Date:20/03/2006 URL: http://www.thehindubusinessline.com/2006/03/20/stories/2006032002491500.htm

Back AP Markfed seeks hike in share capital

Our Bureau

Hyderabad , March 19

A.P. State Co-operative Marketing Federation Ltd (AP Markfed) will seek a Rs 100-crore Market Intervention Fund (MIF) from the State Government to undertake Market Intervention Scheme (MIS) operations.

It has also decided to ask for increase in its authorised share capital from Rs 9 crore to Rs 18 crore. Resolutions to this effect were passed at the annual general body meeting of Markfed held here today.

Another resolution sought to request the State Government to make the Primary Agricultural Credit Cooperative Societies (PACS) and the District Marketing Cooperative Societies (DCMS) as nodal agencies for Government subsidy schemes at the mandal and district levels. They would also be make allotment of 50 per cent of total fertilisers from the stipulated quota of all the fertiliser manufacturers.

The Managing Director of Markfed, Mr M.T. Krishna Babu, said the turnover touched Rs 500 crore during 2005-06. He attributed the growth to several factors such as decentralised procurement under MSP involving village organisations and self-help groups, good working PACS and DCMS.

The Chairman, Mr Ponnam Prabhakar, said Markfed was willing to supply fertilisers as per the indents of the PACS and DCMS if the same were submitted in time. Markfed would clinch negotiated prices and timely supply with the fertiliser manufacturers.

Several members voiced the problems faced by PACS finances for undertaking business, complete waiver of interest on co-operative loans and requested the Government to come to their rescue.