Ryotwari system was introduced by Captain Reed assisted by Thomas Munro first in Baramahal district of Madras presidency. Thomas Munro later extended it to the entire province. It was later extended to Bombay, Parts of Bengal, Assam, Coorg etc. features of this system are as follows:
Motivations
- Scottish Enlightenment gave primacy to agriculture and small farmer instead of zamindar.
- David Ricardo’s Theory of Rent: According to it, the state had a legitimate share in the rent, which was a surplus obtained from land after deducting the cost of labour and production. Permanent settlement of revenue deprived state of surplus and zamindars got benefit of surplus.
- Issues with Permanent settlement: Permanent Settlement did not allow state the right to increase taxes, profit from increased productivity and growth of agriculture and revenue cushion in times of emergency. Revenue Settlements in Odisha and Assam made by the company with landlords gave power to company to increase rents periodically.
- Wars and increased expenditure led to a huge debt crisis for EIC. Thus, there was a need for new ways of extracting revenue.
- Continuation of the earlier system being practised by Tipu Sultan allowed continuity.
Provisions
- Under this system, the settlement was made by the government directly with cultivator (ryot) who thus was the proprietor, but only for a period. This time was fixed for thirty years after which it was subject to reassessment and re-settlement on updated terms. Government share was fixed at 55% of produce, which was the highest ever share.
- Cultivator has the right to sub-let his land holdings, transfer, mortgage or sell it.
- He is not evicted from his holdings by the government so long as he pays the state demand for land revenue.
Assessment of the system
- Though cultivator got security of tenure but was subject to a very heavy duty, thus leaving no motivation for cultivation.
- The state demand was fixed in money and had no connection with the actual yield of the holding or the prevailing prices in the market.
- Machinery of tax collection was very oppressive, and torture was normally resorted to for the collection of state dues.
