Lok Sabha Question No. 4252 (UNSTARRED), answered on 2026-03-18
Subject: Sustainability of Fair Price Shops
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Shafi Parambil

## GOVERNMENT OF INDIA MINISTRY OF CONSUMER AFFAIRS. FOOD & PUBLIC DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED QUESTION NO. 4252

## TO BE ANSWERED ON 18TH MARCH, 2026

## SUSTAINABILITY OF FAIR PRICE SHOPS

## 4252. SHRI SHAFI PARAMBIL:

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

- (a) : whether the Government is aware of the non-viable conditions of the Fair Price Shops in the country;
- (b): if  so, the details  of  steps are being  taken by the  Government contemplated to ensure the viability and sustainability  of the Fair Price  Shops across the country;
- (c): whether the Union Government is not inclined to appreciate the ground reality of handling loss being incurred by the Fair Price Shop Dealers during distribution of ration and stacking and storing of stocks and allow  them a handling loss offoodgrains  at one kilogram per quintal so as to enable the Dealers to justify the shortages on this count without shouldering any responsibility to the State Governments and UTs; and
- (d): if  so, the details thereof along with  the reaction of the Government thereon?

## ANSWER

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

(SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA)

(a) to (b): in the Targeted Public Distribution  System  (TPDS) under the National Food Security Act,  2013 (NFS A),  the operational responsibility  including  issuance of licenses  to Fair Price Shops (FPSs), supervision and monitoring of the functioning of  Fair Price Shops etc., rests with  the concerned State/UT Government.

As per sub-clause (7) of clause 9 of the TPDS (Control)  Order, 2015, it  is the 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 State 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:

| FCategory of States             | IComponent of FPS margin   | IPre-revised (Rate in r'p' p,rji' qui.tal) (upto March, 2022)   | normsIRevised norms (Rate ,'p' p' q.i.t,1) 31stl(w.e.f. 1.4.2022)   |
|---------------------------------|----------------------------|-----------------------------------------------------------------|---------------------------------------------------------------------|
| General Categorvl States/UTs    | Mt - m                     | B6                                                              | B7                                                                  |
| General Categorvl States/UTs    | ' IFPS Dealers Margin I -  | n7                                                              | n9                                                                  |
| General Categorvl States/UTs    | t                          | 17                                                              | D2                                                                  |
| Special category ' - States/UTs | Wt,J;in                    | 100                                                             | nl                                                                  |
| Special category ' - States/UTs | 'IFPS Dealers Margin I -   | 143                                                             | FM                                                                  |
| Special category ' - States/UTs | hmm;a                      | 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.

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 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 ofFPSs, 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  (N4SDE) 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.

(c) to (d): As per sub-clause (2) of Clause 11  of  the  TPDS (Control) Order, 2015, the State Government shall ensure that stocks offoodgrains  under the Targeted Public Distribution  System, as issued from the Corporation godowns, are not replaced or tampered with  during storage,  transit or any other stage till  delivery to the ration card holder.

State Governments  vide  letter dated 10.05.2021 are advised to take necessary action to ensure that handling losses to FPS dealers are minimized.  Any  decision to provide compensation to FPS dealers for  handling  losses rests with  the State Government.

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