With the Aavin commencing large-scale marketing of its products, consumers will soon be able to buy milkshakes, cookies, ghee, and other dairy products at ration shops across the state. To boost the sale of Aavin milk products, the milk and dairy development has designated all the cooperative societies functioning under Registrar of Cooperative Societies (RCS) in the state as wholesale dealers for Aavin products.

Similarly, village-level milk producers’ cooperative societies (MPCS) that procure milk for Aavin have also been nominated as wholesale dealers for Aavin products.

To this end, the director of Milk and Dairy Development issued two separate orders on May 3, covering over 7,650 cooperative societies under RCS and 9,500 milk producers’ cooperative societies of Aavin under the initiative.

Managing director of the milk utility, S Vineeth, said the cooperative department has a robust network for product distribution. “We are leveraging the cooperative department’s distribution network to increase milk product sales by 20% annually.

While milk sales have reached saturation and are not profit-driven, expanding the sale of milk products is essential to ensure payments to milk producers and cover investment expenses,” he explained.

N Subbaiyan, registrar of Cooperative Societies, told TNIE the decision is agreeable, and they will sell the Aavin products after assessing the potential ensuring effective supply chain management. “Currently, we are selling Aavin products at supermarkets operated by the department. After assessing the availability of space at ration shops and other aspects, we will explore the possibility of selling the Aavin products,” he said.

According to the order, cooperative societies are permitted to procure Aavin milk products worth up to Rs 1 lakh without any security deposit. The societies will get the products valued at Rs 11,962 for Rs 10,509, with a profit of Rs 1,453. Similarly, for products worth Rs 17,262, the societies will earn Rs 2,506, and for products valued at Rs 26,072, a margin of Rs 3,534 will be provided. The average profit per product ranges from 10% to 15% of the MRP.

Official sources said, so far, 150 MPCS have been appointed as wholesale dealers, resulting in sales worth Rs 1.7 crore in the last 75 days. This initiative aims to make the milk producers’ societies more viable, encouraging more farmers to join and establish these societies.

A senior Aavin official added, “Staff at MPCS currently earn as little as Rs 4,000 to Rs 5,000 per month. With this initiative, village-level societies can now earn an additional Rs 2,000 to Rs 3,000. Out of total earnings, 60 % will be given to staff and 40 % to the society.”

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