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 an indirect way, namely, by increasing the rent demanded from the ryots for fields in which the poppy is grown. The practice on this head in Ahmedabad should also be inquired into.

36. Fourth.—In connexion with this question of the pressure of the pass duty, is that of the danger to the Indian market by the competition of Chinese or foreign opium. So far as the evidence at present goes, there would seem to be no practical danger from any quarter. But I confess that the evidence is meagre. Although Turkish and Persian opium is said not to be popular, still allegations have of late been made to the effect that a trade in opium is springing up between the Persian Gulf and China, and even that steamers are run for the purpose. The subject, being of such moment to India, should be closely scrutinized.

37. Fifth.—Whether all charges attendant on the opium business are fairly debited in the accounts of the Bengal Board. The cost used formerly to average about Rs. 300 a chest; from the higher rates now paid to the cultivator with the view of securing a larger crop, the cost has greatly increased, and was in 1861-2 as high as Rs. 420.

In this connexion is to be considered the inconvenience and loss to Government from the locking up of the enormous sums distributed in advance to the cultivators. These are so long in being recovered that, according to Sir Charles Trevelyan, "the greater part of the advances of two years must always be outstanding." In 1864, the amount thus lent out was estimated at about two millions and three quarters sterling. Besides the inconveniences of the arrangement, and the inability of Government to turn this large capital to other purposes, I understand that the Opium Department is not charged with any interest for the use of the money. It seems to me that full interest should be charged, as the capital would be turned to advantage if not so employed.

38. Sixth.—If a trial of the pass system be made in the Benares Agency, it would have to be considered whether the cultivation should be absolutely free, or on licenses, say of from Rs. 3 to 5 per acre. As before observed, I think it very probable that the Native States of Malwa appropriate some portion of the profits of the opium trade in the shape of enhanced rent from the poppy fields; and the proposal being to have a uniform export duty for all India, it would be only fair that our Government should profit in the same way. If the pass duty be sufficiently low to allow of a special rate on poppy cultivation in Native States, it would equally admit of the same in our own districts. I observe that among the expenses of production in Malwa, the land tax is put down at from Rs. 12 to 30 the beegah, say at an average of Rs. 20 the acre (I am not sure, however, of the size of the Malwa beegah); affording a strong