STRUCTURE

Introduction – A Short introduction (15 words)                     

Body – Explain British Land Revenue System in Bengal (120 words)

Conclusion – Mention a short conclusion  (15 words)

ANSWER

Also known as Jagirdari, Malguzari or Bizwedari, it was introduced in the 19% of total area under British rule. This was implemented in states of Bihar, Bengal, Orissa, Northern Carnatic and Banaras divisions after the failure of revenue farming system in Bengal in which the right to collect revenue was given to the highest bidder which was introduced by Lord Warren Hastings.

In 1790 under Lord Cornwallis, a 10-year revenue settlement was made with the Zamindars and they were recognized as the owners of the land who could mortgage or sell the land, from being just the agent of the government for revenue collection. In 1793, this was converted into a permanent settlement and zamindari system was made hereditary and the land was made transferable.

The tenants were now at the mercy of zamindars and their customary rights were sacrificed. The zamindars had to pay 10/11th of rent taken from the peasant to the company and keep only 1/11th of revenue for themselves. This resulted in illegal extortions from peasants by the zamindars. One may note here that the state's share of revenue was fixed and no limit was kept on revenue collected by zamindar from the cultivator. In the very first year of its adoption, the company's revenues rose by 80%.

Reasons for Adopting the Permanent Settlement

• Due to the failure of the 'farming system' adopted by Lord Warren Hastings a new system of land revenue was required.
• The permanent settlement was to ensure a stable and fixed income for the company.
• To reduce the expenses of the Company on periodic revenue settlements and land assessments. It was also to end the corruption by the officials in revenue assessments.
• To reduce the burden of revenue collection on the company and to create a loyal group of zamindars whose interests were aligned to the continuation of British Raj.
• The company thought that fixed rates would increase investments in agriculture by the zamindars and company could benefit from the taxes from increased trade and commerce.

Impact of Land Revenue System Under Permanent Settlement

• As the land revenue was going to be permanently fixed, the company fixed the rates arbitrarily high (10/11th of total collection) much higher than the past rates. This placed a high burden on the zamindars which were ultimately borne by the peasants.
• Peasants were left at the mercy of zamindars as no rules were made for revenue collection by zamindars. The property rights of peasants suffered and they faced evictions and 'begar .
• It led to the growth of new landlords as the property was now transferable and those zamindars who could not pay rents, their lands were auctioned.
• It also led to the growth of a system of absentee landlordism. These zamindars were interested only to maximize their revenue collection and had no interest in the investments in agriculture.
• A new class of landless cultivators, agricultural coolies on one hand and money lenders on the other was now created.
• High revenue demand and harsh methods of collection, eventually led to frequent land transfers which didn't benefit zamindars either. Company's revenue collection also fell as agricultural output declined. By 1770's Bengal witnessed famines.