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Since the acquisition of Diwani rights for Bengal, Bihar and Orissa in 1765, a major concern of Company was to increase the land revenue collection, which historically was the major source of revenue for the state in India.
Warren Hastings got rid of Indians completely form revenue collection. In 1772, he introduced a new system known as the ‘farming system’, in which European district collectors were made in charge of revenue collection.
Land was farmed to the highest bidder for five years. Most of the revenue-farmers were speculators who did not have any permanent interest in the land and tried to extort maximum revenue from the cultivators. The result was that many revenue contractors fell in heavy arrears, many had to be arrested for default and the ryot (farmer) deserted the land. The bias of Warrant Hastings against centralization worked against an effective system of land revenue collection.
The British mainly adopted the following land holding methods in India-
- Monopoly Practice
- Permanent Settlement
- Ryotwari method
- Mahalbari method
1. Monopoly System
This system was implemented by Warren Hastings in 1772.
This practice had two characteristics-
a)There was a system of five-year contract in it and
b) The land was given on contract to the highest bidder.
The company benefited from this arrangement but there was instability in their recovery. In 1777, instead of the five-year contract, the contract period was reduced to one year. The main drawback of this system was that every year new persons used to collect more and more rent from the farmers by taking contracts.
2. Permanent Settlement
It is also known as ‘Zamindari System’ or ‘Istamarari System’.
It was introduced by Lord Cornwallis in 1793 in Bengal, Bihar, Orissa, U.P. Implemented in Banaras block and North Karnataka.
About 19 percent of the total area of British India was included under this system. Under this system, the zamindars were made permanent owners of the land. Their right over land was hereditary and transferable.
As long as they continued to pay a fixed rent to the government, they could not be separated from the land. But the peasants were given the low status of mere ryots and their land rights were taken away from them. The zamindars had to pay 10/11th of the total amount of land revenue collected from the farmers to the company and keep 1/11th for themselves. This arrangement resulted in a significant increase in the income of the company.
3. Ryotwari System
Started in 1820 by the then Governor of Madras, Thomas Munro, this system was implemented in Madras, Bombay and some parts of Assam.
In this system, the government made direct contact with the ryots i.e. the farmers. Now the ryots were given the ownership and possession rights of the land and they themselves were personally liable to pay rent to the government.
The purpose of implementing this system by the government was to increase the income as well as eliminate the class of middlemen (landlords).
Zamindars were oppressive which resulted in frequent agrarian revolts in the permanent settlement areas.
4. Mahalbari System
It was implemented by Lord Hastings in Central Provinces, Agra and Punjab. 30% of the total area came under this system. In this system land revenue was settled in an entire village or mahal with zamindars or chiefs who collectively claimed to be the head of the entire village or mahal. In this system, the rent was determined on the basis of the production of Mahal or the entire village. The headman or mahal chief had the right to evict the non-paying farmer from his land.
