Iffco’s gain raises hopes of coop movement success

Beating all past records, the fertilizer cooperative giant IFFCO has posted a profit of Rs 1026 crore in the financial year 2010-11. Following its principle of sharing its gain among members IFFCO Board has decided to offer 5 per cent incentive on sale of fertilizer to the member cooperatives. It means Rs 5 for each tonne sold.

Those cooperative societies which were not able to sell, Board has proposed to give them 2 per cent of their equity. It means if a society has equity share of 10 lakh, it will get Rs 20 thousand.

Talking to Indian Cooperative.com Dr G N Saxena, Director Cooperative development (IFFCO) told that this amount is over and above the 20 per cent bonus iffco has been giving to its members for last 10 years.

The last board meeting of April 25 also proved lucky for the employee as it decided to offer pension plan to them. The provisions of pension plan would be implemented from 1st of April 2010. Dr Saxena said that without a dedicated team of employees, IFFCO would not have been there where it is today. Thus, the Board decided to share gain with them.

Managing Director Dr U S Awasthi’s vision, Board’s unflinching support and  employees’ dedication have helped us achieve this target, said a euphoric Saxena.

Iffco also shares gold coin with its delegates every year for past three year. This coin is imported from Switzerland and is 99.9 caret. It costs nearly Rs 12,500 each.

Iffco’s actual profit for the financial year 2010-11 would have been much more but for the government bonds. Iffco  had to offset  a huge amount for government bonds. Government had earlier promised to redeem the amount of Rs 346 crore on its own but later left it on IFFCO to take care. If one adds up this amount, IFFCO’s total profit hovers around Rs 1400 crore- indeed a figure Indian Cooperative movement could boast of.

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