This Document is the Property of His Britannic Majesty's Government.]
C. O.
404
CHINA TRADE.
CONFIDENTIAL.
[5998]
No. 1.
[February
9119
SECTION REG 12 MAR 07
Extract from the "Times" of February 21, 1907.
Sir H. Cotton asked the Secretary of State for India whether the rate of duty levied on Malwa opium was still 600 rupees per chest; and whether, in view of the high average prices prevailing in Calcutta during the past three years, which were not less than 1,400 rupees a chest, he would consider the desirability of raising the Malwa rate to 700 rupees a chest?
Mr. Hobhouse, who was received with cheers on rising to reply, said: The duty is still 600 rupees a chest, to which amount it was raised from 500 rupees in 1904 on the ground that the price of Bengal opium had advanced to 1,893 rupees a chest. The present price of Bengal opium is below this figure. The continuous decline in the exports of Malwa opium would seem to indicate that the present rate of duty is not unduly favourable to the opium production of native States; and the Secretary of State sees no sufficient reason for intervening in the matter.
Sir H. Cotton asked the Secretary of State for India what was the price per seer now paid by the Government of India to the cultivators for Bengal opium; when that rate was last increased; and whether there were any complaints among the cultivators of poppy that, in view of the increased price of other articles of produce, the amount now paid to them for opium was an unremunerative price?
Mr. Hobhouse.The present price is 6 rupees the seer. It was raised to that figure in 1894. I am not aware that such complaints have been preferred. Cultivators are under no obligation to grow opium. If the price is unremunerative, they can cease to take out licences. Of late, owing to favourable seasons for opium, the tendency has been in the other direction.
Mr. Lupton asked what steps were being taken to reduce the area of cultivation of the poppy
Mr. Hobhouse said he understood that the Secretary of State had sent instructions to India to reduce, in the coming year, the area upon which opium would be cultivated.
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