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Textile traders & weavers unsuccessful in breaking deadlock
Feb '11
Earlier on January 31, the weavers informed the textile traders regarding the new conditions for providing goods and the new payment norms, which came into effect from February 1 onwards.

A meeting was held on February 7 between the textile traders association and the weavers' association regarding the supply of grey cloth on new terms but it was unsuccessful.

The weavers decided to remain firm on their standpoint. The traders also denied accepting the delivery of grey cloth on the new terms and conditions.

As per the new terms and conditions demanded by the Federation of Gujarat Weavers Association (FOGWA), the textile traders are required to clear the net payment within seven days of receiving the materials as well as pay the delivery charges.

Previously, the textile traders used to get three months' time to clear the payments after the receipt of the grey cloth.

The Federation of Surat Textile Traders Association (FOSTTA) denied the new terms and conditions. Not even a single textile trader is ready to accept the delivery of grey cloth from weavers on new conditions.

Due to late payments and sometimes even non-payments by unreliable business operators, the weavers had started dispatching the grey cloth to various processing houses, directly.

Fibre2fashion News Desk - India

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