Textile processors, traders agree over payment terms

Surat: A compromise was reached in the dispute over payment terms between textile processors and traders, later announced on Tuesday of continuing business as usual.
Earlier, citing financial crisis the textile processors announced changes in payment terms against which trading associations raised serious objections.
On Tuesday, the Federation of Surat Textile Traders Association (FOSTTA) announced that the traders do not have issues related to payment terms after the South Gujarat Textile Processors Association (SGTPA) agreed to make changes in the earlier announced terms.
“Due to the recent disputes between traders and processors, the exchange of textile goods had stopped in most of the processing units. However, it will resume routine now,” said Manoj Agarwal, president FOSTTA.
Earlier, the SGTPA announced that the processors will not give discounts and credit of only 30 days for bill payment will be given to traders. SFTPA announced to blacklist the trader who defaults on payment. After FOSTTA and Surat Mercantile Association (SMA) raised objections, the processors agreed to extend the payment period for 60 days. “The trader will not get any discount directly in the bill nor will the discount be mentioned in the bill. They will be issued a credit note for discount that can be redeemed in the next bill only if the payment is made within 30 days,” said Jitu Vakhariya, president, SGTPA.
As per their terms with the processors, the traders demand a three percent or more discount on the total bill.
Processors claimed that they have to make payment in advance for coal, chemicals and dyes. Hence, they have started demanding early payments. Meanwhile, traders claim that they supply textile products to different places and they too receive delayed payment due to which they are unable to make immediate payments.