Lok Sabha Question No. 444 (UNSTARRED), answered on 2024-07-24
Subject: Problem of FPS Dealers
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Adv. Adoor Prakash

## GOVERNMENT OF INDIA

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

## LOK  SABHA

UNSTARRED QUESTION NO. 444 TO BE ANSWERED ON 24th JULY, 2024

## PROBLEM OF FPS DEALERS

## 444 ADV. ADOOR PRAKASH

Will the Mini,t,r ,f  CONSUMER AFFAIRS, FOOD AND PUBLIC DrsTRiBurioN aMIn gHg,  aTa M aT&tf1% faepr +it  be pleased to state:

- (a) whether the  Government has noted the various issues raised by the Fair  Price Shop (FPS) dealers in the country  including  server related problems, network  issues, handling loss and demand for enhancement of dealer margin;
- (b) if  so, the details thereof;
- (C) whether the Government  will  take measures  to address their  grievances; and
- (d) if  so, the details thereon

## ANSWER

## MINISTER OF STATE FOR MINISTRY  OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBuriON

(SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA)

(a) to (d): State governments  manage their  respective  RCMS  (Ration  Card Management  System) and AePDS (Aadhar enabled PDS)  systems. In  case of  network  or  server issues detected by Government of India, states are notified through system generated emails

Targeted Public Distribution  System (TPDS) under the National Food Security Act,  2013 (NFS A) 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

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 was enhanced w.e.f. April  2022 as per the details given below

| Category of States   | I Componentof FPS margin   | Pre-revised norms (Rate rupee per quintaD   | injRevised no nils I(Rate in rupee uintal)   |
|----------------------|----------------------------|---------------------------------------------|----------------------------------------------|
| General States/UTs   | ransportation& handling    | 65                                          | 70                                           |
|                      | CMegoryS                   | 70                                          | 9()                                          |
|                      | c                          | 17                                          |                                              |
|                      | ransportation& handling    |                                             | 105                                          |
| Special Sates/US     | category S                 |                                             | 180                                          |
| Special Sates/US     | r                          |                                             | 26                                           |

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 Government

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