Then Came the Cotton Boom
The cotton boom during the 1860s was a pivotal moment in the history of India's agriculture, especially for the Deccan region. Prior to this period, Britain relied heavily on America for its cotton supply, with American producers providing over three-fourths of raw cotton imports. However, the outbreak of the American Civil War in 1861 led to a drastic reduction in cotton imports, prompting British manufacturers to seek alternative supplies. This situation opened a window of opportunity for Indian farmers, who were encouraged to increase cotton production to meet the soaring demand.
In response to the cotton shortage, the Cotton Supply Association was established in Britain, followed by the formation of the Manchester Cotton Company, aiming to boost global cotton production, with Indian soil being highly suitable for cultivation. As a result, a flurry of credit flowed into the Deccan, allowing farmers (ryots) to plant vast amounts of cotton in exchange for advances typically amounting to Rs 100 per acre.
However, the boom years weren't uniformly prosperous. While wealthy farmers capitalized on the high cotton prices, many others fell deeper into debt as the cotton market became volatile. Once the American supply resumed post-war, cotton prices plummeted, leading to severe financial distress for countless ryots, who found themselves unable to repay loans, thereby entrenching them in a cycle of debt. The cotton boom illustrates the complexities of economic dependency, local agricultural practices, and the lasting repercussions of colonial policies on Indian farmers.