A tiff between a section of Aavin’s wholesalers and dealers is brewing over an increase in commission, which might affect milk supply in the city in the coming days.
Sources say the wholesalers are demanding that they get an additional ₹3 per tub — each with 12 litres of milk — and are threatening dealers that they would stop supplying milk if not.
Wholesalers get ₹14.40 per tub and dealers, who collect milk from them and deliver it to the retailers, get ₹18 per tub. “This is hardly sufficient for the time and fuel spent on delivering milk in the morning.. Dealers stick to Aavin since many retailers prefer the brand,” said a dealer.
A few wholesalers said they were getting an additional ₹1 per packet from the sale of Aavin’s fortified milk brand, Green Plus. “Though the volume is static, the income is regular. This milk is yet to be introduced in Chennai city. Aavin should increase milk procurement and sale like cooperatives in other States. If dealers and wholesalers get more milk and an increase in margins, retailers will not sell above MRP and dairy farmers will get paid better,” said a milk industry expert.
S.A. Ponnusamy, Tamil Nadu Milk Dealers’ Employees Welfare Association, said: “Dealers work with slender margins. They cannot say they will stop supply of milk. If there is a problem with their margins they should approach Aavin officials. We hope that Aavin will step in, hold discussions with them (wholesalers) and set matters right. Dealers have been seeking an increase in margins for a long time. This would be a good time to implement it,” he said.
Official sources in Aavin said they would take steps to ensure steady milk supply and deal with the matter of margins.
Published – February 01, 2025 01:15 am IST