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TN Civil Supplies Workers' Federation Urges New Government to Scrap Merger Move

Published on: 10 Aug 2026, 11:08 AM
TN Civil Supplies Workers' Federation Urges New Government to Scrap Merger Move

The Federation of All TNCSC Workers Unions has appealed to the Tamilaga Vettri Kazhagam-led government not to proceed with the previous administration's proposal to merge the Tamil Nadu Civil Supplies Corporation (TNCSC) with the Cooperatives Department. The plea comes amid concerns that such a move could disrupt the functioning of the public distribution system and affect the livelihoods of thousands of employees.

The federation, which was recently formed by trade unions affiliated to various political parties, passed resolutions at a meeting held on August 9 at the AITUC Thanjavur district office on East Rajaveedhi. The unions demanded that officials currently deputed from the Cooperatives Department to TNCSC be sent back, and that the control of 21 rice mills under TNCSC remain with the corporation rather than being transferred to the Cooperatives Department.

In September last year, the TNCSC Bharatiya Mazdoor Sangh had separately urged the then DMK government to drop a similar proposal to shift the management of fair price shops run by the corporation to the Cooperatives Department. The union had also objected to the practice of appointing officers from the Cooperatives Department to senior positions such as zonal and general managers in TNCSC, stating that these roles should be filled by promoting experienced in-house staff.

A few days before the federation's meeting, the TNCSC Employees Union staged a protest near the corporation's Modern Rice Mill at Sitherkadu in Mayiladuthurai, demanding the withdrawal of the proposed transfer of control of 21 rice mills.

The meeting, attended by representatives from CITU, AITUC, INTUC, Labour Progressive Federation, and Anna Thozir Sanga Peravai, also adopted resolutions on other worker-related issues. These included demands for wage revision, regularisation of employment for workers engaged in paddy procurement at direct purchase centres, an end to the practice of deducting money from DPC employees citing 'weight loss', and higher wages for those employed in TNCSC godowns.

The new government, led by the Tamilaga Vettri Kazhagam, has not yet publicly responded to these demands. However, the federation's appeal signals early labour resistance to continuing policies of the previous regime. The proposed merger, which was under consideration for several months, is seen by many in the corporation as a move that could undermine the autonomy of TNCSC and lead to administrative inefficiencies in the state's food supply chain.

TNCSC plays a crucial role in procuring paddy, storing food grains, and distributing essential commodities through fair price shops across Tamil Nadu. Any structural change to its functioning is expected to have a direct impact on the state's public distribution system, which serves millions of beneficiaries. The unions argue that merging the corporation with the Cooperatives Department would not only dilute its core mandate but also create uncertainty among its workforce.

Observers note that the new government's decision on this matter will be closely watched, as it reflects its approach to labour welfare and administrative continuity. Meanwhile, the federation has said it is prepared to hold further dialogues with the government to present its case. The unions have urged the leadership to consider the long-term implications of any structural changes and to ensure that the interests of employees and consumers are protected.

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