CBSE Class 8 Answered

Under the Diwani of the Company, the artisans began deserting the villages because they were forced to sell their goods at abysmally low prices. Also, the peasants were unable to pay the dues being demanded by the Company administration which was obsessed with increasing its own income. Gradually, artisanal production reduced significantly and agricultural cultivation began to show signs of a collapse. In 1770, Bengal suffered a terrible famine which killed 10 million people and wiped out about one-third of the region’s population. This further increased the pressure on the Bengal economy which was already reeling under the inefficient rule of the Company.