Lok Sabha Question No. 287 (UNSTARRED), answered on 2024-07-24
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. 287

TO BE ANSWERED ON 24th JULY, 2024

## NON-VIABLE CONDITIONS OF FAIR PRICE SHOPS

## 287 PROF. SOUGATA RAY:

Will  the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUFION aPinT mM,  ign  aT  HT#gftq fqTPT THt be pleased to state:

- (a) whether the Government is  aware of  the non-viable conditions of  Fair  Price Shops of  the country ;
- (b) if  so, the details thereof;
- (c) whether the Government has taken any action to ensure minimum  income of Rs. 50,000/- per month to each Fair Price Shop by enhancing or margin;
- (d) if  so, the details thereof;
- (e) the steps taken so far by the Government to ensure the implementation of various assurances given by the Government  on 16.12.2022 regarding various issues faced by Fair Price Shops; and
- (f) the details of steps taken by the Govemment to manage the handling loss?

## ANSWER

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

(SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA)

(a) & (b): 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  Govemment  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 operatrons

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 lterns etc

(c) to (d): 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 NFS A  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

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/-

(e): With  regard  to  reply  furnished  by  Govt  of  India  on  16.12.2022 for  Rajya  Sabha Un-Starred Question Number 1214 raised by Hon'ble MP Shri Binoy Viswam, it is informed that, at present, due to  aadhar seeding and  installation  of  ePoS devices at the FPSs, more than  98% of  transactions in the country are done through biometric  authentication on the monthly  basis, bringing transparency  in the system. However,  all  the  states/ms  have also been advised that  no genuine beneficiary/household shall be denied from  receiving  entitled  quota of  subsidized food gains only  for  want of aadhar or due to failure  of  biometric/aadhar authentication due to network/connectivity  /linking related issues, other technical reasons or poor biometrics of the beneficiary.

(f): Government of  India has taken a number of  initiatives  to  keep operational losses such as storage and transit losses at barest minimum  levels which includes periodical inspections/monitoring, periodical prophylactic and curative treatment of foodgrains stocks, installation of CCTV  cameras and barbed wire fencing the boundary walls, spreading of polythene  sheet on the floor of railway wagons, implementation of high security cable seals on wagons and deployment of  independent Consignment Certification Squad (ICCs) etc

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