4.3 Ryotwari Settlement: Features, Advantages & Disadvantages

I. Introduction – Historical Context of Land Revenue Systems in British India

• Land Revenue Systems in British India: Before the British colonization, India had its indigenous systems of land revenue collection. The British introduced new systems to maximize their revenue collection and strengthen their control over Indian territories.
• Ancient Revenue Systems: Historically, tax from the land was a significant source of revenue for kings and emperors. The ownership pattern of land underwent changes over centuries. During the times of kingship, land was divided into Jagirs, which were allotted to Jagirdars. These Jagirdars further split the land and allocated it to subordinate Zamindars. The Zamindars then made peasants cultivate the land and collected a part of their revenue as tax.
• Permanent Settlement: Also known as the Zamindari System, this was introduced by Lord Cornwallis in 1793 through the Permanent Settlement Act. It was primarily implemented in the provinces of Bengal, Bihar, Orissa, and Varanasi. Under this system, Zamindars were recognized as the landowners and given the rights to collect rent from the peasants. However, this system had its flaws, leading to the need for a new system.
• Need for a New System: The Permanent Settlement, while ensuring a fixed revenue for the British, led to the exploitation of peasants by the Zamindars. The fixed revenue demand, irrespective of the crop yield, put immense pressure on the peasants. There was a need for a more direct system, eliminating the middlemen and ensuring a fairer deal for the cultivators.
• Ryotwari System’s Pioneers:
  • Captain Alexander Read: He was one of the early proponents of the Ryotwari System. Under his guidance, the system was tried on a small scale in certain areas of India.
  • Sir Thomas Munro: Often credited as the main architect of the Ryotwari System, Munro served as the Governor of Madras from 1819 to 1826. He believed in the idea of direct settlement between the government and the cultivator, ensuring that the cultivator’s rights were protected. Under his leadership, the Ryotwari System was introduced in regions like Madras, Bombay, parts of Assam, and Coorg.
• Ryotwari System Overview: This system was a direct settlement between the government and the individual cultivator, known as the Ryot. The Ryots were recognized as the landowners, and they paid their taxes directly to the government. The system aimed to provide a fairer deal to the cultivators and ensure a steady revenue stream for the British government.
• Significance: The introduction of the Ryotwari System marked a significant shift in the land revenue policies of British India. It was an attempt to rectify the flaws of the Permanent Settlement and provide a more equitable system for the Indian peasants.

II. Origins and Development

Initial Trials in the Baramahal Region

• Baramahal: A region where the Ryotwari system was first tested.
• Objective: To establish a direct relationship between the government and the cultivators, bypassing intermediaries.

Expansion of the Ryotwari System

• Madras: One of the primary regions where the Ryotwari system was implemented.
• Bombay: Another significant region where the system found its footing.
• Assam: The system was introduced in parts of this northeastern state.
• Coorg: A smaller province where the Ryotwari system was introduced.

Influence of Sir Thomas Munro

• Position: Governor of Madras from 1819 to 1826.
• Contribution: Recognized as the main architect of the Ryotwari system.
• Belief: Advocated for direct settlement between the government and the cultivator.
• Implementation: Under his leadership, the system was introduced in Madras, Bombay, parts of Assam, and Coorg.

Ryotwari System as a Response

• Absence of Traditional Zamindars: The Ryotwari system was introduced as a solution to regions where traditional zamindars were absent.
• Direct Settlement: The government dealt directly with the ryots or cultivators.
• Ownership Rights: Ryots were recognized as the landowners and had rights to sell, mortgage, or gift the land.
• Tax Collection: Taxes were directly collected by the government from the ryots.
• Tax Rates: High rates were set at 50% for dryland and 60% for wetland.
• Eviction: Ryots were evicted by the government if they failed to pay taxes.
• Ryot: Term used for peasant cultivators in the Ryotwari system.
• Elimination of Middlemen: Unlike the Zamindari system, there were no intermediaries in the Ryotwari system.
• Moneylenders: Due to the requirement of paying taxes in cash, moneylenders played a significant role, often burdening peasants with high-interest rates.

III. Key Features of the Ryotwari System

Direct Settlement Between the Government and the Individual Cultivator

• Ryotwari System’s Essence: The core of the Ryotwari system was the direct relationship established between the government and the individual cultivator.
• Objective: The primary aim was to bypass intermediaries and ensure a direct line of communication and transaction between the state and the cultivator.

Recognition of Peasants as Landowners

• Ownership Rights: In the Ryotwari system, peasants, referred to as “Ryots”, were recognized as the rightful owners of the land.
• Land Transactions: Ryots had the freedom and legal right to sell, mortgage, or gift their land, emphasizing their ownership status.

