Milk agents and retailers in Madurai have raised objections to a new set of rules proposed by Aavin, saying the expanded conditions could increase operational pressure on retailers and disrupt the existing milk distribution system.
The proposed framework contains 56 rules and conditions, compared with 20 conditions listed by Aavin (Madurai) around two years ago.
Milk Agents Object to Proposed Changes
KR Samy, president of the Madurai Aavin Milk Agents and Retail Sellers Association, said several of the proposed conditions were unacceptable to milk retailers.
One major concern is the proposal to remove the existing 200-metre distance requirement between two Aavin milk depots. The rule has reportedly been followed for several decades.
According to the association, removing the restriction could allow more milk agents to operate in the same areas. While this could expand Aavin’s retail network, existing agents fear it could also increase competition and affect their sales.
Responsibility for Spoiled Milk
Milk agents have also objected to a proposal that would make them responsible for spoiled milk.
Retailers questioned how they could be held accountable for spoilage occurring during transportation or handling, particularly when milk is delivered through Aavin’s distribution network.
The proposed rules would also reportedly require agents to take responsibility for loading and unloading milk packets from delivery vehicles.
Retailers questioned this requirement, particularly given that delivery vehicles already receive loading charges from the production plant in Madurai.
Property Details Also Questioned
Another point of contention is the requirement for milk agents to provide property-related details as part of the application process.
Retailers argued that this information is unnecessary because they operate as private units under a Cash and Carry model.
The association has therefore called for a review of the proposed conditions before they are implemented.
Retailers Highlight Low Margins
Milk agents also pointed to the relatively low commission they receive for selling Aavin milk.
M Ruban, a milk agent, said retailers receive only a small commission from Aavin compared with the higher margins offered by some private dairy companies.
Retailers have called for the proposed rules to be withdrawn or revised to maintain a better working relationship between Aavin and its distribution partners.
Aavin Says Changes Will Be Made
A senior Aavin (Madurai) official said the rules are currently part of a draft proposal and assured agents that problematic conditions would be reviewed.
The official said provisions relating to 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 impractical or objectionable conditions would be eliminated before the final proposal is implemented.
The discussions could determine how Aavin balances the expansion of its retail network with the concerns of existing milk agents and retailers.