Weavers for next-day payment system

The powerloom industry in Surat has decided to deal with textile traders or gray brokers only after a detailed verification.

The decision was taken at a meeting organised by the Federation of Gujarat Weavers Association (FOGWA) at Community Hall, Katargam, on Saturday evening.

To safeguard their interests, the weavers also decided to implement next-day payment system, reduce interest paid to yarn traders from the current rate of 24 per cent per annum to 12 per cent. They also decided against paying carting charges to yarn traders and to lodge police complaints against defunct traders.

The local powerloom industry is passing through a very tough phase in the last six months due to the recession in the textile industry. Many textile firms have gone defunct in this period, which has led to huge financial losses to weavers.

FOGWA president Manubhai Patel said: "The weaving industry is suffering a lot due to frequent instances of various textile firms going defunct. This has led to a situation wherein it is feel-good for the cheats and feel-bad for weavers."

He also appealed to the government and the police to co-operate in the issue.