Q. Which of the following statements with regard to the Mughal economy is/are correct?
1.Taccavi were state-sponsored emergency agricultural loans granted to peasants during droughts for buying seeds and digging wells.
2.Khudkasht were tenant farmers who migrated between villages under contracts, Pahi-kasht peasants cultivated land in their home village.
3.Long-distance inland commercial transactions were facilitated by Hundis issued and discounted by Shroffs.
Select the answer using the code given below:
Answer: B
Notes:
Explanation:
- Statement 1 is correct: Taccavi (or Sondhar) were interest-free or low-interest credit advances disbursed by the state revenue machinery (Amalguzar) to farmers during famines or crop failures to purchase seeds, bullocks, and equipment.
- Statement 2 is incorrect: Khudkasht were resident peasants who owned and tilled their own ancestral land within their home village. Pahi-kasht were non-resident, itinerant tenant farmers who cultivated land in other villages on a contractual basis.
- Statement 3 is correct: Credit networks relied on Hundis (negotiable bills of exchange), which allowed merchants to transfer money across distant cities safely without carrying physical currency bullion, discounted by Shroffs.
