The Deccan Riots Commission was concerned with :

1. Colonial Land Revenue Systems: Ryotwari vs. Permanent Settlement (basic)

To understand the roots of peasant unrest in India, we must first look at how the British East India Company managed the land. In the late 18th and early 19th centuries, the British were obsessed with securing a steady stream of revenue to fund their wars and administration. This led to the creation of two very different systems: the Permanent Settlement (mostly in Bengal and Bihar) and the Ryotwari System (mostly in the South and West).

The Permanent Settlement created a class of powerful intermediaries called Zamindars, who acted as landlords and collected rent for the British. However, when the British expanded into the Madras and Bombay Presidencies, they found fewer large-scale zamindars to work with. Influenced by David Ricardo’s Theory of Rent — which suggested the state should claim the "surplus" profit of the land — officials like Sir Thomas Munro and Captain Alexander Reed introduced the Ryotwari System around 1820 Indian Economy, Nitin Singhania (2nd ed. 2021-22), Land Reforms in India, p.337. In this system, the British dealt directly with the Ryot (the individual peasant or cultivator), recognizing them as the proprietor of the land as long as they paid the tax History, class XI (Tamilnadu state board 2024 ed.), Effects of British Rule, p.266.

While cutting out the middleman sounds progressive, the reality was harsh. The revenue rates were staggeringly high — often 50% for dry lands and 60% for irrigated lands Indian Economy, Nitin Singhania (2nd ed. 2021-22), Land Reforms in India, p.337. Unlike the Permanent Settlement, where the tax was fixed forever, Ryotwari assessments were revised every 20-30 years, often leading to steep increases. This rigidity meant that if a monsoon failed, the peasant had no safety net; they were forced to turn to moneylenders (sahukars) to pay the government, leading to a vicious cycle of debt and eventual loss of land THEMES IN INDIAN HISTORY PART III, History CLASS XII (NCERT 2025 ed.), Chapter 9, p.248.

Feature	Permanent Settlement	Ryotwari System
Key Figures	Lord Cornwallis	Thomas Munro, Alexander Reed
Intermediary	Zamindars (Landlords)	None (Direct with the Ryot)
Revenue Fixity	Fixed permanently	Revised periodically (Temporary)
Region	Bengal, Bihar, Odisha	Madras, Bombay, Assam

Sources: Indian Economy, Nitin Singhania (2nd ed. 2021-22), Land Reforms in India, p.337; History, class XI (Tamilnadu state board 2024 ed.), Effects of British Rule, p.266; THEMES IN INDIAN HISTORY PART III, History CLASS XII (NCERT 2025 ed.), Chapter 9: COLONIALISM AND THE COUNTRYSIDE, p.248

2. The Role of Moneylenders (Sahukars) in the Rural Economy (basic)

In the traditional Indian rural economy, the Sahukar (moneylender) was often a necessary figure, providing credit for seeds or social ceremonies. However, under British colonial rule, this relationship underwent a drastic and predatory transformation. The primary driver was the British land revenue system, particularly the Ryotwari system. Unlike earlier times, the British demanded revenue in fixed cash amounts on specific dates, regardless of whether the harvest failed. To save their land from being auctioned by the state, peasants were forced into the arms of moneylenders THEMES IN INDIAN HISTORY PART III, Chapter 9: COLONIALISM AND THE COUNTRYSIDE, p.248.

By the 1840s, this had created a vicious cycle of chronic indebtedness. Peasants weren't just borrowing for taxes anymore; they needed loans for basic survival and daily needs. The moneylender’s power grew because the colonial legal system prioritized written contracts over customary oral traditions. This shift allowed Sahukars to manipulate debt bonds, charge interest rates that far exceeded the principal, and refuse to provide receipts for repayments, ensuring the peasant could never truly clear the debt THEMES IN INDIAN HISTORY PART III, Chapter 9: COLONIALISM AND THE COUNTRYSIDE, p.252.

The anger of the peasants eventually boiled over, most notably during the Deccan Riots of 1875. The ryots (peasants) didn't just want their money back; they targeted the debt bonds themselves, systematically seizing and burning the account books that held them in legal bondage. This led the British to establish the Deccan Riots Commission to investigate the unrest, eventually resulting in the Deccan Agriculturists' Relief Act of 1879, which aimed to curb the most extreme forms of exploitation A Brief History of Modern India, Chapter 31: Peasant Movements 1857-1947, p.577.

