Page:Indian Journal of Economics Volume 2.djvu/417

REEATIVE PRICES OF FOOD GRAINS 401 prices shows .?ha? very supply supply The relevan? considerable and and ?he normal relations fluctuations, which depend demand of ?he particular grain demand of foodgrains on ?he portion of ?he law variagions known as Gregory King's are subjec? ?o on ?he or ?he whole. regarding ?hese law as given bye Professor Thorold Rogers tation of History is as follows :-- "3. If. in ?he scarcity or excessive plenty, which prevails, as ?he case may be, ?here are several kinds of ?he same article which ordinarily s?and in a cer- ?a|n ra?io ?o each o?her, and can be used inter- changeably, ?he 'rise of price is grea?es? in wha? has in his Economic Int?rpre- has hitherto been ?he dearest. This rule will require a li?le explanation. Roughly speaking wheat, barley and oa?s s?and in ?he ra?io 100, 73 and 50. Now in ?imes of scarcity, 73 and 50 will rise more ?han 100 does, and if ?here be a f?ll in prices owing ?o excessive supply, 100 will fall more ?han 73 and 50 do. This rule is of ?he grea?es? importance in practice and in a rough manner is seen ?hough none ?oo clearly by practical.men of business." An examination of prices showed ?ha? over ?he grea?er portion of India, people were willing ?o pay more for rice and whea? in proportion to' ?heir food value ?han for just, bajra, barley and gram. ? Rice and whea? are, ?herefore, favored grains, and ?he cheaper grains will generally be ruled by ihe prices paid for whea? and rice. In ?he central part of India, consisting of Bihar, United Provinces, Central Provinces and Bombay, bo?h rice and whea? are ex?ensively used for consumption, and ?he relations t In parts of the Bombay Presidency and the Oentral Provinces, a minority of the people, owing no doubt to long accustomed habits of consumption, would appear to prefer juar and ?a?ra to wheat. 5t highergo been ghe cheapesg form; and conversely in a gime of. over-supply ghe greagesg fall is in whag