The Hindu : Tamil Nadu News : Drop business-oriented approach in procurement, Co-optex told

Online edition of India's National Newspaper
Wednesday, Sep 12, 2007
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Tamil Nadu

Tamil Nadu

Drop business-oriented approach in procurement, Co-optex told

Staff Reporter

Federation of Handloom Weaving Workers’ appeal

KANCHEEPURAM: The Federation of Handloom Weaving Workers (affiliated to CITU) has called upon the State Government to ensure the Tamilnadu Handloom Weavers Cooperative Association (Co-optex) drop its business-oriented approach in procurement of finished products from handloom cooperative societies.

This resolution was passed at a State-level conference held here on September 11, which was presided over by the All India Joint Secretary, CITU and Tamil Nadu State president of the Federation A.K.Padmanabhan.

In the resolution, it was demanded that Co-optex should revive its earlier mode of operation — making immediate payment for products purchased from the weaving cooperative societies. At present, the Co-optex insist that the weaving societies to take back unsold products after a period of time and makes payment for the products sold through its showrooms.

Pointing out that Co-optex was formed with primary aim to procure finished products from weavers and sell the same to the public with minimum profit, Mr.Padmanabhan claimed that several weaving cooperative societies turned red after the Co-optex decided to adopt business oriented approach.

While passing another resolution seeking waiver of loans taken by weaving cooperative societies, the Federation pointed out that weaving cooperatives have taken a loan of Rs.326.68 crore from District Central Cooperative Banks and were facing severe financial crunch.

Interest increased

In the meanwhile, a recent direction issued to the cooperatives stating that the interest for loans granted under NABARD scheme had been increased from 9 per cent to 12 per cent with effect from April 1 this year had taken the societies by surprise. Thus, the Federation urged the Union Government to direct NABARD to recall its recent announcement.

Reintroduction of interest subsidy and to adopt a clear and transparent procurement policy with regard to purchase and distribution of ‘zari’ were the other two subjects on which resolutions were passed at the conference.

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