Kautilya had conceived the concept of justified and fair price. In fair price, they used to cover the costs as well as the appropriate benefits. He said that the producer/trader should not take more than 5% profit on indigenous goods, and 10% on foreign goods. According to him, many elements affect the price of the goods such as salaries, transport expenses, customs, festivals, fashion, rent and society, etc. According to him, the price of the goods should be determined by Panyadhyaksha or Sansthadhyaksha appointed by the king.
