Land Revenue Systems in British India: Types, Ryotwari System & Mahalwari System

Introduction

After the British acquisition of Diwani Rights (1765), agriculture became crucial to the overall economy, earlier it was predominant in the rural economy. There was the introduction of new land tenures and revenue administration systems leading to economic challenges and a decline in agricultural and trade productivity.

Different Types Land Revenue System

• c’s Revenue System (1769-70)

  • Izaredari System: Warren Hasting adopted the Izaredari System (also called the farming system) to bring order to revenue collection.
  • Evolution of Contracting System: Contractors selected on the basis of bidding system, given the right to collect revenue for five years. Later it was made annual in 1777.
  • Extortion and Oppression: by contractors focused on profit, and disregarded peasants’ welfare. 
    • Excessive promises by contractors’ bids exceeded land’s production capacity. 
    • Traditional zamindars were discouraged from bidding. As a result, many hereditary zamindars were removed.
  • Corruption was rampant, which reduced revenue to the government with respect to land revenue. 

• Permanent Settlement [UPSC 2011]

  • Origin: Philip Francis (member of Hastings’ council) proposed a permanent land revenue settlement in 1776. 
  • Lord Cornwallis: He was sent as governor-general with instructions for permanent land revenue settlements with zamindars. 
  • Examination Committee: He set up a committee with himself, Sir John Shore, and James Grant to examine the issue. 

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• Features of the Permanent Settlement 

• • It covered approximately 19% of the territory under British rule and was introduced in Bengal and Bihar, and extended to Orissa, Banaras (Varanasi), and northern Madras.
  • Zamindars were given proprietary rights over their land.
  • In 1790, ten-year settlement was made, followed by permanency in 1793.
  • Fixed Tax: Imposed on land, collected by zamindars from cultivators (ryots).
  • Zamindars were allowed to keep one-tenth to one-eleventh of revenue; the rest was given to the Company government.
  • Land Ownership Rights: These were given to zamindars as they could sell, mortgage, or transfer land; inheritance rights were established.
  • Sunset Clause: It was introduced in 1794 and made zamindari rights conditional upon tax paid by zamindar.

Ryotwari System [ UPSC 2017]

• Origin: Thomas Munro and Captain Alexander Read introduced the system in 1792 in the Baramahal region of Madras Presidency for land revenue. 
• He formalized the Ryotwari System in 1820, which extended to various areas in the Madras Presidency, excluding those under permanent settlement. 
• Direct Revenue Collection System: The system was designed to maximize revenue by collecting directly from villages without intermediaries. 
• Reduction in Tax: He reduced the tax to one-third of the gross produce. Utilitarian ideas, including David Ricardo’s theory of rent, influenced it.

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• Challenges and Coercion under the Ryotwari System

  • Peasants faced arbitrary tax fines, often based on previous payments.
  • High Taxes set at one-third of the gross produce, often equal to economic rental, causing poverty among peasants. 
  • Ryots coerced and tortured to extract revenue, leading to bondage to the moneylenders.
  • Madras Torture Commission Report (1855): revealed coercion, bribery, and corruption by subordinate officials.

• Reforms and Agricultural Prosperity

• • Scientific Land Survey (1855): It was initiated, and fresh assessment was undertaken, reducing the actual burden of the tax.
  • Reformed Settlement (1864): The land revenue rate was set at half of the net value of the produce for thirty years.
  • Prosperity and Agriculture extension led to agricultural prosperity despite famines in 1865-66 and 1876-78.

• Features [UPSC 2012]

• • The ownership and occupancy rights were vested in ryots. There was no limit on land ownership; free to sublet, transfer, or sell.
  • There was a direct tax payment to the Company (45-55% based on estimated production).
  • It was a non-permanent settlement with periodic revision.
  • Land cultivation choices were theoretically free but were often influenced by external factors.
  • Barren land under government control could be cultivated on the condition of shared revenue.
  • Land was confiscated for non-payment.
  • Shortcomings include over-assessment of land revenue, Inflexible collection methods, involving torture, growing corruption in the assessment process etc.

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Mahalwari System (1819-1822)

• Origin: Holt Mackenzie recommended it for land revenue settlement in Northern India in 1819. Regulation VII of 1922 formalized the recommendation. 
• Complex survey methods, high land revenue demands, and harsh extraction methods lead to a breakdown of the scheme. 
• The Agricultural Depression of 1828 worsened it.

• Regulation of 1833

  • William Bentinck simplified the procedure for estimating production.
  • Merttins Bird, known as the Father of Land Settlements in Northern India, oversaw the new scheme.
  • State share was fixed at 66% of rental value, and settlement was made for 30 years.
  • Modification and Reduction of State Demand
    • In 1855, Lord Dalhousie issued directions for limiting state demand to 50% of rental value. 
    • This system became known as a modified zamindari system, as the village headman was the link between cultivators and the government.
    • Implemented in about 30% of the total British-ruled area, including North-Western Provinces (known as ‘Mauzawar’), Central Provinces (known as ‘Malguzari’), and Punjab.

• Features

  • Mahal (village or group of villages) was the basis for revenue assessment.
  • Revenue: It was determined was based on the production of a mahal.
  • Land Ownership: The village community was considered as the owner of the land, while individual ownership was with the cultivator.
  • Responsibility:  collection and payment responsibility lies with the village headman or community of leaders.
  • Under Bentinck, the state’s revenue share was initially 66%, later modified to 50%.
  • The concept of average rents for different soil formation classes was introduced.
  • In Mahalwari regions, land revenue was revised periodically.

• Shortcomings

• • The impracticality of Taxation: The requirement to record all rights and fix tax on every piece of land was impractical.
  • Inaccurate Revenue Calculations: Official calculations are often inaccurate, based on guesswork, and manipulated for increased land revenue.
  • Devastation of Village Communities: The system ruined village communities with exorbitant tax assessments.
    • The system contributed to the impoverishment of cultivating communities in North India.
  • Widespread Dispossession: The inability to meet tax rates lead to large-scale dispossession, with lands going to moneylenders and merchants.
  • Resentment and discontent were expressed in popular uprisings in 1857.
  • The settlement system was viewed from the Company’s perspective.

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Conclusion

Overall, the British land revenue systems had detrimental effects on farmers, zamindars, and the social fabric of Indian villages, leading to economic hardships, unequal land ownership, and the commercialization of agriculture.