Lok Sabha Question No. 3185 (UNSTARRED), answered on 2026-03-11
Subject: Modernisation of Fair Price Shops
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Kamakhya Prasad Tasa

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED QUESTION NO. 3185

TO BE ANSWERED ON lITH  MARCH, 2026

## MODERNISATION OF FAIR PRICE SHOPS

## 3185. SHRI KAMAKHYA  PRASAD TASA:

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

- (a)  whether  it  is  a  fact  that  the  modernisation  of  Fair  Price  Shops (FPS)  by  the  Government aims to transform traditional, paper-based  ration shops into efficient, transparent and digitallyenabled " Jan Poshan Kendras" (Nutritional  Hubs);
- (b) if  so, the details thereof;
- (c)  the  details of  the  number and percentage of  Fair  Price  Shops (FPS) that  have been digitised and equipped with electronic Point of Sale (ePoS) devices across the country;
- (d) whether the Government has evaluated the impact of FPS digitisation on curbing leakages and improving  beneficiary  experience;
- (e) if  so, the details thereof; and
- (f)  the details of  the steps being taken by the Government to  ensure FPS viability  and expand services beyond foodgrain distribution?

## ANSWER

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

(SHRIMATI NIMUBEN JAYANTIBHAI  BAMBHANIYA }

(a) to (e): As part of the technology driven Targeted Public Distribution  System (TPDS) reforrns and with the aim to enhance transparency and efficiency in  the TPDS, ration cards/beneficiaries database have completely been digitized (100%) in  all  States/UTs. Further, for better tracking of foodgrains distribution,  99.8 % i.e. 5.50 Lakh'; out of  5.51 Lakhs Fair Price Shops (FPSs) have been automated by installing  ePoS devices for  the distribution  of  foodgrains in  a transparent manner (electronically)  through biometric/Aadhaar authentication of beneficiaries.

(f): Under sub-clause (7)  of  clause 9  of  the TPDS (Control) Order, 2015, it  is the sole responsibility of the  State Government to  fix  fair  price  shop owner's margin, and this  shall be periodically  reviewed for ensuring sustained viability  of the fair price shop operations.

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 S.tate Governments) Rules, 2015 (as amended from time to time) 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 .te in rupee quintal) (upto arch, 2022)   | normsIRevised norms (Rate perjin rupee per quintal) 31stl(w.e.f. 1.4.2022)   |
|-----------------------------|---------------------------|-------------------------------------------------------|------------------------------------------------------------------------------|
| General States/UTs Categor: | 'ransportation &m         | >5                                                    | Fo                                                                           |
| General States/UTs Categor: | FPS Dealer;Mmr            | n7                                                    | rId                                                                          |
| General States/UTs Categor: | Gmiin                     | 17                                                    | rfi                                                                          |
| catego Special States/UTs   | ) m                       | 100                                                   | 105                                                                          |
| catego Special States/UTs   | m                         | 143                                                   | 180                                                                          |
| catego Special States/UTs   | Additional margin         | 17                                                    | B2                                                                           |

Special category states includes Sikkim,  Himachal Pradesh, Jammu &  Kashmir, Ladakh, Uttarakhand, Andaman & Nicobar Islands, Lakshadweep  and seven north east states.

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.

Further, the Department has linked the payment of  additional dealer margins to  States/UTs with the  requirement that ePoS  devices be  integrated with e-weighing scales.  This measure incentivises States/UTs to  adopt the  linkage, ensuring that  beneficiaries receive the  accurately measured quantity of their entitled foodgrains.

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 shop 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  had  requested all State/UT  Governments to  take up  initiatives through FPSs such as providing  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.

The Department has also partnered with  the Ministry of  Skill  Development & Entrepreneurship  (MSDE)  to enhance the capacity and confidence of Fair Price Shop (FPS) dealers by equipping them with  essential entrepreneurship and business management skills.  Under this collaboration, NIESBUD  (an autonomous institute under MSDE)  has developed a specialised training programme for  FPS dealers covering digital and financial literacy, e-commerce, retail management, and basic nutrition. To date, approximately 325 FPS dealers across nine StatesRajasthan, Uttar  Pradesh, Gujarat,  Telangana, Karnataka, Odisha, Madhya  Pradesh, Tamil  Nadu, and Bihar-have undergone this training.  As a result, 90 FPS outlets have been converted into Jan Poshan Kendras (JPKs) across five  cities:  Hyderabad, Ghaziabad, Jaipur, Ahmedabad, and Indore, improving their commercial viability  and community outreach.

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