PAPSCO to sign agreement with T.N. firm for export of shrimp

Under the agreement, Oceanic will transfer 8.29% of its turnover to PAPSCO

New initiative: N. Danavelou, PAPSCO Chairman, interacting with workers in Puducherry on Friday.

Puducherry Agro Products, Food and Civil Supplies Corporation Ltd. has decided to enter into a memorandum of understanding (MoU) with Oceanic, a firm-based in Tamil Nadu, to jointly export processed shrimp.

PAPSCO chairman N. Danavelou told presspersons here on Friday that the agreement would be signed after the budget session of the Assembly.

As per the details worked out between PAPSCO and the firm, the processed shrimp would be exported to 27 countries, including the U.S., Germany, Japan, Dubai, Malaysia, France, Canada, Spain, and Egypt. The company would transfer 8.29% of its turnover to PAPSCO.

Mr. Danavelou said corporation expects monthly revenue of ₹1 crore from the partnership and from the second year the revenue would go up substantially.

The private firm was in the export business and by signing the agreement with a government entity the company aims at shoring up its business prospects, he said.

Positive move

Such initiatives, he said, had become a necessity to steer clear the corporation from the debt trap.

The entity had incurred a loss of ₹52 crore.

He faulted the previous N.R. Congress government for the present plight of the corporation. A committee had been constituted to inquire into the financial irregularities committed by the previous government, he added.

The chairman said a part of the temporary workers grouped under the multi-task service (MTS) category had agreed to withdraw from the strike. As many as 515 workers were on strike for the last 20 days and of them 277 have agreed to attend work, he said.

The government had agreed to consider the demand of workers to regularise their service. It would be done in phases, he added.