The correct option is (b).
Explanation
In the late eighteenth century, the demand for indigo in Britain increased significantly due to the expansion of cotton production during the Industrial Revolution. Britain relied heavily on supplies from the West Indies and America, but political unrest and economic shifts disrupted these sources, prompting the East India Company to turn its attention to India.Statement 1 is Incorrect:
The French did not ban the cultivation of indigo in St Domingue (modern-day Haiti). The collapse of the indigo industry in the French Caribbean was primarily caused by slave rebellions (starting in 1791) and the subsequent abolition of slavery by the French government in 1792. These events destroyed the plantations, but there was no policy banning cultivation during the period in question.
Statement 2 is Correct:
Between 1783 and 1789, the production of indigo in the world fell by half. This sharp decline in global supply created a crisis for British cloth dyers, who were heavily dependent on imported indigo for the textile industry.
Statement 3 is Incorrect:
The collapse of West Indies supplies did not cause Britain to stop importing indigo. Instead, it made British dyers desperate for new sources of supply. Consequently, the East India Company actively promoted and expanded indigo cultivation in Bengal to meet the demand, rather than ceasing imports.
Key Takeaway:
The global shortage of indigo between 1783 and 1789 shifted British demand to India, leading to the rapid expansion of indigo cultivation in Bengal under the East India Company's patronage.