Lok Sabha Question No. 2586 (UNSTARRED), answered on 2024-12-11
Subject: Non-viable Conditions of Fair Price Shops
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.2586 TO BE ANSWERED ON lITH DECEMBER, 2024

## NON-VIABLE CONDITIONS OF FAIR PRICE SHOPS

2586. PROF. SOUGATA RAY:

Will  the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION wlrtqT wi& era  3atrMfiq taawr git  be pleased to  state:

- (a) whether the Government is concerned about the non-viable conditions of the Fair Price Shops across the country;
- (b) if  so, the steps taken to ensure their  viability  with  a minimum margin of  Rs. 50,000/- per month per shop;
- (c) the steps taken by the Government to minimize .the harassment of  the rationees due to  nonavailability of network, server down, mis-match of fingerprints, etc.; and
- (d) the reasons for not allowing  sale of various essential commodities through fair  price shops for enhancing their viability  which helps to check the spiralling  prices of such commodities?

## ANSWER

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

(SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA)

- (a): The Public Distribution  System (PDS) is operated under joint  responsibilities of  the Central and State/UT Governments.  The operational responsibilities such as licensing and monitoring of Fair Price Shops (FPSs) rest with the respective State/UT Government.

As per sub-clause (9) of  Clause 9 of the Targeted Public  Distribution  System (TPDS) Control Order, 2015, 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.

It  has been the endeavor of  the Government to improve the  financial viability of  Fair Price Shops (FPSs) by  providing  additional  business avenues to FPS dealers and enhancing beneficiary experience through the provision  of value-added services at FPS. To improve the financial viability of  FPSs, Government of  India has requested all  State/UT Governments to take up initiatives  through FPSs such as providing  Common Service Centre (CSC) services, Banking services through tie-up with  banks/ corporate Banking Correspondents, Banking and citizen-centric services of India Post Payment Bank (IPPB), Retail selling of small (5kg) LPG cylinders, Sale of other commodities/ general store items etc.

Further, a Jan Poshan Kendra pilot  study is being conducted to improve viability  of 60 FPSs across 4 cities, i.e. Hyderabad, Ghaziabad, Jaipur and Ahmedabad. 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.

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.

(b): 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.

Central Government has no role to play in determining the actual rate of fair price shop dealers' margin/  commission/ honorarium etc. 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 has also been enhanced in April  2022.

Further, the 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.

At present, no proposal for further enhancement of margin is under consideration by the Department of Food & Public Distribution, Government of India.

.....3/-

)

(c): All  States/UTs have been advised that no genuine beneficiary or household shall be denied from receiving entitled quota of subsidized foodgrains only for want ofAadhaar or due to  failure  of  biometric/Aadhaar authentication due to  network/connectivity/linking  related issues, other technical reasons, or poor biometrics of  the beneficiary. It  is also advised that Aadhaar authentication  of  benefrciaries  eitller  biometricaily or  IRIS  or  through  Aadhaar-OTP (SMS on beneficiary mobile) through ePoS device should be the most preferred mode of authentication. Alternatively,  PDS-OTP (SMS on beneficiary mobile), if  available, may also be used to  authenticate the transaction. If  any States/UT devise any other methodology of authentication of beneficiaries during distribution offoodgrains,  then, concerbed State,/UT may ensure that  such  distribution  takes place  ill  the  presence of  a  responsible Government Officer/Employee for ensuring the delivery of foodgrains to right persons/beneficiaries.  It  is also suggested that transaction receipt from ePoS device nlust be given to all beneficiaries after the trans-action  in case ofPM-GKAY.

(d):  As per sub-clause (9) of Clause 9 of the Targeted Public Distribution System ('FPDS) Control Order, 2015, the State Government shall allow sale of commodities other alan the foodgrains dist'ributed under the TPDS at the fair price shops to improve  the viability  of are fair  price shop operations.

3:( i

+  +