Barter System of Ancient India

Barter Tradition

The barter system refers to the exchange of goods or services without the use of money. This is not just a subject of "MBA" studies but an ancient tradition in India that has been practiced for hundreds of years. We still use it today, albeit under different names.

To explain in detail - when goods or services are exchanged for other goods or services, it is called bartering. For example, giving 10 goats in exchange for one bull. In this method, currency (money) is not used.

Before the advent of currency, all transactions were carried out in the form of barter. Even nowadays, in situations of monetary crisis (when the value of currency becomes very unstable; currency has been devalued due to inflation), barter is resorted to. Some inter-state sites like Craigslist also operate on a barter system.

In many villages, I have observed that essential services such as those provided by barbers, blacksmiths, and potters still operate with this barter system. The farmer cultivates, the cowherd manages cattle, the potter makes utensils, the barber cuts hair and shaves, the washer man washes clothes, and the blacksmith makes plows, etc., and serves his patrons. Twice a year, the farmer gives a portion of his crop to all these service providers, which sustains their households.

Examples:

1. Agriculture and Animal Husbandry:

   • The farmer grows crops and gives some grains to the blacksmith, barber, washer man, and potter.
   • The cowherd provides milk and dairy products in exchange for grains or other necessary items.

2. Service Providers:

   • The barber cuts hair and shaves in exchange for grains or vegetables.
   • The washer man washes clothes in return for grains or other items.
   • The blacksmith makes farming tools and gets other needed items in exchange.
   • The potter makes clay pots and takes grains or other essentials in return.

In Contemporary Context:

Today, the barter system can still be seen in new forms. Various online platforms allow people to exchange goods and services. For instance, on sites like Craigslist, people swap items and services with each other. When there is a lack of currency or economic instability, the barter system can play a crucial role.

Thus, the barter system is a tradition that is still alive and proves its utility in various situations. It has been an important economic system from the early days of human civilization to modern times.

Thank you, 

Bimlendra Jha 😊💗