Under the following circumstances, the indigo production in Bengal was led to the eventual collapse:
(i) Local zamindars and village headmen began to support the ryots.
(ii) The British Government was worried about the possibility of another revolt. After the revolt of 1857. So, the Lieutenant Governor toured the region.
(iii) British official Ashley Eden issued a notice that ryots would not be compelled to accept indigo contracts.
(iv) The British Government set-up the Indigo Commission to enquire about the system of indigo production.
(v) The Commission held the planters guilty and criticised them for adopting coercive methods.

The main features of the Permanent Settlement were: 
(i) By the terms of the settlement, the rajas and taluqdars were recognized as zamindars.
(ii) Zamindars were asked to collect rent from the peasants and pay revenue to the Company.
(iii) The amount to be paid by the zamindars was fixed permanently, i.e. it was not to be increased ever in future.
(iv) It would ensure a regular flow of revenue into the company's coffers and at the same time encourage the zamindars to invest in improving the land.
(v) As the rate of revenue was fixed, the zamindar would benefit from the increased production of land.

The weekly markets in Bengal were very popular. Peasants and artisans from rural areas regularly came to these markets (which were known as haats) to sell their goods and buy what they needed. Local people came in large numbers to buy necessary things. During the economic crisis of Bengal, these markets were badly affected as common men did not have enough money to satisfy their basic needs.

The planters were reluctant to expand the area under nij cultivation because of the following reasons:
(i) Indigo could be cultivated only on fertile lands, but these were already densely populated. The planters hardly got large areas in compact blocks.
(ii) The planters needed a large number of labour at a time when peasants were busy with rice cultivation.
(iii) Nij cultivation on a large scale also required many ploughs and bullocks. They could not get the supplies from peasants as their ploughs and bullocks were busy on rice fields. Investing on purchase and maintenance of ploughs was a big problem.

(i) A weekly market (which is known as haat) in Murshidabad in Bengal is shown in the picture.
(ii) Peasants and artisans from rural areas regularly came to these weekly markets to sell the goods they produced and to buy the goods they required.
(iii) These markets were badly affected during the economic crisis. At the time of economic crisis, artisanal production was in decline and agricultural cultivation showed signs of collapse.

(i) The Slave Revolt in St Domingue in August 1791 is shown in the above picture.
(ii) In the 18th century, French planters produced indigo and sugar in the French colony of St Domingue in the Caribbean islands.
(iii) The African slaves who worked on the plantations rose in rebellion in 1791. They killed 4000 Whites and burned and destroyed 180 sugar plantations and hundreds of coffee and indigo plantations.
(iv) The other name of the Slave Revolt is Haitian Revolt.
(v) In 1792, France abolished slavery in the French colonies.
These events led to the collapse of the indigo plantations on the Caribbean islands. By 1792, slave rebels controlled one-third of the island. The success of this slave rebellion caused the newly elected Legislative Assembly in France to grant civil and political rights to free men in the colonies.

After harvest, the indigo plant was taken to the vats in the indigo factory. Three or four vats were needed to manufacture the dye. Each vat had a separate function.
Leaves of the indigo plant were first soaked in warm water in the fermenting vat for several hours. When the plants fermented, the liquid began to boil and bubble. Now, the rotten leaves were taken out and the liquid drained into the second vat, known as the beater vat.
The solution was continuously stirred and beaten with paddles. When the liquid gradually turned green and then blue, lime water was added to the vat. Gradually, the indigo separated out in flakes. A muddy sediment settled at the bottom of the vat and a clear liquid rose to the surface. The liquid was drained off and the sediment, i.e. the indigo pulp transferred to another vat, known as the settling vat. Then the pulp was pressed and dried for sale.