Home / Knowledge / News / Textiles / Surat weavers worry over default in payments
Surat weavers worry over default in payments
17
Oct '11
Surat – the biggest manmade fibre textiles hub in India has once again been haunted by the specter of defaults in payments to weavers by textile traders, just a few days ahead of the Diwali festival, a time when, business is at its peak.

The textile trade in Surat clocks annual revenues of more than Rs 200 billion and is spread over around 140 textile markets involving 55,000 small and big traders.

Explaining the reasons for the defaults, Mr Devkishan Manghani, President of Federation of Surat Textile Traders' Association (FOSTTA) says, “During Diwali or the period before that, people mostly prefer to do business in cash, be it weavers or millers. They have to settle accounts and also they have to give a bonus salary to laborers, workers and staff.

“Besides, they also have to make payments for the chemicals, yarn, etc, which need to be cleared before the festival. Due to this there is high need for cash liquidity. Many times, the rotation is not so smooth and so there is discomfort among people in the market. Hence, such cases are on a rise during the festive period.

“To avoid this situation, a trader should plan from the beginning as to how much payment he will have to clear till Diwali and how much cash he will need, provided he is a genuine party. If he is a fraud, then nothing can be said about them because cheaters have no ethics. The fraudsters also take benefit of the holidays that follow the festival i.e. the period when the entire market is closed for about a week to 10 days.

“FOSTTA has always appealed to the traders that out of 10 customers they should supply goods only to 7 of them. If there is discomfort or if someone is loaded with over-production, then they should select 7 genuine parties and ignore the remaining 3 or keep them on hold.

“In such a case, the production can be done for the selected parties and if remaining 3 parties want the goods, then they can be dealt with under some terms and conditions so that the discomfort is minimized and rotation is smooth. Once there is a flow, only genuine parties come across”.

Revealing the current market situation, he informs, “The current market condition is not good and we also do not see a good festive season ahead. Due to inflation, sales have been less since there is no purchasing capacity among people”.

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 27th Jun 2017

Govt defers tax deduction at source provision under GST

E-commerce players in India will not be required to deduct tax on...

Apparel/Garments | On 27th Jun 2017

Future Group aims Rs 12,000 crore in fashion business

Future Group, which runs retail stores across India under various...

Textiles | On 27th Jun 2017

AEPC & NSDL to help exporters with GST compliances

Apparel Export Promotion Council (AEPC) and National Securities...

Interviews View All

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search