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Unit III · Impact of British rule on India: economic, social and cultural (1757 to 1857) (lesson 5)
12 min readConcept sheetSection A MCQ (1 mark) and objective (2 marks, two parts); Section B very short answer (2 marks), short answer (3 marks) or long answer (6 marks), often with a choice

Land revenue settlements, moneylenders and protests before 1857

The British collected land revenue through the Permanent Settlement, Mahalwari and Ryotwari systems. High demands drove peasants into debt, loss of land and revolt.

Permanent Settlement1793, Lord Cornwallis, Bengal and Bihar: zamindars paid a fixed revenue and became hereditary owners
Mahalwari Settlement1822: a mahal (a village or group of villages) paid the revenue jointly
Ryotwari SettlementEarly 19th century, Bombay and Madras Presidencies: revenue fixed directly on each ryot
RyotAn individual cultivator who actually works on the land

Why the British wanted more land revenue

Most Indians lived by farming, so land tax had always been the main income of rulers. The Company needed more and more money. It had to pay for conquest, trade, its projects and the cost of running the administration. So it tried several land revenue experiments, and each raised the demand on cultivators. Peasants had to give a share of their crop to landlords and collectors, and often could not meet their own needs. Local officials gave the rural poor little relief or justice.

Three land revenue systems compared

PointPermanent SettlementMahalwariRyotwari
When and by whom1793, Lord Cornwallis1822Beginning of the 19th century
WhereBengal and BiharNorth Western Provinces, Punjab, the Ganga valley and parts of Central IndiaMany parts of the Bombay and Madras Presidencies
Who paid the governmentThe zamindar (landlord)All the proprietors of the mahal, jointlyThe ryot (individual cultivator), directly
Who owned the landThe zamindar, as hereditary ownerThe proprietors of the mahalThe ryot, as long as he paid
Revenue demandFixed permanently; the land was sold if not paid on timeAssessed on the produce of the mahal; very highFixed on each ryot; very high

Permanent Settlement: who gained and who lost

  • The British knew in advance how much revenue would come in, so their income was secure.
  • Zamindars became hereditary owners and pushed peasants to grow more, to keep a surplus for themselves.
  • A zamindar who failed to pay on time had his land sold to another zamindar.
  • The new zamindars became political allies of the British and a buffer between them and the peasants. Many later opposed the freedom movement.
  • The peasants gained nothing: they had to pay whatever the zamindar demanded.

How the moneylender took the land

  1. 1
    Revenue had to be paid in full and on time, even after a bad harvest.
  2. 2
    The peasant borrowed from a moneylender, often a local merchant or landlord.
  3. 3
    The lender charged high interest and used tricks: false accounts, forged signatures and thumb impressions.
  4. 4
    The new British laws and courts helped the lender, not the peasant.
  5. 5★
    Unable to repay, the peasant lost his land to the moneylender, who became a new landowner.

★ key step

Protests before 1857

  • Famines grew common. Your lesson records 7 big famines in the first half of the 19th century, with about 15 lakh deaths. In the second half there were 24 famines, with over 200 lakh deaths.
  • In Bengal, peasants crushed by taxes and eviction, and survivors of famine, joined the Sanyasi and Fakir rebels. In 1783 rebels refused to pay revenue to Company agents, but they were finally forced to surrender.
  • The Poligars (local chiefs) of Tamil Nadu, Malabar and coastal Andhra, and the Mappilas of Malabar, rose against Company rule.
  • In 1824 the Jats of western Uttar Pradesh and Haryana rose in revolt. The Kolis of Maharashtra and Gujarat also revolted.
  • Tribes rebelled when the Company took over their lands. Among them were the Bhils of Khandesh and the Kols of Singhbhum (your lesson prints 'Kolis'). The Santhals, on the borders of Bengal, Bihar and Orissa, even set up their own government.
  • All were crushed, but they showed how unpopular Company rule was. The Faraizi and Wahabi movements are other examples.
In real life

After independence, state laws abolished the zamindari system that the Permanent Settlement created. Today many states put land records online, so a farmer can check who owns a plot without paying a middleman.

Exam angle

2 marks: “State two ways in which the Permanent Settlement helped the British.” (1) The revenue was fixed, so the British knew their income in advance. (2) The new zamindars became loyal allies and a buffer between the British and the peasants.

3 marks: “How was the Mahalwari system different from the Permanent Settlement? Give three differences.” (1) Year and place: Permanent Settlement 1793, Bengal and Bihar; Mahalwari 1822, North Western Provinces, Punjab and the Ganga valley. (2) Who paid: the zamindar alone; the proprietors of the mahal jointly. (3) Revenue: fixed for ever; assessed on the mahal's produce and very high.

2 marks: “How did moneylenders come to own peasants' land?” Peasants borrowed to pay high revenue on time. Lenders charged heavy interest and used false accounts and forged thumb impressions, so unpaid loans ended with the land passing to them.

Remember it

Permanent = Proprietor zamindar (Bengal, 1793). Mahalwari = Many pay together (mahal, 1822). Ryotwari = Ryot pays alone (Bombay, Madras).