Lok Sabha Question No. 1643 (UNSTARRED), answered on 2025-07-30
Subject: Welfare of Fair Price Shop Dealers
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Prof. Sougata Ray

## GOVERNMENT OF INDIA MINISTRY  OF CONSUMER AFFAIRS, FOOD & PUBLIC  DISTRIBUTION

## DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED QUESTION NO. 1643

TO BE ANSWERED ON 30TH JULY, 2025

## WELFARE  OF FAIR  PRICE SHOP DEALERS

## 1643 PROF. SOUGATA RAY:

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

- (a) the details of benefits are being given to fair-price  shop dealers in the country;

- (b) whether the Government is aware that the commissions of various items like cereals, sugar, edible  oil,  kerosene, wheat, rice to Fair Price Shop dealers are on different  rates among various States of  the country;

- (c) if  so, the details of  commissions sanctioned for various items among the States of the country;

- (d) whether  the  Government has  any  proposal  to  increase and  make  uniform such commissions nationwide; and

- (e) if  so, the details thereoP

## ANSWER

MINISTER  OF STATE FOR MINISTRY  OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(SHRIMATI  NIMUBEN JAYANTIBHAI  BAMBHANIYA )

- (a)  to  (c):  The  Targeted Public Distribution  System (TPDS) is  operated under the joint responsibility  of  the  Central and the State/UT Governments. The operational responsibility including  issuance of  licenses to  Fair Price  Shops (FPSs), supervision and monitoring  of  the functioning  of  Fair  Price Shops etc., rest with  the concerned State/UT Government.  As per sub-clause (7) of clause 9 of the TPDS (Control) Order, 2015, the State Government shall fix an amount as the  fair  price  shop owner's margin, which  shall be periodically reviewed for ensuring sustained viability of  the fair  price shop operations. Therefore, the actual rate of  fair price shop dealers' margin may very from State to State.

The Central Government has limited role  in  determining the actual rate of  fair  price shop dealers' margin/ commission. The Central Government only provides the assistance to States/UTs for meeting the  expenditure towards intra-State movement & handling  of foodgrains and fair  price  shop dealers' margin under the NFS A,  in  accordance with  the provisions of Food Security ( Assistance to State Governments) Rules, 2015 (as amended  fbrm time to time), which  inter-alia  provides for norms of  expenditure and pattern of  central sharing. In  order to  ensure viability  of  Fair Price Shops, the norms of  FPS Dealers margin were enhanced w.e.f. April,  2022 as per the details given below:

| Category States/UTs   | 0   |   Component of FPS dealers' margin |   Pre-revised norms (Till 31.03.2022) |   I Revised *:,'':':{IIi':)IT, I 01.04.2022) | Central share (in percentage)   |
|-----------------------|-----|------------------------------------|---------------------------------------|----------------------------------------------|---------------------------------|
| General Category      | B   |                                 70 |                                    90 |                                           50 |                                 |
| General Category      | o   |                                 17 |                                    21 |                                           50 |                                 |
| Special category      | a   |                                143 |                                   180 |                                           75 |                                 |
| Special category      | t   |                                 17 |                                    26 |                                           75 |                                 |

+Note: Special category States include 8 States of North  East including  Sikkim, Himachal Pradesh, Jammu &  Kashmir,  Ladakh, Uttarakhand, Andaman &  Nicobar  Islands and Lakshadweep.

However, State Governments are free to fix  the actual rates, which can be higher than the norms specified in the rules. Central assistance will  be limited  to  the rates specified in the Rules or the actual average rates for the State as a whole, at which  the expenditure was actually  incurred by the State Government, whichever is lower.

(d)  &  (e):  At  Present, no proposal for  revision of  norms of  Central Assistance towards Fair Price Shop dealers' margin is under consideration of the Government.

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