NCERT Class 8 History Ruling the Countryside

Ruling the Countryside

The Company Becomes the Diwan

On 12 August 1765, the Mughal emperor appointed the East India Company as the Diwan of Bengal. The actual event most probably took place in Robert Clive’s tent, with a few Englishmen and Indians as witnesses. But in the painting above, the event is shown as a majestic occasion, taking place in a grand setting. The painter was commissioned by Clive to record the memorable events in Clive’s life. The grant of Diwani clearly was one such event in British imagination.

As Diwan, the Company became the chief financial administrator of the territory under its control. Now it had to think of administering the land and organising its revenue resources. This had to be done in a way that could yield enough revenue to meet the growing expenses of the company. A trading company had also to ensure that it could buy the products it needed and sell what it wanted. 3 Ruling the CountrysideOver the years the Company also learnt that it had to move with some caution. Being an alien power, it needed to pacify those who in the past had ruled the countryside, and enjoyed authority and prestige. Those who had held local power had to be controlled but they could not be entirely eliminated.

How was this to be done? In this chapter we will see how the Company came to colonise the countryside, organise revenue resources, redefine the rights of people, and produce the crops it wanted. Revenue for the Company The Company had become the Diwan, but it still saw itself primarily as a trader. It wanted a large revenue income but was unwilling to set up any regular system of assessment and collection. The effort was to increase the revenue as much as it could and buy fine cotton and silk cloth as cheaply as  possible. Within five years the value of goods bought by theCompany in Bengal doubled. Before 1865, the Company had purchased goods in India by importing gold and silver from Britain. Now the revenue collected in Bengal could finance the purchase of goods for export.

Soon it was clear that the Bengal economy was facing a deep crisis. Artisans were deserting villages since they were being forced to sell their goods to the Company at low prices. Peasants were unable to pay the dues that were being demanded from them. Artisanal production was in decline, and agricultural cultivation showed signs of collapse. Then in 1770 a terrible famine killed ten million people in Bengal. About one-third of the population was wiped out. The need to improve agriculture

If the economy was in ruins, could the Company be certain of its revenue income? Most Company officials began to feel that investment in land had to be encouraged and agriculture had to be improved. How was this to be done? After two decades of debate on the question, the Company finally introduced the Permanent Settlement in 1793. By the terms of the settlement, the rajas and taluqdars were recognised as zamindars. They were asked to collect rent from the peasants and pay revenue to the Company. The amount to be paid was fixed permanently, that is, it was not to be increased ever in future. It was felt that this would ensure a regular flow of revenue into the Company’s coffers and at the same time encourage the zamindars to invest in improving the land. Since the revenue demand of the state would not be increased, the zamindar would benefit from increased production from the land. The problem

The Permanent Settlement, however, created problems. Company officials soon discovered that the zamindars were in fact not investing in the improvement of land. The revenue that had been fixed was so high that the zamindars found it difficult to pay. Anyone who failed to pay the revenue lost his zamindari. Numerous zamindaris were sold off at auctions organised by the Company. By the first decade of the nineteenth century the situation changed. The prices in the market rose and cultivation slowly expanded. This meant an increase in the income of the zamindars but no gain for the Company since it could not increase a revenue demand that had been fixed permanently Even then the zamindars did not have an interest in improving the land. Some had lost their lands in the earlier years of the settlement; others now saw the possibility of earning without the trouble and risk of investment. As long as the zamindars could give out the land to tenants and get rent, they were not interested in improving the land.

On the other hand, in the villages, the cultivator found the system extremely oppressive. The rent he paid to the zamindar was high and his right on the land was insecure. To pay the rent he had to often take a loan from the moneylender, and when he failed to pay the rent he was evicted from the land he had cultivated for generations.

Let’s recall

1. What were the circumstances which led to the eventual collapse of indigo production in Bengal?

2. Fill in the blanks:

(a) Growers of woad in Europe saw __________ as a crop which would provide competition to their earnings.

(b) The demand for indigo increased in lateeighteenth- century Britain because of __________.

(c) The international demand for indigo was affected by the discovery of __________.

(d) The Champaran movement was against __________.

Let’s discuss

3. Describe the main features of the Permanent Settlement.

4. How was the mahalwari system different from the Permanent Settlement?

5. Give two problems which arose with the new Munro system of fixing revenue.

6. Why were ryots reluctant to grow indigo?

Please refer to attached file for NCERT Class 8 History Ruling the Countryside