Kochi: With the rice suppliers from Andhra Pradesh tightening their stand that they will not resume supply to Consumerfed without clearance of their dues which has run into Rs 80 crore, the state government is now pressuring six district cooperative banks to extend the troubled chain stores RS 25 crore each, to run its business in the Onam season.
Representatives of the East Godavari Rice Millers Association on Saturday met Consumerfed managing director Tomin Thachankari and made it clear that they will not supply rice unless they get their dues cleared.
“We told him we shall not provide supply to Supplyco as well, since it is also a government company and there is no guarantee that we shall get our dues,” association president B. Ramakrishna Reddy told DC.
“The dues have piled up in the last two-and-a-half years and it has become unsustainable for us. We have to clear our dues with our banks.”
Mr Reddy said Mr Thachankari told them that the government was trying to arrange loans from cooperative banks so that they could be paid.
Meanwhile, the state government has been trying to get the district cooperative banks agree to lend to Consumerfed.
“We are under pressure from the government to make a decision, but the Nabard directive against such a move has been a big impediment,” president of a DCB who did not want to be identified told DC.
“The employees of a DCB have approached the High Court against the move saying it will undermine the financial stability of the bank. We will have to take into account the court’s directive also.”
Another DCB president also said there is pressure from the government and the board will take a decision soon. “If the state government convinces Na-bard that the loan is necessary, and that it will not affect our rating, we shall consider the option positively,” he said.
