Surat textile associations raise red flag over delayed payments, credit terms

Surat: Textile manufacturing associations in the city have raised serious concerns over delayed payments and unfavourable credit terms amid continued sluggish market conditions.At a meeting held recently, the Surat Weaving Jari Association (SWJA) announced that mounting raw material costs and prolonged payment cycles have put jari manufacturers under severe financial strain. The association stated that it would fix a maximum payment period of 60 days and would no longer accept arbitrary deductions in final bill payments.
Jari manufacturers said that the prices of synthetic jari no longer match rising manufacturing costs, creating an imbalance in the trade. "The cost of raw material is rising continuously, and it is creating financial burden on manufacturers. The extended credit period is also a major concern," SWJA members said.They further highlighted that along with long waiting periods for payments, buyers often deduct amounts from final bills citing quality issues. "When our margins have already dropped significantly, such deductions worsen our condition. The association has decided not to accept such requests anymore," a member added.SWJA, which has around 1,500 members, also announced that due to continuous increases in raw material prices over the past month, jari prices would increase from Feb 15.However, the Rapier Jacquard Weavers Association, representing nearly 3,000 members and a major buyer segment of synthetic jari, has expressed reservations. Weavers said they are not in a position to support a price hike given the current weak market conditions and have instead sought a price reduction."We need a few days to discuss the issue internally and with other textile bodies. Considering the market situation, supporting a price increase is difficult," a jacquard weaver said.The weavers' body is planning to approach the Federation of Surat Textile Traders Association to seek better payment terms and improved business conditions, as both segments of the textile industry attempt to navigate shrinking margins and liquidity pressures.