It’s curtains for CONFED

CHANDIGARH: Its curtains for the loss-making Haryana State Federation of Consumers’ Cooperative Wholesale Stores Limited (CONFED), one of the state government agencies tasked with purchasing farmers’ produce and helping authorities in the implementation of the targeted public distribution system (TPDS).

Pradeep Sharma

Tribune News Service

Chandigarh, July 29

Its curtains for the loss-making Haryana State Federation of Consumers’ Cooperative Wholesale Stores Limited (CONFED), one of the state government agencies tasked with purchasing farmers’ produce and helping authorities in the implementation of the targeted public distribution system (TPDS).

Fifty years after its inception as a cooperative society in 1966, the Khattar Government has decided to shut down the federation in view of its huge losses and operational difficulties. “Over the years, it has become a white elephant in view of the huge losses and virtually outlived its utility,” sources told The Tribune here today.

Sources said CONFED had become unviable on account of an outstanding debt pegged at over Rs 100 crore and other operational issues.

Additional Chief Secretary (Food and Supplies) SS Prasad confirmed that the state government had taken a decision in principle to shut down CONFED.

In its original avatar, CONFED was mandated to co-ordinate and facilitate the working of affiliated cooperative wholesale consumer stores and to assist in the promotion and development of cooperative wholesale consumer stores. When the public distribution system (PDS) was introduced by the Centre in 1979, CONFED took to the implementation of the PDS for the poor sections of society and other consumers.

However, globalisation and liberalisation of the Indian economy triggered tough competition in consumer business from private players. This changed economic environment forced CONFED to shift to procurement of foodgrains and their transportation for PDS beneficiaries. However, in recent years, the federation fell on bad days on account of a variety reasons, forcing the state government to work out modalities for its closure.