Chapter 5 · Topic 5.1 · Prelims + Mains1 of 3

British Economic Policies: Land systems and cash crops

Key points

  • Permanent Settlement (Cornwallis, 1793): zamindar owns land; revenue fixed for ever; sunset law.
  • Ryotwari (Read and Munro): ryot pays the state directly; about 51% of British India.
  • Mahalwari (Holt Mackenzie, 1822): the village pays jointly; about 30%.
  • Cash crops were grown to pay revenue, not for profit; indigo fell to synthetic dyes.

Prelims box: facts and traps

SystemWhoWhereWho pays
PermanentCornwallis, 1793Bengal, Bihar, Orissa (about 19%)Zamindar
RyotwariRead and MunroMadras, Bombay (about 51%)Ryot
MahalwariHolt Mackenzie, 1822NWP, Punjab (about 30%)Village (mahal)
  • Revenue split (Permanent): 10/11 to the state, 1/11 to the zamindar.
  • Trap (Prelims 2017): Ryotwari was Read and Munro, not Cornwallis.
  • Tea labour: Workman's Breach of Contract Act, 1859 bound plantation workers.
On this page (3 sections)
  1. The Permanent Settlement (1793)
  2. The Ryotwari and Mahalwari systems
  3. Commercialisation of agriculture and plantations

The Permanent Settlement (1793)

Quick answerThe British used three land revenue systems. Permanent Settlement (1793) made zamindars owners with a fixed tax. Ryotwari made the farmer (ryot) pay the state directly. Mahalwari made the whole village pay together. All three took heavy tax and left peasants poor.

Land revenue (tax on land) was the Company’s biggest income. Each system decided who owned land and who paid, and UPSC asks about them often. We start with Bengal.

FeatureDetail
Who and whereLord Cornwallis, 1793; Bengal, Bihar and Orissa, later Benares and northern Madras (about 19% of British India)
OwnerThe zamindar became the owner of land, with the right to sell or mortgage it
RevenueFixed for ever: about 10/11 to the state, 1/11 kept by the zamindar
Sunset lawLand of a zamindar who failed to pay by sunset on the due date was auctioned

The sunset law was a deadline with no grace: miss it by one evening, and your land was auctioned.

ResultWhy
Ryots insecureTheir customary rights were ignored; they became tenants at will
Absentee landlords and subinfeudationZamindars leased rights to middlemen (patnidars), layer upon layer
Company’s lossIt could never raise the revenue as land values rose
LitigationDisputes over rights and auctions filled the courts

What UPSC asks: Prelims: Cornwallis, the sunset law. Mains: effects on peasants. Next likely angle: zamindari abolition after 1947.

The Ryotwari and Mahalwari systems

RyotwariDetail
Who and whereAlexander Read and Thomas Munro (Baramahal 1792, Madras from 1820); later Bombay; about 51% of British India
OwnerThe ryot (cultivator), who got a patta and paid revenue directly to the state
RevenueFixed after survey for 20–30 years, then revised; rates were high (often half the produce or more)
ResultNo middlemen, but the state became a giant landlord; moneylenders gained
MahalwariDetail
Who and whereHolt Mackenzie (1822); North-Western Provinces, Punjab and parts of central India; about 30%
UnitThe village or mahal, jointly responsible for revenue through the headman
RevisionRegulation of 1833 under William Bentinck; surveys by R.M. Bird and James Thomason

Prelims 2017 asked who was ‘associated with the introduction of Ryotwari Settlement in India during the British rule’. Answer: Alexander Read and Thomas Munro. Cornwallis goes with the Permanent Settlement.

Asked by UPSCUPSC Prelims 2017 · GS Paper I · Q13

Who among the following was/were associated with the introduction of Ryotwari Settlement in India during the British rule ? 1. Lord Cornwallis 2. Alexander Read 3. Thomas Munro Select the correct answer using the code given below :

  1. 1 only
  2. 1 and 3 only
  3. 2 and 3 only
  4. 1, 2 and 3
Show answer

Answer: (c) · UPSC official key

Prelims 2012 on Ryotwari: all three were correct: ‘The rent was paid directly by the peasants to the Government’, the government gave pattas (title papers) to ryots, and land was surveyed and assessed before tax.

Asked by UPSCUPSC Prelims 2012 · GS Paper I · Q37

With reference to Ryotwari Settlement, consider the following statements : 1. The rent was paid directly by the peasants to the Government. 2. The Government gave Pattas to the Ryots. 3. The lands were surveyed and assessed before being taxed. Which of the statements given above is/are correct?

  1. 1 only
  2. 1 and 2 only
  3. 1, 2 and 3
  4. None
Show answer

Answer: (c) · UPSC official key

What UPSC asks: Prelims: Read, Munro (2017); patta (2012). Mains: compare the three systems. Next likely angle: land reforms.

Commercialisation of agriculture and plantations

Commercialisation means growing crops to sell, not to eat. From the mid-19th century, peasants grew more cotton, jute, indigo, opium, sugarcane and groundnut. They did it to pay revenue in cash, often on advances (loans) from moneylenders or planters, not for profit.

Crop or sectorKey facts
IndigoEuropean planters forced Bengal ryots to grow it on advances; the Indigo Revolt of 1859–60; Dinabandhu Mitra’s play ‘Nil Darpan’; Champaran (1917)
OpiumGrown in Bihar and Malwa for export to China
TeaAssam plantations from the 1830s; indentured labour bound by penal contracts (Workman’s Breach of Contract Act, 1859)
Coffee, rubberPlantations in the south

Prelims 2020: ‘Indigo cultivation in India declined by the beginning of the 20th century because of’ its unprofitability in the world market after a new invention: synthetic (factory-made) dyes.

Asked by UPSCUPSC Prelims 2020 · GS Paper I · Q33

Indigo cultivation in India declined by the beginning of the 20th century because of

  1. peasant resistance to the oppressive conduct of planters
  2. its unprofitability in the world market because of new inventions
  3. national leaders’ opposition to the cultivation of indigo
  4. Government control over the planters
Show answer

Answer: (b) · UPSC official key

What UPSC asks: Prelims: indigo decline (2020). Mains: forced commercialisation. Next likely angle: the Champaran link.

Mains box: analysis and answer points

  • Effects: insecure ryots, absentee landlords and subinfeudation, debt to moneylenders, endless court cases.
  • Forced commercialisation: crops grown to pay cash revenue tied peasants to world prices.
  • Next likely angle: zamindari abolition and land reforms after 1947.

Practice

Write an answer

In 150 words, explain the significance of British Economic Policies with one recent example.

Flashcards (12)

Who introduced the Permanent Settlement?

Cornwallis, 1793.

Zamindar's share under the Permanent

Settlement? About 1/11.

What was the sunset law?

Land auctioned if revenue was not paid by sunset.

Subinfeudation in Bengal?

Layers of middlemen such as patnidars.

Names linked with Ryotwari?

Alexander Read and Thomas Munro.

Who paid revenue under Ryotwari?

The ryot, directly to the state.

Mahalwari introduced by?

Holt Mackenzie, 1822.

Mahalwari areas?

North-Western Provinces, Punjab, central India.

Share of British India under Ryotwari?

About 51%.

Play on indigo oppression?

Nil Darpan, by Dinabandhu Mitra.

Why did indigo decline?

Synthetic dyes made it unprofitable.

Law binding tea labourers?

Workman's Breach of Contract Act, 1859.

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