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 Which Indian commodity, on entering Britain had to pay a duty that was over three times its cost price?
  • a)
    Cotton
  • b)
    Sugar
  • c)
    Tobacco
  • d)
    Opium
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Which Indian commodity, on entering Britain had to pay a duty that was...
**Explanation:**

The correct answer is option B, which is sugarcane.

**Historical Background:**
During the colonial rule, the British East India Company (BEIC) had established its dominance over India. They exploited India's resources, including its agricultural products, to generate wealth for themselves. One such commodity was sugarcane.

**Duty on Sugarcane:**
When sugarcane was exported from India to Britain, it had to pay a duty that was over three times its cost price. This high duty was imposed to protect the British sugar industry, which was facing competition from cheaper Indian sugar.

**Protectionism and British Sugar Industry:**
The British sugar industry faced challenges due to cheaper sugar imports from India. To protect their domestic sugar industry, the British government imposed high tariffs and duties on imported sugar.

**Implications:**
The high duty on Indian sugarcane made it economically unviable for Indian producers to export their sugar to Britain. This had significant implications for the Indian economy as well as Indian sugarcane farmers.

**Impact on Indian Economy:**
The imposition of high duties on Indian sugarcane contributed to the exploitation of Indian resources by the British. It hindered the growth of the Indian sugar industry and prevented it from competing on a level playing field with the British sugar industry.

**Impact on Indian Sugarcane Farmers:**
The high duty on sugarcane made it difficult for Indian farmers to earn a fair price for their produce. It affected their livelihoods and perpetuated the cycle of poverty and dependence on the British.

**Conclusion:**
The imposition of high duties on Indian sugarcane entering Britain was a deliberate economic strategy employed by the British government to protect their domestic sugar industry. This unfair practice had detrimental effects on the Indian economy and the livelihoods of Indian sugarcane farmers.
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Community Answer
Which Indian commodity, on entering Britain had to pay a duty that was...
Sugar
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Similar UPSC Doubts

With reference to the economic policies of the British in India and its impact, consider the following statements: India's export surplus became vital for Britains' balance of payments by the end of the nineteenth century. The organised money market was completely under the British control. Which of the statements given above is/are correct?Expalantion: The British continued to exploit India's economy. The burden of East India Company's London establishment and dividends to its shareholders was replaced after 1858, by the expenditure on the Secretary of State's India Office. The Indian debt in England which was already considerable as a result of the Company's military ventures and suppression of the mutiny was further increased, when compensation to the Company's shareholders was added to Government of India's account. Both Home charges and private remittances were channelised through Indian exports as pointed out by the nationalist economists from Dadabhai Naoroji onwards. The character of economic drain which was originally mercantilist, underwent a change and it now took the form of exploitation through free trade. In the later stage, it got linked with the structure of British Indian finance capitalism. Statement 1 is correct: In fact, India's export surplus became vital for Britains' balance of payments by the end of the nineteenth century. The British rule inhibited and curbed indigenous industry through a variety of structural constraints. The government policies actively promoted the European enterprise and discriminated against Indians. Statement 2 is not correct: The outstanding feature of the Indian money market was its dichotomy; it consisted of two fairly distinct sectors, the organized and the unorganized. These two were not entirely unconnected, but the links were rather loose. The constituents of the organized sector of the Indian money market were the Imperial Bank of India, the exchange banks, and the Indian joint-stock banks. The unorganized sector comprised the indigenous bankers, moneylenders, chit funds, nidhis, etc., etc. The co-operative credit institutions occupied a somewhat intermediate position.

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Which Indian commodity, on entering Britain had to pay a duty that was over three times its cost price?a)Cottonb)Sugarc)Tobaccod)OpiumCorrect answer is option 'B'. Can you explain this answer?
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