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 government (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. It therefore, instructed its agents posted in the princely states to confiscate all opium and destroy the crops.
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