Surat Textile Industry Grapples with Payment Delays and Pricing Disputes
Textile manufacturing associations in Surat have voiced significant alarm over mounting financial pressures, citing delayed payments and unfavorable credit terms as key challenges in a persistently sluggish market environment. The situation has escalated to the point where industry bodies are now implementing strict measures to protect their members' interests.
Jari Manufacturers Implement Payment Reforms
At a recent gathering, the Surat Weaving Jari Association (SWJA) declared that escalating raw material expenses and extended payment cycles have placed jari manufacturers under severe financial duress. The association, representing approximately 1,500 members, has resolved to establish a maximum payment period of 60 days and will no longer tolerate arbitrary deductions from final invoices.
SWJA members explained that synthetic jari prices have failed to keep pace with rising production costs, creating a substantial trade imbalance. "The continuous increase in raw material costs is imposing a significant financial burden on manufacturers. Additionally, the prolonged credit period remains a major concern," association representatives stated.
They further emphasized that beyond lengthy payment delays, buyers frequently reduce final payments by citing quality concerns. "Our profit margins have already diminished considerably, and such deductions only exacerbate our predicament. The association has unanimously decided to reject these practices moving forward," a member added.
Impending Price Increase Sparks Industry Conflict
In response to sustained raw material price hikes over the past month, SWJA has announced that jari prices will rise effective February 15. This decision, however, has met with resistance from another crucial segment of the textile supply chain.
The Rapier Jacquard Weavers Association, which represents nearly 3,000 members and constitutes a major consumer of synthetic jari, has expressed strong reservations about the proposed price adjustment. Weavers argue that current weak market conditions make it impossible to support a price increase and have instead requested price reductions.
"We require additional time to deliberate internally and consult with other textile organizations. Given the present market scenario, endorsing a price hike is extremely challenging," a jacquard weaver commented.
Industry Seeks Collaborative Solutions
The weavers' association plans to engage with the Federation of Surat Textile Traders Association to negotiate improved payment terms and better business conditions. This move highlights the collective effort within Surat's textile sector to address shrinking profit margins and liquidity constraints.
Both manufacturing and weaving segments are navigating a complex landscape where rising costs, payment delays, and market weakness converge, threatening the stability of one of India's most significant textile hubs. The outcome of these negotiations could set important precedents for how the industry manages financial pressures in challenging economic times.
