a. Economic Impact: Land revenue was the main source of income to the Government. The British had incurred huge expenditure on administration, maintenance of army and waging many wars. To make up the burden of expenditure, they introduced some new systems of revenue collection in different provinces in India. They were:
1. Zamindari system (or) Permanent land revenue settlement: Lord Cornwallis introduced the Zamindari system in 1793 in Bengal, B ihar, Orissa and U.P. According to this system, the East India Company entered into an agreement with the Zamindars. The Zamindars were given permanent ownership of Land, which they cultivated with the help of tenants. Out of the total revenue collected, the Zamindars had to pay regularly the land revenue at 89%.
Merits and demerits of the Zamindari system:
a. The company was assured of a regular and fixed income.
b. In due course the Zamindars became a strong political force and the Company secured the loyalty of the Zamindars to support its colonalism.
c. Zamindars exploited the peasants by collecting high rates of revenue.
d. Zamindars led a life of comfort in cities. There came into being agents in between the landlords and the tenants.
2. Ryotwari or Munro system: This system was introduced by Governor Sir Thomas Munro in the Bombay and Madras presidencies in the 1820 C.E. Ryotwari system established direct settlement between the Company and the cultivator. The peasant (Ryot) was recognized as the owner of land on the condition, that he paid the land revenue regularly.
The land revenue fixed was about 50% the value of the yield. It was fixed on the basis of the quality of the soil and the nature of the crops grown. The land revenue was fixed not on a permanent basis but was revised periodically every 20 to 30 years. Under this system,
a. The farmers were exploited by the Company because the land revenue assessment was very high.
b. The cultivator had to pay revenue even when his produce was destroyed by drought or floods.
c. The farmers had to take loans from moneylenders to pay the land revenue. It they ** to pay the land tax, farmers forfeited ownership of their land.
3. Mahalwari system: This system was introduced by Lord William Bentinck in Northwestern India and the central parts of India in 1828 C.E. The Company entered into settlements with the Estate or Mahal (village). The farmers within the village were collectively considered to be the owners of the land and were also collectively responsible for the payment of land revenue. Mahalwari was a mixture of both Zamindari and Ryotwari systems.
