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Why the system of advanced proved harmful for the weavers?

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India was the abode of many cottage industries and other small-scale industries from time immemorial. When the East India Company had consolidated its political power, it emphasised a monopoly on the trade activities. To consolidate and manage the trade activities and to increase their gains from trade, they developed a system of management and control. This enabled them to reduce competition, control costs and ensure regular supplies of cotton and silk.

To consolidate their power and control, the Company eliminated the existing traders and brokers and tried to establish direct control and relation with the weavers. It employed a gomastha to control the work of the weavers, collect the materials and examine the quality of cloth. It also prevented the weavers employed under them from trading with other buyers. They consolidated the group of weavers through the system of advances.

Under this system of advances, once an order was placed with the weavers, they were given loans and advances to procure raw materials and other requirements to expand their production. The weavers had to produce for the company and had to sell the products only to the gomestha who had given them the loans. They could sell the clothes only to the designated persons and were forbidden from selling them to others.

Because of the increased demand for textiles and increased availability of loans for production, weavers readily took the advances. They started substituting farming activities for weaving and even started leasing out their land to others and concentrating more on weaving. 

But this created many problems for the weavers. Conflicts between weavers and gomasthas were reported in many villages. The relationship the weavers maintained with the merchants was not confined to only trade. The merchants were willing to help the weavers during the periods of crisis. But the gomasthas were outsiders, with no social relation and commitment with the villagers. They behaved arrogantly and even punished the weavers if the supply was delayed. This created serious issues in the weaving villages. 

At the time when the contract with the company was agreed upon, the weavers lost their space to bargain. They were not able to quote different prices and sell them to other buyers. Also, the price they received from the Company was very low. The company had tangled them to its hinges with their liability to the company because of the loans taken. This resulted in varied consequences. In many places, the weavers deserted villages and migrated. Those who stayed protested against the Company and its officials. Many others refused the loans granted to them, closed down their workshops and diverted themselves to agricultural labour.

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