how did the production of opium Indigo and sugar shot of the profit margins of the East Indian Company
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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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ⁱᵗ ᵖʳᵒᶠⁱᵗᵉᵈ ᵗʰᵉ ᵉᵃˢᵗ ⁱⁿᵈⁱᵃ ᶜᵒᵐᵖᵃⁿʸ ˢⁱⁿᶜᵉ ᵒᵖⁱᵘᵐ,ⁱⁿᵈⁱᵍᵒ,ᵃⁿᵈ ˢᵘᵍᵃʳ ᶜᵃⁿᵉ ᵃʳᵉ ᶜᵃˢʰ ᶜʳᵒᵖˢ ʷʰⁱᶜʰ ᵗʰᵉ ᶜᵒᵐᵖᵃⁿʸ ᶜᵒᵘˡᵈ ᵇᵘʸ ᵃᵗ ᵃ ˡᵒʷ ᵖʳⁱᶜᵉ ᵃⁿᵈ ᶜᵒᵘˡᵈ ˢᵉˡˡ ⁱᵗ ⁱⁿ ᵉⁿᵍˡᵃⁿᵈ ᵃᵗ ᵃ ᵖʳᵒᶠⁱᵗᵃᵇˡᵉ ᵃᵐᵒᵘⁿᵗ ˢʰᵒᵗ ᵘᵖ ᵗʰᵉ ᵖʳᵒᶠⁱᵗ ᵐᵃʳᵍⁱⁿˢ ᵒᶠ ᵗʰᵉ ᵉᵃˢᵗ ⁱⁿᵈⁱᵃ ᶜᵒᵐᵖᵃⁿʸ, ᵈᵘᵉ ᵗᵒ ⁱⁿᶜʳᵉˢˢ ⁱⁿ ᵈᵉᵐᵃⁿᵈ ᵒᶠ ᵗʰᵉˢᵉ ʳᵃʷ ᵍᵒᵒᵈˢ ⁱⁿ ᵉⁿᵍˡᵃⁿᵈ ᵇʳᵒᵘᵍʰᵗ ᵇʸ ᵗʰᵉ ⁱⁿᵈᵘˢᵗʳⁱᵃˡ ʳᵉᵛᵒˡᵘᵗⁱᵒⁿ.ᵗʰᵉ ᵒᵖⁱᵘᵐ ᵖʳᵒᵈᵘᶜᵉᵈ ʷᵃˢ ˢᵐᵘᵍᵍˡᵉᵈ ᵗᵒ ᶜʰⁱⁿᵃ ʷʰⁱᶜʰ ᶠⁱˡˡᵉᵈ ᵗʰᵉ ᶜᵒᵐᵖᵃⁿʸ'ˢ ᵗʳᵉᵃˢᵘʳʸ.
ᵉˣᵖˡᵃⁿᵃᵗⁱᵒⁿ:
ᵗʰᵉ ⁱⁿᵈⁱᵍᵒ ᵖʳᵒᵈᵘᶜᵉᵈ ⁱⁿ ⁱⁿᵈⁱᵃ ʷᵃˢ ᵇʳᵒᵘᵍʰᵗ ᵇʸ ᵗʰᵉ ᶜᵒᵐᵖᵃⁿʸ ᵃᵗ ᶜʰᵉᵃᵖ ʳᵃᵗᵉ ⁱⁿ ⁱⁿᵈⁱᵃ ᵃⁿᵈ ˢᵒˡᵈ ᵃᵗ ᵃ ᵖʳᵒᶠⁱᵗᵃᵇˡᵉ ʳᵃᵗᵉ ⁱⁿ ᵉⁿᵍˡᵃⁿᵈ ʷʰⁱᶜʰ ᶜᵒᵘˡᵈ ᵇᵉ ˢᵃⁱᵈ ˢᵃᵐᵉ ᶠᵒʳ ˢᵘᵍᵃʳ ᶜᵃⁿᵉ.ᵗʰᵉ ᵒᵖⁱᵘᵐ ʷᵃˢ ˢᵐᵘᵍᵍˡᵉᵈ ⁱⁿ ᶜʰⁱⁿᵃ ˢⁱⁿᶜᵉ ⁱᵗ ʰᵃᵈ ᵃ ʰⁱᵍʰ ᵈᵉᵐᵃⁿᵈ ⁱⁿ ᶜʰⁱⁿᵃ .
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