Pilot study to improve viability of Fair Price Shops in 4 cities underway: Government

A pilot study is underway in the country to enhance the viability of 60 fair price shops, also called ration shops, across four cities -- Hyderabad, Ghaziabad, Jaipur and Ahmedabad, Parliament was informed on Wednesday. This initiative, supported by the Centre in collaboration with respective state governments, aims to provide essential assistance to Fair Price Shops (FPS) operators through partnerships with the Small Industries Development Bank of India (SIDBI) for working capital and B2B online wholesale aggregators focusing on nutritional products.

In a written reply to the Lok Sabha, Minister of State for Food and Consumer Affairs Nimuben Jayantibhai Bambhaniya, said in a broader effort to bolster FPS operations, the government has urged state and Union Territory (UT) administrations to introduce additional services at these shops.

Proposed services include Common Service Centre (CSC) functionalities, banking partnerships with banks and corporate correspondents, and the retail sale of small LPG cylinders, among others.



To address skill development needs, the Ministry of Skill Development & Entrepreneurship (MSDE) is exploring capacity-building programmes to equip FPS owners with essential entrepreneurship skills, Bambhaniya said.

She also informed that operational guidelines for FPS have been outlined, including the installation of information boards detailing beneficiaries' rights and the integration of electronic Point of Sale (ePoS) devices with automatic weighing scales.

The feasibility of installing CCTV cameras at FPS locations is also being considered to enhance transparency and security.

The Public Distribution System (PDS) operates under a joint framework between the Central and state/UT governments, with the Food Corporation of India (FCI) responsible for procurement, storage and allocation of food grains.


Meanwhile, state governments handle the licensing and monitoring of FPS, including the issuance of ration cards and beneficiary authentication.

As of late November 2023, Andhra Pradesh reported that 29,872 FPS have been equipped with e-PoS devices and automatic weighing scales.

Additionally, the Pradhan Mantri Mudra Yojana (PMMY) has facilitated over 1,15,800 loans to FPS dealers since its inception in August 2015 distribution network, the minister added.