Ceramic industries are facing problems due to non-payment from traders within 45 days, packaging industries are facing
problems due to non-payment from ceramics within 45 days, and finally, paper mill industries are facing problems due to
non-payment from packaging within 45 days.
Ceramic industries fall into small and medium: Traders have to pay small enterprises within 45 days, but traders flout this
rule, while there is no rule for medium enterprises to get the remaining money within 45 days: The problem starts here
The ceramic industry in Morbi is currently in a recession. Due to this, the impact is also being seen in other industries related to it. Meanwhile, due to the confusion in the payment rules within 45 days, all three industries from ceramic to packaging and paper mills are suffering. Now, due to this, the transaction of buying and selling of raw materials of the cluster is likely to be affected in a short time.
Morbi Papermill Association held a meeting with the owners of about 150 packaging units. In this meeting, the office bearers of the Paper Mill Association said that till now the debt was running for more days. But now from April, the rule of paying the outstanding payment within 45 days will be strictly implemented. Currently, papermills are giving an average of 100 to 150 days of outstanding payment to the packaging industries. But now the packaging industries are worried as they are being asked to make the payment within 45 days.
Status of packaging industries regarding payments
In a conversation with Morbi Update on this matter, Dhirenbhai Kasundra, associated with the packaging industry, said that the packaging industry
takes goods from the paper mill, makes boxes, and gives them to the ceramic industry. The paper mill has now been asked to make payment within
45 days. If payment is not made within 45 days, they will not give the goods. The problem is that the packaging industry does not get money from
the ceramic industry within 45 days. In such a situation, how can the packaging industry give money to the paper mill industry within 45 days? Thus,
the condition of the packaging industry has now become like a betel nut in the middle of a millet.
The papermill industry’s position on payment
In this matter, Shaileshbhai Detroja, President of the Paper Mill Association, said that the packaging industries have been asked to make payments within 45 days from the new financial year, i.e. from April. Because the paper mill industry is currently facing financial difficulties. Because the paper mill industry does not get all the items it needs including waste, coal, and electricity. The list of goods given on loan from each paper mill is increasing. While the payment for the raw material it has taken has to be made immediately. Therefore, now it has become necessary to get payment from the packaging industry within 45 days to sustain the paper mill industry.
Ceramic industry situation regarding payments
In this matter, the president of the ceramic industry, Hareshbhai Boplia, said that micro, small, and medium enterprises come under MSME. There is a rule for small and micro enterprises to receive and pay payments within 45 days. Most ceramic units come under medium enterprises. For medium enterprises, there is a rule to pay payment only within 45 days. There is no rule to receive payment within 45 days. Due to this payments are not received within 45 days and payment is made mandatory. Which creates a difficult situation for the industry. Some ceramic industries come under small enterprises, as per the rule, traders have to pay money within 45 days. However, they do not get payment from traders within 45 days. Moreover, the customers of ceramic units are spread across the country and the world. The money does not come in one or two months. Ceramic industries receive money late, which means that payments to related industries are also delayed.
Thus, it seems that the three industries – ceramic, packaging, and paper mill – are suffering due to delays in payment to ceramics by traders, suppliers, and others. If the government brings strict rules for collection with payment within 45 days for all and enforces it strictly, many problems of the three industries will be solved.