Question

Excess production of cash crops actually led to a situation where the farmers had money with them.and yet they could not buy food grains. Why did such a situation arise?

Answer 1

When the East India Company made India its colony, farmers especially in Bengal, Bihar and Orissa were forced to grow cash crops on their fertile lands instead of food crops. The British did this to generate profit. The peasants were forced to grow indigo. cotton, jute etc which resulted in decrease of fertility of their land. They were not allowed to grow food crops anyone found doing so was killed or the land was acquired by the Government (British). This led to the massive famine of Bengal and Orissa of 19th century and caused death of thousands of people.
Although they were provided with a very minimal amount but as there were no food crops grown at that time hence they could not buy the food grains.

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