to purchase.) A. B. C. L. A. 0. A. C. The production of opium in Central Judia and Rajputana shall be discontinued by an arrangement agrccable to the Tonk Darbar and the other Darbars concerned. A. B. C. E. Jaipur Naisalmer -Jueletrar Jodhpur Karauli Kishangarh Kotah Mcwar . Partabgarh Shahpura Sirohi louk Kuskalgarh ·83 - APPENDIX 17. Summary of conditions under wlrch States are prepared to cnhance the selling price of opium to a degree corresponding as nearly (18 possible with that in force in British India Notf-The following three conditions, which aro frequently repented, aro referred to in the summary below as A, B and C respectively 1-The enhancement shall be carried out by gradual stages (1 his condition is made by 47 States ) B -The same price shall be enforced in all tho neighbouring States (This condition is made by 47 States ) C-Tho enhancement slınll not involve undue hardship to legitimato (Thus condition is made by 29 States ) consumers Stato Baroda Gwalior . Ajngarh Ali Rajpur Baoni Briundha Barwani Bijuar Churhlari Chlintarpur . Conditions (Tho taxation is already uniform with that of neiglıbouring British districts ) A B CENTIAL INDIA STATES A B C A B C A B А в с Авс A, B А в с A B C The Darbar consider that, in vier of the lower averige income of the population of the State compared with that of the United Provinces and also of the fact that the cost of living in the State is at present compara tivoly cheaper the retul sale price of opium in the btnte cinnot to rajood to tl. laval forco in the United Provinces AB A, BC ABC А вс А в AB A B C ABC The Darbır are not prepared to bind themselves to raise the selling rate of opium to the level obtaining in British India, having regard to the habits of the peoplo and their economic condition ABC Авс ABC The Darbar are not prepared to bind themselves to raise the selling rite of opiuni to the level obtaining in British India having regard to the habits of the people and their economic condition AB ABC. Dntia Dowas, Senior Branch Dewas, Junior Branch Dhar Indoro Jhora Jhabuz Lhulclupur . . Alaihar Nigod Narsinghgarh Orchhı Pauna ·84 State. Conditions. Rajgarh . Ratlain Picwa CENTRAI, INDIA States-contd. A. B. C. The Darlar are not prepared to bind theinsclves to raise the selling rate of opium to the level obtaining in British India, having regard to the habits of the people and their cconomic condition. A. B. A. 13. C. The enhancement of price must not scriously affect the finances of the State. A.B. A. B. A. B. B. . . Sailana Samthar Sitamau Piploda • RAJPUTANA STATES. Alwar Banswara Bharatpur Bikaner Bundi Dholpur Dungarpur Jaipur A. B. A. B. C. A. B. C. The cnhancement must not bring about the substitution of other more harmful drugs for opium. A. B. A. A. B. A. B. C. A. B. C. Actual experience must confirm the anticipation of financial profit to the Darbar. A. 1. C. A. B. The Darbar consider that taxation upon opium in the State cannot be increased to the level of the taxation now in force in British India without causing undue hardship to thoso who require the drug for legitimate . Jaisalmer Jhalawar Purpasos. . Jodhpur Karauli Kishengarh Kotal . . Mewar A. B. C. A. B. C. The enhancement must not bring about the substitution of other more harmful drugs in place of opium. A. B. A. B. C. The use of opium must not be discouraged by high prices with the result that consumers take to other more injurious drugs instead. The State derives at present no revenue from duty on internal consumption and a trifling revenue only from vend foes, The Darbar are prepared to impose taxation in the shape of duty and license fees as soon as the old stocks have heen placed under control, and to increase it by gradual degrees. A. B. A. B: C. A. B. C. A. B. C. The use of opium must not be discouraged by high prices with the result that consumers take to cocaine instead. . A. B. C. . Partabgarh Shahpura Siroli Tonk 6 Kushalgarh ·85 ܒ APPENDIX 18. Note on the methods of calculation employed in this Report, toith a statement shoring the relation of bigha to acre in cach of the chrcf producing States. Onc chest of opium in Central India and Rajputana is cqual to 140 lbs or 68 secrs 0 8 chhataks I or the purpose of rough calculations ono chest fing generally been taken as containing 69 scers or its maunds of opium 2 Crude opium Then collected by the cultivator riries in consistenco from about 650 to about 750 Manufactured or hard opium, as consumed in Central India and Rajputina, 19 generally of tho consistence of 19 or 950, but in some parts opium of somen hat lower consistence is preferred In thio calculations in this Report it is generally assumed thnt opium in tho pro cess of manufacture f ses in consistenrc froin 700 to 91°, thus inal weight Thug loss by dry ?go varies C to tho consistenco of tho opium when pl ved in tho factory and its consistenco when issued in tho form of balls, biscuits or orciso cahce In Boroda it is calculated that the increase in consistenco is from 750 to 90°, the loss being one-sixth In Kotah ono maund of crude opium is stated to produce 28 seers of hard biscuit opium, the loss being tlıus rather moro than one fourth 3 In estimating the normal annual consumption of opium in eich Stato (Appendix 7), the averago of the last five years has been taken in some cases In others, 18 for instance when the retail salo price of opium has been in creased within the five years, thus causing a decrease of consumption, tho catımnted consumption has been that of the last sear, or tho ni crngo annual consumption sinco the increase tooh cffect The method of calcuintion 