Evolution of trade in Bengal

The process of trading has been through an evolutionary process constantly. The way trade used to be carried out in ancient times and the class of people dominated it are altogether different from those of today.
Trade is now fast and uses multi-modal transports. It has assumed far greater importance in the life of every nation, big or small, and international competition though fierce is now rule-based in contrast to the 'might is right' type of  trade domination of ancient times.
This article discusses briefly the evolution of trade in this part of the world, starting with ancient times.
Trade in ancient time: Banija Basati Laxmi (Business brings fortune); a phrase coined in the unknown ancient time. Many other phrases on the relevant subjects are heard in rural Bengal as proverbial sayings coined by a lady "Khana". These came to be known as "Khana's Bochan" Our older generations relied upon these proverbial sayings in the spheres of their activities throughout the year; regarded as something of foretelling.
In the olden days, Bhayas were engaged in business. The Kshatriyas played the role of being warriors. The Brahmins were engaged in the religion supremacy and the statecraft. The Sudras were engaged in manial jobs for other three castes. It was likely that the Brahmins were involved in the overseas trade too, for, it was lucrative and important on point of administrative supremacy. Then it was an ingrained culture too; as the other three castes could not over-ride Brahmins.
Bengal was a flourishing land in the ancient times. Merchants of this region went east-ward hand in hand, with export of commodities and culture with relationship to each other. The venture brought, apart from trades, beginning of a profound cultural influence on her neighbours, namely, Burma, Bali Island  Cambodia, Java, Malaya, Siam, Sumatra and Sri Lanka all following beneath her sway. And this as far as one may judge almost entirely as a result of trading and peaceful penetration of missionaries, merchants and others; and not by force of arms.
In ancient times, the term of trade was commodities exchanged with each other on mutual understanding - no foreign exchange transaction was in vogue in those days.
During the period of Gupta dynasty notably Chandra Gupta who ruled from 321 to 297 BC had even at that time introduced a broad framework of trade and established the Board of Admiralty, with a Superintendent of ships at its head. His Minister for finance Kautilya's Arthashastra testifies the existence of the said fact. From their voyages of conquest and trade we can infer that they had an efficient establishment of trade and movements of ships.
Trade synonymous with conquest of territories were then prevalent hand in hand. In the process, Hindu Kingdoms were established in Malaya Peninsula, Sumatra, Java, Cambodia and Siam. Besides, Straits of Malacca was firmly under control and extending authority over the far flung group of Islands too. These were the territories then remained as a captive market. Far beyond, trade was also expanded up to China. China had also good trade relationship with Bengal through a route called "Silk Line". With the passage of time the kingdoms were perished and no precise reason can be ascribed. In these context historical evolution emerged as an important factor. To quote instances; ancient Egyptian empire survived for seven centuries, Byzantine civilization survived for one century, Ottoman empire survived for five hundred years, Mughal empire survived for four hundred years and Fathamide dynasty ruled Spain for nine hundred years, so and so forth.
In the inland trade, Bengal had a flourishing business links with other regions in the sub continent both overland and by river - and in the coastal sea lane. The Bengal was a hub of all kinds of business and manufacturing activities and maintained its distinct difference with other regions namely Gujrat (Surat), Malabar/Kerala (Calicut), etc. People of land locked region Bhutan, Nepal would come to Bengal with head load of commodities and lived for months then gone back with head load of commodities from Bengal. Similarly, Pathans from Northwest Frontier and Afghanistan popularly known as "Kabuli" would come to Bengal with head load of mostly dried fruits and other commodities and lived in Bengal for months and years. They were involved in money lending to a class of poor Bengali and had earned bad reputation for their unbecoming behavior and cruelty perpetrated to defaulters.
With the passage of time, the territories, and kingdoms as said above were lost. As a natural corollary, trade was not lost altogether and it continued to survive in the following centuries.
Trade in the medieval Bengal: After the disintegration of Gupta, Murayan, Pal and Sen Dynasties, a political upheaval took place in Bengal, leaving a serious negative impact on its overseas trade while its internal trade continued. The Hindu Kingdoms established earlier in the overseas territories were also lost owing to loose links and lack of administrative control from the home government. Meanwhile, in the 7th and 8th centuries, merchants from the Arab Peninsula crossed the seas and started trade with Bengal.
Along with the traders, Muslim missionaries came to the shores of Bengal and established their influence over the people of Bengal. The Arabs were brave and daring as seafarers when they embarked on sea voyages in the traditional big boats. They used to anchor their boats at Chatigaon (Chittagong). Gradually the trade links enlarged and it is said traders from Morocco and European countries also took part in the venture. They came to Red sea overland and then joined the traders of Arab Peninsula on the sea voyage eastward via Colombo to Chatigaon.
