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Textile Units, Traders Differ Over Credit | Surat News


Surat: The business relations between textile processors and traders have become a cause of concern for both the sides as they hold different opinions over payment terms. While the processors want that the payment should be made within a month of delivery of goods, the textile traders want a longer credit limit.
Currently, the traders are paying as and when they receive payment from their customers. Based on early payment they also get a discount on the total bill. However, at a recently held meeting, the processors decided to give credit for 30 days only. Following the new arrangement, textile traders are opposing the move. “The tight payment terms are not acceptable to most of the traders as we are already facing a drop in business. Further, payment terms are a matter between two parties and there is no need for a common rule for the entire industry,” said Narendra Saboo, president of Surat Mercantile Association (SMA).
To discuss the issues, SMA held a meeting with Jitu Vakharia, president of South Gujarat Textile Processors Association. “With the sudden change in payment terms, it is not possible for traders to adjust to the situation. Traders face various payment issues, hence it is not possible to meet the requirements of the processors,” said Champalal Bothra, general secretary of FOSTTA.


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