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Additional Practice · Q3

Q.How did the arrival of synthetic indigo from Germany change the situation of the sharecroppers and their landlords? What new demand did the landlords make?

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The arrival of German synthetic indigo destroyed the value of natural indigo, so the landlords no longer needed the crop; instead of simply freeing the peasants, they demanded that the sharecroppers pay them compensation to be released from the indigo contracts.

The indigo trade in Champaran rested on the tinkathia system of exploitation. Under a long-term contract, the peasants were compelled to plant indigo on three-twentieths — fifteen per cent — of their holdings and to hand the entire harvest to the British landlords as rent, receiving nothing for it while the planters profited from the European demand for the blue dye.

Everything changed when the landlords learned that Germany had developed synthetic indigo. The synthetic dye was cheaper and easier to produce in factories than the natural product extracted from the plant, and the market for natural indigo collapsed. The planters, who had built their fortunes on forced indigo cultivation, suddenly found themselves holding a crop nobody wanted.

Note

The synthetic dye was more than a commercial rival — it removed the whole economic reason for the coercive indigo system, yet the planters were determined to profit from it one last time.

Faced with vanishing demand, the landlords no longer had any use for indigo cultivation. The just course would have been to release the peasants from their contracts and let them grow food crops. Instead, the planters saw one final opportunity to extract money. Their new demand was as cynical as it was cruel. They obtained agreements from the sharecroppers to pay them compensation — in effect a release fee — for being freed from the fifteen per cent arrangement. Peasants who had been forced into these contracts in the first place were now being told they had to pay for their freedom from a system that no longer benefited the landlords either.

Many peasants, finding the sharecropping irksome, signed willingly; those who resisted engaged lawyers while the landlords hired thugs. But when the news of synthetic indigo reached the illiterate peasants who had already signed and paid, they realised they had been cheated and wanted their money back. This extortion became the immediate grievance behind the Champaran Satyagraha of 1917.

Important

The synthetic indigo crisis exposed the truth that the whole indigo system had never been about mutual benefit — the moment it stopped being profitable, the planters sought one last round of exploitation before abandoning it.

✓Final answer

German synthetic indigo made natural indigo cultivation unprofitable, so the landlords no longer needed the crop but still demanded that the sharecroppers pay them compensation to be released from the now-worthless indigo contracts — a final act of exploitation that sparked the Champaran struggle.

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