'The revenue policy of the British was the major cause for the decline of agricultural sector in India'. Examine this statement by analysing the features of the permanent settlement.

The permanent settlement was a land revenue system introduced by the British in the provinces of Bengal, Bihar and Orissa. The following were salient features of this system:

1. The ownership of farmland was transferred from the farmer to the landowner, called Zamindar. He was responsible for collecting taxes from the farmers under his supervision.

2. The farmers were hence reduced to tenants, who had to pay taxes on their produce.

3. The taxes paid could be as high as 60 per cent of the yield, which financially burdened the tenants.

4. The taxes had to strictly be paid in cash- crop was not accepted. These taxes had to be paid before harvest season.

5. The land revenue policies several affected the farmers. Since they could not to pay tax in the form of money before the harvest, they were forced to take loan from moneylenders at a high rate of interest, by mortgaging agricultural land. In case the individual failed to compensate the moneylender, seizure of land would doom farmer’s future.