Page:Indian Journal of Economics Volume 2.djvu/422

G.J.E. O'BYRNE In the relations to price of barley exceeded i?s natural price Bihar in 1897, j?r its natural price rice it will be seen that the relation in relation in Bom?y in 1900. This, however, serves to illustrate the prices of these grains are that price of wheat as well as rice. Thus Bihar in 1897 sold at 3 points higher natural relation with rice, but at 4 than its natural relation with wheat. in Bombay sold at 5 points above its relation with rice, but ?t .10 points below its relation with wheat in 1900. The ?verage requirements for human consumption in Indi? per he?d of the population ?re between five ?nd six m?unds per ?nnum. The ?ver?ge re?il price of food gr?ins in Indi? for the ten years ending 1916 was just under Rs. 4 per maund, Assuming the grain consumed by wholesale rates, a per maund. On U8 ?11 If the governed by ?he barley in than i?s points lower Similarly juar n?ur?l price price ing wheat during those years at Rs. 45 to Rs.50, expenditure on, food grains would absorb between 42 and 47 per cent of the income. It is not surprising therefore variations in price relations have sn important effee? on the kind of food grains consumed, ss the consumer is stiracted to consumption by comparative cheapness and repelled by comparative dearness. This change change statistics of consumption. Th.us in the years 1912-18 and 1918-14, when rice was selling on the average at about 152 per cent the price of wheat in Bensres and 142 per cent the price of, wheat in Lucknow, the in consumption, due to or accompany- in relation of price in the case o! and rice, is clearly brought out in municipal the cultivator may be valued at valuation may be taken at Rs.8-8 5? maunds this valuation will give expenditure per head of Rs.21 per annum. annual income per head in India be taken