Kottayam: An action council formed by the local people has demanded an inquiry into the financial liabilities of the Pala Marketing Cooperative Society and the Meenachil Rubber Marketing and Processing Cooperative Society. It has also sought the disbanding of the respective administrative committees.
The societies are facing a tough time due to the low rubber prices. Moreover, two of the factories of the Meenachil cooperative society are closed as the rubber farmers are not providing them latex.
The Pala cooperative society came into being in 1958 and the other in 1962. The former consists of the ‘India R crumb rubber factory,’ a polymer factory, inter mix unit and Sulabha outlets comprising super markets and rubber marketing depots. Except the ‘India R factory,’ other institutions are running in loss.
The primary business of the society, with at least 150 individual depositors and a number of other cooperative societies, is rubber marketing and producing block rubber through its factories.
As per the 2014-15 audit report, it has a financial liability of Rs 131 crore. The Meenachil society comprises a centrifugal latex factory, crumb rubber factory, chain Neethi medical stores and two supermarkets and its losses are up to Rs 155 crore as per the audit report of 2013-14.
Mr K.C. Joseph, convener of the action council, says that the latex processing and block rubber manufacturing factories of Meenachil have been lying closed for the past five months.
The farmers do not give them latex as they are not paid the prices in time. Sources from Pala society said it was trying to give at least Rs 15 crore to the 250 investors.
“There has been some error in the audit report about the heavy losses. We have asked the registrar to rectify it,” said Mr K.S. Jayachandran Nair, president of the society.
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