BENGALURU: Going by the current trend of online platforms and private players selling vegetables and fruits procured directly from farmers at competitive prices, outlets of the Karnataka government-owned Horticultural Producers’ Cooperative Marketing and Processing Society (HOPCOMS) are on the verge of closure.
As many as 140 outlets shut in the past five years. Of them, 89 were in Bengaluru.
Hopcoms was launched in 1965 to help farmers get remunerative prices for their produce and to ensure quality farm fresh products to consumers at affordable prices. There are 26 branches of Hopcoms in Karnataka -- in Bengaluru, Belagavi, Bidar, Ballari, Chikkamagaluru, Shivamogga, Gadag, Dharwad, Davanagere and other places -- where there were around 600 outlets. But the number of outlets is coming down, especially in the past two years.
Replying to a question in the Legislative Council on the reasons for the closure of Hopcoms outlets, Horticulture Minister SS Mallikarjun said in some places, they had to be shut as employees manning them retired and new appointments were not made.
The other reason for closure of the outlets in Bengaluru is severe competition by vendors, who sell vegetables and fruits at malls, and opening of exclusive shops at many places by private players. Some outlets in Bengaluru were closed because of road-widening and Metro works, the minister said.
Hopcoms unable to pay retirement benefits to staff
He said the outlets in many district headquarters were in deserted areas and not many people visited them. This led to their closure. In Bidar, the outlet was shut as it was in a dilapidated condition. In Dharwad, a dispute over the plot, where the outlet was opened, led to its closure. A case in this regard is pending in court. In Kalaburagi, Mandya, Mysuru and Vijayapura, the outlets were not making profits. Hence, they were shut down.
Sources in Hopcoms said some outlets in Bengaluru made a business of around Rs 500 a day. “With that kind of business, how can we run the outlets?”
Hopcoms, which is under loss, is not even able to pay retirement benefits to its employees. Of the 809 sanctioned posts, Hopcoms now have only 525 employees. The rest have retired.
The minister, however, stated that salaries for these employees are being paid on time. Hopcoms has not paid gratuity of Rs 6.95 crore to the retired employees. No time limit or deadline has been fixed to pay this money, he added. Asked if those outlets would be reopened, the minister said there is a Rs 8-crore proposal to upgrade Hopcoms. But the proposal has not been finalised.