• The East India Company established direct control over the cotton textile industry by eliminating the existing traders and brokers connected with the cloth trade and appointing a paid servant called the ‘gomastha’ for supervision of weavers, collecting supplies, and examining the quality of cloth.

• The company prevented its weavers from dealing with other buyers by giving them advances or loans for purchasing the raw material for their production. As loans flowed in and the demand for fine textiles expanded, weavers eagerly took the advances and started producing cloth for the company.

The East India Company eliminated competition, controlled costs, and ensured regular supplies of cotton goods.