Surat: South Gujarat Yarn Dealers Association, using the services of a leading company, has developed a software on the lines of CIBIL that will reduce the possibility of defaults in the yarn market, which has an annual turnover of Rs 8,000 crore.

Pankesh Patel, newly appointed president of the association, and past president Anil Dalal claim that some weavers and merchants keep payment to a dealer pending and buy yarn from a second dealer and then from a third dealer and so on.

This software has been developed to help yarn dealers identify such weavers and merchants who avoid making payments to the dealers. It will keep a record about which party is supposed to make how much payment to the yarn dealer.

This yarn dealer will use this software to access the customer credit report (CCR) of the weaver and the merchant before transacting business with him.

Yarn Dealers lose Rs 8-10 crore annually because of defaults. A yarn dealer is unable to recover on an average Rs 40-50 lakhs each year because of defaults. DeshGujarat.