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
| System | Who | Where | Who pays |
|---|---|---|---|
| Permanent | Cornwallis, 1793 | Bengal, Bihar, Orissa (about 19%) | Zamindar |
| Ryotwari | Read and Munro | Madras, Bombay (about 51%) | Ryot |
| Mahalwari | Holt Mackenzie, 1822 | NWP, 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)
The Permanent Settlement (1793)
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.
| Feature | Detail |
|---|---|
| Who and where | Lord Cornwallis, 1793; Bengal, Bihar and Orissa, later Benares and northern Madras (about 19% of British India) |
| Owner | The zamindar became the owner of land, with the right to sell or mortgage it |
| Revenue | Fixed for ever: about 10/11 to the state, 1/11 kept by the zamindar |
| Sunset law | Land 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.
| Result | Why |
|---|---|
| Ryots insecure | Their customary rights were ignored; they became tenants at will |
| Absentee landlords and subinfeudation | Zamindars leased rights to middlemen (patnidars), layer upon layer |
| Company’s loss | It could never raise the revenue as land values rose |
| Litigation | Disputes 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
| Ryotwari | Detail |
|---|---|
| Who and where | Alexander Read and Thomas Munro (Baramahal 1792, Madras from 1820); later Bombay; about 51% of British India |
| Owner | The ryot (cultivator), who got a patta and paid revenue directly to the state |
| Revenue | Fixed after survey for 20–30 years, then revised; rates were high (often half the produce or more) |
| Result | No middlemen, but the state became a giant landlord; moneylenders gained |
| Mahalwari | Detail |
| Who and where | Holt Mackenzie (1822); North-Western Provinces, Punjab and parts of central India; about 30% |
| Unit | The village or mahal, jointly responsible for revenue through the headman |
| Revision | Regulation 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.
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 only
- 1 and 3 only
- 2 and 3 only
- 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.
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 only
- 1 and 2 only
- 1, 2 and 3
- 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 sector | Key facts |
|---|---|
| Indigo | European planters forced Bengal ryots to grow it on advances; the Indigo Revolt of 1859–60; Dinabandhu Mitra’s play ‘Nil Darpan’; Champaran (1917) |
| Opium | Grown in Bihar and Malwa for export to China |
| Tea | Assam plantations from the 1830s; indentured labour bound by penal contracts (Workman’s Breach of Contract Act, 1859) |
| Coffee, rubber | Plantations 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.
Indigo cultivation in India declined by the beginning of the 20th century because of
- peasant resistance to the oppressive conduct of planters
- its unprofitability in the world market because of new inventions
- national leaders’ opposition to the cultivation of indigo
- 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.
Read more: related explainers
In the news
Next topic · 5.2 →British Economic Policies: Drain, industry and railwaysSyllabus: GS-I · Modern Indian history from about the middle of the eighteenth century until the…