📘 Chapter: Ruling the Countryside
Class 8 – History | NCERT Book | Topic-wise Short Notes
🟠 1. The Company Becomes the Diwan
● In 1765, the East India Company got Diwani rights of Bengal from the Mughal
emperor.
● Diwani = Right to collect land revenue and manage civil administration.
● The Company used Indian revenue to finance trade, wars, and expansion.
🟠 2. Revenue for the Company
● The Company needed regular revenue to meet its expenses.
● It introduced various land revenue systems to extract taxes from farmers.
🟠 3. The Permanent Settlement (1793)
● Introduced by Lord Cornwallis in Bengal.
● Zamindars (landlords) collected taxes from peasants and gave a fixed amount to the
Company.
● Problem: Zamindars often failed to pay; peasants were heavily burdened.
● Result: Cultivation suffered; revenue demand was rigid and not based on productivity.
🟠 4. The Munro System (Ryotwari System)
● Introduced in South India (Madras Presidency) by Thomas Munro.
● Revenue was collected directly from the ryot (farmer).
● Peasants were overtaxed and often in debt.
● No middlemen like zamindars.
🟠 5. The Mahalwari System
● Introduced in North-Western Provinces (Uttar Pradesh).
● Revenue was collected from the entire village (mahal) collectively.
● A village headman collected the revenue on behalf of the government.
🟠 6. Crops for Europe – Indigo Cultivation
● British demanded cash crops like indigo for European textile industries.
● Two systems of indigo farming:
○ Nij cultivation – Planters grew indigo on their own land.
○ Ryoti system – Planters forced Indian peasants (ryots) to grow indigo on their
land under contract.
🟠 7. Problems with Indigo Farming
● Indigo exhausted soil fertility.
● Peasants were paid very low and often forced to grow indigo.
● They could not grow food crops.
🟠 8. The Blue Rebellion (1859)
● Started in Bengal by peasants refusing to grow indigo.
● Supported by zamindars, moneylenders, and even some British officials.
● Result: The government banned forced indigo cultivation and promoted synthetic
dyes later.
🟠 9. Impact of British Policies
● Indian agriculture became cash crop-oriented.
● Peasants became dependent on moneylenders.
● Traditional farming practices declined.
● The British gained profits; Indian farmers faced hardship.
