Age-old barter system still means business in Maharashtra’s villages

Even as digital payment is ruling global business, a few pockets in Maharashtra still follow the ancient barter system.
The old trade form was brought into focus when Prime Minister Narendra Modi mentioned it during the first anniversary of PM Vishwakarma Scheme in Wardha on September 20.
The prime minister’s speech highlighted the importance of traditional artisans — carpenters, blacksmiths, potters, and more — known as “Bara Balutedars” (12 trades) in Maharashtra, many of whom have been involved in barter economy for centuries. While modern finance is running businesses across most parts of the state, some villages, particularly in rural Maharashtra, continue to uphold the age-old tradition.
The Balutedar system of trade involves exchanging goods and services among communities.
In the heart of Sangli district lies Ramapur village, home to around 4,000 people, where agriculture remains the lifeblood of the community. The barter system has tangible presence in the village.
Sukhdev Kumbhar, a 42-year-old potter, still exchanges his clay vessels and festive idols for grains such as jowar millet.
While cash has entered the economy over time, about 20%-30% of his transaction remains barter-based, especially during festivals like Gauri, Hartalika, and Ganeshotsav, said Kumbhar.
“In our village, Gauri idols are sold for ₹300 or exchanged for 2-3 maptes (4-5 kg) of jowar,” he said. Earthen pots, too, are traded based on size, with no fixed demand for a specific grain.
Beyond the potter’s wheel, other tradespeople in these communities maintain a barter system too. Groundnut harvesters in Ramapur, often women, exchange their labour for groundnuts rather than daily wages. In villages like Yedemachindra in Walwa taluka, the barter system lives on through the Kumbhar (porter) and Lohar (blacksmith) communities. Bajirao Kumbhar, a potter from Yedemachindra, said, “During the Nagpanchami festival in Battis Shirala, clay idols are still exchanged for grains—an unbroken tradition that dates back generations.”
While the barter system is fading, its roots run deep. Bajirao points out that in the system, there is no bargaining—it’s based on mutual trust. “Farmers come to us throughout the year to repair their agricultural tools, and we don’t ask for immediate payment. When the harvest season arrives, they give us gunny bags of grains for our services,” he said.
Yet, the future of this practice is uncertain. “We are the last generation keeping the barter system alive,” said Jaywant Kumbhar, 47, from Ramapur, adding that only a few young villagers are interested in maintaining the tradition.
Santosh Kumbhar from Rajmachi in Satara district recalls how, in his youth, potters supplied their goods to families throughout the year in exchange for grain during the harvest. “Globalisation has changed everything,” Santosh said, adding, “Today, people want to move to cities. Only a handful in the village still practice barter.”
Historians, on their part, confirmed the decline. Sanjay Sonawani, an expert on the Indus civilisation, claims that while barter was widely used up until the 1970s, its origins can be traced back to the 11th century.
“The barter system was born out of necessity during a period of drought, when cash was scarce, and has continued in some rural areas ever since,” said Sonawani.
Despite its decline, the barter system’s survival in a few Maharashtra villages is a testament to the resilience of tradition in a fast-evolving world.