After establishing political power, the East India Company asserted its monopoly right to trade. It proceeded to develop a system of management and control that would eliminate competition, control costs, and ensure regular supplies of cotton and silk goods through a series of steps.

First, the Company tried to eliminate the existing traders and brokers connected with the cloth trade. By removing these intermediaries, the Company aimed to establish a more direct control over the weaver.

To supervise and manage the weavers effectively, the Company appointed a paid servant called the gomastha. The gomastha was responsible for supervising weavers, collecting supplies, and examining the quality of cloth produced.

This system of control had significant consequences. In many places in Carnatic and Bengal, weavers deserted villages and migrated to other villages where they had family relations. Elsewhere, weavers along with village traders revolted against the Company and its officials.

Over time, many weavers began refusing loans, closing down their workshops, and taking to agricultural labour. This resistance was a response to the oppressive control mechanisms imposed by the Company to secure regular textile supplies.