CBSE Class 8 Social Science History Chapter 3: Ruling The Countryside Notes

Key Points: The Company Becomes the Diwan

• 1765: The East India Company becomes the Diwan of Bengal, gaining control over the administration and revenue resources of the region.
• Primary Goal: To maximize revenue for purchasing goods for export and financing wars, rather than improving local conditions.
• Early Efforts: Tried to increase revenue by raising prices of goods and customs duties, which led to a devastating famine in Bengal (1770).
• Permanent Settlement (1793): Introduced by Lord Cornwallis. Land revenue was fixed permanently with Zamindars as collectors.
• Mahalwari System (1822): Introduced in the North-Western Provinces (part of UP) by Holt Mackenzie. Revenue was collected from villages (mahals) jointly, not individuals.
• Ryotwari System (early 19th century): Introduced by Thomas Munro in Southern India. Revenue was directly settled with the cultivators (ryots).
• Commercial Crops: British forced cultivation of crops like indigo, opium, jute, cotton, tea, and sugarcane to meet industrial needs in Britain.
• Indigo Cultivation: Two main systems – Nij (cultivation on planter's own land) and Ryoti (cultivation on ryot's land under contract).
• Indigo Rebellion (Blue Rebellion - 1859): Peasants in Bengal revolted against oppressive indigo planters, refusing to grow indigo.
• Impact: Land revenue systems often led to peasant indebtedness, displacement, and widespread poverty, fueling discontent.

Key Terms and Definitions

Diwan

The chief financial officer of a province or state under Mughal rule. After 1765, the East India Company became the Diwan of Bengal, Bihar, and Orissa, gaining rights to collect revenue.

Permanent Settlement

A land revenue system introduced in 1793, fixing the land revenue that zamindars had to pay to the Company permanently. Zamindars became landowners and were responsible for collecting rent from peasants.

Zamindars

Landlords who were recognized as owners of the land under the Permanent Settlement and were responsible for collecting revenue for the Company. They often exploited peasants.

Mahalwari System

A land revenue system introduced in 1822 in North-Western Provinces. Revenue was settled with a group of villages, called a 'mahal', where villagers collectively paid the revenue demand.

Ryotwari System

A land revenue system introduced in Southern India by Thomas Munro. Revenue was collected directly from the cultivators (ryots) who were recognized as owners of their land.

Ryot

A peasant cultivator, especially one who pays land revenue directly to the government under systems like Ryotwari.

Nij Cultivation

A system of indigo cultivation where the planter produced indigo on lands that he directly controlled, either owned or rented.

Ryoti Cultivation

A system of indigo cultivation where planters forced ryots to sign a contract (satta) to cultivate indigo on a specific portion of their land.

The Need for Revenue: British Economic Policies

After the Battle of Buxar in 1764, the East India Company secured the Diwani rights of Bengal, Bihar, and Orissa in 1765. This was a pivotal moment, transforming the Company from a mere trading entity into a territorial power with significant administrative responsibilities. The primary objective of the Company shifted dramatically: it now aimed to maximize revenue from these vast territories. This revenue was crucial for several reasons: to purchase Indian goods for export to Britain, to finance the Company's growing administrative costs, and to fund its expansive military campaigns and territorial conquests across India.

Initially, the Company found it difficult to generate enough revenue. The Bengal economy was in deep crisis due to constant wars, heavy taxation, and a devastating famine in 1770 that wiped out one-third of the population. Peasants were unable to pay their dues, artisans abandoned their villages, and agricultural production declined sharply. This led the Company to realize that investment in land and agriculture was necessary to ensure a stable supply of revenue. They believed that by securing property rights and fixing revenue demands, they could encourage zamindars to invest in land improvement, thereby increasing agricultural output and, consequently, their revenue. This thinking paved the way for the introduction of various land revenue systems, each with its own set of assumptions and consequences, fundamentally altering the relationship between the state, landlords, and peasants in rural India. The constant need for more revenue also drove the Company to push for the cultivation of cash crops that were in high demand in industrializing Britain, further impacting the lives of Indian farmers.

Comparison of Major Land Revenue Systems

The Cycle of Indigo Cultivation and Rebellion

1. — Industrialization in Britain created a massive demand for indigo, a rich blue dye. European planters migrated to Bengal to cultivate indigo, seeing it as highly profitable.
2. — Planters used two main methods: Nij cultivation (on land directly controlled by planters) and Ryoti cultivation (where planters forced ryots to sign contracts, sattas, to grow indigo on their land).
3. — Under Ryoti, ryots were given loans at high interest to grow indigo. The price paid for indigo was extremely low, making the loans a cycle of debt. Planters often forced ryots to cultivate indigo on their best land, preventing them from growing food crops.
4. — Indigo cultivation depleted soil fertility, making it difficult to grow rice afterwards. This severely impacted the food security and livelihood of peasants.
5. — Frustrated and impoverished, thousands of ryots in Bengal refused to grow indigo, attacked indigo factories, and fought against planters and their agents. They declared they would no longer take advances or be bullied.
6. — The rebellion spread, attracting the attention of intellectuals and missionaries. The government set up the Indigo Commission (1860) to inquire into the system. The Commission held planters guilty and declared that indigo cultivation was not profitable for ryots. It allowed ryots to refuse growing indigo.
7. — Following the Commission's report and the widespread revolt, indigo production in Bengal collapsed. Planters then shifted their operations to Bihar, where artificial dyes later reduced the demand for natural indigo.

Exam Tip: Mastering Revenue Systems and Rebellions

For this chapter, focus on comparing and contrasting the Permanent Settlement, Mahalwari, and Ryotwari systems. Create a table in your mind or on paper noting their founders, regions, land revenue unit, and key impacts. Examiners often ask questions requiring you to differentiate between these systems or identify their strengths and weaknesses from the British perspective and the Indian peasant's perspective. Also, pay close attention to the causes, course, and consequences of the Indigo Rebellion, as it's a prime example of peasant resistance to colonial exploitation. Remember to use specific terms like 'zamindars', 'ryots', 'mahals', and 'sattas' accurately to score well.

Practice Questions with Solutions

• Q: What was the main aim of the East India Company after becoming the Diwan of Bengal? A: To maximize revenue collection to finance its trade, administration, and military expansion.
• Q: Who were the 'ryots' and what was the main feature of the Ryotwari System? A: Ryots were individual cultivators. In the Ryotwari System, revenue was directly settled with and collected from them, recognizing them as landowners.
• Q: What was the primary reason for the Indigo Rebellion? A: Peasants were forced to grow indigo on their best lands under exploitative contracts, received very low prices, and were trapped in a cycle of debt, leading to widespread discontent.
• Q: Name two commercial crops that the British encouraged or forced Indians to cultivate. A: Indigo, Opium, Jute, Cotton, Tea, Sugarcane (any two).

Frequently Asked Questions