Question
What were the terms of the Permanent Settlement? What problems did it pose?

Answer

The Permanent Settlement, however, created problems. Company officials soon discovered that the zamindars were in fact not investing in the improvement of land. The revenue that had been fixed was so high that the zamindars found it difficult to pay. Anyone who failed to pay the revenue lost his zamindari.
By the first decade of the 19th century the situation changed. The prices in the market rose and cultivation slowly expanded. This meant an increase in the income of the zamindars but no gain for the Company since it could not increase a revenue demand that had been fixed permanently. Even then the zamindars did not have any interest in
improving the land. Some had lost their lands in the earlier years of the settlement.
In the villages, the cultivator found the system extremely oppressive. The rent he paid to the zamindar was high and his right on the land was insecure. To pay the rent he had to often take a loan from the moneylender, and when he failed to pay the rent he was evicted from the land he had cultivated for generations.

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