Surat’s textile sector is embracing technology to tackle payment defaults, with the Federation of Surat Trade and Textile Association (FOSTTA) revealing that over 3,000 complaints, amounting to a staggering Rs. 170 crore (approx US $ 20 million) in alleged defaults; have been filed via its newly launched FOSTTA FORUM mobile app in just one month.
Designed to crack down on fly-by-night firms, the application permits both registered and unregistered textile business entities to submit complaints by uploading details pertaining to firm, transaction, buyer information, and the value of goods sold.
FOSTTA President Kailash Hakim highlighted the relentless financial setbacks faced by the textile industry due to defaulters, especially those based outside Gujarat. “Over 70 per cent of these deceitful firms are from other states. By collaborating with 146 kapda mandis across India, we are aiming to cross-verify buyers and minimise the risk of future defaults,” he stated.
To strengthen its complaint redressal efforts, the association has recruited 20 college students as telecallers, who are at present undergoing training. Twenty cases have already been resolved as a result of their involvement, and another 300 cases are being aggressively reviewed. In one prominent instance, the owner of a textile factory used the app to verify that a buyer had three previous complaints. This resulted in him canceling the order to prevent possible financial loss. Together with ongoing awareness campaigns, the initiative seeks to promote transparency in India’s sizable textile market and strengthen the financial stability of Surat’s 30,000+ textile traders.