Feature	Pre-Colonial Lending	Colonial Era Lending
Interest Rates	Governed by custom and community pressure.	Exorbitant; often exceeding the principal amount.
Legal Basis	Informal, oral, and social trust.	Rigid written contracts backed by British courts.
Outcome of Default	Peasants usually kept their land.	Frequent land alienation (loss of land to lenders).

Sources: THEMES IN INDIAN HISTORY PART III, Chapter 9: COLONIALISM AND THE COUNTRYSIDE, p.248; THEMES IN INDIAN HISTORY PART III, Chapter 9: COLONIALISM AND THE COUNTRYSIDE, p.252; A Brief History of Modern India (Spectrum), Chapter 31: Peasant Movements 1857-1947, p.577

3. Global Links: American Civil War and the Deccan Cotton Boom (intermediate)

To understand the agrarian history of 19th-century India, we must look beyond our borders. In the mid-1800s, Britain was the world’s textile powerhouse, with its Lancashire mills heavily dependent on raw cotton from the United States. However, when the American Civil War broke out in 1861, exports from the American South (the "Slave States") were blocked. This created a massive supply vacuum, causing panic in British industrial circles as cotton imports dropped from over 2 million bales in 1861 to a mere 55,000 in 1862 Themes in Indian History Part III, Chapter 9, p.250. To save their industry, the British turned desperately toward India.

The impact on the Bombay Deccan was immediate and dramatic. Cotton merchants and sahukars (moneylenders) rushed into the countryside, offering advances to peasants to encourage them to switch from food crops to cotton. For a brief window, the Deccan ryots had access to seemingly "limitless credit," receiving advances of up to ₹100 for every acre of cotton planted Themes in Indian History Part III, Chapter 9, p.251. By 1862, over 90% of cotton imports into Britain were sourced from India. This period saw a massive expansion in cultivation, with cotton acreage in the Bombay Deccan doubling between 1860 and 1864.

Phase	Period	Economic Impact on Deccan Ryots
The Boom	1861–1864	High cotton prices, easy credit from sahukars, and rapid expansion of cultivation.
The Bust	Post-1865	American supply returns; prices crash, credit is withdrawn, and debt becomes unmanageable.

However, this prosperity was a fragile bubble. As the American Civil War ended in 1865, American cotton flooded the market again, and the demand for Indian cotton plummeted Themes in Indian History Part III, Chapter 9, p.252. Prices crashed, and the same moneylenders who had forced loans upon the peasants now refused to extend further credit, instead demanding immediate repayment of old debts. While some rich peasants had profited, the majority of the peasantry was left trapped in a cycle of chronic indebtedness. This sudden transition from a global boom to a localized debt crisis set the stage for intense social friction in the Deccan countryside.

Sources: Themes in Indian History Part III, Chapter 9: Colonialism and the Countryside, p.250-252

4. Adjacent Peasant Unrest: The Indigo Revolt (1859-60) (intermediate)

The Indigo Revolt (1859–60), or Neel Bidroha, was a watershed moment in Indian peasant history. Unlike many unorganized uprisings, this was a remarkably well-coordinated movement against European planters in Bengal. At its heart was the 'Blue Gold'—Indigo—a dye in massive demand for the European textile industry History, class XII (Tamilnadu state board 2024 ed.), Rise of Nationalism in India, p.3. The conflict arose because planters forced peasants to grow indigo on their best lands instead of food crops like rice. This was done through the 'Dadon' system, where peasants were lured into accepting small cash advances. Once a contract was signed, the peasant fell into a cycle of debt slavery, as the price paid for the indigo was far below the market rate, making it impossible to ever repay the debt Exploring Society: India and Beyond, Social Science, Class VIII, NCERT, The Colonial Era in India, p.108.

The revolt began in 1859 in Nadia district, where peasants refused to take further advances and collectively decided not to grow indigo. What made this movement unique was its multi-pronged strategy: peasants used social boycotts against planters' servants, physical resistance against the planters' mercenaries (lathiyals), and legal battles in colonial courts. Crucially, this was one of the first times the Bengali middle-class intelligentsia supported a peasant cause. Writers like Dinabandhu Mitra, through his famous play Neel Darpan (1860), exposed the horrific torture and exploitation faced by the ryots, garnering sympathy even in England Modern India, Bipin Chandra, History class XII (NCERT 1982 ed.), Economic Impact of the British Rule, p.192.

