State Consumers' Cooperative Federation Ltd. : Distribution of Sugar

Abstract

The case deals with a peculiar situation wherein the State Consumers' Cooperative Federation is burdened with a lot of responsibilities but has very little power. The Federation deals with three agencies— the government, the mills, and the cooperative societies. It has no control over the functioning of any of these three bodies. More often than not the Federation's funds are locked up for extended periods with any or all of these agencies. While the locked up funds do not earn any interest, the Federation has to borrow money from the bank to support its activities. Thus the situation presents an interesting case of problematic working capital management that calls for considerable ingenuity to straighten out.