Rights Regarding Sale, Transfer, and Mortgage of Land

• Sale: Ryots could sell their land to another party if they wished.
• Transfer: Land could be transferred to another individual, often within the family or clan.
• Mortgage: In situations of financial need, Ryots had the right to mortgage their land as collateral.

Revenue Fixation Based on Soil Quality and Crop Nature

• Tax Calculation: The amount of tax a Ryot had to pay was determined based on the quality of the soil and the type of crop cultivated.
• Rates: The tax rates were set at 50% for dryland and 60% for wetland, which were considered high.
• Flexibility: Unlike the Permanent System, the Ryotwari system allowed for the possibility of increasing tax rates.

Periodic Revision of Revenue Rates

• Revision Mechanism: The Ryotwari system had provisions for periodic revisions of the revenue rates.
• Objective: The aim was to ensure that the tax rates were in line with the prevailing economic conditions and the ability of the Ryots to pay.

Absence of Intermediaries Leading to Increased State Revenue

• Elimination of Middlemen: The Ryotwari system was devoid of intermediaries like Zamindars, ensuring a direct relationship between the government and the Ryots.
• Financial Impact: As a result, the state’s revenue increased since there were no middlemen to claim a share of the revenue.
• Moneylenders’ Role: Due to the stipulation of paying taxes in cash, moneylenders became significant players in this system. They provided loans to Ryots, often at exorbitant interest rates, leading to further financial burdens on the peasants.

IV. Comparison with Other Systems

Distinctions between Zamindari, Ryotwari, and Mahalwari Systems

• Zamindari System: This system was characterized by the presence of intermediaries known as Zamindars. They acted as tax collectors on behalf of the British government. The Zamindars were responsible for collecting revenue from the peasants and paying a fixed amount to the British. The risk of revenue collection was on the Zamindars, and they had the right to increase the tax from peasants.
• Ryotwari System: Instituted in the late 18th century by Sir Thomas Munro, this system was practiced mainly in Madras, Bombay, Assam, and Coorg provinces. The essence was the direct relationship between the government and the individual cultivator. The peasants, known as “Ryots”, were recognized as the landowners and had the rights to sell, mortgage, or gift their land. The tax rates were set based on the quality of the soil and the type of crop, with rates being 50% for dryland and 60% for wetland.
• Mahalwari System: Introduced by Holt Mackenzie in 1822 and reviewed under Lord William Bentinck in 1833, this system was prevalent in regions like the North-West Frontier, Agra, Central Province, Gangetic Valley, and Punjab. It had elements of both the Zamindari and Ryotwari systems. Land was divided into Mahals, which could consist of one or more villages. The tax was assessed on the Mahal, and each individual farmer contributed his share. The village headman or leaders collected the revenue. The state’s share of the revenue was 66% of the rental value, and the settlement was agreed upon for 30 years.

The Role of Intermediaries in Each System

• Zamindari System: The Zamindars acted as the chief intermediaries. They were responsible for collecting and remitting a fixed amount of revenue to the British government. In return, they had the autonomy to determine the amount to be collected from the peasants.
• Ryotwari System: This system eliminated the role of intermediaries. The government dealt directly with the Ryots or individual cultivators. However, due to the stipulation of paying taxes in cash, moneylenders played a significant role, often burdening the peasants with high-interest loans.
• Mahalwari System: The village headman or leaders acted as intermediaries in the collection of revenue. They were responsible for gathering the share of each individual farmer and remitting it as a collective amount.

Revenue Collection Methods and Their Implications on Peasants

• Zamindari System: The risk of revenue collection was on the Zamindars. If they failed to collect the required amount, they faced the risk of losing their Zamindari rights. This often led to Zamindars imposing high taxes on peasants, leading to their exploitation.
• Ryotwari System: The revenue was directly collected by the government from the peasants. The rates were determined based on soil quality and crop type. However, the high rates and the insistence on cash payments often led to peasants falling into debt traps with moneylenders.
• Mahalwari System: Revenue was collected by the village headman or leaders. The system introduced the concept of average rents for different soil classes. The state’s share was 66% of the rental value. This system was often referred to as the Modified Zamindari system since the village headman virtually became a Zamindar.

V. Economic Implications

The Scientific Rent Theory of David Ricardo

• David Ricardo’s Theory: A prominent economist, David Ricardo, formulated the Scientific Rent Theory. This theory explained the relationship between land, its fertility, and the rent it could command.
• Relevance to Indian Agriculture: The theory became relevant in the Indian context as the British colonial rulers applied principles of European land economics to India. The rent was determined based on the land’s productivity, leading to varying revenue demands.

