Development of infrared flowing medium lasers needs to be envisaged in a manner that practical aspects such as system compactness, short readiness time, low system size, weight and power are met to make them field deployable. In this context, the critical aspect of in-situ production of lasing species (Iodine) in Chemical Oxygen Iodine Lasers (COIL), one of the most potent flowing medium lasers, has been investigated. The paper dwells on chemical generation of iodine and its precise flow and parameter control by implementing a customised Data Acquisition System (DAS). Iodine is generated in a chemical reaction of Cuprous Iodide (CuI) with chlorine. This is achieved by precisely controlled flow of chlorine diluted with a carrier gas (N2 ) in a ratio of 1:2. DAS includes regulated gas feed, accurate thermal stabilisation, relevant diagnostics and implementation of necessary safety interlocks in a real time operation scenario for establishing the system efficacy and scalability. The studies have demonstrated chemically generated iodine flow rate of ~ 1.2 mmol.s-1 for Cl2 flow rate of ~3 mmol.s-1 all measured in real time using the developed DAS with a conversion efficiency of 80%. Developed I2 supply system has potential to deliver iodine on demand with required flow rates, measurement uncertainty of ~ 4.5 percent and advantages of smaller specific weight and size with reduced system readiness time and electrical power supply using DAS system with adequate safety interlocks.