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Land Revenue Systems: Permanent Settlement, Ryotwari and Mahalwari

Land Revenue Systems: Permanent Settlement, Ryotwari and Mahalwari

British Administration and Economic Policy · 3 min read

The British used three main land revenue systems, the Permanent Settlement (Zamindari), Ryotwari and Mahalwari, which together affected nearly all peasants of British India.

Why land revenue was important

Land revenue was the main source of the Company's income, and the new owners of land after the settlements became the "revenue base" of British rule. The aim was to collect as much money as possible, with little thought for the peasant.

Earlier experiments

  • 1772: Warren Hastings auctioned revenue collection (farming) for five years, to the highest bidder. It caused instability and rack-renting.
  • 1789 to 1790: Cornwallis's Decennial Settlement (10-year), and in 1793 it was made permanent.

The three systems

FeaturePermanent Settlement (Zamindari)RyotwariMahalwari
Introduced1793 by Cornwallis1820 in Madras (Thomas Munro, Alexander Read); Bombay later (1825)1822 (Regulation VII) by Holt Mackenzie; modified by Bird (1833)
AreasBengal, Bihar, Orissa, parts of Varanasi and Madras (about 19 per cent of British India)Madras, Bombay, parts of Assam and Coorg (about 51 per cent)Punjab, North-Western Provinces (Agra, Awadh area), Central Provinces (about 30 per cent)
LandlordZamindar was ownerPeasant (ryot) was ownerVillage community (mahal)
RevenueFixed for ever (about 10/11 to the Company, 1/11 to the zamindar)Revised every 20 to 30 yearsRevised periodically (20 to 30 years)
Collected byZamindarsDirectly from ryotVillage headmen (lambardars)
EffectZamindars became rent-collectors, peasants lost rightsGovernment became the supreme landlord; heavy ratesVillage community broke down; heavy assessment

Permanent Settlement: features

  • Zamindars were declared owners of land; the revenue was fixed permanently and could never be raised.
  • Sunset Law: if a zamindar failed to pay by sunset on the due date, the estate was auctioned. Many old zamindars lost estates and new moneylending classes bought them.
  • Zamindars could pay the government the fixed amount and keep the rest of the rent. Peasants were left at their mercy.

Effects:

  • Company's income was fixed and became small as prices rose.
  • A loyal class of landlords was created, who supported British rule (until 1947).
  • Absentee landlords and subinfeudation (many middlemen) grew. Peasants suffered. Landlords spent little on improvements.
  • It led to later tenancy laws, such as the Bengal Rent Act (1859) and Bengal Tenancy Act (1885).

Ryotwari: features

  • The peasants paid directly to the government, which fixed rates at a high share of the produce (as much as half). Rates were revised often and the system was inflexible.
  • Bombay had a more flexible form; the Wingate settlement (1835 to 1838) gave a scientific survey.

Mahalwari: features

  • Revenue was fixed on each village or estate (mahal), based on the quality of land. The village headmen collected it.

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Prepared for exam revision from standard sources such as NCERT, Bipan Chandra, Spectrum and official records. Historians differ on some dates, figures and interpretations, so check your exam syllabus and a standard textbook. Found a mistake? Tell us.