MADURAI: Aavin milk agents and retail sellers in Madurai have raised strong objections to a proposed set of rules governing milk sales, arguing that several of the conditions could increase their operational burden and affect the viability of retail outlets.
According to representatives of the Madurai Aavin Milk Agents and Retail Sellers Association, Aavin had prescribed around 20 rules and conditions for milk agents two years ago. The latest draft, however, reportedly contains 56 conditions, prompting concern among retailers.
KR Samy, president of the Madurai Aavin Milk Agents and Retail Sellers Association, said one of the major points of contention was the proposal to remove the existing 200-metre distance requirement between two Aavin milk depots. The restriction has been followed for several decades.
The agents said that removing the distance criterion could result in multiple retail points being established close to one another. While Aavin may expect this to expand its network and increase sales, retailers fear that it could also intensify competition among existing agents and reduce their sales volumes.
Another major concern relates to responsibility for spoiled milk. According to the agents, the proposed rules would place the responsibility for spoiled milk on milk retailers, a provision they consider unfair given that milk passes through several stages of transportation and handling before reaching consumers.
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The agents have also questioned a proposal under which they would be responsible for loading and unloading milk packets from delivery vehicles. They argued that clarity is required regarding the division of responsibilities and associated charges, particularly since delivery vehicles already receive loading-related charges from the production facility.
The proposed requirement to submit property details has also drawn criticism. Samy questioned the need for such information, stating that milk agents operate as private units under a cash-and-carry arrangement and therefore sought justification for including property-related details in the application process.
M Ruban, a milk agent, said the proposed conditions could place considerable pressure on retailers, particularly given the relatively low commission earned on Aavin milk compared with some private dairy brands.
The agents have urged Aavin to withdraw or modify the contentious provisions and hold discussions with retailers before finalising the rules. They said a practical regulatory framework should protect Aavin’s interests while also ensuring that milk agents can operate viably.
A senior Aavin (Madurai) official, however, said the provisions are part of a draft proposal and assured that the concerns raised by the agents would be considered.
The official said provisions concerning responsibility for milk spoilage would be removed and that Aavin would hold direct discussions with milk agents within a few days. The official also indicated that other provisions considered impractical or inappropriate would be reviewed and eliminated from the final proposal.
The dispute highlights the importance of consultation between dairy cooperatives and their retail network when introducing operational rules. For Aavin, expanding milk distribution and strengthening retail coverage will need to be balanced with transparent responsibilities, workable commercial terms and sustainable margins for milk agents.
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