However, Confederation of All India Traders (CAIT) said that the retailers have huge inventory from last two years which they are clearing now and that is the possible reason for lower offtake from Surat’s mills. But the demand is very strong this year, said Praveen Khandelwal, secretary general of CAIT.
“Retail demand is down by 60 per cent across India. Last year, during the Diwali festive season period, we had clocked a business of Rs Rs 16,000 crore. But this year we may at the best we can achieve a business of Rs 8,000 crore,’ said Champalal Bothra, general secretary f the Federation of Surat Textile Traders Association (FOSTTA).
Bothra added that the price of fabric has also come down due to lesser demand. “A month ago, it was Rs 40 per metre. It has now come down to Rs 32-33 per metre. The wholesalers are waiting for prices to further fall. And therefore, the off take is less.”