IFFCO has proved once again that it can travel extra-mile to help the farmers of the country. Proving to be true cooperative, IFFCO has decided to take on itself the rising price of potash.
Talking to Indiancooperative.com Managing Director of IFFCO Mr Uday Shanker Awasthi said that the cooperative giant will take a Rs 300 crore hit for the current financial year on account of its import of raw materials turning costlier due to a weaker rupee in recent months.
“We have decided to take a hit on our balance sheet as we don’t intend to pass on the cost hike to farmers by raising the maximum retail prices (MRP) of our products,” said IFFCO Managing Director, Dr U.S. Awasthi.
The entire Board of IFFCO consisting of more than 20 members has in unison supported Awasthi on the issue.
MD said that “we are renegotiating contracts with its global suppliers and have managed to secure some discount from Russian supplier PhosAgro. Hit would have higher by 100 crore had we not got a discount of 5%”.
IFFCO controls 25 percent of fertilizer market in the country and its decision to rein in the price is sure to help a large number of people. The act of IFFCO clearly puts cooperative model of economy a notch above the rest.
Government of India should take note and encourage well-meaning cooperatives for the benefit of citizens.