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12. The East India Company as the Diwan
The East India Company
asthe Diwan of Bengal
became its chief financial
administrator Now it had to
think of administering the
land and organising its
revenue resources. This
had to be done in a way
that could yield enough
revenue to meet the
growing expenses of the
company.
13. British to woo locals rather than
persecute!
Being an
alien power,
it needed to
pacify those
who in the
past had
ruled the
countryside,
and enjoyed
authority
and prestige
14. Fine cotton and silk cloth
It wanted a large
revenue income
but was unwilling
to set up any
regular system of
assessment and
collection. The
effort was to
increase the
revenue as much
as it could and
buy fine cotton
and silk cloth as
cheaply as
possible.
15. Commonssufferings.
Artisans were
deserting villages
since they were being
forced to sell their
goods to the Company
at low prices.
Peasants were unable
to pay the dues.
Artisanal production
was in decline, and
agricultural cultivation
showed signs of
collapse. Then in 1770
a terrible famine killed
ten million people in
Bengal. About one-
third of the population
was wiped out.
17. Permanent settlement of 1793,by Lord
Cornwallis. By the terms of the Permanent
settlement of 1793, the rajas
and taluqdars were recognized
as zamindars.
They were asked to collect rent
from the peasants and pay
revenue to the Company.
The amount to be paid was fixed
permanently, that is, it was not to
be increased ever in future.
It was felt that this would ensure
a regular flow of revenue into the
Companys coffers and at the
same time encourage the
zamindars to invest in improving
the land.
Since the revenue demand of
the state would not be increased,
the zamindar would benefit from
increased production from the
land.
18. Mahalwari Settlement
In the North Western Provinces of the Bengal
Presidency (most of this area is now
UttarPradesh), an Englishman called Holt
Mackenzie devised the new system which
came into effect in 1822.
He felt that the village was an important
social institution in north Indian society
and needed to be preserved. Under his
directions, collectors went from village to
village, inspecting the land, measuring the
fields, and recording the customs and
rights of different groups.
The estimated revenue of each plot within a
village was added up to calculate the
revenue that village was an important
social institution This demand was to be
revised periodically, not permanently
fixed. The charge of collecting the
revenue and paying it to the Company
was given to the village headman, rather
than the zamindar.
19. The Munro System
The new system Ryotwar (or
ryotwari) was tried on a small
scale by Captain Alexander
Read in some of the areas that
were taken over by the
Company after the wars with
Tipu Sultan. Subsequently
developed by Thomas Munro,
this system was gradually
extended all over south India.
Read and Munro felt that in the
south there were no traditional
zamindars. The settlement,
had to be made directly with
the cultivators (ryots) who had
tilled the land for generations.
Their fields had to be carefully
and separately surveyed
before the revenue
assessment was made. Munro
thought that the British should
act as paternal father figures
protecting the ryots under their
charge.
21. Ryoti System
Under the ryoti system, the
planters forced the ryots to sign
a contract, an agreement (satta).
At times they pressurised the
village headmen to sign the
contract on behalf of the ryots.
Those who signed the contract
got cash advances from the
planters at low rates of interest to
produce indigo. But the loan
committed the ryot to cultivating
indigo on at least 25 per cent of
the area under his holding. The
planter provided the seed and
the drill, while the cultivators
prepared the soil, sowed the
seed and looked after the crop.
The procurement price for indigo
was so less that cultivators were
always in debt trap.
22. Answer Please!
Test Your Understanding!
Name the Sole
Flourishing
EuropeanTrading
power in India in
18thcentury?
32. What do you mean by Mahalwari
Settlement ?
Who introduced it ?
33. Each village(mahal) was
an important
social,revenue unit for
tax assessment by
Collectors under the
responsibility of
Village headman. Holt
Mackenzie devised
the new system which
came into effect in
1822.