Under immense pressure, the British government established the Indigo Commission in 1860. The commission famously declared the system of indigo cultivation to be inherently oppressive. Based on its findings, the government issued a notification in November 1860 stating that ryots could not be compelled to grow indigo Rajiv Ahir, A Brief History of Modern India (2019 ed.), SPECTRUM, Peasant Movements 1857-1947, p.575. Consequently, planters closed their factories and shifted operations to Bihar. Eventually, the invention of synthetic dyes in Germany dealt the final blow to the natural indigo industry by the end of the century Modern India, Bipin Chandra, History class XII (NCERT 1982 ed.), Economic Impact of the British Rule, p.192.

Sources: History, class XII (Tamilnadu state board 2024 ed.), Rise of Nationalism in India, p.3; Exploring Society: India and Beyond, Social Science, Class VIII, NCERT(Revised ed 2025), The Colonial Era in India, p.108; Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM., Peasant Movements 1857-1947, p.575; Modern India, Bipin Chandra, History class XII (NCERT 1982 ed.), Economic Impact of the British Rule, p.192

5. Tribal Resistance: The Santhal Hool and Land Alienation (intermediate)

The Santhal Hool (rebellion) of 1855–56 stands as one of the most fierce tribal insurgencies against British colonial rule and the exploitative Zamindari system. The Santhals were an agricultural community who had been persuaded by the British to settle in the foothills of the Rajmahal hills (modern-day Jharkhand and Bihar) to practice settled agriculture. This region, known as Damin-i-Koh, was cleared and cultivated by the Santhals through immense labor. However, they soon found themselves trapped in a web of land alienation. The colonial land revenue system empowered zamindars (landlords) and moneylenders (referred to as dikus or outsiders), who used fraudulent debt bonds and high interest rates to seize Santhal lands Rajiv Ahir, A Brief History of Modern India, Chapter 31, p.157. By the mid-1850s, the Santhals felt that the ground was slipping from beneath their feet. The British police and courts consistently sided with the moneylenders, leaving the tribals with no legal recourse. Under the leadership of four brothers—Sidhu, Kanhu, Chand, and Bhairav Murmu—the Santhals rose in a massive 'Hool' (rebellion). They proclaimed an end to the East India Company's rule and declared the territory between Bhagalpur and Rajmahal as autonomous Exploring Society: India and Beyond, Class VIII NCERT, The Colonial Era in India, p.106. This was not merely a protest against taxes; it was a desperate battle to reclaim their ancestral lands and preserve their social identity from external 'dikus'. The rebellion fundamentally changed how the British viewed tribal populations. Before the Hool, the British saw the Santhals as peaceful wood-cutters; afterward, they were viewed as a force capable of "savage" and violent deeds Themes in Indian History Part III, Class XII NCERT, Chapter 9, p.242. To prevent future uprisings, the British government was forced to make concessions, creating the Santhal Parganas as a separate administrative unit and passing special laws to protect tribal land from being transferred to non-tribals.

Feature	Santhal Grievance	Colonial/Diku Action
Land	Loss of 'Damin-i-Koh' to outsiders.	High revenue demands and land auctions.
Debt	Exorbitant interest (often 50% to 500%).	Moneylenders used cooked books and debt bonds.
Justice	Tribal customs ignored by courts.	Police and legal system favored the wealthy 'dikus'.

Sources: A Brief History of Modern India (Spectrum), People’s Resistance Against British Before 1857, p.157; Exploring Society: India and Beyond, Social Science, Class VIII NCERT, The Colonial Era in India, p.106; Themes in Indian History Part III, Class XII NCERT, Colonialism and the Countryside, p.242

6. The Deccan Riots of 1875: Events and Social Boycott (exam-level)

The Deccan Riots of 1875 represent a pivotal moment where agrarian distress transformed into an organized social and political protest. To understand this, we must look at the Ryotwari System in the Bombay Deccan, where the British set revenue rates so high that peasants were forced to borrow from moneylenders (sahukars) just to pay taxes Themes in Indian History Part III, Chapter 9, p.248. When the cotton boom ended after the American Civil War, peasants could no longer repay these loans, and sahukars began violating customary norms by seizing land and refusing further credit Themes in Indian History Part III, Chapter 9, p.252.

The uprising began not with violence, but with a sophisticated social boycott. In the villages of Poona and Ahmednagar, the ryots (peasants) refused to buy from the moneylenders' shops or cultivate their fields. Most notably, they pressured village service groups—barbers, washermen, and shoemakers—to refuse service to the sahukars A Brief History of Modern India, Chapter 31, p.577. When this social pressure didn't break the moneylenders' hold, the movement turned into systematic agrarian riots.

