Lok Sabha Question No. 3746 (UNSTARRED), answered on 2024-12-18
Subject: Survival 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.3746 TO BE ANSWERED ON 18'rH DECEMBER, 2024

## SURVIVAL OF FAIR PRICE SHOPS

## 3746. PROF. SOUGATA RAY:

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION 3nftHT wma, urg  3Bt €Tdqf1% fidvr ddt be pleased to  state:

- (a) whether the Government is concerned about the survival of Fair  Price Shops of  the country;
- (b) the details of steps taken to rise the income of Fair Price Shop Dealers of the country;
- (c) whether the Government has any proposal to hike the commission of Fair Price Shops; and
- (d) the details of  handling cost given to Fair Price Shop Dealers for rice, wheat and other cereals?

## ANSWER

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

(SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA)

- (a)&  (b): Targeted Public Distribution  System (TPDS) under the National Food Security Act,  2013 (NFSA)  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.

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 Qf India has requested all  State/UT Governments to take up initiatives  through FPSs such as prQviding 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.

As  per sub-clause (9)  of  Clause 9  of  the 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.

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  study 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.

(c) &  (d): 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.

Central Government has no role to play in determining the actual rate of  fair price shop dealers' margin and 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, 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          | IComponentof FPS margin   |   Pre-revised norms (Rate in rupee per quintal) (upto 31st March, 2022) |   Revised norms (Rate in rupee per quintal) [w.e.f. 1.4.2022) |
|-----------------------------|---------------------------|-------------------------------------------------------------------------|---------------------------------------------------------------|
| General Category States/UTs | 'ransportati              |                                                                      65 |                                                            70 |
| General Category States/UTs | 'S DealersMargin          |                                                                      70 |                                                            90 |
| General Category States/UTs | 4dditional margin         |                                                                      17 |                                                            21 |
| Special category States/UTs | r                         |                                                                     100 |                                                           105 |
| Special category States/UTs | FPS DealersMargin         |                                                                     143 |                                                           180 |
| Special category States/UTs | M ional margin            |                                                                      17 |                                                            26 |

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 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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