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Bihar, UP floods add to Surat traders’ woes

The industry has already borne losses worth Rs 1,500 crore due to the strike against the implementation of Goods and Services Tax (GST) from July 1.

Textile industry woes, Bhiwandi powerlooms, GST, GST on textiles, affect of GST on textile industry, GST hits textile industry, indian express news (Representational Image)
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The textile industry of Surat is bearing the the brunt of floods in Assam, Uttar Pradesh and Bihar as around 60 per cent of the orders from these three states has been cancelled. The industry has already borne losses worth Rs 1,500 crore due to the strike against the implementation of Goods and Services Tax (GST) from July 1. Assam, Uttar Pradesh and Bihar are the major consumers of synthetic sarees and dress materials manufactured in Surat city.

Sources in the textile trading industry said that the traders had booked huge orders for the upcoming festivals like Durga Puja and Diwali. But, the traders, especially from UP and Bihar, have called the orders in the last couple of days due to flood and heavy rain in these states.

Federation of Surat Textile Traders Association president Manoj Agrawal said the wholesalers and retailers of UP, Bihar and Assam had booked orders for sarees and dress materials to the tune of over Rs 1,000 crores for the upcoming festivals. “We have come to know that over 60 per cent of the orders have been cancelled. The industry has hardly come out of the impact of the GST and now heavy rain and floods-like situation in these three states have affected the business.”

Even the transporters linked with the industry are affected. Surat Textile Goods Transport Association president Yuvraj Deshle said, “Our business is directly attached to the textile traders. We have already been badly affected by demonetisation (last year) and GST and now there is natural calamity. During this season, a majority of our trucks go to UP, Bihar and Assam, for Durga Puja. It is risky to send the loaded trucks in flood-affected places.”

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