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Question
What did the peasants pay the British landlords as rent? What did the British now want instead and why? What would be the impact of synthetic indigo on the prices of natural indigo?
Solution
According to the long-term contract, the peasants were forced to plant fifteen percent of their holdings with indigo and pay the entire harvest as rent.Now, with the development of synthetic indigo in Germany, the British landlords did not want indigo from these plantations. Hence, the shrewd landlords decided to release the peasants of Champaran from the fifteen percent arrangement on the payment of a compensation.
Development of synthetic indigo would lead to an increase in the price of natural indigo.
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