The land revenue system in British India was a crucial part of colonial administration, designed primarily to generate revenue for the British government. This system determined how land tax was collected from cultivators and landowners.
Over time, the British introduced different land revenue settlements, including the Permanent Settlement (Zamindari system), Ryotwari system, and Mahalwari system, each with its own characteristics, advantages, and drawbacks. These systems significantly impacted Indian agriculture, rural society, and economic conditions, influencing both peasant livelihoods and colonial policies.
land revenue system in British India
Early Revenue Settlement under British Rule
Background
- The British East India Company received Diwani rights (right to collect revenue) of Bengal, Bihar, and Orissa in 1765 after the Treaty of Allahabad.
- Revenue from land was used to finance British trade.
- Earlier, the British had to import gold and silver from Britain to buy Indian goods.
Features of Early Land Revenue System
- The British continued the revenue system of the Bengal Nawabs.
- Zamindars were recognized as landowners.
- The Company’s main revenue collector was the Naib (deputy) Dewan.
Shortcomings
- Corruption and interference by Company officials.
- Mismanagement of revenue led to the Bengal famine (1769-70).
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Izaredari System (1773)
Background
- Corruption and inefficiency under previous revenue systems led to reforms by Warren Hastings.
- In 1773, the Izaredari system was introduced in Bengal.
Features
- The government was the landowner.
- Revenue collection rights were auctioned.
- The highest bidder (Izaredar) collected the revenue.
Shortcomings
- High auction rates led to excessive taxation of peasants.
- Revenue collections were unstable and speculative.
- Corruption increased as powerful individuals secured contracts unfairly.
- The focus was only on revenue, not land improvement.
Permanent Settlement (Zamindari System) – 1793
Background
- The Izaredari system led to a decline in agriculture and handicrafts.
- The British needed a stable revenue source.
- Lord Cornwallis introduced the Permanent Settlement in 1793.
Features
- Introduced in Bengal, Odisha, North Madras, and Varanasi.
- Zamindars were recognized as landowners and collected revenue from cultivators.
- Revenue was fixed permanently.
- Zamindars could inherit, sell, or mortgage their land.
- Revenue Sale Law (1793): If a zamindar failed to pay revenue, his land was auctioned.
- Additional Regulations (1793, 1799, 1812): Zamindars could seize tenants’ property without legal intervention if rent was unpaid.
Shortcomings
- High revenue rates with no relief during calamities.
- Zamindars divided land into smaller plots (patni taluq) and subleased it.
- Cultivators were exploited, lacked written agreements, and had to depend on moneylenders.
- Fixed revenue meant no scope for increasing British income, prompting a search for a new system.
Ryotwari System (1820)
Background
- Developed by Thomas Munro and Alexander Read in Madras.
- Introduced because some regions had no traditional zamindars.
- Direct tax collection from cultivators was tested.
Features
- Introduced in Madras in 1820, later extended to Gujarat, Berar, East Bengal, Assam, and Coorg.
- Ryots (cultivators) were the landowners.
- They paid revenue directly to the Company.
- Revenue was assessed based on land productivity (45-55%).
- Revenue settlement was revised periodically.
- Putcut assessment: Tax rates were arbitrarily fixed, often unfairly.
Significance
- Eliminated intermediaries, increasing British revenue.
- Cultivators were officially recognized as landowners.
Shortcomings
- Land was often overassessed, leading to high taxes.
- Harsh collection methods, including torture (Madras Torture Commission Report, 1855).
- Corruption in land assessments.
- Large landowners emerged, creating inequality.
- High taxes led to land devaluation and peasant distress.
Mahalwari System (1822)
Background
- Introduced due to territorial gains in North India under Lord Wellesley.
- Aimed at increasing revenue while reducing the power of big zamindars.
Features
- Recommended by Holt Mackenzie; formalized by Regulation VII of 1822.
- Applied in Uttar Pradesh, Punjab, and Central India.
- Mahal (village or group of villages) was the revenue unit.
- Revenue was revised periodically.
- The village community was recognized as landowners, but individual rights remained with cultivators.
- The village headman (lambardar) was responsible for tax collection.
Significance
- Combined features of Zamindari and Ryotwari systems.
- Reduced the power of Taluqdars (large landlords).
Shortcomings
- Difficult to record land rights accurately.
- Revenue assessments were often exaggerated.
- Heavy taxes increased farmers’ debts.
- Land was taken over by moneylenders and merchants.
- Peasant dissatisfaction led to uprisings in the 19th century.
Plantation Crops and Indigo Production
Background
- British used India as a raw material source.
- By the 19th century, cultivators were forced to grow commercial crops like jute, tea, sugarcane, wheat, cotton, and rice.
- Indigo became important as demand in Europe increased.
Types of Indigo Cultivation
1. Nij System
- Planters directly controlled land.
- Land was bought or rented.
- Laborers were hired.
Problems with Nij Cultivation:
- Difficulty in acquiring large land areas.
- Indigo required fertile land, already used for rice.
- High labor requirements.
- Expensive to maintain ploughs and bullocks.
2. Ryoti System
- Planters forced ryots (peasants) to grow indigo under contracts.
- Ryots received cash advances but had to cultivate indigo on 25% of their land.
- Planters provided seeds and tools.
Problems with Ryoti System:
- Ryots received low prices, trapping them in a cycle of debt.
- Indigo cultivation exhausted soil fertility, reducing rice yields.
- Ryots had no escape from debt cycles.
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The British land revenue systems prioritized revenue extraction over agricultural development. While each system had its merits, all of them led to exploitation and distress among Indian peasants. The high taxation, rigid collection methods, and lack of land reforms contributed to rural poverty and frequent famines. These oppressive systems ultimately fueled peasant uprisings and resistance movements against British rule, laying the foundation for India’s struggle for independence.
