Mahalwari System, Background, Features, Drawbacks, Impacts

The Mahalwari System was one of three major land revenue systems established by the British in India in the nineteenth century. It combined elements of the Zamindari and Ryotwari systems to overcome their limitations. 

The Mahalwari System sought to create a more equitable and efficient means of land revenue collection by focusing on the collective responsibility of village communities. It aimed to create a more flexible and community-based approach to land revenue collection.

Mahalwari System History

The Mahalwari System was introduced in the early 19th century as part of the British East India Company's efforts to reform land revenue systems in its territories. Following the Permanent Settlement of 1793, which fixed land revenues but led to significant issues in Bengal, the British sought a more flexible approach for other regions.

• Pioneer of Mahalwari System: The Mahalwari System began to be considered for implementation in parts of Northern India around 1819, following a recommendation by Holt Mackenzie, the secretary to the board of commissioners. His proposal was formalised through Regulation VII of 1822.
• Purpose: The system aimed to enhance revenue collection by leveraging the existing village structure, with the village headman, or lambardar, responsible for collecting revenue on behalf of the community.
• Revision of Mahalwari System: The Regulation of 1833 aimed to simplify the process of estimating land production. Merttins Bird, known as the Father of Land Settlements in Northern India, oversaw this revised scheme, which involved surveying tracts of land to delineate field boundaries for both cultivated and fallow areas.
  • The initial settlement set the state's share at 66% of the rental value for 30 years. 
  • However, this rate was deemed excessive, prompting Lord Dalhousie to issue new directives in 1855, which reduced the state's demand to 50% of the rental value.
• Spread: Introduced in the northwestern regions of British India, the system extended to the United Provinces, Central Provinces, and parts of Punjab, with regional variations such as 'Mauzawar' and 'Malguzari.'

Mahalwari System Features

The Mahalwari System featured collective responsibility for land revenue collection, with entire villages or mahals (groups of villages) held accountable for payment. The Mahalwari System included the following features:

• Mahal Definition: In the Mahalwari System, the term "mahal," which means house or estate in Hindi, refers to the basic unit for tax assessment. A mahal could be a single village or a group of villages, and it was used as the administrative unit for evaluating land revenue.
• Revenue Assessment: The revenue was based on the agricultural produce of a mahal. This means that the amount of tax levied was determined by the output and productivity of the land within the mahal.
• Ownership Structure: The system recognised the village community as the collective owner of the land, while individual cultivators held personal ownership rights over their respective plots.
• Tax Collection: Farmers contributed their share of the tax directly. The task of collecting these taxes and transferring them to the British authorities was managed by the village headman (known as the lambardar) or a group of local leaders.
• Revenue Share: Under Lord Bentinck, the state’s share of revenue was initially set at 66% of the land's rental value. This was later adjusted to 50%.
• Rent Classification: The Mahalwari System introduced the concept of varying rents based on different soil types, aiming to account for productivity differences across different land classifications.
• Periodic Revision: In Mahalwari regions, land revenue assessments were subject to periodic revisions to reflect changes in agricultural output and other relevant factors.

Mahalwari System Drawbacks

The Mahalwari System often led to financial strain on peasants due to high and variable revenue demands, exacerbating economic difficulties during periods of agricultural distress. The major drawbacks of the Mahalwari System included the following:

• Implementation Challenges: The Mahalwari System required government officials to meticulously document the rights of cultivators, zamindars, and others, as well as to determine the tax liability for each plot of land. In practice, this was nearly impossible to execute effectively.
• Inaccurate Assessments and Corruption: Revenue assessments were often imprecise, relying on estimations rather than accurate measurements. Additionally, officials frequently manipulated these assessments to boost government revenue, leading to opportunities for corruption.
• Disregard for Village Communities: The system did not benefit village communities; instead, it burdened them with excessive tax demands that were often unmanageable. This imposition led to significant financial strain on local populations.
• Land Transfers Issues: Due to cultivators' and landholders' inability to meet tax obligations, moneylenders and merchants seized large areas of land. These entities often displaced original cultivators, turning them into tenants or entirely removing them from their land.
• Cost of Administration: From the British East India Company's perspective, the cost of administering the Mahalwari System often exceeded the revenue collected, highlighting inefficiencies in the system.

Mahalwari System Impacts

Despite its intentions, the Mahalwari system's variable assessments and reliance on local intermediaries, such as the village headman, sometimes exacerbated economic difficulties and perpetuated social inequalities.

• Social Impact: The system reinforced traditional village hierarchies and social structures by placing local village leaders in charge of revenue management, exacerbating existing social inequalities and power dynamics within village communities.
• Impact on Peasants: Because of the flawed Mahalwari system, the peasants faced a high burden of interest payments, as well as rent and debt totalling around 14,200 million.
• Impoverishment: The Mahalwari System contributed to widespread impoverishment and dispossession of cultivating communities in North India. The resulting economic distress and dissatisfaction fuelled the popular uprisings of 1857.

Mahalwari System FAQs

Q1. Who introduced the Mahalwari system in 1833?

Ans. The Mahalwari system was introduced by Lord William Bentinck in 1833, revising the earlier system introduced by Holt Mackenzie in 1822.

Q2. What is the difference between Ryotwari and Mahalwari?

Ans. The Ryotwari System involves direct revenue collection from individual cultivators, while the Mahalwari System imposes collective responsibility on entire villages.

Q3. What is the difference between permanent settlement and Mahalwari settlement?

Ans. The Permanent Settlement fixed land revenue with zamindars, while the Mahalwari Settlement had periodic assessments based on land productivity and village responsibility.

Q4. Why did Mahalwari system fail?

Ans. The Mahalwari System failed due to its complex implementation, high revenue demands, administrative inefficiencies, and exacerbation by agricultural depressions, which led to financial strain and widespread resistance.

Q5. Who collected the tax in the Mahalwari system?

Ans. In the Mahalwari system, taxes were collected by the village headman (lambardar) on behalf of the entire village community.