Indian textile trade between Surat and AP at alarm

Andhra Pradesh (AP) has been a major market for the Surat-based synthetic textile industry as on an average, around 50-60 trucks carrying readymade sarees, dress materials and other textile products plied everyday to AP from Surat worth roughly around Rs 10-12 crore. Currently, they are not even doing 25 percent of the normal business that they used to do with Andhra Pradesh.

According to Surat-based textile traders, daily business with Andhra has now come to Rs. 2-3 crore as on date. This, on an annual basis, tends to be around Rs 3600 crore which is now around Rs 700-1000 crore. The sales are down by almost 70 percent.

The state split of Andhra Pradesh has affected the textile trading between Surat and AP. The split has brought the trading down to around Rs.600-700 crore. However, the Surat textile players were optimistic the situation will improve till Pongal as the business used to soar by 20 per cent. But nowadays, Surat textile traders are not dispatching much of goods as there as payment related issues as well.

AP contributed 8 to 10 per cent to the overall turnover of the Surat textile trading some years back, which has plummeted to 2 to 3 per cent currently. There has been significant impact on Surat’s textile industry for the last 5 years.

There are many traders in AP who are interested in doing serious business but they are reluctant to buy from Surat as most of the time retail shops in that state are forced to remain closed. Also, traders from AP’s several districts have been declining to receive dispatches from Surat citing security concerns. If the situation continues, Surat textile business with the southern state would further be impacted.

Surat textile trader are hoping the situation in Andhra Pradesh will stabilises post bifurcation of the state so that they can continue doing business as usual.