Kozhikode: The Kerala State Cooperative Consumers’ Federation (Consumerfed) has earned a profit of Rs.23.48 crore in the last four months since the new administrative committee took charge. The federation has been running at a loss for the last few years, while officials at the helm are facing charges of negligence and corruption.
Administrative Committee Convenor M. Mehaboob pointed out that putting an end to corruption and extravagance as well as severe cuts in expenditure along with closely monitored business expansion were the key to the growth of Consumerfed. He told reporters here on Sunday that it was for the first time the federation had registered a working profit since 2009.
Consumerfed Managing Director M. Ramanunni said centralised purchase for Neethi and Triveni stores and floating of e-tenders had helped in maintaining transparency in the purchase section. The purchase committees were expanded by including members of primary cooperative societies, while the internal auditing system was reinvented. Unnecessary vehicles were auctioned off, and damaged products lying in warehouses were duly disposed of in the first phase.
As many as 2,266 daily wage workers who were appointed without formal letters were dismissed. Expenses towards interests on loans were brought down through comprehensive money management. Also, efforts were made to close loans availed from various district cooperative banks.
Consumerfed could reduce expenditure and increase earning at Neethi medical stores by obtaining C&F agencies of major pharmaceutical companies.
From April to December 2016, Consumerfed earned a profit of Rs.126.09 crore through sale of beverages and Rs.3.48 crore through Neethi medical stores. However, the rest of the enterprises are running at a loss.
Mr. Mehaboob pointed out that the federation had not yet received government subsidy as it was yet to complete the auditing process. Once the subsidy is sanctioned, profit will be much higher, he added.
