Prof. J.D. Agarwal, Chairman, Indian Institute of Finance has mootex an idea of a national Bank in joity sector for financing the consumer cooperative institution and Federations in the country while addressing a National Conference on Consumer Cooperatives on 5th February, 2003

The lnaugural address was deliverd by Sh. Sharad Yadav, Hon'ble Union Minister for Consumer Affairs, Food and Public Distribution, Dr. S.S. Sisodia, president ,NCUI, Sh. Ajit Singh, President , NAFED and Sh. Ram lqbal Singh ,president ,NCCF.

The two days National Conference of Consumer Cooperatives is being held on 5th and 6th February,2003 at National cooperative Union of India at 3, Siri Institutional Area and is being attended by over 150 delegates represention all four tiers of the consumer cooperatives, representatives of National Lable Federations, selected LAMPS/PACS, Students Cooperative, Registrars, Cooperatives Societies of all State Union Territories and Union Territories and Senior Officers of the Government of India.

Accroding to Prof. Agarwal , the Cooperative Movement has been a grand success in this country and has a four tier system for distribution of items of daily use through wholesale and retail through 23975 stores at primary level, 706 whole sale stores at district level and 29 federations at state level with NCCF as their apex national Federation besidesbesides around 58000 PACS and LAMPS. There are 1.25 lankhs Fair price shope in the cooperative sector.The cooperative sector is controling a sales of over 14000 crores during 2001-02 with a membership of Rs. 2.5 crores but consumer cooperatives could not build an appropritate financial base due to the meager surplus funds. Dr. Agarwal has supported the idea hon'ble Minisster and also Sh. Ram Iqbal singh, president ,NCCF for an urgent need for financial support for expansion of the cooperative network in rural and inaccessible areas and setting up of a Consumer protections Rehabilitation Fund . He also supported the views of Dr. S.S. Sisiodia ,president , NCUI that financial assistance from Government should be considerable in the 10th plan period.

Prof. Agarwal reiterated that there is strong case for case for financial retructuringof Cooperatives. He suggested that cooprative movement can be success only if it generates surplus which can be used for further expansion and growth and also for survival in case of contingencies.

According to him, the Consumer cooperatives need to relook at their costing pattern, pricing polices an financing as more then 50% of State Consumer Federations are running in losses and more tahn 60% of whole sale cooperative stores are either incurring losses or have become defunct. He aslo suggested that is a urgent need intriduce creativity in the product, their designs and their utility to keep pace with the latest as all products have a product life cycle and become outdated over a period of time.

According to Prof. Agarwal , there is a strong need for efficient financial management of cooperative who have been performing a formidable task for their members and consumers in far flug areas as well as those belonging to middle class families