Agricultural Policies and Rural Economy

Introduction #

The agricultural landscape of India underwent significant changes during the British colonial period. The introduction of new land revenue systems, commercialization of agriculture, and the resultant socio-economic impact on rural society were profound. This chapter explores the various agricultural policies implemented by the British and their effects on India’s rural economy.

The Land Revenue Systems #

The Zamindari System #

The Zamindari system, introduced by Lord Cornwallis in 1793 through the Permanent Settlement of Bengal, was designed to create a class of loyal landlords who would ensure the collection of land revenue. Under this system, zamindars (landlords) were made the owners of the land, responsible for paying a fixed revenue to the British government. The zamindars were given the right to collect rents from the peasants and retain a portion of it as their profit.

Impact on Rural Society #

• Peasant Exploitation: The system led to severe exploitation of the peasants (ryots) who were often burdened with high rents and taxes. Failure to pay these often resulted in eviction.
• Revenue Stability: While it provided revenue stability to the British administration, it did little to incentivize agricultural improvement among peasants.
• Social Hierarchies: It entrenched social hierarchies, with zamindars becoming powerful local elites, often indifferent to the plight of the peasants.

The Ryotwari System #

The Ryotwari system was introduced primarily in Madras and Bombay presidencies by Thomas Munro in the early 19th century. Under this system, the land revenue was assessed directly with the individual cultivator (ryot) who was recognized as the landowner.

Impact on Rural Society #

• Direct Relationship: The direct relationship between the government and the ryots was supposed to reduce the exploitation seen under the zamindari system. However, high revenue demands often led to distress among ryots.
• Fluctuating Revenue: Revenue demands were based on the assessment of land productivity, leading to fluctuations and uncertainty for cultivators.
• Economic Distress: Despite its intentions, the system led to widespread economic distress and indebtedness among ryots due to high and inflexible revenue demands.

The Mahalwari System #

The Mahalwari system, introduced in parts of North-Western Provinces, Punjab, and Central India, was a modified version of the Zamindari system. Under this system, revenue was assessed collectively on a village or mahal, with village heads responsible for collecting and paying the revenue.

Impact on Rural Society #

• Community-Based Assessment: This system aimed to incorporate the traditional communal ownership patterns, with revenue assessment based on village lands.
• Local Accountability: Village heads were expected to act in the community’s interest, though in practice, they often mirrored the exploitative tendencies of zamindars.
• Economic Burden: The system often led to a heavy burden on villages, with frequent re-assessments causing economic instability.

Commercialization of Agriculture #

Introduction of Cash Crops #

The British encouraged the cultivation of cash crops such as indigo, cotton, opium, and tea to meet the demands of British industries and markets. This shift from subsistence farming to commercial agriculture had several implications.

Impact on Rural Economy #

• Economic Incentives: While some landlords and wealthy farmers benefited from cash crop cultivation, the majority of peasants faced increased vulnerability due to market fluctuations.
• Food Security: The emphasis on cash crops often led to a decline in the cultivation of food grains, exacerbating food insecurity and contributing to famines.
• Dependency on Market: Peasants became increasingly dependent on market conditions and prices, leading to economic instability.

Indigo Cultivation #

The cultivation of indigo in Bengal and Bihar was particularly notorious. Peasants were coerced into growing indigo through oppressive contracts, leading to the infamous Indigo Rebellion of 1859-60.

Impact on Peasants #

• Coercive Practices: The planters’ coercive practices, including forcing peasants to grow indigo on their best lands, led to widespread resentment and rebellion.
• Economic Hardship: The unprofitable nature of indigo cultivation for peasants resulted in economic hardship, as they were often left with little profit after meeting the planters’ demands.
• Resistance Movements: The resistance against indigo planters highlighted the peasants’ plight and became a significant early movement against colonial exploitation.

Famines and Food Security #

Recurring Famines #

India experienced several devastating famines during British rule, including the Great Bengal Famine of 1770, the Chalisa Famine of 1783, and the Great Famine of 1876-78. These famines were exacerbated by British policies.

Causes and Consequences #

• Revenue Policies: High revenue demands left peasants with little surplus to fall back on during times of scarcity.
• Export of Food Grains: During famines, the continued export of food grains to Britain and other markets worsened the food crisis.
• Lack of Relief Measures: Inadequate and often poorly implemented relief measures by the British administration resulted in high mortality rates and prolonged suffering.

Impact on Rural Economy #

• Population Decline: Famines led to significant population decline in affected areas, disrupting local economies and agricultural production.
• Poverty and Indebtedness: Surviving peasants were often left impoverished and heavily indebted, with long-term impacts on their economic stability.
• Social Disruption: The social fabric of rural communities was severely disrupted, with migration and displacement becoming common coping strategies.

Social and Economic Changes #

Changes in Land Ownership Patterns #

The introduction of new land revenue systems and commercialization of agriculture led to changes in traditional land ownership patterns.

Impact on Society #

• Concentration of Land: There was a tendency for land to become concentrated in the hands of a few landlords or moneylenders, increasing economic disparities.
• Displacement of Peasants: Many small and marginal farmers lost their land due to inability to pay revenue or debts, leading to increased landlessness and tenant farming.
• Shift in Social Dynamics: These changes contributed to shifts in social dynamics, with new power structures emerging based on land ownership and wealth.

Rural Distress and Resistance #

The economic distress caused by British agricultural policies led to various forms of resistance and rebellion among rural communities.

Forms of Resistance #

• Peasant Revolts: Numerous peasant revolts, such as the Sanyasi Rebellion, the Rangpur Dhing, and the Indigo Rebellion, erupted in response to oppressive policies.
• Folk Movements: Folk movements, such as the Santhal Rebellion and the Birsa Munda Uprising, highlighted indigenous resistance to colonial exploitation and land alienation.
• Economic Nationalism: The growing awareness of economic exploitation contributed to the rise of economic nationalism, with leaders advocating for reforms and protection of Indian interests.

Conclusion #

The agricultural policies implemented by the British had far-reaching consequences for India’s rural economy and society. While they aimed to maximize revenue and integrate India into the global economy, these policies often led to widespread exploitation, economic distress, and social upheaval. The legacy of these policies is still evident in the socio-economic challenges faced by rural India today.

References #

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