New MSME payment rule leads to many cancelled orders

While the government’s intent is to protect MSMEs, this has caused uncertainty in the market and Ahmedabad’s textile markets are seeing cancellation of orders. Some chemical traders are also feeling the effect. Some buyers have decided not to buy goods before Feb 16 to ensure that their payment deadline comes after March 31. The textile value chain on the other hand operates on a credit period of up to 120 days, so this rule has affected it the most.

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