The Kerala State Cooperative Consumers’ Federation (Consumerfed), which is in the throes of a grave crisis, has got a breather with the government setting the ground to provide Rs.150 crore immediately from six district cooperative banks and making a firm offer of Rs.100 crore to clear a portion of the subsidy arrears due to the federation.
Official sources told The Hindu here that the decision was made at a high-level meeting held at the behest of Chief Minister Oommen Chandy here on Friday to bail out the federation from the crisis. The belated intervention would not help to open the Ramzan markets at short notice, but at least help in its market intervention efforts for Onam. Though the crisis seems to have blown over for the time being, the core issues that had been plaguing its functioning continue to remain unresolved.
The federation management, through a note to the Cooperation Special Secretary on July 8, is understood to have apprised the government of the gravity of the crisis and sought its guidance on various issues.
It had sought a guidance on handling a legion of employees appointed in violation of the norm that recruitments should be made only by the Public Service Commission.
The federation is striving hard to meet the salary and other expenses of the 3,778 daily wage and also 80 contract employees. The management has sought a opinion on continuing the Nanma scheme launched in 2012. For, the federation had strayed into sectors in which it had no adequate expertise or knowledge and the unplanned expansion has depleted its resources.
On winding up the scheme, the government would have to work out a plan for retrenching or redeploying the employees. The federation also wanted government clearance to continue its LPG distribution scheme which has started registering profit of late. Groping in the dark to recover the loss to the tune of around Rs.360 crore, the management wants the government to advise on the future course of action for recovering the loss.
The intervention would not help to open the Ramzan markets, but at least help in its market intervention efforts for Onam.
