NCERT 8 HISTORY CHAPTER 3

 3. Ruling the Countryside

• In 1765, the company became the Diwan of Bengal (the chief financial administrator)
• They decided to administer the land and to organise its revenue resources
• Previously, the company purchased goods by importing gold and silver from Britain.
• Now they started to use the finances of Bengal for its expenses, soon led to the economic crisis in Bengal
• In 1770, 10 million people were died in terrible famine, 1/3 of population wiped out
• To increase the income in agriculture, Lord Cornwallis introduced permanent settlement in 1793
•  To ensure the regular flow of revenue, the amount was fixed permanently
• Zamindars were not invested in the improvement of the land, many zamindars failed to pay revenue and lost their zamindaris
• But in early 19CE, the market prices rose and resulted in the increase of income of the zamindars but no gain for the company
• Also this system was extremely oppressive to the cultivator, though he paid high rent to zamindars and also right on land was insecure
• Mahal - revenue estate, either a village or group of villages
• Then Holt Mackenzie devised a new system in 1822 called Mahalwari system
•  In North-West provinces(Uttar Pradesh), Collector inspected the land, calculated the revenue of each village (mahal). Then the revenue was periodically revised and collected from the village headmen
• In south, Captain Alexander Read and Thomas Munro recommended a system called Ryotiwari settlement(The Munro system)
• Here, the settlements were made directly with the cultivator(ryots) and revised periodically

• By late 18 CE, the company expand the cultivation of opium and indigo and also other crops
• Earlier by 13 CE, only small amount of Indian indigo reached Europe, Europeans depended on woad plant which produced violet and blue dye but the dye was pale and dull
• By 18 CE, the demand of Indian indigo grew further which produced a royal blue dye
• In 1788, only 30 % of Indigo imported into Britain, by 1810, it raised up to 95%
• Two main systems of indigo cultivation are nij and ryoti
• Under nij cultivation, planters directly produced indigo in lands
• They needed large areas in compact blocks, tried to evict the peasants from the area which led to conflicts
• Also required many ploughs and bullocks on large scale
• under this system, less than 25% of the land produced indigo
• Under ryoti system, village headmen forced to sign an agreement(Satta)
• The planters gave loan at low interest and asked to cultivate on at least 25% of land
• But the cycle of loans never ended and also indigo plant had deep roots and it exhausted the best soils of rice cultivation
• Blue rebellion - 1859, thousands of ryots refused to grow indigo, local headmen and zamindars also supported 
• After 1857 revolt, the government worried about another popular rebellion. 
• So Indigo commission was set up and Queen Victoria declared Indigo need not be sown
• Then Indigo production collapsed in Bengal and planters now shifted to Bihar 
• After Mahatma Gandhi returned from South Africa, he visited Champaran
• 1917 marked the beginning of Champaran movement against Indigo planters