Chapter 3 of Class 8, “Ruling the Countryside,” delves into the Company’s colonization of rural areas, its management of revenue, restructuring of people’s rights, and control over crop production. It offers detailed explanations and examples to aid students’ comprehension. At GFG, we’ve curated CBSE Class 8 History notes for Chapter 3, encompassing key concepts discussed in the chapter.

CBSE Class 8 History Notes Chapter 3 – Ruling the Countryside

The Company Become the Diwan

On 12 August 1765, the East India Company assumed the role of Diwan in Bengal, granting it primary responsibility for financial administration within its jurisdiction. As Diwan, the Company undertook the task of managing the land and organizing its revenue streams, aiming to generate sufficient income to cover its expanding expenses.

Revenue for the Company

The Company’s primary objective was to enhance revenue generation, particularly by procuring fine cotton and silk textiles at the lowest possible cost. Within a brief period of five years, the Company’s procurement of goods in Bengal doubled in value.

Previously reliant on importing gold and silver from Britain for transactions in India, the Company now financed its operations through revenue generated locally in Bengal.

This shift in financial strategy coincided with a decline in artisanal production and worrying indications of agricultural instability. Then, in 1770, Bengal was struck by a devastating famine that claimed the lives of ten million people.

The need to improve agriculture

In 1793, the Company implemented the Permanent Settlement, which designated rajas and taluqdars as zamindars. These zamindars were tasked with collecting rent from peasants and remitting revenue to the Company, with the payment amount permanently fixed.

This arrangement aimed to secure a steady revenue stream for the Company while incentivizing zamindars to invest in land improvement.

The problem

However, the Permanent Settlement gave rise to issues. Company officials soon realized that zamindars were reluctant to invest in land improvement due to the excessively high fixed revenue.

By the early 1800s, market prices increased, and cultivation gradually expanded. Yet, zamindars remained disinterested in enhancing the land.

Within villages, cultivators found the system oppressive. High rents paid to zamindars often compelled them to borrow from moneylenders. Failure to repay rents led to eviction from the land.

A new system was devised

In 1822, Company officials opted for a significant overhaul in revenue management. Spearheaded by Holt Mackenzie, a new system was introduced.

This system, effective from 1822, involved collectors traversing from village to village. They meticulously inspected the land, measured fields, and documented the customary practices and rights of various social groups. Revenue estimates for each plot within a village were aggregated to determine the total revenue obligation for each village (mahal).

Unlike the previous system, this demand was subject to periodic revision rather than being permanently fixed. The responsibility of collecting and remitting revenue to the Company was shifted from the zamindar to the village headman. This approach became known as the Mahalwari settlement.

The Munro System

In the British-controlled territories of southern India, a distinct system emerged, termed as the ryotwar (or ryotwari). Gradually implemented across South India, this system necessitated direct settlements with cultivators (ryots) who had cultivated the land for generations.

Each field underwent meticulous and individualized surveying before revenue assessments were conducted.

All was not well

In pursuit of increasing land revenue, officials imposed high revenue demands.

Consequently, peasants found themselves unable to meet these demands, leading to their departure from rural areas and the subsequent desertion of many villages.

Crops for Europe

By the late eighteenth century, the East India Company sought to expand the cultivation of commodities like opium and indigo.

This expansion often involved coercing cultivators across various regions of India to grow specific crops: jute in Bengal, tea in Assam, sugarcane in the United Provinces (now Uttar Pradesh), wheat in Punjab, cotton in Maharashtra and Punjab, and rice in Madras.

Does colour have a history?

The vibrant blue hue was derived from the indigo plant. This dye, prominent in Morris prints in nineteenth-century Britain, was sourced from indigo plants cultivated in India.

At that time, India held the position of the world’s largest supplier of indigo.

Why the demand for Indian indigo?

Indigo plants thrive in tropical climates, and the Indian variant was highly sought after by cloth manufacturers in Italy, France, and Britain for dyeing textiles. Although only small quantities of Indian indigo made it to the European market, its price commanded a premium.

