Correct Option
The correct option is 2 only
Explanation
The question pertains to the agrarian crisis in the Bombay Deccan during the early 19th century. This region was governed under the Ryotwari System, where revenue was settled directly with the cultivator (ryot). The period following 1832 was marked by a severe agricultural depression that exposed the structural flaws of the high revenue assessments fixed by the British.
Statement-wise Analysis
- Statement 1 is Incorrect: After 1832, the prices of agricultural products in the Deccan fell sharply. This was part of a broader economic trend where the markets for agricultural produce slumped, significantly reducing the value of the crops grown by the peasants.
- Statement 2 is Correct: The peasants' income did not increase; rather, it declined drastically. The fall in prices meant that the ryots received much less for their produce. Consequently, the real value of their income collapsed, making it difficult to sustain their livelihoods or purchase necessities.
- Statement 3 is Incorrect: The British administration did not reduce the revenue demand immediately. The revenue settlement was fixed in cash and was notoriously high. Despite the sharp fall in crop prices, the government remained rigid and continued to collect the full revenue using coercive methods. This inflexibility exacerbated the distress, leading to widespread indebtedness and the flight of peasants to neighboring princely states.
Key Takeaway
Under the Ryotwari System in the Deccan, the revenue demand was fixed in cash. During the agricultural depression of the 1830s, falling prices increased the real burden of taxation, but the colonial state refused to lower demands, leading to severe agrarian distress.