The Hindu Business Line : `Allow TUCS to exit from PDS sales'

THE TUCS (Triplicane Urban Co-operative Society Ltd) Employees Association has demanded that the State Government compensate it for the losses it suffers in handling sales under the Public Distribution System (PDS) or relieve it of the responsibility of PDS sales.

Also, with more than Rs 100 crore worth of land and buildings located in prime areas in the city, TUCS could enter new businesses, including retail marketing to improve its income, according to the association.

These were part of a representation by the employees to a committee constituted by the Registrar of Co-operative Societies to offer suggestions to improve viability of the wholesale co-operative societies in the State. TUCS is a century-old co-operative society that pioneered co-operative movement and organised retailing in Tamil Nadu.

The committee held discussions with representatives of a range of wholesale co-operative societies at various centres in Tamil Nadu and is expected to come out with recommendations shortly, according to officials.

The TUCS employees association said that the Government has thrust the PDS system on the co-operative society, which - it handles over 30 lakh ration cards - losses over Rs 30 lakh a year on PDS operations. In addition, over Rs 5 crore of investments was locked up in the loss-making business, which accounts for an additional expenditure of Rs 60 lakh as interest.

If TUCS cannot immediately be relieved of this responsibility, the Government should pay to TUCS in advance a service charge of Rs 18 for each card as an interim arrangement till a viable payment scheme is put in place. The state-run Civil Supplies Corporation should handle the transport of commodities. If an appropriate payment system is not in place within one year to prevent losses to TUCS, it should be allowed to exit from PDS, they said.

The employees association has also demanded that the system for procuring commodities for retail sales through its outlets should be revamped.

The common procurement system for co-operative outlets should be done away with and TUCS, which has the expertise among its members to procure and sell quality goods, should be permitted to handle its own procurement, they said.

The association also suggested that its assets should be properly utilised to generate maximum revenue. TUCS owns over 38 buildings in prime locations in Chennai, but these are underutilised and shops in some of these buildings were lying vacant. TUCS could enter into retail sales of white goods from such locations; tie-up with banks to let them set up ATM at the outlets.

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