Tight verification system to be implemented to curb rising defaults in MMF industry

Textile traders and weavers have collectively decided to implement the form system to curb the rising cases of defaults in the country’s biggest man-made fabric (MMF) industry.

If a trader in the textile market wishes to buy unfinished fabrics from weavers, he will have to fill in his phone number, address proof and other details in a form and also provide a passport-sized photograph to them.

It was also decided that those wanting to hire shops on rent will have to follow the same procedure. This move has come following an increase in the cases of defaults in the textile markets, which have crossed over Rs 80 crore in the past one month.

Federation of Surat Textile Traders Association (FOSTTA) on Saturday had called a meeting of traders, brokers and weavers associations in the presence of police officers to discuss measures to curb default cases.

FOSTTA president Sanwar Prasad Budhiya said that the form system would help curb the menace of fly-by-night operators in the market. It will also act as a strong evidence for the police to nab the defaulters. They have asked all the traders, weavers and brokers to the implement the form system in their daily transaction of grey fabrics.

The weaver community is under distress due to the rising cases of defaults. The weavers want to operate in a conducive environment. According to Federation of Gujarat Weavers Association president Ashok Jirawala, the form system will help prevent defaults in the markets.

It has become necessary to instill a sense of confidence among the weavers when defaults worth Rs 80 crore have been reported in the past one month alone as most of the weavers are worried ahead of the Diwali festival in carrying out business with the traders.