As of February 17, 2026, the Surat Weaving Jari Association has taken strict steps to control a growing liquidity crisis that has placed many jari manufacturers under serious financial pressure. The new rules are aimed at improving payment discipline, reducing unfair deductions, and helping small manufacturers survive rising production costs.
Key Decisions Taken by SWJA
The association has introduced several important changes for the jari trade:
- 60 Day Payment Limit: All transactions must now be cleared within 60 days. Earlier, payments in the industry were often delayed for up to 180 days or more, which created major cash flow problems for manufacturers.
- No Arbitrary Deductions: Buyers will no longer be allowed to reduce final payments by claiming vague quality issues. Manufacturers had complained that such deductions were common and unfair.
- Price Increase for Synthetic Jari: Due to the steady rise in raw material costs, the association has announced a price hike for synthetic jari. The revised prices came into effect on February 15, 2026.
Main Reasons Behind the Financial Crisis
Industry members say the crisis has developed because of several long term problems:
- Delayed Payments: Small manufacturers are stuck between immediate raw material expenses and late payments from buyers, leading to serious cash shortages.
- Weak Selling Prices: Finished jari prices have not increased at the same pace as manufacturing costs. This has reduced profit margins across the sector.
Wider Industry Action
Other trade bodies, including the Federation of Surat Textile Traders Association, have started tracking and publicly naming long term payment defaulters to restore discipline in the market.
Resistance From Buyer Groups
The Rapier Jacquard Weavers Association, which is a major buyer of jari, has raised concerns about the recent price increase. The group says market demand is currently weak and wants internal discussions with other textile organisations before fully accepting the new pricing and payment rules.
What This Means for Surat’s Textile Sector
Surat is one of India’s most important textile and jari manufacturing hubs, and payment delays directly affect thousands of small and medium units. Industry observers believe the 60 day credit rule could improve cash flow for manufacturers, reduce financial stress on small units, and bring greater transparency in trade payments. However, the final impact will depend on how strongly buyers follow the new rules in the coming months.