Fiscal Administration of
PAPAVER
somniferum.
78
Extracted from the Dictionary of
ADMINISTRA-
TION.
Malwa
Opium.
Revenue.
Regulated by
Act I. of 1878.
Difficulties
arising from
Contraband
Trade with
Portuguese
Possessions.
Increased
Duty.
Decline.
Sale of Malwa
Opium in
Bombay.
MALWA OPIUM.
"The revenue derived from the trade in opium known as Malwa
Opium, which is produced in Central India and parts of Rájputana, con
-sists chiefly of the duty charged for passes granted at the scales to cover the
transit of the opium through the British territories to Bombay for exporta
-tion thence to China, or for consumption in India. The export is now regu
-lated by rules framed under the Opium Act, I of 1878. The Act and the
rules framed under sections 5 and 13 thereof were introduced into the
Bombay Presidency on the 1st April 1878. Previous to the year 1831 the
British Government reserved to itself a monopoly of Malwa opium which
was purchased by the British Resident at I ndore and sold by auction either
at Bombay or at Calcutta. But in that year it was deemed advisable,
chiefly on account of the large quantity of opium smuggled to the Portu
-guese Settlements of Damaun, &c., on the Coast, to relinquish the mono
-poly, to open the trade to the operations of private enterprise, and to substi
-tute as a source of revenue, in place of the abandoned system, the grant,
at a specified rate, of passes to cover the transit of opium through the
Company's territories to Bombay. In determining the amount of transit
duty it was proposed to be guided by a comparison of the cost of transit
direct to Bombay with that of the transmission of the drug to the Coast by
the cheapest of the more circuitous routes through the territories of Native
States ; and on the basis of such a comparison it was fixed at R175 per
chest of 140lb each. In 1835 the results of the preceding official year
having been unfavourable and the shipments of opium from Bombay having
largely declined, while those from Damaun had greatly increased, the rate
was red urea to R125 per chest.
"The annexation of Sind facilitated the levy of a higher rate. Until
then a large portion of the opium of Malwa had been conveyed through
Sind to Karáchi, and thence onward to the Portuguese ports of Diu and
Damaun. That route being now closed, it was reasonably expected that
an advance might be made in the charge for passes, without risk of loss
to the revenue from a diminished demand. The rate was accordingly
increased in October 1843 from R125 to R200 per chest. Upon the prin
-ciple that the duty should be fixed at the highest amount which could be
levied without forcing the trade into other channels, a further increase was
made in 1845, when it was determined that the charge should be R300 per
chest. For the same reason it was, on 1st June 1847, raised to R4.00 per
chest and subsequently as follows :—
ist July 1859 . . .
R
1st .September 1860 . . .
600
I st Oct ober 1861 . . .
700
1st
„ 1862 . . .
600
16th July 1877 . . .
6 5 0
16th September 1879 . . .
700
28th June 1882 . . .
675, if weighed at
Ajmere for ex-
port by sea from
Bombay ; 650, if
weighed else-
where for export
by sea from
Bombay.
5th July 1890 . . .
R625 and R600.
"Opium imported into Bombay for the declared purpose of export into
China, may, on arrival, be sold for home consumption. The pass duty on
opium consumed in India is at present R725 per chest if weighed at Ajmere,