Unit 2
Land Settlements: Permanent-Ryotwari
Learning Outcomes
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Upon completion of the unit, the learner will be able to :
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Prerequisites
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The major concern of the English East India Company’s administration in India was to collect as much revenue as possible. Agriculture was the main source of income during that period. In 1765 The English East India Company acquired the Diwani for control over the revenues of Bengal, Bihar and Orissa. The company followed the old system of revenue collection till 1773. In 1773 the company decided to manage the land revenues directly. Warren Hastings offered the right to collect revenue to the highest bidders. But his experiment failed. It was at this stage the idea of fixing the land revenue at a permanent amount emerged. |
Key Words
Diwani Right, The Permanent Settlement, Ryotwari System, Mahalwari system
2.2.1.Land Revenue Policy
The Company needed Indian revenues to meet the cost of the conquest of the whole India and the consolidation of their rule in India. They had to pay for the employment of thousands of Englishmen in superior administrative and military positions at salaries. They fully depended on the Indian revenue to meet these ends. To meet the costs of economic and administrative charges, they fully penetrate Indian villages and the far-flung areas. They collected revenue from Indian peasants. All the major changes in the administration and judicial system were geared to the collection of land revenue.
2.2.2. Permanent Settlement or Zamindari System 1793
Lord Cornwallis
The Permanent Settlement was introduced in Bengal and Bihar in 1793 by Lord Cornwallis. It had two special features. Firstly, the zamindars and revenue collectors were converted into so many landlords. They were the agents of the government in collecting land revenue from the peasants. They were also considered the owners of the entire land. Their right of ownership was made hereditary and transferable. Secondly, the zamindars were to give 10/11 of the rental they derived from the peasantry to the state and keep only 1/11 for themselves.
2.2.3. Condition of Cultivators
The cultivators were reduced to the low status of mere tenants. They were deprived of long-standing rights to the soil and other customary rights. The rate of land revenue was fixed very high. John Shore planned the permanent settlement and was later implemented by Governor General Cornwallis. The Permanent settlement enabled the company to maximize its income through land revenue. It was later extended to Orissa, the Northern Districts of Madras and the District of Varanasi.
2.2.4. Ryotwari system
This system of land revenue was instituted in the late 18th century because it brought new problems of land settlement in South and South-Western India. In these regions there were no zamindars with large estates with whom settlement of land revenue could be made. The introduction of the zamindari system failed in these states. In 1820 many Madras officials led by Reed and Munro recommended a new settlement system which was made directly with the actual cultivators. This system is known as the Ryotwari system. Under this system the cultivator was to be recognised as the owner of this plot of land subject to the payment of land revenue. They had ownership rights: could sell, mortgage or gift the land. This system was practised in the Madras and Bombay provinces, as well as Assam and Coorg provinces.
Thomas Munro
Under the Ryotwari system, the tax were directly collected by government from the peasants. The rates were 50% in dryland and 60% in the wetland. The rates were high and unlike the Permanent System, they were open to being increased. If they failed to pay the taxes, they were evicted by government officials. Ryot means peasant cultivators. Here there were no middlemen as in the Zamindari system. But, since high taxes had to be paid only in cash (no option of paying in kind as before the British) the problem of moneylenders become visible. They further burdened the peasants with heavy interests.
2.2.5. Mahalwari System
The Mahalwari system was a modified version of the Zamindari settlement. It was introduced in 1822 and it was reviewed under Lord William Bentinck in 1833. This system was introduced in the North-West Frontier, Agra, Central Province, Gangetic Valley, Punjab, etc. This system had elements of both the Zamindari and the Ryotwari systems. The revenue settlement was to be made village by village (mahal) with landlords or heads of families who collectively claimed to be the landlords of the village. Each individual farmer gave his share. Ownership rights were with the peasants. It introduced the concept of average rents for different soil classes. The state share of the revenue was 66% of the rental value. The settlement was agreed upon for 30 years. This system was called the Modified Zamindari system because the village headman virtually became a Zamindar.
2.2.6.Consequences of the British land Revenue systems
The value of land increased. Land was not previously privately owned. Even kings and farmers did not regard land as their private property. Farmers turned away from producing food crops in favour of cash crops as a result of the extremely high taxes. This resulted in Food insecurity and even famines. Pre-British times saw moderate agricultural product taxes. The British set a very high standard farmers became more indebted as a result of the insistence on paying revenue in cash. In due course, moneylenders acquired land. Loans were offered to farmers and labourers who were unable to repay them, which led to the emergence of bonded labour. 75% of the agricultural land in India was owned by 7% of the peasants (Zamindars/landowners) when it was freed from British domination.
Recap
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Objective type questions
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Answer to Objective type questions
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Assignment
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Suggested Reading
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