Nafed records net loss of Rs56.69 cr in 2007-08

Nafed records net loss of Rs56.69 cr in 2007-08


New Delhi: Public sector National Agricultural Cooperative Marketing Federation of India today announced a net loss of Rs56.69 crore for 2007-08 fiscal and sought financial help from government to come out of the red.

Announcing the results at the annual general meeting here, Nafed Chairman Bijender Singh said “favourable consideration of our request by the Central Registrar for special credit limit to Nafed would go a long way in strengthening the present financial position of the Federation."

Singh also said Nafed is exploring all possibilities to come out of the current financial crunch including seeking soft loans from financial institutions.

He requested the Centre to entrust Nafed with additional responsibility by which the cooperative would be able to do business utilising its own resources.

During 2006-07, Nafed had registered a profit of Rs1.77 crore.

Apart from the loss, the turnover of the agri cooperative too declined to Rs4,706.65 crore in 2007-08 from Rs6,381.37 crore in previous year.

The Nafed Chairman attributed the downfall in turnover to negligible activities under tie-up arrangements and price support scheme (PSS) operations.

Singh said the loss was primarily due to huge interest liability on account of outstanding loans due to tie-up business defaulters.

Nafed is yet to recover about Rs1,000 crore from nearly 30 companies with whom it did tie-up business during 2004-06, sources said. However, there are four defaulters who have over Rs100 crore outstanding each. The issue is now in court and many agencies are involved in the enquiry.