Lok Sabha Question No. 2420 (UNSTARRED), answered on 2022-12-21
Subject: Grants for Loss of PDS items to FPS Dealers
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Sisir Kumar Adhikari

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA UNSTARRED QUESTION NO.2420 TO BE ANSWERED ON 21sT DECEMBER, 2022

## GRANTS FOR LOSS OF PDS ITEMS TO FPS DEALERS

## 2420. SHRI SISIR KUMAR ADHIKARI:

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC be pleased to state:

- (a) whether the Government provides grants for the handling loss of PDS items to the fair shop dealers in the country;
- (b) if so, the details of grant that is permitted to the Fair Price (FPS) dealers under Central and State Government rules therein; Shop
- (c) whether Food Corporation, State Trading Corporation, NAFED and others who deal with foodgrains and sugar are getting grants on such items and if the rates therefor;
- (d) the calculation process of handling loss that occurs during loading and unloading period at different points of distribution;
- (e) whether the physical verification process of actual stocks at different points is legally tenable to FPS without taking the reality of handling loss; and
- (f)

## ANSWER

MINISTER OF STATE FOR MINISTRY OF RURAL DEVELOPMENT AND CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SADHVI NIRANJAN JYOTI)

(a) & (b): The Targeted Public Distribution System (TPDS) is now governed as per the provisions of the National Food Security Act, 2013 (NFSA): There is no provision under the Act to provide handling loss to the fair price shop dealers: Therefore, Central Government does not provide  compensation for  handling losses of FPS dealers.

As per provision of the Act; the Central Government provides assistance to States/UTs for meeting the expenditure towards intra-State movement & handling of foodgrains and fair price shop dealers margin in accordance with the provisions of the Food Security (Assistance to State Government) Rules, 2015 as amended from time to time. Under the Rules, the rate of fair price shop dealers' margin is specified as per the details given below:

| Category of States/UTs   |   FPS dealers' basic margin |   FPS dealers' additional margin for distribution of foodgrains through electronic point of sale devices |
|--------------------------|-----------------------------|----------------------------------------------------------------------------------------------------------|
| General                  |                          90 |                                                                                                       21 |
| Special                  |                         180 |                                                                                                       26 |

Himachal Pradeshs Jammu & Kashmir; Ladakh, Uttarakhand; Andaman & Nicobar Islands and Lakshadweep:

State Governments; however, have the flexibility to fix the actual rate, but the Central assistance is restricted to Central share based on the actual rate or the norms of expenditure mentioned in the table above, whichever is lower.

(c) & (d): TPDS under the NFSA is operated under the joint responsibility of Central and State Government: Central Government is responsible for procurement of foodgrains for Central pool, allocation of foodgrains to the State Governments from the Central pool and transportation of foodgrains up to the designated depots of Food Corporation of India (FCI) in the State. It is the responsibility of the State Government to lift  foodgrains from the designated depots, further transportation & handling within the State; delivery of foodgrains upto the door step of fair price shops, identification of beneficiaries; issuance of their ration cards and distribution of foodgrains to beneficiaries as per their entitlements through fair price shops (FPSs):

Food Corporation of India (FCI) is responsible for transportation of foodgrains from the procurement centres till the designated depotsl godowns of the FCI for distribution to the State Governments. The Central Government compensates FCI for any storageltransit losses incurred in this regard: However, once the allotted quantity of foodgrains is handed over to the State Governments, it is the responsibility of the concerned State Governments to take delivery of foodgrains from the designated depots of the Central Government in the State, organize intra-State allocations of the allocated foodgrains through their authorized agencies at the door-step of each fair price shop (FPS); and ensure actual delivery or supply of the foodgrains to the entitled persons at the prices specified in Schedule of the Act: Responsibility of monitoring of Fair Price Shops and providing them with necessary support and infrastructure for proper storage of foodgrains to avoid any handling losses to the Fair Price Shop owners therefore rests with the State Governments.

- (e) & (: This being a State matter, decision to compensate the FPS dealers in case of any handling losses rests with the Central Government has issued advisory to all the State Governments to ensure that necessary steps are taken for improvement of infrastructure and storage facilities of FPSs to minimize handling losses incurred by Fair Price   Shop owners during the process of distribution, so that no financial hardship is caused to them: