Cong gets textile support, BJP gets diamond sheen

Dinesh Pandey, intimately weaved to the textile industry and works for parcelling of products and transports, lies idle in Tirupati Textile Market. He told DNA that his business has dropped by about 70 percent in about a year. "When the business of textile traders has dropped, our work definitely take a hit. Now, I am not even able to pay salary to my workers," Pandey told DNA. 

Kamlesh Chopra, a wholesale trader, said that his sales have dropped by about 50% in a year.

Small businessmen from across the country who came to Surat for buying goods have almost stopped. "They buy small quantities of goods from different traders. They have almost stopped coming. This business is gone. Unlike the past, when we could seek payment from buyers, we cannot demand payment now. They would return the goods. Payment cycle has been disturbed," said Chopra.

This is because of e-way bill which mandates that someone buying goods worth Rs 50,000 or more has to provide every detail, else they won't be shipped. Transporters outrightly reject the goods without e-way bill, said Pandey. Ramratan Bohra, president of Tirupati Textile Market Service Association, said if this continues for few more months, small textile traders will be wiped out from Surat.

The market is a part of Moti Begumwadi area which has close to 20,000 traders of which close to 60% are small traders, who are at the receiving end of the policies of the government. "Small businessmen have annual take-home income of Rs 5-6 lakh. Paying someone Rs 15,000 per month will derail their household budgets," said Bohra.

Come to Varachha Road area of Surat and see the sentiment. It is quite opposite. Vinod Dabhi, who is in diamond trading business since 1991, denies that there is any kind of slowdown in the sector. "The picture differs from trader to trader. All the fingers of the palm are not of the same size," he said, admitting exports are down by about 20%.

Babubhai Gujarati, president of Surat Diamond Association said that things have turned around since Diwali. "No one has complained to me about a slowdown. For those who want to work, there is enough work. There is no unusual slowdown and it is a part of the regular annual cycle," said Gujarati. He admits that 3% GST on the transfer of goods to different branches of a company is a bottleneck but says that union Finance Minister Arun Jaitley has assured that the provision will soon be removed. 

Kantibhai Patel, a small trader on Varachha Road, said that number of small traders have been shrinking over the last three years. 

"We are unable to withstand the competition from large players who have the financial muscle, while the smaller ones are lacking the level playing field. Our business is down by about 40% over three years," said Patel.

With elections to the Legislative Assembly, now, around the corner, the loyalties are sharply divided. Gujarati say there is no competition in Surat, which will continue to be a bastion. "The BJP-ruled government has built roads, check dams, provided electricity. People have confidence in Prime Minister Narendra Modi," he said adding that Patidaar factor is no longer effective and the community is strongly with BJP.