For its inaction to restrain increase in the numbers of default cases in the textile markets, the Federation of Gujarat Weavers Association (FOGWA) has taken a tough stand against Federation of Surat Textile Traders Association (FOSTTA).

If fly-by-night operators are not eliminated, FOGWA office-bearers have threatened to stop delivering grey fabrics. A textile trader had defaulted on Rs 10 crore payments to over 80 power loom weavers some days ago and hence the tough stand.

FOSTTA had set guidelines for renting shops to traders in the markets according to FOGWA office-bearers and as per those, the traders have to deposit Rs 500 in FOSTTA office and fill out their personal details. The fly-by-night operators were successful in cheating the weavers and disappearing despite this.

In over 160 textile markets located at Ring Road, Rs 40 crores worth of unfinished fabric manufactured by the weavers is dumped on a daily basis. In a year, about Rs 300 crores worth of defaults take place in the market.

Ashok Jirawala, President, FOGWA said that it was the responsibility of FOSTTA to ensure that the racket of the fly-by-night operators gets removed, to create a healthy business environment. If not, he said, the weavers will stop delivering grey fabrics for an indefinite period. Most of the weavers are dealing through the agents, who are working in the industry for many years.

FOGWA plans to approach the state government to demand some guidelines to be issued to the police in tackling the economic offences being reported in the textile markets, added Jirawala. He also believes that the defaults are also due to FOSTTA office-bearers.

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