Debt-ridden Nafed is in talks with IFFCO and KRIBHCO to sell its two bio-fertiliser units located in Rajasthan and Madhya Pradesh, as part of the cooperative's strategy for revival.
The National Agricultural Cooperative Marketing Federation (NAFED) owes around Rs 2,000 crore to banks and has negative networth of Rs 147 crore.
After failing to get a bailout package from government, NAFED has recently decided to cut salaries of employees by 10 per cent and also offer voluntary retirement to bring down the running cost.
Moreover, NAFED has put on block its real estate assets across India, including the head office in south Delhi, as well as two bio-fertiliser plants to raise funds for retiring debts.
"The federation has approached both IFFCO and KRIBHCO to sell its two biofertiliser units located at Bharatpur in Rajsthan and Indore in Madhya Pradesh," a senior NAFED official told PTI.
Emphasising on restructuring of business, the official said NAFED needs to focus more on price support scheme (PSS) to meet its administrative expenses. Under PSS, Nafed procures 16 commodities at minimum support price on behalf of the government.
Fertiliser unit at Indore has capacity of 600 tonnes per annum and plant at Bharatpur has capcity of 300 tonnes per annum.
"NAFED has also proposed to both IFFCO and KRIBHCO they could retain the employees working in these two plants," he said.
Despite making operating profits in last five years, Nafed had been incurring losses because of mounting interest liability on outstanding loans due to its failed 'tie-up business'.
The official added that NAFED is handling PSS efficiently, despite uncertainties. It has already made market intervention for procurement of groundnut, sunflower seed and urad this kharif season.
