Answer:
(i)
By 1773, the British government in Bengal had established a monopoly over opium
trade.
(ii) No one else was legally permitted to trade in opium.
(iii) By the 1820s, the British found that opium
production in their territories was rapidly declining and outside its
territories, the production was increasing.
(iv) It was produced in the princely states where local
traders were offering much higher prices to peasants and exporting opium to
China.
(v) To the British, this trade was illegal it was
smuggling and it had to be stopped. Government monopoly had to be retained.
(vi) It therefore, instructed its agents posted in the
princely states to confiscate all opium and destroy the crops.
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