Lok Sabha Question No. 5325 (UNSTARRED), answered on 2026-03-25
Subject: Viability and Operational Strengthening of Fair Price Shops under NFSA
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Anurag Singh Thakur

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED QUESTION NO. 5325

## TO BE ANSWERED ON 25Tll MARCH, 2026

## VIABILITY  AND OPERATIONAL STRENGTHENING OF FAIR PRICE SHOPS UNDER NFSA

## 5325. SHRI ANURAG SINGH THAKUR:

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

- (a): whether the Government is aware that a large number of Fair Price Shops (FPS) are commercially  non-viable and if so, the details of the steps are proposed  by the Government to ensure a minimum viability  of at least Rs. 50,000 per shop;
- (b) : the details of the measures to ensure uninterrupted supply to ration card holders when network/server failures or Aadhaar/fingerprint  mismatches occur including any formal order preventing denial of rations;
- (c) : whether dealers are permitted handling loss offoodgrains  at 1 kg per quintal to justify shortages and who bears liability  and if so, the details of the steps taken by the Government to ensure 100% weightment at doorstep  delivery;
- (d): whether Union  Government is likely  to direct States to assess minimum  beneficiaries per FPS before issuing new licences; and
- (e): whether there is any proposal of Government to allow  FPS to sell rice and wheat under domestic open market sale scheme or to include  dealers in schemes such as Jan Poshan/Jan Aushadhi to make them viable and if  so, the details thereon

## ANSWER

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

(SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA)

- (a): 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:

| =egory of States            | IComponentof FPS margin   | IPre-revised norms (Rate in rupee per uintal) (upto 31 st March, 2022)   | :vised norms (Rate jin rupee per quintal) Kw.e.f. 1.4.2022)   |
|-----------------------------|---------------------------|--------------------------------------------------------------------------|---------------------------------------------------------------|
| General Category States/UTs | 'ransportation & handling | B                                                                        |                                                               |
| General Category States/UTs | 'PS Dealers Margin        | Fm                                                                       |                                                               |
| General Category States/UTs | (                         | 17                                                                       |                                                               |
| Special category States/UTs | 'ransportation& handling  | 100                                                                      |                                                               |
| Special category States/UTs | e                         | 143                                                                      |                                                               |
| Special category States/UTs | Additional margin         | 17                                                                       |                                                               |

Special category states includes Sil<kim, 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 (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  States-Rajasthan,  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.

(b): The Department's notification  issued vide  SO No.  371 [E]  dated 08/02/2017 [as amended from time to time]  under Aadhaar  (Targeted Delivery  of Financial and Other Subsidies,  Benefits and Services) Act, 2016 ('Aadhaar Act'),  requires  the individual  beneficiaries having Ration Cards under NFS A to undergo Aadhaar authentication to receive subsidies  under NFS A.

Further, all  States/UTs vide  this  Department's letter dated 24/10/2017 that  no  genuine beneficiary/household shall be denied from  receiving entitled quota of  subsidized foodgrains due to failure of biometric/Aadhaar authentication due to network/connectivity/linking related issues, other technical reasons of poor biometrics of the beneficiary.

(c): 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.

(d): As per sub-clause (5) of  clause 9 of  the TPDS (Control)  Order, 2015, the licences  to the fair price shop dealers shall be issued keeping in view the viability  of the fair  price shop.

Further, as per sub-clause (6)  of  clause 9 of  the TPDS (Control)  Order, 2015, the State Government shall ensure that the number of  ration card holders attached to a fair price shop are reasonable, the fair  price shop is so located that the consumer or ration card holder does not have to face difficulty  to reach the fair  price shop and that proper coverage is ensured  in hilly,  desert, tribal and such other areas difficult  to access.

(e): Under Open Market  Sales Scheme (Domestic)  [OMSS(D)],  wheat and rice are sold under various categories. With  a view  to provide atta (wheat flour)  and rice to general consumers at subsidized rates, Bharat Atta and Bharat Rice were launched  under OMSS (D). These commodities are sold to  general public  by  central cooperative  organizations,  NAFED,  NCCF  and Kendriya Bhandar through their own stores/mobile vans and/or E-commerce/big chain retailer only.

Department of Food and Public Distribution has collaborated  with the Ministry of Skill Development & Entrepreneurship (MSDE)  and 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.

The Pradhan Nlantri Bhartiya Janaushadhi Pariyojana was launched by the Government of India to make quality generic medicines available at affordable prices for all citizens. Under this scheme, special outlets called Jan Aushadhi Kendras (JAKs)  are opened across the country. These Kendras provide  medicines that are about 50% to  80% cheaper  than branded medicines, helping reduce healthcare expenses for  patients.

The  government has adopted a  franchise model  for  opening of  JAKs  by  inviting  online applications from individual  entrepreneurs, non-governmental organisations, societies, trusts, firms, private companies, etc. through the website www. janaushadhi.gov.in. Any  individual having D. Pharma. or B. Pharma. qualification either herself/himself or any individual or organisation who has employed a person with  such qualification  as a pharmacist for obtaining drug licence from the State Licensing  Authority concerned is eligible  to open a Jan Aushadhi  Kendra.

jcR  SeS( RSc