The British opium was produced in Bengal and the Ganges River Plain, where the British inherited an existing opium industry from the declining Mughal Empire and saw the product as a potentially valuable export.[37] The East India Company commissioned and managed hundreds of thousands of poppy plantations. It took care of the painstaking lancing of individual pods to obtain the raw gum, drying and forming it into cakes, before coating and packaging them for auction in Calcutta.[38] The company tightly controlled the opium industry, and all opium was considered company property until it was sold.[30] From Calcutta, the company's Board of Customs, Salt, and Opium concerned itself with quality control by managing the way opium was packaged and shipped. No poppies could be cultivated without the company's permission, and the company banned private businesses from refining opium. All opium in India was sold to the company at a fixed rate, and the company hosted a series of public opium auctions every year. The difference of the company-set price of raw opium and the sale price of refined opium at auction (minus expenses) was profit made by the East India Company.[37][26][page range too broad] In addition to securing poppies cultivated on lands under its direct control, the company's board issued licences to the independent princely states of Malwa, where significant quantities of poppies were grown.

Sure, here is a step-by-step response to the question based on the provided text:

1. Production Location: The British opium was produced in Bengal and the Ganges River Plain. This region had an existing opium industry inherited from the declining Mughal Empire.

2. East India Company's Role: The East India Company took over the opium industry, commissioning and managing hundreds of thousands of poppy plantations.

3. Production Process:

   • Lancing Pods: The process involved the painstaking lancing of individual poppy pods to obtain the raw gum.
   • Drying and Forming: The raw gum was then dried and formed into cakes.
   • Coating and Packaging: These cakes were coated and packaged for auction in Calcutta.

4. Control and Management:

   • The company tightly controlled the opium industry, considering all opium as company property until it was sold.
   • The Board of Customs, Salt, and Opium in Calcutta managed quality control, packaging, and shipping of opium.
   • Cultivation of poppies required the company's permission, and private businesses were banned from refining opium.

5. Sales and Auctions:

   • All opium in India was sold to the company at a fixed rate.
   • The company hosted a series of public opium auctions every year.
   • The profit for the East India Company was the difference between the company-set price of raw opium and the sale price of refined opium at auction, minus expenses.

6. Licensing: In addition to securing poppies cultivated on lands under its direct control, the company's board issued licenses to the independent princely states of Malwa, where significant quantities of poppies were grown.