The Ryotwari system, introduced by the British in the 19th century, placed the responsibility of paying land taxes directly on individual farmers (ryots). While the system was intended to simplify land revenue collection, it had several negative consequences:
1. Rural Indebtedness: The system fixed taxes at a high rate, which often exceeded the farmers’ ability to pay. Farmers had to borrow money from moneylenders at high interest rates to pay the taxes, leading to chronic indebtedness.
2. Economic Exploitation: As farmers struggled to meet tax demands, many were forced to sell their land to moneylenders or landlords, leading to the concentration of land in the hands of a few. This weakened the peasantry and contributed to widespread poverty.
3. Long-term Consequences: The Ryotwari system contributed to long-term economic instability for the peasantry in the Bombay-Deccan region. Farmers, who were once landowners, lost their lands and became dependent on the landlords or moneylenders, further deepening their economic vulnerability.
Thus, the Ryotwari system exacerbated rural indebtedness, undermined agricultural productivity, and caused long-term damage to the peasantry.