Lok Sabha Question No. 22 (STARRED), answered on 2024-11-27
Subject: Transformation of FPSs into Jan Poshan Kendra
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Eatala Rajender, Smt. D K Aruna

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

STARRED QUESTION NO.22 TO BE ANSWERED ON 27th NOVEMBER, 2024

## TRANSFORMATION  OF FPSs INTO JAN POSHAN KENDRA

- 822 SHRI EATALA  RAJENDER: SMT. D K ARUNA:

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION 3nft6r mla, um Bat €T§gfi% fatwr IHt be pleased to state:

- (a) whether the Union Government has launched a programme to  transform Fair  Price Shops (FPSs) into  Jan Poshan Kendra  and if  so, the facts along with  the objectives thereof including the names of the States selected therefor;

- (b) the number of Fair  Price Shops transformed in various States particularly  in Amroha and Hapur districts ofAmroha Parliamentary Constituency of Uttar Pradesh;

- (c) whether there is a need to further strengthen food security ecosystem while bringing  in transparency, ensuring strict quality control, curb malnutrition  and also prevent leakages in the system and if  so, the details of the steps taken by the Union  Government in this  regard;

- (d) whether the dealers of these shops across India  have demanded to raise their income level; and

- (e) if  so, the response of the Union  Government thereon and the steps taken to provide solution  to the demand of said dealers?

## ANSWER

MINISTER OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION AND MINISTRY OF NEW AND RENEWABLE ENERGY (SHRI PRALHAD JOSHD

(a) to (e):

A  statement is laid  on the Table of the House

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a) TO  (e) OF  THE  STARRED QUESTION NO. 22 FOR ANSWER  ON 27.11.2024 IN THE LOK  SABHA.

- (a) and (b): The Department of  Food and Public  Distribution  has launched a pilot  program to transform the 60 Fair Price Shops (FPSs) into Jan Poshan Kendra on 20th August, 2024.

This  pilot  program has been launched in the states/districts of Gujarat (Ahmedabad), Telangana (Hyderabad), Rajasthan (Jaipur)  and Uttar  Pradesh (Ghaziabad).

The Government of India  has undertaken this pilot  program  to enhance the financial viability  of  FPS dealers while  focusing on  improving nutritional outcomes of  the beneficiaries. The  Government of  India,  in  association with  respective States, has been providing handholding assistance to these FPS shops by partnering with  Small Industries Development Bank of  India (SIDBI)  for  provision of  working capital and B2B online wholesale aggregators for  sale of  non-PDS items with  particular  focus on nutritional-dense items. Further, to  address the  skill development challenges, the  department has imparted capacity  building training through  the  Ministry of  Skill Development  &  Entrepreneurship (MSDE) to boost the confidence of FPS owners and  equip them with the essential entrepreneurship skills required for venturing into new business avenues.

- (c): Governrnent of  India  has undertaken various  technology-based interventions  in  the Public Distribution System (PDS) to  improve transparency in  operations, prevention of leakages and diversion  of food grains.

As part of the technology driven Public Distribution  System (PDS) reforms, with the aim to improve the efficiency and transparency of the PDS and to address various challenges such as leakages and diversion of  foodgrains, ration cards/beneficiaries database have been completely digitized in all  States/UTs. The transparency portal and online grievance redressal facility/Toll-free  number have been implemented in  all  States/UTs. Also,  online allocation has been implemented in  all  States/-UTs (except UTs of  Chandigarh and Puducherry which have adopted DB'F Cash Transfer scheme) and supply chain has been computerized in 31 States/UTs. Further, more than 5.41 Lakh  out of total  5.43 Lakh Fair Price Shops (FPSs) in the country  have been automated by installing  ePoS devices for  the distribution of  foodgrains in  a  transparent manner (electronically) throlrgh biometric/  Aadhaar authentication of beneficiaries

Further, this Department has formulated and issued a Quality Control Manual, in order to maintain the quality standards of foodgrains from procurement to its distribution to the eligible beneficiaries through various social security programmes of Government of India.

