Once the East India Company established political power, it started asserting monopoly right to trade. It proceeded to develop a system which gave it control to eliminate all competition, control costs and ensure regular supply of cotton and silk goods. It took the following steps. First, it eliminated the existing traders and brokers and established direct control over the weaver. It appointed a special officer called the 'gomastha' to supervise weavers, collect supplies and examine the quality of the clothes.
Second, it prevented the Company weavers from dealing with other buyers. They advanced loans to weavers purchase the raw materials, after placing an order. The ones who took loans had to give their cloth to the gomashta. They could not sell it to any other trader.

Weavers took advance, hoping to earn more. Some weavers even leased out their land to devote
all time to weaving. The entire family became engaged in weaving. But soon there were fights
between the weavers and the gomashtas. The latter used to march into villages with sepoys and
often beat up the weavers for delays in supply.
In many places like Carnatic and Bengal, weavers deserted the villages and had to migrate to
other villages. In many places they revolted against the Company and its officials. Weavers began refusing to accept loans after some time, closed down their workshops and became agricultural labour.