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Afghanistan chaos affecting the textile hub of Surat

Aug 20, 2021
Afghanistan chaos affecting the textile hub of Surat


As per the reports, the chaos in Afghanistan due to the Taliban’s takeover has affected the textile hub of Surat. The exporters and brokers have claimed that a payment of Rs 4 billion is stuck due to the unrest. 

They fear that they won’t be able to recover the payment given the scenario in the country. Afghanistan and Pakistan is a crucial market for the suits and dupattas made in Punjab. As per the data, payments amounting to Rs 1 billion were sent to Afghanistan via Pakistan every month. According to Raju Bhatia, Broker, the textile market offers a credit period of maximum of three months. The payment of the goods supplied to Pakistan, Afghanistan, and Dubai are received in 3-4 months. He added that this time a huge amount of the exporters is stuck due to the unrest.

As per Gurpal Singh, Garment Manufacturer and exporter, the suits and dupattas from Punjab are high in demand due to its quality and variety. But in the current scenario, nobody wants to take any risk. He also said that more than Rs 1 billion worth of textile products are exported to Afghanistan via multiple routes. But due to the current scenario in the country, the same has been stopped.

As per Ravi Jain, Garment manufacturer, the exporters are suffering from huge losses. They are not sure when will this situation improve.  

Source – The Times Of India

Image Source: Wikipedia

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