Rains Affect Business Prospects Of MMF

Rains Affect Business Prospects Of MMF

Business prospects of the country’s largest man-made fabric (MMF) wholesale market in Surat affected due to heavy rains and floods in parts of Andra Pradesh and Tamil Nadu, including Chennai. Due to cancellation of many trains and transport services, Surat textile traders are forced to call back almost all the textile parcels moving towards Tamil Nadu and Andhra Pradesh.

The buyers in Tamil Nadu place orders for saris and dress materials and other polyester fabric for Pongal festival celebrated on January 14 every year. The orders start flowing in with the end of Diwali festival.

According to market sources, around 25 per cent of traders in MMF wholesale market in Surat supply fabrics, including saris and dress materials to Tamil Nadu and Andhra Pradesh at this time of the year. The daily turnover is pegged at Rs 30 crore.

Chairman of textile committee of Southern Gujarat Chamber of Commerce & Industry Devkishan Manghani said that Chennai is an important market for polyester fabric supply from Surat. Before Diwali, the textile market was under recession and traders were hoping for better days with Pongal festival. However, things have not improved and traders are worried.

There are over 65,000 textile shops located in some 150-odd textile markets in the city, Surat. The daily turnover of the textile goods is pegged at Rs 110 crore. The weak demand in the country for polyester fabric had decreased the pre-Diwali business by almost 35 per cent.

The markets in Chennai are closed for last few days and the buyers have cancelled the pre-booked orders for Pongal. There is a huge business loss for many traders in the market because of the incessant rains. They hope that things are going to be back to normal soon, according to federation of Surat textile traders association.