According to Hindu Kerala State Cooperative Consumers’ Federation Ltd. (Consumerfed) will shelve its market intervention plans for the Onam season as its efforts to mop up funds have not been successful.
Fresh problems came up in implementing the decisions of a meeting convened by Chief Minister Oommen Chandy to raise a loan of Rs.25 crore each from six district cooperative banks and provide Rs.100 crore to clear subsidy arrears. The Kollam District Cooperative Bank Employees Union has moved court against the decision.
The case is before the court but , the fate of the market intervention is uncertain as nobody knows what will happen. The government has yet to release the subsidy arrears of Rs.400 crore to the federation. Its festival procurement bill usually amounts to Rs.100 crore.
Earlier, the federation used to bring in rice from West Bengal and Andhra Pradesh for the festival markets. With the payment arrears to suppliers mounting to Rs.420 crore, most suppliers have refused to replenish the stock.
The only option is to clear the arrears and procure goods at competitive rates. The procurement cost from small suppliers will increase affecting the functioning of the federation with 6,149 employees on its payrolls.
Sources say the track record of the federation in repaying loans has been unreliable and this is a major impediment to getting more financial help.
