- Their export market collapsed.
- Local market also shrank as it was flooded with Manchester imports.
- Produced by machines at lower costs, the imported cotton goods were so cheap that weavers could not easily compete with them.
- By 1860, weavers could not get sufficient supply of raw cotton of good quality.
- When American Civil War broke out and cotton supply from the US was cut off, Britain turned towards India.
- As raw cotton exports from India increased, the price of raw cotton shot up.