During the 7th/ 8th Century and afterwards Muslims established its sway in Bengal. Meanwhile, Afghans (Kabuli) also took their foothold in Bengal first in business then establishing their domination, alongside the Baro Bhuyans. During their rule over Bengal, trade remained unaffected. The Arab traders were regular callers at Chatigaon. In the process, a small business community locally known as Sowdagars emerged as an important intermediaries. They received commodities of Arab traders and on their behalf sold those to local traders in the different parts of Bengal. They also acted as importers of commodities too. While the internal trade, inter state trade, trade in the coastal sea-lane had remained unaffected. Caravansary's containing goods and commodities from other regions of India would visit Bengal without facing encumbrances or hindrances. People of other communities too were quite active in business and by far, they were wealthy in comparison with the newly emerged Muslim traders mostly based in Chatigaon. In the rural Bengal and at the important river port scattered thorough out Bengal, trade by and large were in the hands of Hindus and the people hailing from Marwar (known as Marwaries) and Gujrat (known as Memons). It is notable that these communities were engaged in business without any let or hindrances.
During the reign of Baro Bhuiyans and Afghan chieftains, trade at home and abroad have had a good time. Then the Turkish noblemen came and established Sultanate in Bengal and ruled for 200 years up to 1537 and then they were dethroned by the Moghals who broke the backbone of Baro Bhuiyans. But Bhuiyan were not totally wiped out from the rural Bengal. None of the political onslaught in Bengal affected trade activities. On the contrary, Moghals chased out the pirates and bandits particularly Marathas and Portuguese on land borders and the off-shore islands respectively.
Hey days of trade in Bengal continued until the British East India Company subjugated Bengal (Subha Bangla-Bangla, Bihar and Orissia) after the battle of Plassey in 1757.
Trade and the British Empire: Until the 15th century, none of the European countries knew the sea route to India and therefore they had developed no significant volume of trade with the flourishing Indian sub-continent. Then the trade was restricted to land route and that too up to the certain points in the Middle East, Red Sea and Arab Peninsula,  during the Roman and Byzantine regimes; thence, to our part of the sub-continent.
In 1496 Vasco Da Gama discovered sea route to India via Cape of Good Hope and anchored his ship in Calicut located in Southern Indian state of Kerala. This was the turning point for the European to achieve their desire for greater trade and eventually for conquest. It is important here to say, Columbus earlier wanted to discover sea route to India; but his ships had followed a different route to the Isles in the Caribbean Sea and he thought it to be the west coast of India. Eventually Columbus anchored his ships at the shore of America in 1442. Hence, the Islands far off from India are known West Indies. Similarly, several thousand Islands (Indonesia) are known as East Indies.
However, that is altogether a different story. Hordes of merchant ships owned by British, Dutch, French, Portuguese and others had followed the sea route discovered by Vas Co Da Gama. They engaged themselves in trade mostly in the Port of Surat (Gujrat) and Bengal. British East India Company had thrust themselves both from Surat and Bengal to wooing the Mughal Court in Delhi for deriving trade facilities. British East India Company was successful and in the late 17th Century, Mughal Empire Jahangir allowed their desired facilities in Bengal e.g. freedom of trade in return for a yearly payment of 3000 rupees. Whilst the company's astute representative in Surat maintained a good rapport with the Mughal Court in Delhi and kept the flamboyant Emperor Jahangir in good humour better to be known than description. From then onward trade and empire went hand in hand; and the onslaught of British East India Company knew no bounds.  At that time per capita income of the people of Bengal was reportedly 20 times higher than the that of the people of Great Britain (British).
In 1690, Job Charnok of East India Company carefully selected a place for British trade and other clandestine activities. The company bought three large villages named Sutanuti, Gobindapur and Kalikata. That was the birth of Calcutta.
The Company monopolized all trade. People of Bengal were allowed to conduct rudimentary retail trade. No goods and commodities were allowed to be imported other than by British East India Company.  In a nutshell, Bengal was fabulously rich in trade and prosperous in all respect but within a short period of time, the mercantile community was reduced to bankruptcy; besides once glorious arts and crafts died a natural death. Peasants were compelled to grow opium, Indigo, etc. perforce rather than their principal crop; paddy, lentils and other household commodities essentially required in everyday life.
Meanwhile, East India Company began strengthening the defence at port William (Calcutta). The Nawab Siraj Ud Daulah warned the East India Company to restrict their activities in trade only but the company defied. The Nawab had no other alternative than to attack the company with a large army, the British troops much smaller in size defeated the Nawab and assassinated him with the help of Bengali traitors including Nawab's Army Chief Mir Jafor Ali Khan. Thus Subha Bangla (Bangla, Bihar & Orissa) was subjugated by the East India Company. Bengalis attempted to regain the independence but Buxer battle of 1765 was again lost to the company. Rest is now a part of history.
The company plundered all wealth and resources of Bengal. Scarcely 5 years into the British India Company rule, had a catastrophic famine in 1770 caused deaths to millions in Bengal. The famine was the worst one in the world. In 1943 another 3 million people died of famine. Meanwhile the centre of Indian culture and trade shifted from Delhi to Calcutta when the Mughal Empire fell.
One noteworthy feature was that for 100 years the company did not interfere with the local legal system - Farsi remained the court language in Bengal. The Muslim community was then quite dominant in Court / Katchery but the high caste Hindu was largely engaged in the law profession then known as Pleader and Mukhtar. Then the company introduced English language in the Court/ Katchery. In consequence Muslim community was dislodged and the vacuum was filled up by the Hindu community. The Muslim lagged behind owing to its apathy towards English education.
