what oppressive did parmanent settlement face Related: Revenue For Th...
Permanent Settlement
To improve agriculture and to improve investment in land the Company introduced the Permanent Settlement in 1793. By the terms of the settlement, the rajas and taluqdars were recognized as zamindars. They were asked to collect rent from the peasants and pay revenue to the Company. The amount to be paid was fixed permanently, that is, it was not to be increased ever in future. It was felt that this would ensure a regular flow of revenue into the Company’s coffers and at the same time encourage the zamindars to invest in improving the land. Since the revenue demand of the state would not be increased, the zamindar would benefit from increased production from the land.
The Problem of Permanent Settlement
The Permanent Settlement, however, created problems. Company officials soon discovered that the zamindars were in fact not investing in the improvement of land. The revenue that had been fixed was so high that the zamindars found it difficult to pay. Anyone who failed to pay the revenue lost his zamindari. Numerous zamindaris were sold off at auctions organised by the Company.
By the first decade of the nineteenth century the situation changed. The prices in the market rose and cultivation slowly expanded. This meant an increase in the income of the zamindars but no gain for the Company since it could not increase a revenue demand that had been fixed permanently
Even then the zamindars did not have an interest in improving the land. Some had lost their lands in the earlier years of the settlement; others now saw the possibility of earning without the trouble and risk of investment. As long as the zamindars could give out the land to tenants and get rent, they were not interested in improving the land.
On the other hand, in the villages, the cultivator found the system extremely oppressive. The rent he paid to the zamindar was high and his right on the land was insecure. To pay the rent he had to often take a loan from the moneylender, and when he failed to pay the rent he was evicted from the land he had cultivated or generations.