Lok Sabha Question No. 59 (STARRED), answered on 2025-07-23
Subject: Support for Fair Price Shops
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Captain Viriato Fernandes

## GOVERN MENT OF INDIA

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

## LOK SABHA

STARRED QUESTION NO. 59 TO BE ANSWERED ON 23RD JULY, 2025

## SUPPORT FOR FAIR PRICE SHOPS

## *59. SHRI CAPTAIN VIRIATO  FERNANDES:

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

- (a) whether the Government is aware of  the financially  non=viable Fair Price Shops (FPSs) in Goa with  several shops closed and over 400 shops facing financial distress and pending commission dues of nearly Rs. one crore;
- (b) the details of  specific measures being taken by the Government to support these FPSs and ensuring their  long-term  viability under the  Public  Distribution  System other than Common Service Centres (CSCs) scheme; and
- (c) the manner in  which  the Government plans to  assist in  the effective implementation of initiatives like  the  'Compensation  to  FPS Dealers' scheme and the  Jan Poshan Kendra programme to  address challenges such as low  profit  margins,  operational  losses and declining ration  card usage, while  ensuring uninterrupted access to  subsidised foodgrains  for  beneficiaries in Goa?

## ANSWER

MINISTER OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBU'TION AND MINISTRY OF NEW AND REN EWABLE ENERGY

(SHRI PRALHAD JOSHI)

(a) to (c): A  statement is laid  on the Table of the House

STATEMENT REFERRED TO IN  REPLY TO PARTS (a) TO (c) OF LOK  SABHA STARRED QUESTION NO.  598 FOR ANSWER ON 23rd JULY, 2025 REGAFJ)ING ' SUPPORT FOR FAIR  PRICE  SHOPS'

(a) to (c): 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 (ControD 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 Rule 8 of the Food Security (Assistance to State Governments) Rules, 2015, it is responsibility of the State Government to ensure the payment of fair price shop dealers' margin in advance by way of adjusting the same in prices of foodgrains to be paid by fair price shop dealers, or through other appropriate mechanism. If the price of foodlgrains payable by fair price shop dealers in any State or Union territory is lower than the fair price shop dealers' margin, the State Government shall ensure upfront  payment of margin, in  full, to fair price shop dealers. Thus, the Central Government has no role in fixing the actual rate of fair  price  shop dealers' margin  or payment thereof  to FPS dealers.

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, 20 15 (as amended from time to time)  which  interalia 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:

| ECategory of States          | IComponent of FPS margin   | Pre-revised Inorms (Rate in jrupee per quintal) I(upto 31 st March, 12022)   |   :evised norms I(Rate in rupee per jquintal) (w .e.f. 1.4.2022) |
|------------------------------|----------------------------|------------------------------------------------------------------------------|------------------------------------------------------------------|
| IGeneral Category States/UTs | mara                       | 65                                                                           |                                                               70 |
| IGeneral Category States/UTs | ;PS Dealers Margin         | 70                                                                           |                                                               90 |
| IGeneral Category States/UTs |                            | 17                                                                           |                                                               21 |
| Special category States/UTs  | t a                        | no                                                                           |                                                              105 |
| Special category States/UTs  | e                          | 143                                                                          |                                                              180 |
| Special category States/UTs  | c                          | 17                                                                           |                                                               26 |

Special category states includes Sikk ilm,  Himachal Pradesh, Jammu &  Kashmir, Ladakh, Uttarakhand, Andaman & Nicobt='r islands. Lakshadweep and seven north east states.

However, the State Governments are free to nx  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 fbI the State as a whole, at which the expenditure was actually incurred by the State Government, whichever is lower.

As  per sub-clause (9)  of  Clause 9  of The TPDS (Control) Order, 2015, the State Government shall allow  sale of  cornnrodiths other than the  foodgrains distributed unlder the TPDS at the fair price shops to improve the viability  of the fair price shop operations.

As per the information received Born State Government of Goa, they have engaged in making Fair Price Shops (FPSs) in the State $nancially more viable. However, 8 FPSs haI'e surrendered their  license in  last two  Hnal'leia! years due to various  reasons such as death. old age, health condjtions and only 2 out of 8 FPS 1,iave surrendered due to financial  reasons.

It  has been the endeavor of  the Government to improve  the financial viability of  Fair Price  Shops (FPSs) by  providing additionai  buginess avenueg to  FPS dealers and enhancing beneficiary experience through the provision of value-added services at FPS. To improve the financial vi,8bility ot FPS$, Government of India has requested all State/UT Governments to take up  initiatives through FPSs such as providing banking services through tie-up with banks/corporate Banking  Cowespondenti, banking  and citizen-centric  services of  India Post Payment  Bank (iPP13),  Retail selling . of slnal1" (5kg) LPG cylinders, Sale  of other commcidilies/ general store items etc.

In  addition, the State Government of  Goa has implemented doorstep delivery of foodgrains initiative  to  eliminate  the burden of  tralrsportation of  cost of  FPS dealers. Under this initiative,  foo(!grains are transported directly  to FPS -by authorized logistics providers.

Further,  a Jan Pc)shan Kendra pilot .has been undertaken to  improve  viability of  90 FPSs aeross 5  cities, 'i.e. ' Hyderabad, Ghaziabad, Jaipur,  Ahrnedabad & Indore.  The Government of India has undertaken this pilot study to enhance the financial viability of FPS dealers while focusing on improving nutritional' outcomes of.the beneficiaries.

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