Home / Knowledge / News / Textiles / Payment defaults puts textile suppliers in lurch

Payment defaults puts textile suppliers in lurch

13
Oct '09
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

Prime Minister Sheikh Hasina. Bayazid Akter | Dreamstime.com

Textiles | On 1st Dec 2021

PM Hasina urges global investors to invest in Bangladesh

Prime Minister Sheikh Hasina recently urged investors from across the ...

Pic: EuroCham

Textiles | On 1st Dec 2021

EU asks Vietnam to improve policies for effective EVFTA implementation

Up to 35 per cent of European business leaders see administrative...

Marta Ortega at the general meeting of shareholders of Inditex on July 16, 2019. Pic: Iago Lopez | Dreamstime.com

Retail | On 30th Nov 2021

Inditex appoints Marta Ortega as chairwoman, Oscar Garcia as CEO

The Board of Directors of Spanish clothing company Inditex has...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Extension of RoSCTL to boost textile exports

Vandana Narang, National Institute of Fashion Technology

Vandana Narang
National Institute of Fashion Technology

Campus placements are low due to lockdowns

Textile Industry, Head honchos

Textile Industry
Head honchos

Great step towards realising end goal of 'AtmaNirbhar Bharat'

Rajat Kapoor,

Rajat Kapoor

Seraphine is a British maternity brand providing affordable luxury fashion ...

Nantas Montonati,

Nantas Montonati

The Riri Group is a one-stop supplier of metal accessories for the luxury...

Ujjval Saraf,

Ujjval Saraf

Founded by Jimmy Lai, Giordano International Ltd, a Hong Kong based...

Shujaul Rehman, Garware Technical Fibres

Shujaul Rehman
Garware Technical Fibres

Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...

Ian Russell, Pireta

Ian Russell
Pireta

UK-based Pireta has developed a unique free-form process to add durable,...

Johann-Philipp Dilo, Dilo Group

Johann-Philipp Dilo
Dilo Group

German company Dilo Group is one of the leading equipment suppliers of...

Samant Chauhan, Label Samant Chauhan

Samant Chauhan
Label Samant Chauhan

Delhi based fashion designer, <b>Samant Chauhan</b> who mostly works on...

Abhishek Agarwal, Purple Style Labs

Abhishek Agarwal
Purple Style Labs

Late Indian fashion designer Wendell Rodricks, is known for his...

Shalini Sharma & Shweta Pundir Sharma, Six Yard Story

Shalini Sharma & Shweta Pundir Sharma
Six Yard Story

Six Yard Story is a premium artisanal brand with a focus to bring handloom ...

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


November 2021

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


Advanced Search