Q5 of 15 Page 10

Why did the British introduce commercial agriculture in India? How did the production of opium, indigo and sugar shot up the profit margins of the east India Company?

The main reason that British introduced commercial agriculture in India was that they wanted to purchase crops at low price from India and sell the same at higher prices in other countries. This way they easily expanded their trade in India.

The main purpose of the British East India Company to expand trade in India was 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, they will get paid. So 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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