FOSTTA App Helps Surat Textile Traders Track Payment Defaulters – Over 3,000 Complaints Filed in a Month
Surat, India’s textile hub, has taken a big digital step to fight the problem of payment defaults in the textile trade. In just one month, over 3,000 complaints have been filed on a newly launched mobile application called FOSTTA FORUM, reporting payment defaults worth Rs. 170 crore (approximately USD 20 million).
This app has been launched by the Federation of Surat Trade and Textile Association (FOSTTA) to protect textile traders from financial losses caused by buyers who do not pay after purchasing goods.
Digital Help for a Long-Standing Problem
Payment defaults have been a long-standing issue in the textile sector. Often, traders send goods to buyers across the country, and many times the payments are delayed or never made. This can cause huge financial problems for small and medium traders.
FOSTTA’s new app is a digital solution designed to track and report such cases quickly. What makes the app special is that both registered and unregistered textile businesses can use it to file complaints. They only need to upload details like:
- Name of the buyer or firm
- Transaction details
- Amount involved
- City or location of the buyer
This helps create a centralized system where traders can check whether a buyer has a history of defaulting on payments before doing business with them.
Targeting Fly-by-Night Operators
FOSTTA President Kailash Hakim said the app is mainly aimed at fly-by-night firms — these are companies that appear in the market for a short time, do business on credit, and disappear without paying. According to him, more than 70% of such defaulters are from outside Gujarat. This shows that traders in Surat are often targeted by companies from other states.
To deal with this, FOSTTA is working closely with 146 kapda mandis (cloth markets) across India. This network will help cross-verify buyers’ credentials and reduce the chances of fraud.
Student Volunteers Strengthen the Cause
To manage the large number of complaints, 20 college students have been recruited and trained as telecallers. These students are helping follow up on complaints, verify buyer details, and connect with traders. Their contribution is already making a difference:
- 20 cases have been successfully resolved
- Another 300 cases are under review
This shows how the combination of technology and human support is working to protect the interests of traders.
A Real-Life Success Story
In one important case, a textile factory owner used the FOSTTA FORUM app to check the background of a potential buyer. He discovered that three complaints had already been filed against that buyer. Based on this information, he canceled the order and avoided a possible financial loss. This example shows how the app is not only helpful after a problem occurs, but can also be used as a preventive tool.
Promoting Transparency in the Textile Market
The app and its associated efforts are part of a larger plan to bring transparency and safety to the textile industry, especially in Surat, which is home to over 30,000 textile businesses. With rising competition and increasing trade outside Gujarat, it is important for traders to have reliable tools to protect themselves.
By making it easy to report defaulters, and even easier to check their records, the FOSTTA FORUM app is empowering traders. It gives them the information they need to make better business decisions and avoid risky transactions.
Raising Awareness Among Traders
FOSTTA is also running awareness campaigns to inform more traders about the app. Many business owners are not aware of how to protect themselves from fraud. By spreading awareness and encouraging traders to use the app, FOSTTA hopes to create a safer business environment.
These campaigns also educate traders on how to:
- File a complaint using the app
- Check a buyer’s past record before selling goods
- Follow up on pending complaints
A Step Towards a More Secure Textile Market
India’s textile market is vast and growing, but it also faces challenges. Trust and timely payments are the backbone of smooth trade. When buyers do not pay on time—or at all—it affects not just one seller, but the entire chain of production and trade.
With initiatives like the FOSTTA FORUM app, Surat’s textile community is showing the way for how local industries can use technology to solve real-world problems. It also sets an example for other cities and sectors facing similar challenges.
Conclusion
In just one month, the FOSTTA FORUM app has recorded over 3,000 complaints and uncovered defaulted payments worth USD 20 million. These numbers show how serious the problem is—but they also show that traders are ready to take action.
With digital tools, strong networks across India, student volunteers, and active awareness programs, Surat’s textile sector is building a strong defense against financial fraud. The FOSTTA app is not just about filing complaints—it is about restoring trust, protecting businesses, and creating a more responsible and transparent textile trade for the future.
