Modern India — Agrarian Impact of British Policies
1. Warren Hastings' Revenue System (1769-70)
- He adopted the Izaredari System (also called the farming system) to bring order to revenue collection.
- Contractors selected on the basis of bidding system, given the right to collect revenue for five years. Later it was made annual in 1777.
- Extortion and Oppression by contractors focused on profit, and disregarded peasants' welfare.
- Traditional zamindars were discouraged from bidding. As a result, many hereditary zamindars were removed.
- Introduced By: Warren Hastings (1769-70)
- Also Known As: Farming System
- Duration: Initially 5 years, made annual in 1777
- Method: Bidding system for contractors
- Impact: Extortion, oppression of peasants, removal of hereditary zamindars
2. Permanent Settlement (1793) [UPSC 2011]
- Philip Francis (member of Hastings' council) proposed a permanent land revenue settlement in 1776.
- Lord Cornwallis was sent as governor-general with instructions for permanent land revenue settlements with zamindars.
- He set up a committee with himself, Sir John Shore, and James Grant to examine the issue.
- It covered approximately 19% of the territory under British rule and was introduced in Bengal and Bihar, and extended to Orissa, Banaras (Varanasi), and northern Madras.
- Zamindars were given proprietary rights over their land. In 1790, ten-year settlement was made, followed by permanency in 1793.
- Fixed tax imposed on land, collected by zamindars from cultivators (ryots).
- Zamindars were allowed to keep one-tenth to one-eleventh of revenue; the rest was given to the Company government.
- Land Ownership Rights were given to zamindars as they could sell, mortgage, or transfer land; inheritance rights were established.
- A Sunset clause introduced in 1794 made zamindari rights conditional upon tax paid by zamindar.
The Permanent Settlement created a new class of landlords who were loyal to the British. However, the high revenue demands and the sunset clause led to the displacement of many traditional zamindars who could not pay their dues on time, with lands being auctioned to new buyers, often from urban merchant classes.
3. Ryotwari System
- Thomas Munro and Captain Alexander Read introduced the system in 1792 in the Baramahal region of Madras Presidency.
- He formalized the Ryotwari System in 1820, which extended to various areas in the Madras Presidency, excluding those under permanent settlement.
- The system was designed to maximize revenue by collecting directly from villages without intermediaries.
- Ownership and occupancy rights were vested in ryots. There was no limit on land ownership; free to sublet, transfer, or sell.
- There was a direct tax payment to the Company (45-55% based on estimated production).
- It was a non-permanent settlement with periodic revision.
- Barren land under government control could be cultivated on the condition of shared revenue.
- Land was confiscated for non-payment.
- Peasants faced arbitrary tax fines, often based on previous payments. High Taxes set at one-third of the gross produce, often equal to economic rental, causing poverty among peasants.
- Ryots coerced and tortured to extract revenue, leading to bondage to the moneylenders.
- A scientific land survey (1855) was initiated, and fresh assessment was undertaken, reducing the actual burden of the tax.
- Reformed Settlement (1864) revenue rate was set at half of the net value of the produce for thirty years.
- Prosperity and Agriculture extension led to agricultural prosperity despite famines in 1865-66 and 1876-78.
- Introduced By: Thomas Munro and Captain Alexander Read (1792)
- Formalized: 1820
- Areas: Madras Presidency (excluding Permanent Settlement areas)
- Key Feature: Direct tax collection from ryots without intermediaries
- Tax Rate: 45-55% of estimated production; one-third of gross produce
- Periodic Revision: Non-permanent settlement
- Land Survey: 1855; Reformed Settlement in 1864 (50% of net value for 30 years)
4. Mahalwari System (1819-1822)
- Holt Mackenzie recommended it for land revenue settlement in Northern India in 1819.
- Complex survey methods, high revenue demands, and harsh extraction methods led to a breakdown of the scheme.
- The Agricultural Depression of 1828 worsened it.
Features
- Mahal (village or group of villages) was the basis for revenue assessment.
- Revenue determined was based on the production of a mahal.
- The village community was considered as the owner of the land, while individual ownership was with the cultivator.
- Responsibility for collection and payment lies with the village headman or community of leaders.
- Under Bentinck, the state's revenue share was initially 66%, later modified to 50%.
- The concept of average rents for different soil classes was introduced and land revenue was revised periodically.
- The requirement to record all rights and fix tax on every piece of land was impractical.
- Official calculations are often inaccurate, based on guesswork, and manipulated for increased revenue.
- The system ruined village communities with exorbitant tax assessments.
- The inability to meet tax rates led to large-scale dispossession, with lands going to moneylenders and merchants.
The Mahalwari System attempted to preserve the traditional village community structure while collecting revenue. However, the high revenue demands (initially 66%, later 50%) and complex survey methods proved impractical and oppressive, leading to widespread dispossession and the ruin of village communities.
5. Summary: British Land Revenue Systems
| System | Introduced By | Year | Area | Key Feature |
|---|---|---|---|---|
| Izaredari System | Warren Hastings | 1769-70 | Bengal | Farming system; bidding contractors; removed hereditary zamindars |
| Permanent Settlement | Lord Cornwallis | 1793 [UPSC 2011] | Bengal, Bihar, Orissa, Banaras | Fixed tax; zamindars as proprietors; sunset clause (1794) |
| Ryotwari System | Thomas Munro | 1792 (formalized 1820) | Madras Presidency | Direct tax from ryots; no intermediaries; periodic revision |
| Mahalwari System | Holt Mackenzie | 1819-22 | Northern India | Village (mahal) assessment; village community ownership; periodic revision |
- Izaredari System (1769-70): Warren Hastings; farming system; annual from 1777
- Permanent Settlement (1793): Lord Cornwallis; Bengal, Bihar, Orissa; zamindars as proprietors; sunset clause (1794) [UPSC 2011]
- Ryotwari System (1792/1820): Thomas Munro; Madras Presidency; direct tax from ryots; 45-55% tax rate
- Mahalwari System (1819-22): Holt Mackenzie; Northern India; village as unit; 66% to 50% revenue share
- Key Impact: Dispossession of peasants, rise of moneylenders, impoverishment of village communities
Q1. The Izaredari System was introduced by:
Q2. The Permanent Settlement was introduced in which year? [UPSC 2011]
Q3. Who proposed the idea of a permanent land revenue settlement in 1776?
Q4. The Ryotwari System was introduced by Thomas Munro in which region?
Q5. In the Permanent Settlement, zamindars were allowed to keep what percentage of revenue collected?
Q6. What was the tax rate in the Ryotwari System?
Q7. The Mahalwari System was recommended by:
Q8. Under Bentinck, the state's revenue share in the Mahalwari System was modified from 66% to:
Q9. The sunset clause was introduced in the Permanent Settlement in which year?
Q10. The Reformed Settlement in the Ryotwari System (1864) set revenue rate at half of the net value of produce for: