East India Company as Diwan and Rural Bengal

The East India Company was appointed as the Diwan of Bengal in 1765, becoming the chief financial administrator of the territory.
This appointment enabled the company to control revenue resources and purchase goods for trade.
Within five years, revenue collected in Bengal doubled, but this came at a cost to the local economy and population.
The increased revenue was achieved by forcing artisans to sell goods at low prices due to debt and difficulty paying taxes.
This led to a decline in artisanal production, impacting ten million people in Bengal.

A bustling marketplace in a rural setting, perhaps in Murshidabad, Bengal, is depicted in a black and white image.
The market was likely affected by the economic crisis brought on by the East India Company's policies.

While initially intended to improve agriculture in Bengal, the Permanent Settlement (1793) had unintended consequences.
The settlement sought to address the issue by recognizing zamindars and fixing their revenue permanently.
The system, however, discouraged zamindars from improving land as they could collect rent without needing to invest.
Land revenue did not increase, and zamindars often lost income due to delayed or unpaid revenue.

Introduced as an alternative to the Permanent Settlement, the Munro System (also known as the Ryotwari system) focused on direct engagement with cultivators (ryots).
This system emphasized a detailed survey of land holdings to assess revenue accurately and eliminate the role of intermediaries.

Introduced in the North Western Provinces of Bengal (present-day Uttar Pradesh), the Mahalwari system recognized the village as a vital social institution, preserving its structure and rights.
The system involved assessing land, measuring fields, and recording local customs to calculate each village's (mahal) total revenue.
Revenue was periodically adjusted, and village headmen were responsible for collecting revenue.

Munro System (Ryotwari): Focused on direct interaction with cultivators, with revenue assessment tied to each holding.
Mahalwari System: Focused on village-level revenue collection, preserving the existing social structure.

The British sought to exploit India's agricultural potential for European markets.
From the late 18th century, the British expanded the cultivation of crops like opium, indigo, jute, tea, sugarcane, wheat, cotton, and rice.
This was achieved through various methods, including encouragement, coercion, and manipulation of agricultural practices.

European cloth manufacturers heavily relied on indigo from India, as supplies from other regions like the Americas dwindled in the late 18th century.
The demand for Indian indigo increased significantly due to the British industrialization and expansion of cotton production.

Two main systems existed for indigo cultivation:
- Nij cultivation: Planters directly controlled land and employed laborers.
- Ryot cultivation: Planters pressured farmers (ryots) to cultivate indigo on their land in exchange for advances, often accompanied by high interest rates and exploitative practices.
Challenges to indigo cultivation included land availability (competition for fertile land), labor issues (peasants often occupied with their rice crops), and high interest rates trapping farmers in debt.

In 1859, thousands of ryots in Bengal revolted against the oppressive indigo system, refusing to cultivate indigo.
The revolt involved physical resistance, with peasants armed with swords, spears, bows, and arrows attacking indigo factories.
Women participated in protests, and local leaders like zamindars and village headmen supported the rebellion.
The revolting peasants hoped for support from the British government, particularly after the 1857 rebellion.

Farmers were often forced to deliver indigo crops to planters just after harvest, receiving a new loan to perpetuate a cycle of debt. They were often compelled to cultivate inferior indigo on less fertile land, hindering their ability to cultivate more profitable crops like rice.
Planters paid low prices for indigo, further adding to the exploitation, and favored indigo cultivation on lands suitable for richer rice yields.
This created a vicious cycle of debt, exhaustion of soil fertility, and reliance on the planters.

In 1860, Indigo cultivator Hadji Mulla expressed his unwillingness to continue growing indigo during an interview with the Indigo Commission, stating he preferred to beg than to continue cultivating the crop. This reflects the deep resentment and hardship faced by indigo farmers.

The Indigo Commission investigated the indigo system and found planters guilty of using coercive methods.
The report concluded that indigo cultivation was unprofitable for the farmers and allowed them to refuse indigo production, while honoring existing contracts.
The government responded with military intervention and the formation of the commission to acknowledge and address the grievances of the indigo cultivators.

The eighteenth century witnessed an increased European demand for indigo and a surge in production in India.
The indigo planters, typically European, adopted coercive methods to fulfill quotas.
Indigo cultivation created conflict between ryots and planters as they vied for land resources.
The Champaran movement (early 20th century) was a resistance movement against the injustices faced by indigo cultivators.
The introduction of synthetic dyes in the 19th century transformed the indigo production landscape significantly, altering the livelihoods of indigo growers.