The first revenue settlement in the Bombay Deccan was made in the 1820s. The revenue that was demanded was so high that in many places peasants deserted their villages and migrated to new regions. In areas of poor soil and fluctuating rainfall the problem was particularly acute. When rains failed and harvests were poor, peasants found it impossible to pay the revenue. However, the collectors in charge of revenue collection were keen on demonstrating their efficiency and pleasing their superiors. So they went about extracting payment with utmost severity. When someone failed to pay, his crops were seized and a fine was imposed on the whole village.
By the 1830s the problem became more severe. Prices of agricultural products fell sharply after 1832 and did not recover for over a decade and a half . This meant a further decline in peasants’ income. At the same time the countryside was devastated by a famine that struck in the years 1832-34. One-third of the cattle of the Deccan were killed, and half the human population died. Those who survived had no agricultural stocks to see them through the crisis. Unpaid balances of revenue mounted.