Chapter 3 RULING THE COUNTRYSIDE

Revenue For The Company

After becoming the Diwan of Bengal in 1765, the East India Company aimed to increase revenue while continuing its role as a trader. Initially, the Company sought to maximize revenue collection without establishing a systematic assessment process, leading to the decline of the Bengal economy. Artisans left villages due to low prices, peasants struggled to pay exorbitant rents, and agricultural production collapsed, culminating in a devastating famine in 1770. Recognizing the need to improve agriculture for a stable revenue income, the Company introduced the Permanent Settlement in 1793. This system recognized rajas and taluqdars as zamindars, responsible for collecting rent from peasants and paying a fixed revenue to the Company. While intended to encourage land improvement and ensure regular revenue, the high revenue demand often caused zamindars to fail, leading to the loss of their lands through auctions.

The Need To Improve Agriculture

Company officials realized that a ruined economy would jeopardize their revenue income. They concluded that investing in land and improving agriculture was necessary to ensure a steady flow of revenue and to meet the growing demand for export crops.

A New System Is Devised

In the North Western Provinces, Holt Mackenzie introduced the Mahalwari settlement in 1822. This system viewed the village as an important social institution and aimed to preserve it. Collectors surveyed lands, recorded customs, and calculated village revenue based on estimated plot revenues. This demand was to be revised periodically, and revenue collection was assigned to village headmen.

The Munro System

In the southern regions, Thomas Munro and Captain Alexander Read devised the Ryotwari system. They argued for direct settlement with cultivators (ryots), bypassing zamindars, and emphasized careful surveying of fields for revenue assessment. Munro believed the British should act as paternal protectors of the ryots.

All Was Not Well

Both the Mahalwari and Ryotwari systems faced issues. High revenue demands, often fixed by revenue officials eager to increase income, led to peasants being unable to pay, fleeing villages, and widespread desertion of land. The intended outcome of transforming peasants into enterprising farmers did not materialize, as the oppressive revenue systems and insecurity of land rights continued.

Crops For Europe

The British encouraged or compelled cultivators across India to grow crops needed in Europe, such as jute in Bengal, tea in Assam, sugarcane in the United Provinces, wheat in Punjab, cotton in Maharashtra and Punjab, and rice in Madras. This expansion of cultivation was driven by the rising demand for dyes in Britain's industrializing textile industry.

Why The Demand For Indian Indigo?

Indian indigo was highly valued by European cloth manufacturers for its rich blue color, superior to the pale dye from woad. As Britain's textile industry grew in the late 18th century, the demand for indigo surged. The collapse of indigo production in the West Indies and America due to slave revolts and other factors further increased the demand for Indian indigo.

Britain Turns To India

With the increased demand and declining supplies from other regions, Britain turned to India for indigo. Commercial agents and Company officials invested heavily in indigo cultivation, with many leaving their jobs to manage their indigo businesses. Attracted by potential high profits, Scotsmen and Englishmen became planters, often securing loans from the Company or banks to fund their ventures.

How Was Indigo Cultivated?

Indigo cultivation was primarily practiced under two systems: nij and ryoti.

• Nij Cultivation: Planters directly controlled lands by buying or renting them, producing indigo with hired labor. This system was difficult to expand due to land availability issues, the need for large, compact areas, and difficulties in mobilizing labor when peasants were busy with rice cultivation.
• Ryoti System: Planters forced ryots into contracts (sattas), providing loans at low interest rates for cultivating indigo on at least 25% of their land. The planters supplied seeds and drills, while ryots managed the cultivation. This system, though initially appealing due to loans, proved harsh as ryots received low prices, and the cycle of debt continued, often leading to conflicts and the exhaustion of soil fertility, making it difficult to grow rice afterward.

The “Blue Rebellion” And After

In March 1859, indigo ryots in Bengal revolted against the oppressive system, refusing rents and attacking indigo factories. Women also participated in the struggle. The rebellion gained momentum due to perceived support from zamindars and village headmen, who mobilized peasants and fought against planters' lathiyals. The ryots' refusal to accept further advances and endure planter tyranny fueled the movement. The Lieutenant Governor's visit and a notice suggesting indigo was no longer mandatory were misinterpreted as support for the rebellion. The subsequent Indigo Commission acknowledged the planters' coercive methods and advised that ryots fulfill existing contracts but could refuse future ones, leading to the collapse of indigo production in Bengal. Planters then shifted their operations to Bihar, and later, synthetic dyes impacted the indigo trade, though production continued.

Exercises

The chapter's exercises cover the Company's revenue policies, the transition from trade to territorial control, and the indigo cultivation system. Students are asked to match terms like 'ryot' and 'mahal' with their meanings, fill in blanks about historical events, and state the truthfulness of given statements. Discussion questions delve into the features of the Permanent Settlement, Mahalwari system differences, problems with the Ryotwari system, reasons for ryot reluctance to grow indigo, and circumstances leading to the decline of indigo production in Bengal. Practical activities include researching the Champaran movement and comparing plantation life, with an imaginative exercise involving enacting a conversation between a planter and a ryot.