The Ryotwari system, introduced by the British in areas like Madras and Bombay Presidencies, involved direct settlement between the government and the ryots (peasants).
- Heavy Tax Burden: Ryots had to pay high land revenue regardless of the crop yield, which caused distress during droughts or crop failure.
- Revenue Rigidity: Taxes were fixed for a period, but without considering changing economic conditions or the peasants' capacity to pay.
- Debt Trap: Ryots often borrowed money from moneylenders to pay revenue, leading to cycles of indebtedness and loss of land.
- Lack of State Support: No institutional support or investment was provided by the government to aid peasants in improving agriculture.
Thus, the system led to widespread poverty, land alienation, and agrarian distress among Indian peasants.