9.1 Introduction: The British and the Land

After the Battle of Buxar (1764), the East India Company acquired the Diwani (right to collect revenue) of Bengal. The Company now had both political power and economic control. It needed a reliable system to extract revenue from the land — after all, land revenue was the Company's main source of income.

The British experimented with different revenue systems in different parts of India. Their primary concern was maximising revenue, not the welfare of peasants.

'The British land revenue systems were designed to extract as much money as possible from the Indian countryside. Millions of peasants were reduced to poverty, indebtedness, and hunger.'

9.2 The Permanent Settlement (1793)

Introduced by Lord Cornwallis in Bengal, Bihar, and Odisha (and later in parts of Madras Presidency).

Key Features

FeatureDescription
ZamindarsRecognised as owners of the land
Revenue fixedPermanently fixed (would not increase)
CollectionZamindars collected from peasants, paid the Company
Due dateZamindars had to pay by a fixed date or lose their estate
Peasant statusPeasants (ryots) became tenants at the mercy of zamindars

Impact of Permanent Settlement

On Zamindars:

  • Many grew rich and became loyal supporters of the British.
  • Those who could not collect enough revenue lost their estates.
  • Many became absentee landlords, living in cities and leaving management to agents.

On Peasants:

  • Worst affected. Zamindars demanded high rents to maximise their own profit.
  • No security of tenure — peasants could be evicted for non-payment.
  • Indebtedness increased as peasants borrowed money to pay rents.
  • Famines became frequent because peasants had no surplus stored.

On the Company:

  • Gained a steady, predictable revenue stream.
  • Created a loyal class of zamindars who supported British rule.

'The Permanent Settlement was permanent only for the Company's revenue — it could never be increased. But the zamindar's rent from peasants was not permanent; it kept rising. This was deliberate.'

9.3 The Ryotwari System (1820)

Introduced by Thomas Munro in the Madras Presidency (which covered the Andhra region) and later in the Bombay Presidency.

Key Features

FeatureDescription
Ryot (peasant)Recognised as the owner of the land
Direct settlementCompany directly settled revenue with the peasant (no zamindar)
RevenueBased on the quality and productivity of the soil
Periodic revisionRevenue was revised periodically (not permanently fixed)
High ratesRevenue was set at about 50% of the produce in good years

Impact of Ryotwari

On Ryots:

  • Appeared fairer (no middleman), but revenue rates were very high.
  • If the harvest failed, peasants still had to pay or borrow money.
  • Many lost their lands to moneylenders when they could not pay.
  • Heavy assessment led to widespread peasant indebtedness.

On the Company:

  • Direct control over revenue collection.
  • Could revise rates upward periodically.
  • More revenue than the Permanent Settlement.

AP Context: Ryotwari in Andhra

The Ryotwari system was the primary revenue system in the Andhra districts of the Madras Presidency. Thomas Munro personally surveyed the lands of the Ceded Districts (Kurnool, Kadapa, Anantapur, Bellary — parts of Rayalaseema). The high revenue demands, combined with frequent droughts in Rayalaseema, caused immense hardship. Peasant revolts occurred in several areas.

9.4 The Mahalwari System (1833)

Introduced in the North-Western Provinces (UP, Punjab, parts of MP).

FeatureDescription
Mahal (village/estate)Revenue settlement was made with the entire village collectively
Village headmanResponsible for collecting revenue from individual cultivators
Periodic revisionRevenue was revised periodically
Joint responsibilityThe village community was collectively responsible for payment

9.5 Comparison of Revenue Systems

FeaturePermanent SettlementRyotwariMahalwari
IntroducerLord CornwallisThomas MunroHolt Mackenzie / William Bentinck
RegionBengal, Bihar, OdishaMadras, Bombay presidenciesNW Provinces, Punjab
Revenue payerZamindarRyot (peasant)Village headman
Revenue fixed?PermanentlyPeriodically revisedPeriodically revised
MiddlemanYes (zamindar)No (direct)Yes (headman)
Peasant conditionVery poor (tenants)Poor (high taxes)Poor (collective liability)

9.6 Indigo Cultivation and the Blue Rebellion (1859)

Why Indigo?

