Surat textile exporters fear losing Rs 400cr pending dues

Surat: The political uncertainty and chaos in Afghanistan after Taliban’s stunningly rapid takeover of the country is having repercussions in the textile hub of Surat.
While losing business in the conflict-torn country looks imminent, exporters and brokers of textile products claim that payment of about Rs 400 crore has been stuck due to the unrest. They fear that the payments won’t be received soon given the scale of uncertanity there.
Punjabi suits and dupattas made in Surat are in high demand in Afghanistan and Pakistan. Until three years ago, businessmen from Afghanistan used to visit the city frequently to buy finished garments for women. They used to select the products personally and make payments through their business associates in Delhi.
It is estimated that garments worth at least Rs 100 crore were sent to Afghanistan via Pakistan or Dubai every month.
Raju Bhatia, a broker working for multiple exporters, told TOI: “In the textile market, the credit period is up to three months and in goods supplied to Afghanistan via Pakistan or Dubai, the payment is received in three to four months. However, payment of around Rs 400 crore of many exporters is stuck due to the unrest.
The export through Pakistan or Dubai is also impacted due to disturbance.
“The Punjabi suit and dupatta manufactured in the city are high in demand in Pakistan and Afghanistan due to its quality and variety. Importers want these products but due to irregular supply chains, no one wants to take any risk in the current situation to export,” said Gurpal Singh, a garment manufacturer and exporter.
“More than Rs 100 crore worth textile products are exported monthly to Afghanistan through multiple routes. But it has stopped in the current scenario,” said Singh.
Ravi Jain, a garment manufacturer, added, “Many exporters have suffered heavy losses and no one knows when the situation will improve. I have discontinued doing business with Afghanistan in the past few months as the situation started going out of control. I am yet to receive payment for the last couple of orders and I am not sure when I will get it.”
Narendra Saboo, president of Surat Mercantile Association (SMA), said, “The situation is unpredictable and the impact on city’s textile business to Afghanistan can be bad. We can only hope for fast improvement in the situation so as to get business,” said
(Few names have been changed on request)