The Act  provides that pregnant women and lactating mothers and children in the age group of 6 months to 14 years are entitled to meals as per prescribed nutritional  norms under Integrated Child  Development Services (ICDS)  and  PM-POSHAN  schemes. Higher nutritional  norms are prescribed for  malnourished children  upto 6 years of  age. In order to improve  the nutritional  standards in  targeted beneficiaries, the Government has revised the nutritional norms specified in Schedule-II of the Act, vide notification dated 25.01.2023 .

In order to achieve uniform nutritional impact of  fortified  rice among the targeted population, the  Government  of  India is  supplying fortified rice  throughout  the  Targeted Public Distribution  System (TPDS),  Pradhan Mantri  Poshan Shakti Nirman  (PM POSHAN) Scheme, and Integrated Child  Development  Services (ICDS)  Scheme and in Other Welfare Schemes (C)WS) in  all  States and Union  Territories  (UTs).  The initiative  was scaled up  in three phases -  Phase 1 (2021-22) covering  ICDS  &  PM-POSHAN,  Phase I1  (2022-23) covering ICDS, PM-POSHAN and 291 Aspirational &  High  Burden districts under TPDS and Phase III  (2023-24)  covering  ICDS,  PM POSHAN  and all  districts  under TPF)S. Custommilled rice has been replaced with  fortified rice in every scheme of the Government and 100% coverage of  distribution  of  fortified  rice  has been achieved by  March,  2024. The Cabinet has approved the continuation  of  this  Central Sector Initiative (fully  funded by the Government) upto December, 2028 .

The Act  also provides for a robust Grievance Redressal and Transparency mechanism i.e. Vigilance  Committees, Social Audit  etc. to facilitate  implementation of  provisions of  the Act

Public Distribution System (PDS) is operated under the joint  responsibility of the Central and State/UT Governments. Central Govt. is responsible for procurement, allocation and  transportation of  foodgrains upto  the  designated  depots of  the  FCI.  The  operational responsibilities for allocation and distribution of foodgrains within the States/UTs, identification of eligible beneficiaries/families, issuance of ration cards to them and supervision and monitoring  of fbnctioning  of Fair Price Shops (FPSs) rest with  the concerned State/UT Government. Helpline  number  1967/ 1800-State series number is operational in  all the States/ UTs for contacting and redressal of their grievances and filing  any type of complaints by  the NFSA  beneficiaries. As  and when complaints including  leakages and corruption are received in  this  Department from  any source, they are sent to  State/UT Governments concerned for  inquiry  and appropriate action.

An  offence committed in violation  of the provisions of TPDS (C) Order, 2015 is liable for  penal action under the Essential Commodities  Act,  1955. Thus, the Order empowers State/ UT  Governments to take punitive action in  case of  contravention of relevant provisions of these Orders.

- (d) and (e): Representations  are received from various Fair Price Shop Dealer Associations registered  across the country from time to time regarding enhancement of their margin. The same was examined and reply  was given  stating that:
- i. Targeted Public Distribution System (TPDS) under the National Food Security Act, 2013 MSA) 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.  As per sub-clause (9) of Clause 9, the State Government shall allow  sale of commodities other than the foodgrains distributed under the TPDS at the fair  price shops to improve the viability of the fair price shop operations.

- ii. Central Government has no role to play in determining the actual rate of fair price shop dealers' margin/commission/honorarium  etc. and making  payment to  fair  price  shops. 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 NFSA in  accordance with  the provisions of  Food Security (Assistance to  State Governments) Rules, 2015 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 was enhanced as per the details given below:

| Category of States   | I Componentof FPS margIn   | IPre-revised norms le rn rupee per quintal) (Upto 3 1.03.2022)   | Revised norms (Rate in rupee per quintaD (W.e.f. 01.04.2022)   |
|----------------------|----------------------------|------------------------------------------------------------------|----------------------------------------------------------------|
| General Category     | e                          |                                                                  |                                                                |
| States/UTs           | .dditional margin          |                                                                  |                                                                |
| jii=;i-;igory        | ?PS DealersMargin          |                                                                  |                                                                |
| States/UTs           | ,dditional margin          |                                                                  |                                                                |

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.

iii. At  present, no proposal for  further  enhancement of margin  is under consideration by the Government

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