The managing-agency system dates back to the 1830s, when the East India Company lost its monopoly, and individual private trading was permitted. Former East India Company personnel formed partnerships and created agency houses, trading in indigo, sugar, cotton, silks, spices and opium. Many of these partnerships then fell on hard times, especially when the partners began to pull out their funds and return home. A number of markets were swamped by too much traffic, such as indigo, in which production rapidly exceeded demand. These early partnerships suffered a cash crunch when their founders denuded them of funds and disappeared from the scene.
KeywordsSugar Opium Indigo Monopoly
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