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Surat textile industry hopes for stability in AP

Split of Andhra Pradesh has brought down sales by almost 70%

Kalpesh Damor & Vinay Umarji  |  Ahmedabad 

Once a major market for the Surat-based synthetic textile industry, the split of Andhra Pradesh (AP) has brought down sales to the southern state by almost 70 per cent.

As against an average annual turnover of roughly ~ 3,600 crore through textile trading between Surat and AP, the split has brought the numbers down to ~ 700-1,000 crore. Textile players in Surat hope the situation would improve by Pongal, which happens to be a major supply season in the southern state.

According to Surat-based textile traders, currently, they are not even doing 25 per cent of the normal business that they used to do with Andhra Pradesh. Surat textile industry’s daily business with Andhra Pradesh used to be ' 9-10 crore every day, which has now come to '2-3 crore due to the Telangana crisis. This, on an annual basis, tends to be around ' 3,600 crore which is now around ' 700-1,000 crore.

Of the overall turnover of the Surat textile traders, AP contributed 8 to 10 per cent some years back. This has now plummeted to 2 to 3 per cent. “Over the last five years there has been a significant impact on the Surat textile industry,” said Devkishan Manghani, a trader.

Even at the time of festivals like Pongal, the business used to soar 20 per cent. But nowadays, Surat textile traders are not dispatching much of goods as there are payment related issues as well.

“There are many traders in AP who want to do serious business but they are reluctant to buy from Surat as many times retail shops in that state remain closed,” said a textile trader.

“We wish that the situation in Andhra Pradesh stabilises post bifurcation so that we can do business as usual. However, there are no signs of stability as yet,” added another trader, who did not want to be quoted.

On average day, around 50-60 trucks would ply to AP from Surat carrying readymade sarees, dress materials and other textile products worth roughly around ' 10-12 crore.

However, according to Yuvraj Desale, president of the Surat Textile Goods Transport Association (STGTA), the same has dropped at least 50 per cent with only 20-25 trucks only plying between the states.

"After the state split, traders from AP's several districts have been declining to receive dispatches from Surat citing security concerns. If the situation continues, our business with the southern state would further be impacted. We are hoping it improves by Pongal which sees increased sales from Surat to AP," said Desale.

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First Published: Sun, February 23 2014. 20:52 IST