Which one of the following was primarily associated with 'Dadni'

Which one of the following was primarily associated with ‘Dadni’ system?

Textile production

Warfare

Payment to officials

Revenue collection

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This question was previously asked in

UPSC CDS-1 – 2023

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The ‘Dadni’ system was a method of procurement predominantly used by European trading companies, including the English East India Company, in Bengal during the 17th and 18th centuries. Under this system, the Company or its agents (Gomasthas) would advance money (‘dadni’) to weavers and artisans for the production and supply of goods, mainly textiles, within a stipulated time frame. This system tied the producers to the Company and was often exploitative.

– ‘Dadni’ involved giving advances (loans) to producers.
– It was used to secure the supply of goods, especially textiles.
– Primarily associated with European trade in Bengal.

– This system was common in the textile industry because production was often decentralized, and the Company needed a reliable way to obtain large quantities of finished cloth.
– It eventually led to the exploitation of weavers, as the terms of the advances often became coercive.

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