Ruling the Countryside

The Company Becomes the Diwan

• 12 August 1765: The Mughal emperor appointed the East India Company as the Diwan of Bengal.
• As Diwan, the Company became the chief financial administrator of the territory under its control.

Revenue for the Company

• The company made efforts to increase the revenue and buy fine cotton and silk cloth as cheaply as possible.
• Within five years the value of goods bought by the Company in Bengal doubled.

→ Now the revenue collected in Bengal could finance the purchase of goods for export.

• Bengal economy was facing a deep crisis because artisans were deserting villages since they were being forced to sell their goods to the Company at low prices.

→ Agricultural cultivation showed signs of collapse.

• In 1770, a terrible famine killed ten million people in Bengal.

The Need to Improve Agriculture

• Most Company officials felt that investment in land had to be encouraged and agriculture had to be improved.
• In 1793, the Company introduced the Permanent Settlement.

→ By the terms of the settlement, the rajas and taluqdars were recognised as zamindars.

→ They were asked to collect rent from the peasants and pay revenue to the Company which was fixed permanently.

→ This would ensure a regular flow of revenue to the Company and encourage zamindars to invest in improving the land.

The Problem

• The zamindars were not investing in improving the quality of land.
• The revenue fixed was too high for the zamindars.
• Zamindars were interested in profit, not improving land.
• The cultivator found the system extremely oppressive.

A New System is Devised

• By the early nineteenth century, officials felt the revenue system needed change again.

Mahalwari Settlement

• Collectors went village to village estimating the revenue each village (mahal) had to pay.
• Village headman, not zamindars, was responsible for collecting and paying the revenue.

→ This system was known as the Mahalwari Settlement.

The Munro System

• Known as the ryotwar or ryotwari system.
• Initially tried on small scale by Captain Alexander Read.
• Later developed by Thomas Munro and extended all over South India.

Ryotwari System and Its Problems

• The settlement was made directly with the cultivators (ryots).
• The British acted as paternal figures protecting the ryots.
• Revenue officials fixed too high a demand.
• Peasants couldn’t pay, fled, and villages were deserted.

Crops for Europe

• British forced/encouraged cultivators to produce commercial crops:

→ Jute in Bengal

→ Tea in Assam

→ Sugarcane in the United Provinces (now Uttar Pradesh)

→ Wheat in Punjab

→ Cotton in Maharashtra and Punjab

→ Rice in Madras

• Various methods were used to increase crop cultivation.
• Indigo had great worldwide demand.

Why the Demand for Indian Indigo?

• By 13th century, Indian indigo was used by cloth manufacturers in Italy, France, and Britain.

→ Indigo was expensive but preferred for its bright color.

• European manufacturers used woad, but it gave pale dyes.

→ Indigo was preferred for its brightness.

• French, Portuguese, English, and Spanish began indigo cultivation in colonies.
• Between 1783 and 1789, world indigo production halved.

→ British cloth dyers turned to India for supply.

Britain Turns to India

• Company expanded indigo cultivation in India.
• By 1810, 95% of Britain’s indigo came from India.
• Many Scotsmen and Englishmen came to India as planters.

How Was Indigo Cultivated?

• Two main systems: nij and ryoti.

Nij Cultivation and Problems

• Planter directly produced indigo on his own land.
• Difficult to expand due to population and fertile land limitations.
• Needed many laborers and ploughs/bullocks.

→ Planters avoided expanding nij cultivation till late 19th century.

Indigo on the Land of Ryots

• Under ryoti system, planters pressured headmen to sign contracts on behalf of ryots.

→ Contract led to cash advances at low interest for producing indigo.

→ Ryots had to grow indigo on 25% of their land.

• Cycle of loan and low price continued, leaving peasants trapped.
• Indigo exhausted soil and left it unfit for rice.

The “Blue Rebellion” and After

• In 1859, ryots rebelled with support of zamindars and headmen.
• Writers and intellectuals highlighted the misery of ryots and cruelty of planters.

→ Indigo Commission was set up to investigate.

→ Planters were found guilty for coercion.

• Post-revolt, indigo production shifted to Bihar.
• In 1917, Mahatma Gandhi launched the Champaran movement against indigo planters.

MCQs

1. What happened in 1770 in Bengal so that one-third of the population was wiped out?

(a) The British shipped a lot of locals to Britain and the met with an accident.

(b) Robert Clive had to wage a battle with the locals and killed many.

(c) The British and the French had a war in Bengal and many were killed.

(d) Due to a terrible famine, ten million people in Bengal were wiped out.

► (d) Due to a terrible famine, ten million people in Bengal were wiped out.

2. From the given dates, on which date did the Mughal emperor appoint the East India Company as the Diwan of Bengal?

(a) On 12 August 1750

(b) On 12 August 1780

(c) On 12 August 1765

(d) On 12 August 1700

► (c) On 12 August 1765

3. What do you mean by nij and ryoti?

(a) The two main trading centres of indigo

(b) The two main areas where indigo was cultivated in India

(c) The two important systems of indigo cultivation

(d) The two main sets of zamindars

► (c) The two important systems of indigo cultivation

4. A set of statements with respect to the ryot cultivation of indigo is given below. Select the one that is not applicable to the ryot cultivation.

