Aavin, the Tamil Nadu Co-operative Milk Producers' Federation Ltd., has decided to allow milk dealers to directly procure milk from its depots. Sources in Aavin said that dealers have to pay 50 paise lesser than the maximum retail price (MRP) in advance at the respective zonal office.

This follows a call for a strike by the Tamil Nadu Milk Dealers' Welfare Association after July 1 demanding the system of direct supply only to wholesalers be changed. “Elsewhere, there are no wholesalers,” said S.A. Ponnusamy, State president of the association. Aavin supplies 10.5 lakh litres of milk to the city of which 7 lakh litres are through consumer cards.

“We will ensure that there will be no leakages at the depot. Wholesalers are paid Rs.1.50 per litre. We can only pay dealers 50 paise per litre as they do not spend on transporting from our dairies,” a source in Aavin said.

The dealers said Aavin did not recognise their contribution in distributing 3.5 lakh litres though the retail store network.

“We do not get due compensation for leakages like wholesalers. As wholesalers give us milk at MRP, we are forced to supply milk at a rupee more than MRP. The retailer adds Re.1 to that and in the end the consumer pays Rs.2 more than MRP,” said Mr. Ponnusamy.

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