Explain the impact of refusal of moneylenders to extend loans to Ryots around 1865, under the colonial rule in India.
As a boom in cotton market lasted for long, India cotton merchants began to visualise the capturing of the world market in raw cotton by permanently displacing the United States of America (U.S.A.). But this condition changed in 1865. American Civil War came to an end and America again began to produce cotton. As a result, Indian export of cotton to British steadily declined. Under these circumstances, moneylenders and export merchants of Maharashtra were no longer keen on providing long-term loans. The refusal of moneylenders to extend loans enraged the ryots. What infuriated them was not that they had got deeper and deeper into debt, or that were utterly dependent on the moneylender for survival, but that moneylenders were not sensitive to their plight. The moneylenders were violating the customary norms of the countryside.