High Revenue Demands and Peasant Indebtedness

• Exorbitant Revenue Rates: The British imposed high revenue rates on Indian peasants. These rates were often not in sync with the actual productivity or the market prices of agricultural produce.
• Impact on Peasants: Due to these high demands, many peasants found themselves unable to pay the land revenue. This led to:
  • Loss of Land: Failure to pay the revenue could result in the confiscation of their land.
  • Indebtedness: To meet the revenue demands, peasants often borrowed money from local moneylenders at high-interest rates.
  • Vicious Cycle: The inability to repay these loans led to a cycle of debt, with peasants either losing their land to moneylenders or becoming bonded laborers to repay their debt.

Shift Towards Cash Crops

• Introduction of Cash Crops: The British encouraged the cultivation of cash crops like indigo, cotton, and jute instead of traditional food crops.
• Reason for Shift: This shift was driven by the British industrial revolution’s demand for raw materials and the global market’s demand for these crops.
• Long-term Effects:
  • Food Insecurity: A focus on cash crops reduced the cultivation of food grains, leading to food scarcity and famines.
  • Economic Dependency: Indian agriculture became dependent on volatile global market prices, leading to economic instability for peasants.
  • Environmental Impact: Continuous cultivation of cash crops led to soil degradation and loss of soil fertility in many regions.

Role of Local Moneylenders and the Cycle of Debt

• Rise of Moneylenders: The British revenue system’s insistence on cash payments led to the prominence of local moneylenders.
• Exploitative Practices: These moneylenders often charged exorbitant interest rates. Peasants who borrowed money found it challenging to repay, leading to:
  • Mortgaging of Land: To secure loans, peasants often mortgaged their lands. Failure to repay meant the moneylender could take over the land.
  • Bonded Labor: Unable to repay loans, many peasants became bonded laborers, working on the moneylender’s land to repay their debt.
  • Generational Debt: The debt often became generational, with children inheriting their parents’ debt and continuing the cycle of bonded labor.

VI. Social and Political Impacts

Changing Dynamics of Land Ownership

• Land as a Commodity: Under the British rule, land transformed from being a shared resource to a commodity.
• Private Ownership Emergence: Before the British era, the concept of private land ownership was non-existent. Neither kings nor cultivators viewed land as ‘private property’.

Peasant Rights under Ryotwari System

• Ownership Rights: In the Ryotwari system, peasants or cultivators were recognized as the landowners.
• Rights to Sell, Mortgage, Gift: Peasants had the authority to sell, mortgage, or gift their land.
• High Revenue Demands: The revenue rates were steep, with 50% for dryland and 60% for wetland.
• Eviction for Non-Payment: If peasants failed to meet the tax demands, they faced eviction.
• Ryot Definition: The term ‘Ryot’ refers to peasant cultivators.
• Absence of Middlemen: Unlike the Zamindari system, the Ryotwari system eliminated middlemen. However, the obligation to pay taxes in cash introduced the problem of moneylenders, who imposed heavy interest burdens on peasants.

British Government’s Role in Revenue Collection

• Direct Collection: In the Ryotwari system, taxes were collected directly by the government from the peasants.
• Mahalwari System Introduction: Initiated by Holt Mackenzie in 1822 and reviewed by Lord William Bentinck in 1833, this system was prevalent in regions like North-West Frontier, Agra, Central Province, Gangetic Valley, and Punjab.
• Combination of Systems: The Mahalwari system combined elements from both Zamindari and Ryotwari systems.
• Land Division into Mahals: Land was segmented into ‘Mahals’, which sometimes encompassed one or multiple villages.
• Tax Assessment on Mahals: The tax was determined based on the Mahal, with individual farmers contributing their share.
• Collection by Village Leaders: Revenue in the Mahalwari system was gathered by the village headman or leaders.
• Modified Zamindari System: The Mahalwari system was sometimes termed the ‘Modified Zamindari system’ as the village headman essentially became a Zamindar.

Consequences of British Land Revenue Systems

• Shift to Cash Crops: High taxes prompted farmers to cultivate cash crops over food crops, leading to food insecurity and famines.
• Increased Taxation: While taxes on agricultural produce were moderate pre-British, they escalated significantly under British rule.
• Rise in Indebtedness: The insistence on cash payments for revenue resulted in heightened debt among farmers. Over time, moneylenders transitioned into landowners.
• Emergence of Bonded Labour: Loans provided to farmers or laborers who couldn’t repay led to the rise of bonded labor.
• Land Ownership Disparity: Post-independence, 7% of villagers (comprising Zamindars and landowners) possessed 75% of the agricultural land.

