Surat: The Rapier Jacquard Weavers The Association of Surat will publish a list of Defaulters delay payments to Weaver for weeks. The move comes at a time when the weavers have the best chance of paying their dues.
“Usually, payments to weavers are released by the dealers at this stage unless it is a case of deliberate fraud. Hence, we are introducing a new system to identify such elements and prevent other weavers from getting into trouble,” said Chetan Maniya, president of RJWAS.
The decision was taken at a recent meeting of the RJWAS. The issue of late payment has become a major problem for weavers who offer discounts to get orders and do not complain about late payments for fear of losing a customer.
After the first complaints, RJWAS set up a system where its members and lawyers listen to the aggrieved weavers and try to obtain the maximum possible compensation. Such meetings are held twice a month to discuss cases.
“Now the complaints are increasing and to increase the pressure on the traders, we are now changing our strategy. Together with the trader, we will find out the details of the broker who was involved in the deal,” said Maniya.
RJWAS has recently received 40 such complaints and the weavers have to make payments of around Rs 5 crore. While analyzing the non-payment cases, it was found that many weavers have not received payments for over eight months.
Weavers found that the dealer takes the product on credit for 90 to 180 days. The dealer then sells it on credit to a wholesaler or retailer. “As soon as the dealer receives payment, he pays the weaver. For his investment, the weaver ends up getting payment, while others do business without investment,” said a rapier jacquard weaver.
“We have also come to know that fraudster groups are also involved. Traders and brokers are running syndicates and cheating several weavers,” said Maniya.
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