Q. 14.0( 2 Votes )

How did the production of opium, indigo and sugar shot up the profit margins of the East India Company?

Answer :

The main purpose of the British East India Company was to expand trade in India through agriculture. Through the cultivation of the opium, indigo and sugar they decided to increase their profits. They asked peasants to grow these crops, and in return, get paid. So the company encouraged farmers to grow commercial crops and also helped them with loans and other equipment. They bought these crops at low price from peasants and sold it at higher prices to other European countries. Gradually, they started getting profit with the trade. And the production of opium, indigo and sugar shot up the profit margins of the East India Company


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