During the riots, the primary target was the legal evidence of debt. Peasants did not just loot; they specifically sought out hathchittas (account books) and debt bonds to burn them in the streets Themes in Indian History Part III, Chapter 9, p.246. The British government, still haunted by the memory of the 1857 Revolt, acted swiftly by establishing the Deccan Riots Commission to investigate. The commission's findings eventually led to the Deccan Agriculturists' Relief Act of 1879, which restricted the sahukars' ability to seize land for debt recovery Themes in Indian History Part III, Chapter 9, p.255.

Sources: Themes in Indian History Part III, Chapter 9: Colonialism and the Countryside, p.246, 248, 252, 255; A Brief History of Modern India, Chapter 31: Peasant Movements 1857-1947, p.577

7. The Deccan Riots Commission and the 1879 Relief Act (exam-level)

By 1875, the agrarian distress in the Deccan reached a breaking point. What started as a social boycott against Sahukars (moneylender-traders) in the village of Supa rapidly transformed into widespread riots across Poona and Ahmednagar districts. The peasants' primary targets were not the people themselves, but the instruments of their bondage: the account books and debt bonds. During these disturbances, ryots forcibly entered moneylenders' houses to seize and publicly burn these documents Themes in Indian History Part III, Chapter 9, p.246. The underlying cause was a lethal combination of high land revenue under the Ryotwari system and a crash in cotton prices, which left peasants unable to pay debts they had incurred during more prosperous years.

Initially, the Bombay government dismissed the riots as minor law-and-order issues. However, the Government of India, still haunted by the memory of the 1857 Revolt, feared that agrarian discontent could trigger a larger rebellion. Consequently, they pressured the Bombay Presidency to establish the Deccan Riots Commission in 1875 to investigate the causes of the unrest Themes in Indian History Part III, Chapter 9, p.255. The Commission's 1878 report was an exhaustive study; it recorded evidence from both ryots and sahukars and documented the exploitative nature of debt contracts. For instance, some deeds showed that peasants were forced to "sell" their bullocks and carts to moneylenders and then pay monthly hire charges just to use their own equipment Themes in Indian History Part III, Chapter 9, p.253.

The Commission concluded that while the moneylenders' practices were harsh, the rigidity of the British revenue demand was the root cause of the chronic indebtedness. As a conciliatory measure to prevent future uprisings, the British Parliament passed the Deccan Agriculturists’ Relief Act of 1879. This Act provided legal safeguards to the peasants, such as restricting the arrest and imprisonment of debtors and allowing the courts to reduce interest rates or rewrite unfair loan agreements Brief History of Modern India, Chapter 31, p.577. Interestingly, this movement saw significant support from the modern nationalist intelligentsia of Maharashtra, marking an early instance of the urban elite aligning with rural grievances.

Sources: Themes in Indian History Part III, Chapter 9: Colonialism and the Countryside, p.246, 253, 255; Brief History of Modern India (Spectrum), Chapter 31: Peasant Movements 1857-1947, p.577

8. Solving the Original PYQ (exam-level)

This question brings together the socio-economic building blocks of 19th-century colonial India. You have recently studied how the Ryotwari system's high revenue demands, combined with the collapse of the cotton boom after the American Civil War, created a perfect storm for the peasantry. As highlighted in THEMES IN INDIAN HISTORY PART III, when the ryots could no longer pay their taxes, they turned to sahukars (moneylenders) who used fraudulent bonds and exorbitant interest to trap them. The 1875 riots were a direct reaction to this, where peasants systematically targeted the symbols of their misery: the account books and debt bonds. Therefore, the Deccan Riots Commission was not merely looking at the violence itself, but the indebtedness of the peasant that fueled it.

To arrive at the correct answer (A), you must identify the primary objective of the British inquiry. While the Ryotwari system (Option C) was indeed a root cause, the Commission’s specific mandate was to investigate the friction between the debtor and the creditor. According to A Brief History of Modern India by Spectrum, the Commission’s findings documented how the debt cycle led to land alienation, which eventually forced the government to pass the Deccan Agriculturists' Relief Act of 1879. By focusing on the legislative outcome—which was debt relief—you can logically deduce that the Commission’s chief concern was the financial burden on the farmers.

UPSC often uses distractor traps like Option (D), where the word "riots" is meant to make you think of communal or religious tension; however, these were strictly agrarian disturbances. Option (B) is another trap that focuses on a symptom (law and order) rather than the substance of the investigation. Finally, while the problems with the Ryotwari system (Option C) were real, the Commission's formal report and subsequent legal actions were specifically centered on rural credit and debt, making Option (A) the most accurate and specific choice.