TN govt brings cooperative grocery procurement under online tender system

CHENNAI: The Tamil Nadu government has decided to procure grocery items for cooperative stores exclusively through an online tender system, replacing a procurement mechanism that had long faced allegations of opacity and favouritism. The move is expected to bring greater transparency, competitive pricing and accountability to purchases made by the cooperative department.

The decision, announced by Cooperation Minister V Gandhiraj, marks a major policy shift in the procurement of grocery products supplied through the State’s cooperative network. It is also expected to address long-standing concerns raised by ration shop employees over the existing purchase process.

According to the Tamil Nadu Ration Shop Workers’ Association, the previous system operated through joint purchase committees, under which a section of senior officials and politically influential intermediaries allegedly favoured select contractors without an open and competitive bidding process. The association claimed such practices were prevalent in Chennai, Salem, Madurai and several other districts.

It alleged that ration shops were forced to accept fixed quantities of grocery products under mandatory sales targets, regardless of consumer demand. When products remained unsold or expired, the resulting losses were allegedly recovered from the salaries of ration shop employees, leaving frontline workers to bear the financial burden of procurement decisions.

Welcoming the reform, the association said the online tender system fulfils one of its long-pending demands and would ensure transparent procurement of quality products at competitive prices. It also expressed hope that the initiative, spearheaded by Chief Minister C Joseph Vijay, Cooperation Minister V Gandhiraj and Department secretary P Amudha, would pave the way for wider reforms in the sector.

The association also urged the government to continue action against those responsible for alleged procurement irregularities, irrespective of their position or political influence. It proposed expanding the cooperative retail network through dedicated supermarkets and supplying grocery products directly to institutions, temples, hostels, prisons and government establishments.

P Dinesh Kumar, state general secretary of the Tamil Nadu Ration Shop Workers’ Association, said, “For years, employees suffered because of a procurement system that lacked transparency. The shift to online tendering is a decisive reform that ends discretionary purchases, protects workers from unfair financial liabilities and lays the foundation for a transparent, efficient and competitive cooperative retail system.”