This statement is True.
The early part of British rule was marked by an exploitative revenue system. The farmers and peasants had to rely on money-lenders to pay Lagaan (Taxes) to the British authorities. During this phase, the Zamindari system became prevalent, through which landlords could snatch away land from poor farmers when the farmers were unable to pay taxes.
Many small cultivators lost their rights over their hereditary land and resources. The problem was further compounded by famines and natural calamities during this period. Indebtedness increased and exploitation multiplied.
This led to massive discontent among farmers. Several revolts took place during this period. To name a few, the Deccan riots against money lenders, the upsurge by Bengal tenants against Zamindari, the Punjab Kisan struggles against money lenders, etc. During 1917-18 two peasant struggles led by the National Congress are important, namely, the Champaran Struggle in Bihar against indigo planters and the Satyagraha Movement of the peasants in Kaira against the collection of land revenue in a situation of crop failure. The Congress formed Peasant Committees to take note of the unrest and demands of peasant grievances.