The Sepoy Mutiny of 1857 changed the scenario of company's ruthless rule over the people of India. Manish Pandey was the sepoy who made the first shot in Barrakpore in Bengal; then it swept the whole of Northern India including the largest Cantonment in Meerat and Delhi, the Mughal capital. The East India Company initially suffered ignominy of defeats in battles but they over powered the rudderless revellious sepoy and ruthlessly suppressed the mutiny with the help of Gurkhas, Sikhs and Muslims of Punjab. Rajputs, Marathas, Bhopal, Hyderabad (Nizam estate) and even Bengal did not extend support to the historical rebellion.
The scions of Mughals were ruthlessly hanged/killed and the octogenarian last Mughal emperor Bahadur Shah Zafar was exiled to Rangoon where he died at the age of 87; which ended the dynasty of Taimur clan of Fargana.
Taking stock of excesses committed by the East India Company during the period of Sepoy Mutiny and simultaneous annexation of a number of native states, Queen Victoria assumed the Governance of India and a Proclamation was addressed to all people of India on November 01, 1885 stressing her commitment to fair-play and justice. Since than the motives of conversion got evaporated and the religions, culture, norms followed by the people could not be wiped off
Lord Canning was the first Viceroy and Governor General based in Calcutta as the capital of British India.
The scenario was radically changed. The natives were allowed to engage themselves in the internal and external trade. From the last quarter of 19th century Indians flourished in business, trade, shipping, and manufacturing industries.  Bengal also did fairly well mostly by Hindus and Marwaris. Muslims failed to utilise the opportunities. Indeed no industry was set up in East Bengal. This condition prevailed until the end of British Raj on 14the August 1947.
Trade Pattern in Bangladesh: Bangladesh as a sovereign country came into being on December 16, 1971; with a legacy of supreme sacrifices. It was totally a war ravaged and fractured country.
The post-liberation government was quick to activate state machinery. As for trade, there was no ministry to gear up the wheel of commercial activities at home and abroad. Making the small provincial department of trade and commerce a launching pad, a national Ministry of Commerce was established within a short span of 1 ½ years. As a section officer (Administration) I discharged this task with dexterity under able guidance of my superiors who were persons of high calibre and guts. They extended all cooperation and reposed confidence in my ability. In the process, all depertments, statutory bodies and corporations under the administrative control of MOC were re-organised.
The Ministry of Commerce faced a daunting task to meet with the demand and supplies of various essential commodities in the country while there was an acute paucity of foreign exchange in the state coffer; exports were stagnant-the main source of FE earning.
However, measures were taken to tide over the situation. In those days, Bangladesh faced an inimical situation arising from non recognition by certain formidable foes; but they were out witted and Bangladesh survived the initial shocks well.
By mid 1972, the MOC initially opened 16 trade missions abroad with a view to tapping best sources of supply of our import commodities and explore market for the export commodities respectively. Then London was the main hub on point of commercial and economic activities - the bulk import of sugar, cement, crude oil, soda ash, second hand garments, baby foods, tyers, base metals, de-gummed soya beans etc. featured most. I was attached to our Mission in the UK in mid1973 and engaged in business promotion activities. I travelled throughout the UK, apart from visiting Chambers of commerce and important trading houses. Visited cities, where NRB's were based. The visits were aimed at encouraging them to the take active part in the national reconstruction and enhance their remittances. The response of NRB's was spontaneous and issued them with hundreds of Income Certificates to enabling them to export essential commodities as permissible In Import policy Regulations. In the process they earned profit while the country was benefited by way of saving precious foreign exchange on import of such commodities. Subsequent Import Policy Regulations had annulled the system for certain obvious reasons. As for exports, we had then exported mostly jute, jute goods, tea, leather (wet blue), handicraft- a limited number of items to say the least, for export base was destroyed. Mills, factories and together with expertise were lost.
Most mills and factories were abandoned and the Bangladesh government took control of these plants, mills and factories as abandoned properties. But the production for an expanded export regime could not be achieved for several years. Facilities at the two ports were also not available for almost two years owing to sub-merged hazardous debris in the port channels.
In early 80's, export picked up slowly and gradually our efforts to make a dent in the international market had started. I was once again attached to our Mission in UK in January 1984 and continued there until August 1988. As for trade to UK, export target was exceeded every year during those days through hard work and using professional experience. Now the entire trade pattern is changed. RMG export and foreign remittances of NRBs and workers have over shadowed the export trade. And yet export trade can never be abandoned and looked at casually.
Incidentally, most advanced economies thrive on their export trade and maintain commercial out-posts even in the far off small countries too around the world. In a nutshell, no country in the world survives economically without enhancing export potentially and sustaining it as a means of national prosperity.
The officers on the job training in the foreign trade institute in Bangladesh enjoy a unique opportunity to groom up themselves to take the challenging job of a trade officer abroad. Each of them ought to be proficient in the discharge of his responsibilities without help and assistance of any one else.

Mr. A.B.M Ahsanullah is an ex-commercial secretary, Bangladesh High Commission, London, who can be reached at email: [email protected]