Source: Textbook

How did the East India Company procure regular supplies of cotton and silk textiles from Indian weavers?

Model Answer

The East India Company, upon gaining political power, implemented a coercive system to secure regular supplies of textiles from Indian weavers. They appointed paid supervisors called gomasthas to oversee weavers, collect goods, and inspect cloth quality, thereby eliminating intermediaries. Crucially, the Company introduced a system of advances. Weavers were given loans to purchase raw materials, compelling them to produce for the Company alone and preventing sales to other buyers. This financial dependence effectively tied the weavers to the Company. Furthermore, the Company enforced low, non-negotiable prices for the textiles, trapping weavers in a cycle of debt and dependency, ensuring a steady, cheap supply of cotton and silk.