19 therefore not uniform for all States 4 l'stimates of the norinn) output of crudo opium per acro rary greatly in different States When poppy culturation diminishes in a Sinto thero 19 n tendency for the cultivation to be confined to the best irrigated lands, 60 thint tho norinal output per ncro increases An estimate of averago outturn calculated from the figures of a long period of years may thus lo inaccurate In calculations in this Report the estimato of normal outturn put forward lot tlio Darmr has generally con nccepted The figure thereforo is not uniform Irut varies from Stato to Stato 5 The follon ing tablo shows the relation of bigba to nero in cnch of tho cluef producing Stitcs in which the bigha is tho normal unit of morsure. ment Deras, Junior Branch 1 acrc=l; bighas Indore 11 Jhora 13 Jhalanar 27 Kotul 2 Portalgark . aj protimately. (10) Lighus - 3100 acre) l'eplodn 11 litlum . aptatimatels (NII has ca 10 arre) Sulann arit matris, Ili his 10 acris) Sitamatt Tonk 11 1 99 1) 1) 15 17 ·80 APPENDIX 19. Terms of reference of the Committee. To enquire into the following aspects of the situation in the States of Central India, Rajputana, Gwalior and Baroda : 1. T'he present situation specially in regard to (1) Agriculturc. (a) The extent to which poppy is cultivated in cach State. (6) The quality and nature of the lands on which it is cultivated and the annount of irrigation required and the nature of the arrangements for such irrigation. (c) The liability of the yield of the crop to fluctuatc owing to seasonal conditionis, (it) l'he advantages or disadvantages of cultivating porry as compared with other crops from the point of view of the cultivator, (c) Tho possibility of substituting other crops for poppy and the effect on the cultivator of such substitution. (2) Financial. (i) Tho averago revenue derived by the State from Opium under the following heads :- (a) Land rerenuc, distinguishing rerenuc from land cultivated with poppy for supply to the Government of Indin, that from land cultivated with poppy for supply to other States and that from lavd cultivated with opium for internal consumption. O Revenue other than land revenue derived from internal consumption. (c) Revenue other than land revenue derived from export to other States. {(1) Revenue other than land revenue derived from sale to the Gorernment of India. "le any other form of revenue. (ii) The proportion that the total revenue of all kinds from opium bears to the total revenue of the State, (iii) Expenditure upon the regulation and control of the cultivation, manufacture, and distribution of opium and the nature of the arrangements for such control. (iv) Loss of revenue to the State due to illicit practices in areas where opium is cultivated. (v) Loss of revenue due to smuggling of opium from outside the State, (vi) The present cost and selling price of opium, the possibility of gradually raising the latter and the effect upon the State's finances of such a policy. (vii) The present sources of supply and the possibility of ineeting the demand in the first instanco from stocks held in the States under consideration taken as a whole, and ultimately froin Ghazipur, with special reference to the financial results of such a policy so far as these do not fall under any of the heads mentioned above, (viii) Effect of discontinuance of cultivation.of poppy on States that cultivate only for the Government of India and what steps, if any, can be taken to meet the same.

·97 II. Consumption in the Slate (1) Tho manner in which opium is used, tho purposes for and occasions on which it is used and tho citent to which it is used and, in particular, to winch it is administered to chuldren () Tho forns (ball, biscuit, etc), in which opium is used in tho Stato (111) The chemical composition of opium when prepared for consumption in the manner prevalent in the Stato nnd its physiological ctíccts upon the consumers when so consumed (tv) The possibility and desirability of effecting n substantınreduction in the amount of opium consumed in the State, tho moans (incresc of selling price or others isc) by which this could bo ctfccted and the financial or other obstacles to such reduction in so far as tlicsu hare not been dealt with under any of tho hcads above III -Stocks of opium in the State Their quantity, by whom they aro held, their valuc, thio cxtent to which they aro alrcady under Stato control and 'hou vest thou could bo disposed of IV —Smuggling out of the State Its causes and pregnlenco, tho preventiyo agencies in eustenco, their present effectircness and tho possibilities of their improvement V --I'urchase from (hazipur The adı isability and practicability of the purchaso of opium by the States from Glinzipur at cost price Ilow far thio mlinlutants of the states would be prepared to consumo Ghazipur opium and whether Gluzipur could producc opium suited to tlıcır tasto and nceds VI-The policy suggested by the Gorcrnment of India The advisability, and prcticability of adopting the policy suggested by tho Gororninent of India, namely, the discontinuuce of cultisation in thio States, tho purchase of opíum ly tho States from Ghazipur at cost price and the adoption by the States of thio policy of nirximum revenuo from quinimum consumption so as, ultimately, to raise the selling prico to a level with that in tho adjoining British districts, thereby removing tho incontivo to smuggling and reducing consumption VII ---Gencral Any other subjects relevant to the matters mentioned aboso AG: C—- 1 60-1610.8-15

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