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East India Company established political power. It proceeded to development of a system of management and control that would eliminate competition, control costs, and ensure regular supplies of cotton and silk goods. This it did through a series of steps:
1.The company appointed a paid servants called GOMASTHA to supervise weavers, collect supplies and examine the quality f cloth.
2.It worked on the system of ADVANCES. Once an order was placed, the weavers were given loans to purchase the raw materials for their production. Those who took loans had to hand-over the cloth they produced to the gomasthas.

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