Class 8 History Chapter 3 Notes - Ruling the Countryside

Facts that Matter

• After the assumption of Diwani in 1765, the Company started using the vast revenue resources of Bengal. The revenues from India could now cover the Company’s costs and were used to buy cotton and silk textiles.
• This led to a ruined economy. The Bengal economy fell into crisis, causing artisans to leave villages as they were forced to sell their products to the Company at low prices. Peasants were also anxious as agricultural production showed signs of collapse. In 1770, a devastating famine resulted in the deaths of ten million people in Bengal.
• The Company realised that agriculture required improvement to ensure steady revenue income. Many officials believed that encouraging investment in land and enhancing agriculture was necessary.
• In 1793, the Company introduced the Permanent Settlement. This recognised the rajas and taluqdars as the collectors of rent from peasants, with a fixed revenue amount to be paid to the Company.
• This was intended to create a steady revenue stream for the Company and encourage zamindars to invest in land improvements.
• However, the zamindars struggled to invest in land improvements. The fixed revenue amount was too high for them to manage.
• By the early 19th century, circumstances changed. Market prices rose, and cultivation began to expand, increasing zamindars' income, but the Company did not benefit since the permanent revenue demand could not be altered.
• The Permanent Settlement became burdensome for cultivators. The rents paid to zamindars were high, and their rights to the land were insecure.
• Seeing the failure of the Permanent Settlement, Holt Mackenzie devised a new system called the Mahalwari Settlement, implemented in 1822. Collectors were instructed to visit villages, inspect land, measure fields, and record the customs and rights of various groups. The total estimated revenue of each plot was calculated to determine what each village or mahal owed, with periodic revisions of this demand.
• In southern British territories, the ryotwar (or ryotwari) system was introduced by Captain Alexander Read and developed by Shomas Munro, gradually spreading throughout South India.
• The Ryotwari Settlement was established directly with the cultivators (ryots).
• All these new systems proved to be failures. The Company imposed them to boost land income, but the high revenue demands were not met.
• By the late 18th century, the Company sought to expand cultivation of opium and indigo, understanding that the countryside could provide not only revenue but also crops needed in Europe.
• Indian indigo was highly sought after in Europe. Hence, the Company looked for ways to increase the area for indigo cultivation. The demand for indigo surged in late 18th-century Britain due to specific economic factors.
• From the late 18th century, Bengal indigo dominated the world market. In 1788, only about 30% of the indigo imported into Britain was from India, but by 1810, this figure had risen to 95%.
• As indigo trade expanded, Company officials and commercial agents began investing in indigo production.
• Indigo cultivation was carried out under two main systems known as nij and ryoti. In the nij cultivation system, the planter produced indigo on land they directly controlled.

Indigo Cultivation 

• However, it was challenging for planters to expand nij cultivation.
• Indigo could only grow on fertile lands, which were already heavily populated.
• Labour was also scarce. Large-scale nij cultivation needed several ploughs and bullocks, and investing in these was problematic. Thus, planters hesitated to expand nij cultivation.
• Under the ryoti system, planters compelled ryots to sign contracts, known as satta. Those who signed received cash advances from planters at low-interest rates for indigo production. This system was unfavourable to cultivators as they did not receive fair prices after their harvests. Consequently, many indigo cultivators in Bengal resisted growing it and revolted against the planters.
• This resistance led to the formation of the Indigo Commission to investigate the indigo production system.
• The Commission found planters guilty, stating that indigo production was not profitable for ryots, thus they were not needed to produce it in the future.
• Ultimately, indigo production in Bengal collapsed, prompting planters to move their operations to Bihar.

Words that Matter

• Countryside: Refers to rural areas.
• Permanent Settlement: This agreement meant that once revenue rates were set, they would not change. It aimed to stabilise revenue collection and encourage investment in agriculture.
• Mahal: In British records, a mahal is a revenue estate, which can be a village or a collection of villages.
• Mahalwari Settlement: In this system, revenue rates would be revised periodically instead of being fixed permanently.
• Ryoti: Refers to a cultivator.
• Indigo: plant used to produce a rich blue dye.
• Plantations: Large farms run by a planter that often relied on various forms of forced labour.
• Slave: person owned by another, without freedom, and forced to work for their master.
• Bigha: unit of land measurement.
• Satta: contract or agreement.
• Vat: vessel used for fermentation or storage.
• Lathiyalo: Strongmen wielding lathis, employed by planters.
• Gomastha: Agents working for planters.

Dateline

• 12 August 1765 — The Mughal emperor appointed the East India Company as the Diwan of Bengal.
• 1770 — A devastating famine in Bengal resulted in the death of ten million people, wiping out about one-third of the population.
• 1793 — The Company implemented the Permanent Settlement under Lord Cornwallis, aiming to stabilise revenue collection and promote agricultural investment.
• 1822 — The Mahalwari System was introduced.
• 1859 — Indigo cultivators revolted.