The basic objective of this study is to investigate into the essential features of price control mechanism in Arthasastra of Kau?ilya and its relevance for the Indian economy at present. The pertinent question in this regard has been put forward in the form of the following hypothesis: i) There is a systematic and coherent price control mechanism implicit in Arthasastra of Kau?ilya. ii) In contrast to the price control mechanism in Arthasastra, the 'administered price policy', pursued in India during the plan period, is inconsistent and ad hoc in nature. iii) The method (in modified form), as available in Arthasastra, may be utilized to devise a coherent 'administered price policy' in a democratic set up as in India at present.