Vazhakkulam Agro and Fruit Processing unit at standstill due to limited working capital
The Vazhakkulam Agro and Fruit Processing Company has stopped production. The company, partly owned by farmers, was established to procure pineapples during the peak production season and to provide price support to farmers during periodic price fall.
However, due to limited working capital, the company had entirely halted production. The company has not shut down, but operations at the factory were at a standstill, said chairman Benny Kakkad on Saturday. He added the government had released ₹2 crore for the company’s immediate financial needs. However, the bank has not yet been able to disburse the fund.
The fund would have been used to pay employee salaries for two months and cover other commitments, including electricity charges and payments to raw material suppliers. The Kerala State Electricity Board recently cut off power supply to the plant as the processing unit had run up a massive bill in arrears.
According to sources, the government had sanctioned the current tranche of ₹2 crore for the company after July 15. However, the company has not yet been able to encash it. Efforts were being made made to restore the company’s operations at the earliest with the support of the government, Mr. Kakkad said.
The fruit processing plant was established in 2000 to capitalise on the abundance of pineapples from the Vazhakkulam region. The aim of the unit was to support farmers and ensure that the benefits fully reached them, as they were made partners in the venture.
The plant and machinery were also designed to process other fruits, such as mangoes, during the shortage of pineapple supply.
Initially called the Nadukkara Agro Processing Company, it was taken over by the State government and renamed Vazhakkulam Agro and Fruit Processing Company. The government holds 51% of the shares, farmers hold 30%, and the Vegetable and Fruit Promotion Council Keralam holds 19%.
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