ruling the countryside
Answers
On 12 August 1765, the Mughal emperor appointed the East India Company as the Diwan of Bengal. ... The company came to colonise the countryside, organize revenue resources, redefine the rights of people and produce the crops it wanted.
Answer:
The Company Becomes the Diwan
On 12 August 1765, the Mughal emperor appointed the East India
Company as the Diwan of Bengal. The actual event most probably
took place in Robert Clive’s tent, with a few Englishmen and
Indians as witnesses. But in the painting above, the event is
shown as a majestic occasion, taking place in a grand setting.
The painter was commissioned by Clive to record the memorable
events in Clive’s life. The grant of Diwani clearly was one such
event in British imagination.
As Diwan, the Company became the chief financial
administrator of the territory under its control. Now it had to
think of administering the land and organising its revenue
resources. This had to be done in a way that could yield enough
revenue to meet the growing expenses of the company. A trading
company had also to ensure that it could buy the products it
needed and sell what it wanted.
3 Ruling the Countryside
Over the years the Company also learnt that it had to
move with some caution. Being an alien power, it needed
to pacify those who in the past had ruled the countryside,
and enjoyed authority and prestige. Those who had held
local power had to be controlled but they could not be
entirely eliminated.
How was this to be done? In this chapter we will see
how the Company came to colonise the countryside, organise
revenue resources, redefine the rights of people, and produce
the crops it wanted.
Revenue for the Company
The Company had become the Diwan, but it still saw itself
primarily as a trader. It wanted a large revenue income but
was unwilling to set up any regular system of assessment
and collection. The effort was to increase the revenue as much
as it could and buy fine cotton and silk cloth as cheaply as
possible. Within five years the value of goods bought by the
Company in Bengal doubled. Before 1865, the Company had
purchased goods in India by importing gold and silver from
Britain. Now the revenue collected in Bengal could finance
the purchase of goods for export.
Soon it was clear that the Bengal economy was facing
a deep crisis. Artisans were deserting villages since they
were being forced to sell their goods to the Company at low
prices. Peasants were unable to pay the dues that were being
demanded from them. Artisanal production was in decline,
and agricultural cultivation showed signs of collapse. Then
in 1770 a terrible famine killed ten million people in Bengal.
About one-third of the population was wiped out.