Permanent Settlement and it impacted Zamindars, Cultivators and the British Company
The East India Company, led by Governor-General Lord Cornwallis, implemented The Permanent Settlement of Bengal in 1793. It was essentially an agreement between the company and the zamindars to fix the land revenue.
Basic features
The zamindars of Bengal were recognized as the owners of the land as long as they paid the revenue to the East India Company. The amount of revenue that the zamindars had to pay to the Company was firmly fixed uniformly for all lands and would not be raised under any circumstances. Also, This settlement took away the administrative and judicial functions of the zamindars.
The Permanent Settlement had a lasting impact on three strata of the then society
On Zamindars: There was a less share in the tax collection, Zamindar found it difficult to meet the high demand of Britishers and ultimately lost their Zamindari. Also, the division of land further into smaller estates and rented to sub-holders on the condition to pay fixed rent. This raised the issue of subinfeudation and further exploitation of cultivators.
On Cultivators: Taking hereditary rights of the land of peasants and giving to Zamindars reduced the status of cultivators as tenants of Zamindars. The high amount of fixed revenue compelled the cultivators to fall into the misery of rack renting, indebtedness and ejection.
On British: The first ten years of the nineteenth century saw a gradual expansion of cultivation and an increase in market prices. Zamindars’ income rose as a result, but the company suffered a setback because it was unable to raise a rigid revenue requirement.
The Permanent Settlement not only altered the social and political structure of India but also it benefited no one except the landlords. It proved to be more harmful than beneficial. The Britishers recognised this and thus for other areas, new systems of revenue collection i.e., Ryotwari and Mahalwari were devised in subsequent years.