History – Chapter 3 – GRADE 8

LIFE IN RURAL AREAS

Points to Remember

1. Company Becomes The Diwan:

(i) East India Company was appointed as Diwan of Bengal by the

Mughal Emperor in 1765, it was beginning of the exploitative rule of
colonial powers.

2. Revenue for the Company:

(i) The idea of Permanent Settlement in Bengal in 1793 was

implemented by colonial powers to increase their revenue.

(ii) English East India Company ensured the fixed flow of

revenue through Permanent Settlement.

(iii) The Permanent Settlement failed because the zamindars were

not willing to improve the condition of the land, and many of them
lost their land in the beginning years of settlement.

(iv) The cultivator had to pay excessive tax and if they are unable
to pay, they were thrown out of land and were under debt many
times.

3. New Revenue System:

(i) In 1822, Holt Mackenzie formulated a new system of revenue

collection known as the Mahalwari System which had to be
periodically updated and not permanently fixed.

(ii)The village headman supervised the collection and payment of

the revenue to the Company.

(iii) The revenue is collected according to the calculated value of

farm produce of each plot in mahal (village).

(iv) Captain Alexander Read brought a new system of revenue

collection at a small scale, and was further developed by Munro
and came to be known as the Ryotwari System.

(v) The revenue was collected directly from the ryots.

 (vi)The new colonial system of Revenue collection had only
brought hardships to the peasants.

(vii) The Company was only bothered about the high revenue and
meeting the expenses.

4. Crops for Europe:

(i) The Britishers realised that besides accomplishing their demands

of revenue collection they can also grow cash crops that are
required in Europe.

(ii) The colonial officials even enforced their decisions on Indian

farmers to grow cash crops like indigo and opium.

(iii) Farmers were also pressurized to grow crops such as jute,

wheat, rice, tea, cotton, and sugarcane in various parts of India,
these were commercial crops that gave profits.

(iv) India was the biggest supplier of Indigo during

the 19th century.

5. Demand for Indigo:

(i) The demand for indigo increased and its supplies from West
Indies and America were reduced for a variety of reasons.

(ii) Britishers turned to India to fulfill their demand for indigo

production.

(iii) Indigo cultivation expanded in Bengal, and it dominated the

world market.
6. Blue Rebellion and its Aftermath:

(i)In Bengal ryots simply refused to grow indigo in 1859. They even refused
to pay rent and attacked indigo factories.

(ii) Indigo peasants rebelled against unjust practices used by the British.

(iii) The Indigo Commission was set up to discuss the issues related to the
plantation.

(iv) Indigo production collapsed in Bengal, this was later shifted to Bihar.