Indigo is a blue dye used for colouring cloth. Before synthetic dyes were invented, indigo was the best source of blue. The Industrial Revolution in England created huge demand for dyed cloth, so the British needed large quantities of indigo.

How Indigo Was Grown in India

The British forced peasants in Bengal (and some in AP's Krishna-Godavari delta) to grow indigo instead of food crops.

MethodDescription
Nij cultivationPlanter directly cultivated indigo on his own land
Ryoti cultivationPeasants were forced (often through advances and contracts) to grow indigo on their own land

The Harshness of Indigo Cultivation

  • Low prices: Planters paid very low rates for the indigo crop.
  • Coercion: Peasants were beaten, tortured, or evicted if they refused.
  • Loss of food security: By growing indigo, peasants reduced land for rice and other food crops.
  • Debt trap: Peasants took advances from planters and could never escape the cycle.

The Blue Rebellion (1859)

In 1859, peasants of Bengal (especially in Nadia district) rose in revolt against indigo planters. They:

  • Attacked indigo factories and planters' properties.
  • Refused to grow indigo.
  • Defied the planters' authority.

Outcome:

  • The government formed the Indigo Commission (1860) to investigate.
  • The commission reported in favour of the peasants — indigo cultivation was declared exploitative.
  • However, enforcement was weak, and indigo continued in some areas.

'The Blue Rebellion is a powerful example of peasant resistance. Ordinary farmers, driven to desperation, rose up against an unjust system — and won at least a partial victory.'

AP Connection: Indigo in the Krishna-Godavari Delta

Indigo was also cultivated in parts of the Krishna and Godavari delta regions (coastal Andhra) during the British period. However, the crop declined in AP after synthetic dyes were invented in the late 19th century, and farmers returned to rice and other crops.

9.7 Common Mistakes

MistakeFix
Confusing Ryotwari and MahalwariRyotwari = settlement with individual peasant; Mahalwari = with the whole village
Thinking Permanent Settlement was also in APPermanent Settlement was mostly in Bengal; AP was under Ryotwari (Madras Presidency)
Saying the Blue Rebellion was about indigo in APIt was primarily in Bengal (Nadia district)
Forgetting that all systems exploited peasantsWhile different in form, all three systems extracted maximum revenue from peasants

9.8 Exam Focus (AP Board)

TopicMarks
Permanent Settlement — features and impact4 marks
Ryotwari System — AP focus (Thomas Munro)5 marks
Comparison of three revenue systems4 marks
Indigo cultivation and Blue Rebellion4 marks

9.9 Quick Self-Test

Q1. Who introduced the Permanent Settlement and when? A1. Lord Cornwallis in 1793 (Bengal, Bihar, Odisha).

Q2. Who introduced the Ryotwari System in the Madras Presidency? A2. Thomas Munro.

Q3. What was the main problem with the Ryotwari System for AP peasants? A3. Revenue was too high (about 50% of produce), leading to indebtedness and land loss.

Q4. In which system was revenue 'permanently fixed'? A4. Permanent Settlement (1793).

Q5. What was the Blue Rebellion? A5. The 1859 peasant revolt in Bengal against forced indigo cultivation.

Q6. What is the difference between 'nij' and 'ryoti' cultivation of indigo? A6. Nij = planter's own land; Ryoti = forced on peasant's land.

Q7. Why did indigo cultivation decline in AP? A7. Synthetic dyes were invented (late 19th century), reducing demand.

Q8. What was the Indigo Commission (1860)? A8. A government commission formed after the Blue Rebellion; it declared indigo cultivation exploitative.

Q9. Under which system did the village headman collect revenue? A9. Mahalwari System.

Q10. Why were peasants forced to grow indigo instead of food crops? A10. The British textile industry needed indigo dye for cloth; planters used coercion to force cultivation.

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