Question

The [Indian] natives call the British system "Sakar ki Churi," the knife of sugar. That is to say, there is no oppression, it is all smooth and sweet, but it is the knife, notwithstanding.

—Dadabhai Naoriji
1871

What does Naoroji mean when he says the British system is like a knife made of sugar?

The sugar trade was the only reason Britain had colonized India.
The Indian natives found British culture to be too smooth and sweet.
The British colonial system was beneficial to India but also destructive.

Answer 1

The third option. Naoroji meant the British rule seemed smooth and benevolent on the surface (“sweet”) but was nevertheless a tool of harm and exploitation (“a knife”). He was saying the system did damage to India even though it might appear pleasant or civilizing.