Permanent Settlement System: Impact on Indian Agriculture, Advantages, Disadvantages, and Abolition

Zamindari System: Cornwallis’ 1793 Permanent Settlement System

The Permanent Settlement system also known as the Zamindari system was a land revenue arrangement introduced by Lord Cornwallis, the Governor General, in 1793. It was also referred to as the Istamarari (Sthayi) Bandobast System. 

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Features Of The Permanent Settlement System: Land Ownership and Revenue Rights

The following are the important features of the Permanent Settlement system

• This system was first implemented in Bengal and Bihar and later it was extended to Madras and Varanasi.
• The Zamindar was made the owner of the land and the cultivators became mere tenants. The Zamindars were given the right to collect rent from the cultivators.
• The Zamindars got the hereditary right of succession over land. They had the right to sell or transfer the land whenever they wished so.
• Under this system out of the amount collected from peasants, 10/11th portion belonged to the British and 1/11th to Zamindar.
• The Zamindars had to issue written agreements called Patta to each cultivator which should specify the amount the tenant had to pay.

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Advantages Of The Permanent Settlement System: Boosting Agriculture and Loyalty

The permanent system of revenue settlement resulted in many benefits for the Britishers : 

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• Increased crop production: This system aimed at increasing crop production as the Zamindars were expected to work for the improvement of yield to gain more revenue.
• Easier administration: Due to less number of Zamindars as compared to the tenants, the administration of revenue collection became easier for British officials.
• Creation of loyal class: The zamindars were wealthy and powerful Rajas or merchants of Indian society. After this, they served as the loyalist class for the British.

Disadvantages Of The Permanent Settlement System: Taxation Woes and Absenteeism

The Permanent settlement system was started by the British for revenue increment and improved agricultural production. This system however ended up having the following disadvantages: 

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• Unreasonable assessment: The land revenue was fixed arbitrarily. The unproductive and productive both sets of lands were taxed heavily and equally.
• Oppression of tenants: British fixed a high rate of revenue for lands. Such oppressive taxes made zamindars resort to oppressive methods of collection. Thus Zamindars often resorted to illegal methods to extract taxes from tenants.
• Absentee Landlordism: The wealthy Zamindars mostly lived in the cities and collected revenue through armed local men called Lathiyals. They were interested only in maximization of revenue and did nothing to improve the productivity of the land.

Conclusion

The Permanent Settlement did not do much for the trade interest of the company because in years of high production also the company received the same revenue and the Zamindars enjoyed the surplus. The Peasants were the ultimate sufferers as their fate lay completely on the Zamindar’s willingness. The Britishers thus did not extend it to other parts of the country. It was completely abolished in India after independence.

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