1. When the farmers in the village-settlements
2. produced surplus food, they felt the need for skilled craftsmen who would provide them with agricultural implements and also repair them.
3. Such craftsmen were paid in the form of food grains or other articles. The craftsmen also purchased the required raw material in the form of foodgrains and other useful articles.
4. Thus, buying and selling by exchanging goods for goods called barter system was established.
