Low prices shake rubber societies

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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