Home / Knowledge / News / Textiles / Payment defaults puts textile suppliers in lurch
Payment defaults puts textile suppliers in lurch
13
Oct '09
Mr Devkishan Manghani
Mr Devkishan Manghani
The concurrent festive season along with bringing cheers to the textile sector, is also adding to the woes of a few. According to reports emanating from the synthetic textile cluster of Surat, a few traders have declared bankruptcy, to the bewilderment of their creditors.

The last few months have been tough for the 50,000 odd textile traders of the city, whose order position had slipped abysmally in the last few months, due to a demand fall from the Northern and Southern India markets.

According to Mr Devkishan Manghani, General Secretary Federation of Surat Textile Traders Association (FOSTTA), there are two types of defaulters. One who do it intentionally, with a planned modus operandi. Such kind of defaulters starts doing business in the market with a small rented shop and trade for a period of two to six months.

“They try to purchase maximum stock from the suppliers and also give higher prices for the textile materials when compared to normal prices prevailing in the markets, due to which textile material suppliers get attracted to such traders, who later run away, leaving the suppliers in the lurch”, he said.

He added by saying, “The other kind of defaulters is more genuine & real. They get trapped in the usual ups and downs and price fluctuation in different products seen in the market as they would have purchased goods at a higher price, the price of which later falls down, due to which they may suffer heavy losses”.

Mr Manghani confirmed that the payment defaults are as high as Rs 40 crores. Mr Manghani has a word of advice for textile suppliers. Check the credentials of a new trader, before conducting transactions with him, because this is the only solution to avoid defaults in payments.

He also urges the suppliers to transact in cash payment as far as possible or give maximum credit period of 45 days and at the same time exercise caution on the volumes of transactions they conduct with these new traders.

Fibre2fashion News Desk - India


Must ReadView All

US & EU retailers release industry approach to GDPR

Apparel/Garments | On 24th May 2018

US & EU retailers release industry approach to GDPR

The Washington, D.C.-based National Retail Federation and...

Global cotton consumption to reach record in 2018-19: USDA

Textiles | On 24th May 2018

Global cotton consumption to reach record in 2018-19: USDA

Reflecting continued growth in the global economy, world cotton mill...

Courtesy: Nanollose

Textiles | On 24th May 2018

Nanollose develops fabric from coconuts

Australian technology company Nanollose has developed a sustainable...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Urmil Arya

Sushila International, a well established textile organisation established ...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Ritu Kumar
Label Ritu Kumar

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

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

Leave your Comments


May 2018

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

news category


Related Categories:

Advanced Search