Consumerfed Owes Rs.387 Cr to Suppliers; Association Dharna on Tuesday

Kochi, June 13, 2015: The Consumer Federation Supplier’s Association (CFSA) has urged the Government to immediately release the huge sum due for payment to its members against supplying various essential commodities and products to Consumerfed over a period of two years. As on date, the accumulated arrears worth Rs. 387 Cr is the outstanding amount payable to around 120 suppliers, said the office bearers of the association in a media conference here. They said they have been supplying things to Consumerfed with the help of loans taken from banks and other financial institutions and due to the present payment crisis, many of the suppliers are on the verge of committing suicide by not being able to pay even the interest on such loans, said Ullas M.V., President, CFSA. 

The association has been knocking several doors to release the due amount, but to no avail. “The office bearers of CFSA had submitted a memorandum citing their grievances to the Chief Minister and the KPCC President a few months back. After considering our petition, it was decided to lend a total of Rs.150 Cr from five District Banks on government guarantee. Though a government order was released, the amount has not been released yet,” Ullas pointed out. The office bearers distributed copy of the G.O to media persons. They alleged it was the cold war between the concerned minister and the MD, Consumerfed that is delaying the disbursing of the dues. Because of the piled up arrears, the suppliers have been boycotting Consumerfed tenders for some months now. This will affect the supply of essential commodities through the Nanma, Neethi, Triveni stores of Consumerfed which has been playing a significant role in controlling prices of essential commodities and products through effective market intervention. As the Ramzan and Onam season is approaching, the present payment crisis will ultimately hit the common man badly, being the major benefactor of Consumerfed stores, they said.

The association has decided to stage a dharna in front of the Consumerfed head office at Gandhi Nagar in Kochi on Tuesday (16-06-15) and Wednesday (17-05-2015) demanding immediate release of the arrears. The association warned that if their demand is not met, they will be forced to intensify the agitation that will include a march to the residence of the minister.  Pauly T.A., Association General Secretary; Naushad K.H., Treasurer; Nazar Kallar, N.P. Antony, both Vice Presidents of the association and Sreejan, Joint Secretary were also present at the media conference.