VII. Criticisms and Drawbacks of the Ryotwari System

The Ryotwari system, though innovative in its approach, was not without its criticisms and drawbacks. Several issues arose during its implementation, which had significant implications for the peasants and the overall agrarian economy.

• High and Arbitrary Tax Rates
  • The system often imposed high tax rates on the cultivators.
  • The determination of these rates was sometimes arbitrary, lacking a consistent basis.
  • This led to undue pressure on the peasants, making it difficult for them to meet their tax obligations.
• Issues with Periodic Assessment of Crops
  • The periodic assessment of crops for determining the revenue was a challenging task.
  • Variability in crop yields due to factors like weather conditions made assessments inconsistent.
  • The lack of advanced agricultural techniques and tools further complicated the assessment process.
• Compulsions to Pay Tax During Crop Failures
  • One of the major criticisms was the obligation to pay tax even during times of crop failures.
  • Natural calamities like droughts and floods often led to poor harvests.
  • Despite such adversities, the peasants were still required to pay the predetermined tax, exacerbating their financial distress.
• Exploitation by Moneylenders Leading to Land Confiscation
  • To meet the high tax demands, peasants often resorted to borrowing from local moneylenders.
  • These moneylenders charged exorbitant interest rates, leading to a cycle of debt for the peasants.
  • Inability to repay the loans resulted in the confiscation of their lands by the moneylenders, leading to further impoverishment.
• Periodic Increase in Tax Rates Based on External Demands
  • The tax rates under the Ryotwari system were not fixed and were subject to periodic revisions.
  • External factors and demands, unrelated to the agrarian economy, often influenced these revisions.
  • Such arbitrary increases added to the financial burden of the peasants, making the system less tenable for them.

VIII. Legacy and Consequences

The post-colonial view of the Ryotwari system

• Post-colonial perspective: The Ryotwari system, introduced by the British, has been viewed through various lenses in the post-colonial era. Historians and scholars have debated its implications and effects on the Indian agrarian landscape.
• Colonial objectives: The system was primarily designed to serve the colonial objectives of the British Empire, ensuring a steady flow of revenue to the colonial coffers.
• Impact on peasants: From a post-colonial perspective, the system is often criticized for its heavy-handed approach, which placed undue burdens on the peasants. The high revenue demands, coupled with the periodic reassessments, often led to peasant indebtedness and land alienation.
• Cultural implications: The Ryotwari system also had cultural implications, as it disrupted traditional landholding patterns and hierarchies. The direct relationship between the state and the individual cultivator bypassed traditional intermediaries, leading to shifts in power dynamics.

Its influence on modern land revenue systems in India

• Foundation for modern systems: The Ryotwari system laid the groundwork for many of the land revenue systems that exist in India today. Its principles and mechanisms have been adapted, modified, and incorporated into contemporary revenue collection methods.
• Land ownership: The recognition of peasants as landowners under the Ryotwari system influenced subsequent land reforms in independent India. The emphasis on individual land ownership rights paved the way for policies that sought to redistribute land to the landless and ensure more equitable land ownership patterns.
• Revenue assessment: Modern land revenue systems in India have evolved methods of revenue assessment that take into account factors like soil quality, crop nature, and other agrarian variables. These methods can trace their origins back to the Ryotwari system’s approach to revenue fixation.

The transition from Ryotwari to post-independence land reforms

• Post-independence reforms: After gaining independence in 1947, India embarked on a series of land reforms aimed at addressing the inequities and challenges posed by colonial-era land revenue systems, including the Ryotwari system.
• Abolition of intermediaries: One of the primary objectives of post-independence land reforms was the abolition of intermediaries, such as zamindars and moneylenders, who had exploited peasants under the colonial systems.
• Land ceilings: The government introduced land ceiling laws to prevent the accumulation of vast tracts of land by a few individuals or families. These laws aimed to redistribute land to the landless and promote more equitable land ownership.
• Protection of tenant rights: Post-independence reforms also focused on protecting the rights of tenants. Laws were enacted to ensure security of tenure, fair rent, and protection against arbitrary eviction.
• Legacy of the Ryotwari system: While the Ryotwari system had its flaws and faced criticisms, its legacy is evident in the land revenue systems and land reforms of independent India. The emphasis on individual land ownership rights and the direct relationship between the state and the cultivator continue to influence land policies and practices in contemporary India.

1. How did the Ryotwari System influence the shift towards cash crops, and what were its long-term socio-economic implications on the Indian agrarian landscape? (250 words)
2. Examine the role of local moneylenders in the Ryotwari System and discuss the consequences of the cycle of debt on peasant communities. (250 words)
3. Critically analyze the transition from the Ryotwari System to post-independence land reforms in India. How did the legacy of the Ryotwari System shape modern land revenue policies? (250 words)