MADURAI: Milk Cooperative Societies have expressed objection against the direct transfer of payment to milk farmers by Aavin in Madurai, claiming that the move has disrupted the functioning and day-to-day operations of the cooperative societies.
Speaking to TNIE, Tamil Nadu Milk Farmers Association (Madurai) President P Periyakaruppan said the Aavin (Madurai) has been transferring payment and incentives directly to the milk farmers for the past three months.
"Though we welcome the transfer payments, this has affected the operations of the cooperative societies. The primary purpose of the milk cooperative societies is to serve the interests of their members (milk farmers) by providing services and promoting mutual understanding and awareness on milk production. They also aim to protect the rights of consumers and producers, and to prevent the exploitation of weaker members of the society. Besides, they help in eliminating unnecessary profits made by middlemen from trade and commerce in the milk industry. So, if the Aavin directly transfers the fund, what is the use of milk cooperatives societies?," he asked.
K Inbaraj, one of the office bearers of the association, told TNIE that Aavin (Madurai) should conduct audits, to address issues with the transfer of funds from the milk cooperative societies to the members. "Besides, we are also in need of some funds for offering payment to clerks and office assistants employed in the societies.
Aavin (Madurai) earned more than Rs 20 crore as net profit in the year 2023-24. There are provisions in the Cooperative Societies Act, where 50% of the net profit should be transferred to the milk cooperative societies. But nothing has been done so far. Apart from this, we have been seeking spot tests of milk after it is procured from the Bulk Milk Coolers (BMC) for several years. Yet, no action has been taken," he added.
When contacted, a top official from Aavin (Madurai) said, "The decision to transfer money and payments directly to the milk farmers was made to ensure transparency. However, the societies are objecting to it. Besides, the decision related to the transfer of 50% of profit to milk cooperatives societies rests with higher authorities in Chennai. We have conveyed the issue to them."