Tamil Nadu’s Cooperative Department has temporarily exempted branded products from mandatory online procurement after delays in sourcing goods affected sales at cooperative supermarkets across the state. The exemption will remain in force until November 30, allowing stores to purchase branded products through their earlier procurement procedures.
The decision affects cooperative wholesale godowns that operate around 300 supermarkets in Tamil Nadu. These outlets sell groceries and other consumer products. Grocery items are also sold through cooperative ration shops, according to the report.
Until recently, the products sold through these outlets were purchased from private companies and traders through joint procurement committees. Complaints were raised alleging irregularities in that system. Following those complaints, the Cooperative Department instructed the establishments several months ago to procure and sell products through an online process.
The online system was intended to change how the cooperative retail network obtained products from suppliers. However, many personnel were reportedly unfamiliar with the process, leading to delays in procurement. As a result, several supermarkets did not have products preferred by customers, and sales were affected.
The department has now allowed branded products made by large companies to be purchased outside the online procurement process. The exemption is limited to branded goods and does not represent a reported withdrawal of the online procurement requirement for all products.
The decision was communicated through a circular issued by the Registrar of Cooperative Societies. The circular said the exemption had been granted for administrative reasons, taking the Diwali festival into account. It stated that branded products could be procured through the usual procedures until November 30.
The change places the immediate focus on maintaining product availability at cooperative supermarkets during the festival period. It also shows the operational difficulty of shifting a large retail network from committee-based purchasing to a digital procurement process when staff are not fully familiar with the new system.
The department’s order provides a temporary route for purchasing branded goods while the cooperative retail network continues to operate its online procurement arrangements for other products. The exemption is scheduled to end on November 30, according to the circular cited in the report.
