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During the time of the Champaran Satyagraha, the peasants in Champaran, Bihar, were forced to grow indigo by the British landlords as part of the system known as the Tinkathia system. The peasants had to give away three parts of the crop to the British landlords as rent, leaving them with only one part for their own sustenance.
However, the British landlords wanted to change this arrangement. Instead of indigo, they wanted the peasants to cultivate another cash crop, such as sugarcane, because synthetic indigo was becoming more economically viable. Synthetic indigo was cheaper to produce and could be manufactured more efficiently than natural indigo derived from the indigo plant.
The impact of synthetic indigo on the prices of natural indigo would have been significant. With the availability of cheaper synthetic alternatives, the demand for natural indigo would decrease, leading to a decline in its price. This would adversely affect the livelihoods of the peasants in Champaran who depended on indigo cultivation for their income. The shift away from natural indigo cultivation would also have broader economic implications for the region, potentially leading to unemployment and economic instability among the rural population.
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