Consequently, European cloth producers relied on an alternative plant called woad to produce violet and blue dyes. However, woad produced a much paler and less vibrant hue compared to the rich blue color obtained from indigo. By the late eighteenth century, the demand for Indian indigo surged even further.

Simultaneously, existing supplies of indigo from the West Indies and America dwindled due to various factors, causing a significant decline in global indigo production between 1783 and 1789.

Britain turns to India

Given the high demand for indigo in Europe, the East India Company in India sought ways to expand the cultivation of indigo.

Consequently, the trade in indigo flourished, prompting commercial agents and Company officials to invest in its production. Enticed by the promise of substantial profits, these officials ventured into India to become indigo planters themselves.

How was indigo cultivated?

Indigo cultivation primarily followed two systems: Nij and Ryoti.

Under the Nij system, planters cultivated indigo on lands directly under their control. They either purchased or leased land from other zamindars and oversaw the production of indigo by employing hired laborers.

The problem with Nij cultivation

However, Nij cultivation posed certain challenges, particularly regarding expansion. Indigo could only thrive on fertile lands, limiting the scope for expansion. Planters attempted to lease land surrounding the indigo factory, often leading to the eviction of peasants from the area.

Additionally, large-scale Nij cultivation required numerous plows and bullocks. Consequently, until the late nineteenth century, planters hesitated to expand the area under Nij cultivation.

Indigo on the land of Ryots

Under the ryoti system, planters compelled ryots to sign contracts, known as sattas, agreeing to produce indigo. Those who signed these contracts received cash advances from the planters at low-interest rates to cultivate indigo.

Upon delivery of the harvested crop to the planter, a new loan was sanctioned, perpetuating the cycle. Peasants soon realized the exploitative nature of this loan system, as after an indigo harvest, their land could not be used for rice cultivation.

The “Blue Rebellion” and After

Ryots in Bengal staunchly refused to cultivate indigo. Those who worked for the planters faced social ostracism, while the Gomasthas—planters’ agents—were subjected to physical assault when they came to collect rent. Bengal ryots found support from local zamindars and village headmen in their resistance against the planters.

Believing that the British government would back them in their struggle, indigo peasants were emboldened in their rebellion. Following the Revolt of 1857, the British government, concerned about the potential for another uprising, dispatched intellectuals from Calcutta to the indigo districts.

Consequently, the government established the Indigo Commission to investigate the indigo production system. While the Commission urged ryots to honor their existing contracts, it also granted them the option to refuse future indigo cultivation.

The collapse of indigo production in Bengal ensued after the revolt. When Mahatma Gandhi returned from South Africa, a peasant from Bihar implored him to visit Champaran and witness the plight of indigo cultivators. Gandhi’s visit in 1917 marked the commencement of the Champaran movement against indigo planters.

CBSE Class 8 Social Science History Notes Chapter 3 – Ruling the Countryside- FAQs

What was the significance of the Company becoming the Diwan in Bengal in 1765?

This marked the East India Company assuming the role of chief financial administrator, responsible for managing land, organizing revenue streams, and ensuring sufficient income to meet expenses.

How did the Company aim to increase revenue in Bengal?

The Company focused on procuring fine cotton and silk textiles at low costs, which doubled the value of goods bought within five years. This was financed through locally generated revenue, replacing the previous reliance on importing gold and silver.

What were the challenges posed by the Permanent Settlement introduced in 1793?

The fixed revenue demands led to reluctance among zamindars to invest in land improvement. This system also oppressed cultivators, who often faced eviction due to high rents, leading to a decline in agricultural productivity.

How was indigo cultivation carried out under the ryoti system, and what were its consequences?

Under the ryoti system, planters compelled ryots to sign contracts to produce indigo. These contracts, coupled with exploitative loan cycles, led to social unrest among peasants, culminating in the “Blue Rebellion” in Bengal against indigo cultivation.

How did the British government respond to the “Blue Rebellion” in Bengal?

Following the “Blue Rebellion,” the British government dispatched intellectuals to investigate the situation and established the Indigo Commission. This commission aimed to understand the indigo production system better. While urging ryots to fulfill existing contracts, it also granted them the option to refuse future indigo cultivation, ultimately leading to the collapse of indigo production in Bengal.