Textile traders fear huge losses due to Chennai floods

SUART: Floods in Chennai and heavy rains in other parts of Tamil Nadu have hit hard many textile traders in the country's largest man-made fabric (MMF) wholesale market here in the last few days.
Delivery of textile fabrics to Tamil Nadu from Surat has been badly affected in the last fortnight which means the textile traders could suffer financial losses to the tune of Rs 400 crore.
Goods supplied by the traders before the floods have been destroyed in the floods that ravaged Chennai. Huge stocks of textile goods were destroyed in Godown street, Thambu Chetty street and Walltax road. Major indenting agents and stockists have their shops in Godown street. Big time retailers of textile fabrics of T Nagar and Purasawalkam were also affected by the floods. Traders fear they may not get payments for the goods supplied by them to the buyers there.
Textile traders said Pongal is the biggest festival in Tamil Nadu which is celebrated on January 15. Textile wholesalers start placing orders for saris and dress materials two months in advance. Many traders had already supplied the fabrics and many were in the process to send the goods to south India when the floods occurred.
"The entire supply chain is damaged due to the floods and rains. Many low-lying areas where textile shops were located were inundated, destroying fabrics worth crores of rupees. Traders from Surat fear they will not get payments for the goods supplied," said Jay Lal, an office-bearer of Federation of Surat Textile Traders Association.
Southern Gujarat Chamber of Commerce and Industry's textile committee chairman Devkishan Manghani said, "Textile fabric worth Rs 30 crore is supplied by local traders to southern Indian markets, including Tamil Nadu, daily. The entire supply chain has got disturbed because of the floods and rains. Traders fear huge losses for the goods they had supplied and that they won't be able to get payments from Chennai wholesalers."