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

Textiles | On 26th Jun 2017

US initiates probe into PSF imported from 5 nations

The department of commerce of the US has initiated investigations for ...

Textiles | On 26th Jun 2017

USTR announces AGOA review for Rwanda, Tanzania & Uganda

The office of the US trade representative (USTR) has announced the...

Textiles | On 26th Jun 2017

Braskem invests in polypropylene production facility in US

The Board of Directors of Braskem, one of the largest producer of...

Interviews View All

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Robert Brunner
Devereux

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

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:
June 2017

June 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