1. Introduction
This chapter explains how the East India Company ruled countryside (rural area) in India. In 1765, the Company became the Diwan of Bengal, which made them the chief financial administrator. As Diwan, they managed land and revenue resources to fund their growing expenses. They bought cotton and silk cheaply for export.
Being an alien power, the Company acted carefully. They needed to:
- Pacify local power holders
- Control but not eliminate them
- Colonise the countryside
- Redefine rights
- Promote crops for European markets
2. Revenue Collection Challenges
The Company was more interested in trade than administration. They wanted high revenue without having a regular system in place. Within five years, they doubled the value of Bengal goods. They used Bengal’s revenue instead of bringing gold from Britain.
By 1770, Bengal’s economy was facing a serious crisis:
- Artisans left villages because of low prices
- Peasants struggled to pay high dues
- Artisanal production declined sharply
- Agriculture collapsed under pressure
This led to a terrible famine in 1770 that killed one-third of Bengal’s population. The way they collected revenue really harmed the rural economy.
3. Permanent Settlement
In 1793, the Company introduced Permanent Settlement to improve agriculture. This system:
- Recognized rajas and taluqdars as zamindars
- Made zamindars collect rent from peasants
- Required zamindars to pay fixed revenue to Company
- Fixed revenue permanently (never increased)
The Company hoped this would:
- Ensure steady income for themselves
- Encourage zamindars to improve land
But it caused many problems:
- Zamindars struggled to pay the high fixed amounts
- They failed to invest in land improvement
- Many zamindaris were sold at Company auctions
As market prices rose, zamindar income increased but the Company gained no extra revenue. Cultivators faced:
- High rents
- Insecure land rights
- Loans they couldn’t repay
- Eviction if they didn’t pay
4. New Revenue Systems
By the 1800s, the Company revised their revenue system because they needed more funds for administration and trade. They introduced:
Mahalwari System (1822):
- Devised by Holt Mackenzie in North Western Provinces
- Valued village as imp social institution
- Collectors inspected and measured village lands
- Recorded customs and rights of groups
- Calculated revenue per village (mahal)
- Revenue was revised periodically, not fixed
- Village headmen collected and paid revenue
Ryotwari System (used in South India):
- Devised by Alexander Read and Thomas Munro
- Settlement made directly with cultivators (ryots)
- Fields surveyed and revenue assessed individually
- No traditional zamindars existed in South India
Both systems had problems:
- High revenue demands were difficult to meet
- Peasants couldn’t pay and deserted villages
- Systems failed to create rich farmers
| Revenue System | Region | Features | Problems |
|---|---|---|---|
| Permanent Settlement | Bengal | Fixed revenue, zamindars | High rents, insecure rights |
| Mahalwari | North Western Provinces | Village-based, periodic revision | High demands, village desertion |
| Ryotwari | South India | Direct with cultivators | High demands, peasant debt |
5. Crops for European Markets
The Company made Indian countryside grow crops for European markets. They expanded cultivation of:
- Opium
- Indigo
- Later promoted jute, tea, sugarcane, wheat, cotton, rice
Indigo was a major crop used for making blue dye. By 1810, Indian indigo dominated the world market. It was used in European cloth dyeing. Demand for indigo rose with growth of British cotton industry. When supplies from West Indies collapsed after 1780s, India became the main source.
Company officials and Scotsmen became indigo planters. They got loans from Company and banks. Indigo cultivation used two systems:
- Nij system
- Ryoti system
6. Indigo Cultivation Systems
Nij System:
- Planters controlled land directly
- Used owned or rented land
- Employed hired labourers for production
This system faced many issues:
- Difficult to get fertile, populated land
- Needed large, compact land blocks
- Evicting peasants caused conflicts
- Labour was scarce during rice cultivation
- Required many ploughs and bullocks
- Peasant resources unavailable during indigo season
Because of these problems, less than 25% of indigo land was under nij system.
