Tamil Nadu’s cooperative department has temporarily exempted branded products from mandatory online procurement after delays left several cooperative supermarkets without items preferred by customers and contributed to falling sales. The exemption will remain in force until November 30, according to a circular issued by the Registrar of Cooperative Societies.
The decision applies to branded products supplied by large companies. Cooperative stores may purchase these items through their earlier procurement procedures during the exemption period, while the online procurement arrangement will continue to govern other products unless otherwise specified in the department’s instructions.
Tamil Nadu has around 300 supermarkets operated by cooperative wholesale stores. These outlets sell groceries and other consumer products, while cooperative ration shops also stock grocery items. The network therefore serves both routine retail demand and the distribution of essential household products through the cooperative sector.
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 process. Following those complaints, the cooperative department instructed the stores several months ago to procure products online and sell them through the cooperative network.
The shift created operational difficulties because many staff members were not familiar with the online procurement process, according to the report by Dinamalar. As a result, purchases were delayed. Several stores reportedly did not have products sought by customers, affecting sales and limiting the availability of familiar branded goods.
The Registrar of Cooperative Societies cited administrative reasons and the upcoming Deepavali festival while announcing the temporary exemption. The circular said branded products could be purchased using the usual procedures until November 30. The measure is intended to address immediate procurement and availability concerns without abandoning the wider move towards online purchasing for the cooperative sector.
The episode highlights the administrative challenge of shifting a dispersed retail network from committee-based purchasing to a digital procurement system. The immediate issue for the stores is product availability, while the department’s earlier concern was the alleged irregularity in conventional purchasing. The temporary arrangement places both requirements alongside each other: maintaining supplies during the festival period and continuing the transition towards online procurement.
The circular does not state whether the online procurement system will be revised, extended or made fully operational for branded products after November 30. The next confirmed milestone is the end of the exemption period, when the cooperative department’s procurement instructions will determine how these products are purchased by the stores.
