The fall of the Afghan government and the Taliban’s assumption of power has harmed textile dealers and exporters in Gujarat’s textile centre Surat, with payments totaling more than 100 crore allegedly stalled since the beginning of August.
“It is true that payments for consignments sent from Surat have been held up owing to the political situation in Afghanistan. We don’t have an exact figure, but it’s a significant sum because Surat is a key centre for textile exports to countries such as Afghanistan and Iran, among others,” said Ashish Gujarati, a renowned textiles merchant and the head of the South Gujarat Chamber of Commerce and Industries (SGCCI).
Traders in Surat, one of the largest textiles hubs in the country, say the supply chain has been disrupted due to political uncertainty and change in Afghanistan. The trade of finished garments like Punjabi ‘suits’ and dupattas or dress materials or fabrics is done via traders or agents based in either Dubai or Dhaka, or through agents in Delhi. There is a normal credit cycle of 60-90 days in domestic or exports-based textile trading. Since July 2021, no significant consignment has been shipped from Surat for Afghanistan.