Ryoti System:
- Planters contracted with ryots (peasants)
- Ryots signed agreements (satta)
- Got cash advances at low interest
- Had to cultivate indigo on 25% of their land
- Planters provided seeds and drills
- Ryots prepared soil, sowed and maintained crops
This system also had problems:
- Low indigo prices created endless loan cycles
- Indigo exhausted soil and reduced rice yields
- Best soils used for indigo, not rice
7. Indigo Production Process
The indigo production process was complicated:
- Indigo plants were harvested and taken to factories
- Factories were located near indigo villages
- Leaves were soaked in fermenting vat
- Liquid fermented, boiled and bubbled
- Rotten leaves were removed and liquid drained
- Liquid was stirred in beater vat and turned blue
- Lime water was added and indigo flakes separated
- Sediment (indigo pulp) was pressed and dried
- Workers cut and stamped pulp for sale
This process required multiple vats and lots of labour.
8. Blue Rebellion
In 1859, ryots rebelled against indigo cultivation. This rebellion was called the “Blue Rebellion”. The ryots:
- Refused to grow indigo or pay rents
- Attacked factories with weapons
- Women fought with household items
- Boycotted planters’ workers
- Beat gomasthas (agents)
The rebellion happened because:
- Oppressive indigo system burdened ryots
- Low prices and loan cycles trapped them
- Indigo harmed soil and rice cultivation
Ryots gained support from:
- Zamindars
- Village headmen
Zamindars opposed planters’ growing power. Ryots believed British government supported them because:
- Lieutenant Governor toured the area
- Magistrate Ashley Eden’s notice seemed sympathetic
- Intellectuals from Calcutta reported ryot misery
The government deployed military to protect planters. They set up an Indigo Commission to investigate. The Commission:
- Found planters guilty of using force
- Declared indigo unprofitable for ryots
- Allowed ryots to refuse future contracts
9. Aftermath of Rebellion
After the rebellion:
- Indigo production collapsed in Bengal
- Planters shifted operations to Bihar
- Synthetic dyes reduced indigo demand
But planters still tried to expand production. In 1917, the Champaran movement began when Gandhi visited Bihar after a peasant’s plea. He addressed the plight of indigo cultivators, marking the start of resistance against planters.
10. Questions
Match the following:
- ryot: peasant
- mahal: village
- nij: cultivation on planter’s own land
- ryoti: cultivation on ryot’s lands
Fill in the blanks:
- (a) Growers of woad in Europe saw indigo as a crop which would provide competition to their earnings.
- (b) The demand for indigo increased in late eighteenth-century Britain because of industrialisation and expanded cotton production.
- (c) The international demand for indigo was affected by the discovery of synthetic dyes.
- (d) The Champaran movement was against indigo planters.
Describe the main features of the Permanent Settlement: Permanent Settlement of 1793 recognized rajas and taluqdars as zamindars. It made zamindars collect rent from peasants and pay fixed revenue to the Company. The revenue amount was permanently fixed and never increased. This system was supposed to ensure steady revenue for Company and encourage zamindars to improve land. But it led to high rents and insecure land rights for cultivators.
How was the mahalwari system different from the Permanent Settlement? The mahalwari system, introduced in 1822, calculated revenue per village with periodic revisions. It gave collection responsibility to village headmen and preserved village institutions. This was different from Permanent Settlement, which fixed revenue permanently, relied on zamindars, and didn’t allow any revenue adjustments.
Give two problems which arose with the new Munro system of fixing revenue: The Munro system (ryotwari) had two major problems. First, it set very high revenue demands that peasants couldn’t pay, which led to debt and people leaving villages. Second, it failed to transform peasants into rich farmers as officials had hoped, leaving many villages deserted.
Why were ryots reluctant to grow indigo? Ryots didn’t want to grow indigo because the system was oppressive with low prices and never-ending loan cycles. They had to use their best soils (needed for rice) for indigo. Also, indigo exhausted the soil, making it unsuitable for growing rice afterwards.
What were the circumstances which led to the eventual collapse of indigo production in Bengal? Indigo production in Bengal collapsed because of the 1859 Blue Rebellion where ryots refused to grow indigo and attacked planters. They got support from zamindars and village headmen. The Indigo Commission found planters guilty of using force and declared indigo unprofitable for ryots. Also, synthetic dyes started replacing natural indigo. These factors made planters shift their operations to Bihar.
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