Permanent Settlement: Ryotwari, Mahalwari, and Land Revenue Systems

Introduction

Land revenue was the principal source of income for the British East India Company and later the British Raj. The Company experimented with various systems of land revenue assessment and collection, leading to three distinct settlement systems: Permanent Settlement (Bengal), Ryotwari (Madras and Bombay), and Mahalwari (North-Western Provinces and Punjab).

Permanent Settlement (1793)

Features

• Introduced by Lord Cornwallis in Bengal, Bihar, and Orissa (later also in parts of Madras)
• Land revenue demand was fixed in perpetuity (hence 'permanent')
• Zamindars were recognized as the owners of land (though this was a contested claim)
• Zamindars were to collect rent from peasants and pay a fixed sum to the Company
• If a zamindar failed to pay, his estate could be auctioned (Sunset Law)

Impact

• Zamindars became absentee landlords, interested only in rent extraction
• Peasants were reduced to tenants-at-will with no security of tenure
• Agriculture suffered from lack of investment (zamindars had no incentive to improve land)
• Led to commercialization of agriculture but also to extreme peasant exploitation
• Created a loyal class of zamindars who supported British rule
• Land alienation: Peasants frequently lost land to moneylenders and merchants