(a) The planter provided the seed and the drill, while the cultivators prepared the soil, sowed the seed and looked after the crop.

(b) The planters were forced to sign a contract, an agreement (satta)

(c) Those who signed the contract got cash advances from the planters at low rates of interest to produce indigo.

(d) The planters produced indigo in the lands that he directly controlled.

► (d) The planters produced indigo in the lands that he directly controlled.

5. From among the regions mentioned below, which region introduced the Mahalwari Settlement System in 1822?

(a) Bombay

(b) Madras

(c) Bihar

(d) Uttar Pradesh

► (d) Uttar Pradesh

6. According to the terms of the Permanent Settlement, who were recognized as zamindars?

(a) Village heads

(b) Farmers and Peasants

(c) Rajas and Taluqdars

(d) British officers

► (c) Rajas and Taluqdars

7. A set of statements on how the Permanent Settlement system was advantageous to the British are given below. Pick out the one that is not applicable

(a) The revenue amount was not a fixed one and the zamindars did not benefit from increased production from the land.

(b) The rajas and taluqdars were recognized as zamindars.

(c) The British could get a continuous flow of revenue.

(d) This system created a new class of landlords who were loyal to the British.

► (a) The revenue amount was not a fixed one and the zamindars did not benefit from increased production from the land.

8. Who among the following introduced the Ryotwari Settlement system?

(a) Thomas Munro

(b) Holt Mackenzie

(c) Lord Dalhousie

(d) Lord Cornwallis

► (a) Thomas Munro

9. From the given possibilities, which year did the British introduce the Permanent Settlement of Bengal?

(a) 1793

(b) 1800

(c) 1815

(d) 1780

► (a) 1793

10. What was the chief advantage of the Company when appointed as the Diwan of Bengal?

(a) The Company helped the artisans to sell their goods at higher prices

(b) Agricultural production saw an increase in Bengal.

(c) The Company became the chief financial administrator of the territory under its control and they could raise revenue

(d) The Company could trade to whichever country they wanted.

► (c) The Company became the chief financial administrator of the territory under its control and they could raise revenue

11. A few statements with respect to the Bengal economy after the Company had become the Diwan are given. Pick out the one that is not applicable to the Bengal economy.

(a) The Bengal economy thrived and progressed.

(b) Artisanal production and agricultural cultivation showed signs of collapse

(c) The artisans started deserting villages as they were forced to sell their goods to the Company at low prices

(d) Peasants were unable to pay the dues that were being demanded from them

► (a) The Bengal economy thrived and progressed.

12. Under the Mahalwari system, the estimated revenue of each plot within a village was added up to calculate the revenue that each mahal had to pay. From the given list of options, which one is closest in meaning to the word mahal?

(a) Landlord(s)

(b) Zamindar(s)

(c) Tenant(s)

(d) Village(s)

► (d) Village(s)

13. Why was there a popular demand for Indian indigo in Italy, France and Britain?

(a) India was the biggest producer of indigo and no other country produced indigo

(b) There was a ban on indigo import in other countries

(c) Indigo imports were tax free

(d) Indigo was used to dye cloth and there was a huge demand

► (d) Indigo was used to dye cloth and there was a huge demand

14. Why many Scotsmen and Englishmen came to India and became planters?

(a) Many rich landlords lost their interest in cultivation, so the Scotsmen and Englishmen became planters to invoke interest among the landlords

(b) The British relaxed rules for the private ownership of land to the Scotsmen and Englishmen, so they thought they could reap huge profits by cultivating crops.

(c) Attracted by the prospect of high profits of indigo, they invested money in indigo cultivation and became planters.

(d) Many Indian farmers auctioned their land because they could not pay the revenue, so the Scottish and Englishmen thought they could become planters and cultivate any crop

► (c) Attracted by the prospect of high profits of indigo, they invested money in indigo cultivation and became planters.

15. In which year did Bengal witness the Great Famine?

(a) 1775

(b) 1770

(c) 1777

(d) 1778

► (b) 1770

16. Given below are some points with regard to the nij cultivation of indigo. Select the one that is not related to the nij cultivation

(a) The planters produced indigo in the lands that he directly controlled.

(b) Planters cultivated in lands either bought by them or rented it from other zamindars and produced indigo by directly employing hired labourers

(c) Planters needed large areas in compact blocks to cultivate indigo

(d) The planters were forced to sign a contract, an agreement (satta)

► (d) The planters were forced to sign a contract, an agreement (satta)

17. In which year was the Permanent Settlement System started?

(a) 1900

(b) 1885

(c) 1890

(d) 1793

► (d) 1793

18. How did the Company ask the Rajas to collect revenue?

(a) Rajas had to give it in the form of jewellery and gold

(b) Rajas had to give it from their treasury.

(c) Rajas had to raise revenue by selling their own land.

(d) Rajas had to collect rent from the peasants and pay revenue to the Company

► (d) Rajas had to collect rent from the peasants and pay revenue to the Company