The Meghalaya State Cooperative Marketing and Consumers' Federation Limited.
The Meghalaya State Cooperative Marketing and Consumers' Federation Limited, or in abbreviation popularly known as "M.E.C.O.F.E.D." or the Federation, is a cooperative organisation ,registered under the Meghalaya Cooperative Societies Act in 1975-76, after taking over the assets and liabilities of the erstwhile Assam Hills Development Corporation. The Mecofed therefore is an Autonomous Cooperative Organization which is managed by a Board of Directors elected by its members in the Annual General Body Meeting as per its Bye-Laws.
As per the Bye laws, the Management of the Federation rests with the Board of Directors consisting of 15 members including the elected Chairman, the elected Vice Chairman, the Managing Director along with 5( five) Ex-Officio members nominated by the State Government ,besides 2 (two) members representing the Central Government.
The authorized share capital of Mecofed is Rupees 25, 00, 00,000 (twenty five crores) only
The current business activities of M.E.C.O.F.E.D. are:
- Procurement and sale of Surplus Agricultural Produce and Minor Forest Produce like Wild Pipple, Turmeric, Ginger, Jute, Potato Seeds etc.
- Apart from its marketing business activity, M.E.C.O.F.E.D. is also engaged in the sale of L.P.G., S.K. Oil and Cement.
- Other business activities include supply of office stationery items office furniture and fixtures, computer peripherals etc. to the offices of the State and Central Government. Supply of tyres, tubes, motor vehicle battery to State Government Departments is also one of the business activities of M.E.C.O.F.E.D..
Currently M.E.C.O.F.E.D. has outlets in Jowai, Sohra, Nongstoin, Tura and Phulbari
Business Turn Over
The business turnover by taking into account the above business activities for the last 5(five) years are as follows:
There are no trading losses. The organisation earns gross profit from its trading activities. Net loss is primarily due to being overstaffed and heavy overheads expenses.
A. Strength of M.E.C.O.F.E.D.
- Has its own physical infrastructure in most District Headquarters like Shillong Tura, Jowai, Nongstoin Williamnagar, and in Phulbari.
- Has downsized its employees by providing golden handshake scheme.
- Board of Directors has banned fresh recruitment.
B. M.E.C.O.F.E.D. weaknesses are as below :
- Losing out of business
- Its existence is not purely profit objective driven
- Heavy debt burden
- vii. Heavy expenditure on overheads.
- Entering into new areas of business, such as in the field of Dairy products, Pharmaceuticals, consumer goods.
- Establishing forward linkages with the National cooperatives and producers of tradable items
- Establishing proper backward linkages with the grass roots level consumer and marketing Cooperative societies with government as a facilitator.
- Winning back some of the lost businesses
- Enhancing the business in Minor forest produce and surplus agricultural products and to include items like Cashew nut, Honey and wax, turmeric, sohiong.
- Right sizing of its employees
- Skill up gradation and training of the remaining employees, through short-term orientation course training on marketing /salesmanship/management.
- Computerization of the business and administration.
- Business target turnover up to the range of 15 crores in the next two years and 20 crores thereafter.
Business statistics from 1975-1976 to 2004-2005
|Serial Number||Year||Turn over (in lakhs)||Gross Profit||Net Profit||Net Loss||Accumulated Loss|
Business Turn Over for 2005 - 2006
The annual business turn-over of M.E.C.O.F.E.D. for the year 2005-2006 is Rs.914.22 lakhs and the target of business achievement for the year 2006-2007 is provisionally fixed at Rs.1,000.25 lakhs.
At present M.E.C.O.F.E.D.'s business activities is sale of Fertilizers and Bone meal, procurement of Minor Forest Produce and Surplus Agricultural Produce of the State amongst which Wild Pipple, Mustard Seeds, Jute etc. being the major items of procurement. Besides it is also engaged in the sale of S.K. Oil, L.P.G., Cement and Government supply of office Stationeries, Computer Peripherals, Tyres, Tubes and Batteries.
The break-up of the annual business turn-over in respect of sale and procurement only is as follows :-
|1. Groceries toiletries etc.||3.25||3.00|
|2. S.K. Oil||116.00||110.00|
|3. Tyres, Tubes and Batteries||24.57||49.25|
|5. Office Stationeries etc.||38.72||201.42|
|8. Wild Pipple||70.02||33.00|
|9. Other surplus Agricultural Produce||---||13.76|