According to the long-term contract, the peasants were forced to plant fifteen percent of their holdings with indigo and pay the entire harvest as rent.
Now, with the development of synthetic indigo in Germany, the British landlords did not want indigo from these plantations. Hence, the shrewd landlords decided to release the peasants of Champaran from the fifteen percent arrangement on the payment of a compensation.
Development of synthetic indigo would lead to an increase in the price of natural indigo.
