Mahalwari System and Ryotwari System

1. Mahalwari System: (Introduced by Lord William Bentinck.)

Under this system, land is held (owned) jointly by a collective body of village. This body collects land revenues from the owners or cultivator peasants and is responsible to the government. This system is found in some parts of U.P., Punjab and Haryana. This system facilitates cooperative farming to get maximum yield from land. The small holdings of peasant cultivators can be combined for this purpose. The main drawback with this system is that it encourages absentee landlordism.

2. Ryotwari System: (Introduced by Sir Thomas Munro in 1872)

Under this system, every registered holder is recognized as its owner. The owner cultivator or peasant proprietor is responsible directly to the government for the payment of land revenues and other dues. There is no intermediary between the government and the cultivator. This is perhaps the best system of land tenure. The peasant proprietor does not fear ejection by the government so long as he pays the land revenue. He can make permanent investments in his land as he is sure to reap its benefits. Thus, this system can ensure an increase in agricultural productivity.

Merits 

1. Cultivator enjoys the ownership of his land and work hard to increase the production.

2. No middle man – no scope for exploitation.

3. Encourage the government to invest money on land improvement. 

Demerits

1. Holdings are small – becomes unprofitable.

2. Cannot make permanent improvement in the land because of small profit.

3. Periodic revision of land revenue – unsettling effects on the peasant.