TOPIC INFO (UGC NET)
TOPIC INFO – UGC NET (History)
SUB-TOPIC INFO – History (UNIT 8)
CONTENT TYPE – Short Notes
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1. Introduction
2. First Experiment in Land Revenue Management
3. The Permanent Settlement in Bengal
3.1. A Settlement With Zamindars
3.2. The Position of the Cultivators
3.3. Effects of the Permanent Settlement
4. Disillusionment with Permanent Settlement
5. The Emergence of Alternative Systems
5.1. Land Assessment Under Ryotwari
5.2. The Adoption of Ryotwari in Madras
5.3. Ryotwari Theory and Practice
5.4. Effects of the Ryotwari System in Madras
5.5. The Ryotwari Settlement in Bombay
5.6. Effects of the Ryotwari System in Madras and Bombay.
6. The Other Alternative Settlement: The Mahalwari System
6.1. Mahalwari Theory and Practice
6.2. Effects of the Mahalwari Settlement
7. The Commercialisation of Agriculture
7.1. Introduction
7.2. The Range of Commercialisation
7.3. Commercialisation Before the British
7.4. Commercialisation Under the British
7.5. The Commercial Crops
7.6. The Effects of Commercialisation
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Agricultural Developments in Colonial India
UGC NET HISTORY (UNIT 8)
Introduction
Agriculture has been the most important economic activity in India for many centuries, and rulers have always drawn a large part of their taxes from it.
The British government, as it established itself in India, imposed heavy taxes on agriculture.
To assess and collect these taxes, the British instituted various land revenue settlements.
After annexing new territories, the British East India Company initially resorted to looting and plundering.
However, looting was not a sustainable solution because the looted goods often did not reach the government treasury and led to people fleeing or becoming too impoverished to pay taxes.
A regular system of taxation was necessary, which required two main steps:
Assessment: The government had to fix how much was to be paid.
Collection: The government had to determine who would pay the taxes.
The person responsible for paying taxes must have some control over the land so that they have the income necessary to pay the tax.
If the person has no control or income from the land, they will be unable to pay the tax.
Once the assessment and identification of the payer were complete, the essential steps in a land revenue settlement were finalized.
This unit focuses on the various land revenue settlements introduced by the British, their features, and the impact on the Indian economy and society.
First Experiment in Land Revenue Management
After gaining control of Bengal in 1757, the British initially thought they would retain the administration of the Nawabs of Bengal but would use it to collect more revenue for themselves.
The corruption and rapacity of the Company’s employees and their continual interference in administration led to disorganisation.
This disorganisation was one of the causes of the famine of 1769-70, in which one-third of the population of Bengal is estimated to have died.
From 1772, the farming system was introduced, where the government gave out the collection of land revenue on a contract basis.
Contractors, called farmers, offered to pay the largest amount for a district or sub-division and were given full powers for a set number of years.
Farmers tried to extort as much as possible during their contract period, regardless of the ruin and decline of production in later years.
The system resulted in extortion and oppression of the people.
Many contractors offered large sums but later found they could not collect as much, leading to failure and corruption.
Corruption in the farming system occurred as profitable contracts were given to the friends, favourites, and benamidars of men in power, causing losses to the government.
In 1786, Lord Cornwallis was sent to India with orders to clean up and reorganise the administration.
The Permanent Settlement in Bengal
Cornwallis realised that the existing system was impoverishing the country, leading to a decline in agriculture.
The system failed to produce the large and regular surplus that the Company hoped for.
The Company struggled to acquire the large quantities of Indian goods it intended to export to Europe because the production of goods like silk and cotton depended on agriculture.
With agriculture decaying, handicrafts also could not prosper.
Both the London authorities and Cornwallis agreed that much of the corruption and oppression stemmed from the taxation system, which had the character of an “uncertain, arbitrary imposition.”
As a result, it was decided that the land-tax would be permanently fixed with the government promising never to increase it in the future.
The measure was expected to have several effects:
Reduction in corruption by eliminating the ability of officials to alter the assessment at will.
Landholders would be encouraged to invest in improving the land since they would retain all the benefits of increased production.
Increased production and trade were anticipated, providing regular tax revenues for the government.
Cornwallis believed that if necessary, the government could still raise additional revenue by taxing trade and commerce.
The land revenue was fixed at a very high level, with an absolute maximum of Rs. 2 crore and 65 lakhs.