Without experience, the British East India Company introduced various land-related policies in India one after another. The Permanent Settlement System is one of the most notable settlement among those settlements. The Permanent Settlement System was introduced by Governor-General Lord Cornwallis in 1973. Before Cornwallis came to India, Philip Francis, a member of the Hastings Council, was first sent to understand the current land-related situation here.
In 1770, some European officials named Alexander Dow, Henri Parullo, Philip Francis, and Thomas Law were sent to India for observation. After observing all aspects, they decided to make the revenue permanent. Around 1784, Cornwallis came to India, and in 1793, he formed a committee with John Shore and James Grant to implement this settlement.
What is Permanent Settlement?
Permanent Settlement, also known as Permanent Settlement of Bengal, is a fixed revenue collection arrangement established with the zamindars (landlords). This agreement between the British East India Company and landlords of Bengal to fix the land revenue.
On March 22, 1793, the permanent settlement was introduced by Governor-General Lord Cornwallis. This settlement is also called the “Zamindari System.” It was first implemented in Bengal, Bihar, Orissa, and later in Varanasi, Madras, and the North-Western Provinces.
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Why did Cornwallis introduce the Permanent Settlement?
Cornwallis had come across a lot of reasons that made him introduce permanent settlement. He realized that the existing system was impoverishing the country, ruining agriculture, and not producing the large and regular surplus that the company hoped for. The companyโs trade also suffered, because of the difficulty in procuring Indian goods for export to Europe. It was thought, therefore, that the only way to improve this situation was to fix the revenue permanently.
Background of Permanent Settlement
- After obtaining the Diwani of Bengal, Bihar, and Orissa in 1765, the company’s main goal was to collect more revenue. Although Reza Khan was kept as the Deputy Diwan, i.e., revenue collector, the European officials controlled everything.
- Due to excessive control, by 1769โ70, the shadow of famine had descended on Bengal. For this, the company blamed Reza Khan and removed him from the position of Diwan.
- As the new ruler of Bengal, Hastings mainly wanted complete control of European officials in the administrative system.
- In 1772, Hastings introduced the “Farming System,”ย “Quinquennial Settlement,” or “Panchsala System.” European collectors were put in charge in each district. However, the right to collect revenue was given to whoever could provide the most revenue. So, in the end, this system did not last long.
- Around 1777, he introduced the annual settlement, which also failed.
- Finally, in 1784, Cornwallis was sent to India. Upon arrival in India, he first introduced a ten-year land settlement between 1789 and 1890, known as the “Dashsala Settlement.” He first started permanent settlement in Bengal and Bihar in 1789 and in Orissa in 1790. This system also did not last long. Lord Cornwallis, under directions from the then British PM William Pitt, proposed the permanent settlement system in 1786. This came into effect in 1793, by the Permanent Settlement Act 1793.
Why was the Permanent Settlement made with the Zamindars?
- Cornwallis himself was a member of the landed aristocracy of Britain. He was imbued with the idea of improving landlordism; hence, his natural preference was for the zamindars. So he trusted the zamindars more.
- Cornwallis gave these zamindars land rights in the hope that they would invest in agricultural improvement and ensure the amount of revenue for the company.
- It was easier to collect revenue from a small number of zamindars than from the innumerable peasants.
- It would also ensure the loyalty of a powerful class of the local people.
- By making agreements with zamindars, the loyalty of a powerful class among the permanent residents was ensured for the British officials.
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Describe the main features of the Permanent Settlement
Here are some primary features of permanent settlement:
- Zamindars were the primary owners of the land.
- If zamindars could pay the full fixed tax to the British East India Company, they could become owners of the land property.
- As a right to the land property, zamindars could sell, mortgage, transfer the land, and enjoy it up to the next generation.
- Daniel Thornier has argued that “creation of private property in land was a misnomer as the absolute ownership was retained by the imperial authority.”
- According to the sun-set law, the zamindar had to pay the revenue to his owner before sunset on a specific day or date.
- There was a written agreement between the farmer and the zamindar. This agreement stated how much revenue the farmer had to pay, which is also known as patta. But in reality, zamindars did not follow this patta.
- 10/11 of the collected revenue had to be given to the company, and 1/11 could be kept for themselves.
- The amount of revenue was permanent. It was never increased or taken in excess at any time. But the rate of revenue was so high that farmers could not pay it.
- The Tenancy Acts were introduced in 1859 and 1885 AD. These laws provided some security measures for tenant farmers. But in the end, only a group of jotedars became powerful.
Various Historians’s Views on The Permanent Settlement
Rajat Ray & Ratnalekha Ray talk about “jotedar thesis” in the case of permanent settlement. These jotedars were the real controllers of land at the village level. Landlords used to collect revenue only.
However, Sugata Bose has denied their statement. He says that the jotedar class was limited only to North Bengal. In most parts of Bengal, the power of zamindars was still intact. In some places, there were big zamindars, in others, small zamindars had influence. Also, Partha Chatterjee and Akinobu Kawai support this statement.
Also Read about: Mahalwari System, 1822
Conclusion
According to a statistic up to 1928-29 A.D, it can be said that 19 percent of the cultivable land was under this system at that time. Looking at the percentage, it can be understood how much this settlement had adverse effects on farmers. Along with farmers, zamindars also lost ownership of the land.
However, through this system, the British government had accumulated a permanent amount of revenue in the Treasury. A loyal class called zamindars had emerged from among the permanent residents, whom the British could rely on. Some zamindars, after paying a fixed amount of revenue at a fixed time, also enjoyed hereditary ownership of the land, and we have found such examples as well.
Permanent settlement FAQโs
What is Permanent Settlement?
A fixed revenue collection arrangement with the zamindars (landlords) is called a permanent settlement also known as Permanent Settlement of Bengal. This land revenue fixation agreement was made between Bengali landlords and the British East India Company.
Who introduced Permanent Settlement?
The Permanent Settlement system was introduced by Governor-General Lord Cornwallis on March 22, 1793, by forming a committee with John Shore and James Grant.
Permanent Settlement was introduced in?
On March 22, 1793. Initially, it was applied in Bengal, Bihar, and Orissa; subsequently, it was also used in Varanasi, Madras, and the provinces in the northwest.
How was the Mahalwari System different from the Permanent Settlement?
There were some notable distinctions between the Permanent Settlement and the Mahalwari System. Those are:
Revenue Collection: In the Permanent Settlement, zamindars were in charge of collecting revenue, whereas in the Mahalwari System, the village headman was in charge of doing so.
Land Ownership: In the Mahalwari System, land was owned by peasants, whereas in the Permanent Settlement, land was owned by zamindars.
Revenue Revision: The Mahalwari System had recurring revenue revisions, but the Permanent Settlement had a set revenue.
Geographic Prevalence: The Mahalwari System was common in Punjab, the Gangetic Valley, and other northern regions, whereas the Permanent Settlement was common in Bengal, Bihar, Orissa, and Varanasi.