Textile merchants in Surat are apprehensive over pending funds of about Rs 4,000 crore from Afghanistan which have gotten caught with the Taliban taking management of the nation.
Afghanistan’s central financial institution has instructed the industrial banks to not enable company checking account holders to withdraw cash for any function or to hold out any digital transaction inside or outdoors of Afghanistan. “Earlier, we used to send garments and textiles through Dubai to Afghanistan. Lately, we were exporting to the nation through Bangladesh as we saw that it was cheaper to send through Bangladesh,” Champalal Bothra, basic secretary, Federation of Surat Textile Traders Association, informed ET.
“Exports have stopped now, but we are not sure when we will get our payments. Nearly Rs 4,000 crore is stuck.”
Afghanistan used to purchase silk for turbans, textiles and readymade clothes similar to scarves, clothes and kaftans from India. The Federation of Indian Export Organisations (FIEO) has suggested exporters and importers to attend and watch earlier than taking any step. “The Afghani currency has depreciated to 87 Afghan afghani against US dollar from 80 Afghan afghani in the last one week. While that augurs well for exporters, it pinches the importers,” stated Ajay Sahai, director basic, FIEO.
“Businesses in Afghanistan have informed us that the central bank of the country has said that it will not provide enough dollars to the local banks. This means that Afghan business houses will not be able to pay the exporters.”
The textile commerce in Surat is just not in a snug place both for the reason that outbreak of the Covid-19 pandemic. Bothra stated many of the mills are working with 60-70% capability because the demand has but to get well absolutely. “Lockdowns and local restrictions have impacted sales since April, when the second wave of Covid had hit the country. We are now pinning hopes on Durga Puja, Navratri and Diwali sales,” he stated.
Surat has 380 textile mills, 650,000 looms, 65,000 merchants and 100,000 embroidery models. The textile commerce in Surat employs 1.1 million folks.
“Mostly migrant workers from UP, Bihar, West Bengal and Odisha are engaged in the textile trade of Surat. Since the outbreak of Covid-19, 30% of the migrant workers who had left are yet to return,” stated Bothra.
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Source : The Greater India
