Fair Price Shops in India: Ensuring Food Security for the Poor

Fair Price Shops (FPS) in India are like a lifeline for people who don’t have much money. They sell essential items at lower prices as part of a government program called the Public Distribution System (PDS). This program has been around since the 1960s and has been really important during times when there wasn’t enough food.

This article talks about where FPS came from, what they do, why they are important, and the problems they face. It also discusses what the government is doing to make FPS work better and be more open and responsible, so they can continue to provide affordable food to those who need it.

What is a Fair Price Shop (FPS)?

A Fair Price Shop (FPS) is a government-run retail outlet that sells essential commodities such as food grains, sugar, and edible oil at subsidized prices to the poor and marginalized sections of society. FPS is a vital component of the Public Distribution System (PDS) in India, which is the world’s largest food security program.

History of Fair Price Shops

The history of Fair Price Shops (FPS) in India dates back to the early 1960s when they were first introduced to ensure food security for the poor during a period of acute food shortages. In 1965, the government launched the Food Corporation of India (FCI) to procure and distribute food grains to the states. The FCI also set up a network of FPS to distribute food grains to the poor at subsidized prices.

Initially, FPS was operated by the government itself. However, in 1967, the government decided to involve private individuals and cooperative societies in the operation of FPS. This was done to improve the efficiency and reach of the FPS network.

Over the years, the FPS network has expanded significantly. In the early 1960s, there were only a few thousand FPS in the country. Today, there are over 5 lakh FPS covering every village and town in the country.

The FPS system has undergone a number of reforms over the years. In 1992, the government launched the Revamped Public Distribution System (RPDS), which focused on targeting the poor and marginalized sections of society. In 1997, the RPDS was replaced by the Targeted Public Distribution System (TPDS), which further strengthened the targeting of the poor.

The TPDS is the current system of food security in India. It covers two categories of beneficiaries:

• Priority Households: These are households that are below the poverty line (BPL). Priority households are entitled to receive a certain quantity of essential commodities at subsidized prices every month.

• Antyodaya Anna Yojana (AAY) Households: These are the poorest of the poor households. AAY households are entitled to receive a higher quantity of essential commodities at subsidized prices than priority households.

The FPS system has played a vital role in ensuring food security for the poor and marginalized sections of society in India. Over the years, the FPS network has expanded significantly and the system has been reformed to improve its efficiency and targeting.

Read Also : Mukhyamantri Krishak Mitra Yojana (MKMY), Objectives, Eligibility, Benefits, Apply Process

Key Milestones in the History of Fair Price Shops in India

• 1965: The Food Corporation of India (FCI) was established to procure and distribute food grains to the states. The FCI also sets up a network of FPS to distribute food grains to the poor at subsidized prices.

• 1967: The government decided to involve private individuals and cooperative societies in the operation of FPS.

• 1992: The Revamped Public Distribution System (RPDS) is launched, focusing on targeting the poor and marginalized sections of society.

• 1997: The RPDS is replaced by the Targeted Public Distribution System (TPDS), which further strengthens the targeting of the poor.

• 2000: The Antyodaya Anna Yojana (AAY) is launched to provide additional food subsidies to the poorest of the poor households.

• 2011: The National Food Security Act (NFSA) is passed, which guarantees food security to 75% of the rural population and 50% of the urban population. The NFSA also makes it mandatory for the government to distribute food grains at subsidized prices through FPS.

How do Fair Price Shops work?

FPS are operated by private individuals or cooperative societies who are appointed by the government. FPS owners are responsible for procuring and distributing essential commodities to ration card holders at subsidized prices.

Ration cards are issued to eligible households by the government. Ration cards are classified into different categories based on the household’s income and social status. Each ration card category is entitled to a certain quantity of essential commodities at subsidized prices every month.

FPS owners receive essential commodities from the government at subsidized prices. They are then required to sell these commodities to ration card holders at the subsidized prices fixed by the government.

Benefits of Fair Price Shops

FPS plays an important role in ensuring food security for the poor and marginalized sections of society. They provide essential commodities at affordable prices to these households, which helps to improve their nutritional status and reduce poverty.

FPS also helps to stabilize food prices in the market. By providing essential commodities at subsidized prices, the government can help to keep food prices in check, especially during times of scarcity.

Read Also: Indira Rasoi Yojana 2023: Rajasthan’s Scheme to Ensure No One Sleeps Hungry

Challenges Facing Fair Price Shops

FPS faces a number of challenges, including:

• Corruption and Mismanagement: FPS owners have been accused of corruption and mismanagement, such as diverting subsidized commodities to the open market and selling them at higher prices.

• Lack of Transparency: There is often a lack of transparency in the operation of FPS, which makes it difficult to monitor and prevent corruption.

• Poor Infrastructure: Many FPS lack adequate infrastructure, such as storage facilities and weighing machines. This can lead to losses and deterioration of food grains.

• Inefficiency: FPS is often inefficient in terms of procurement and distribution of essential commodities. This can lead to delays and shortages.

Government Initiatives to Improve Fair Price Shops

The government has taken a number of initiatives to improve the functioning of FPS, including:

• Computerization: FPS are being computerized to improve efficiency and transparency.

• E-PoS Devices: Electronic Point of Sale (e-PoS) devices are being installed at FPS to ensure that ration card holders receive their full entitlement of essential commodities.

• Aadhaar Seeding: Ration cards are being seeded with Aadhaar numbers to prevent duplicate ration cards and ensure that only eligible households receive subsidized commodities.

• Direct Benefit Transfer (DBT): The government is piloting a Direct Benefit Transfer (DBT) scheme for food subsidies in some states. Under this scheme, subsidies are transferred directly to the bank accounts of eligible households, who can then use them to purchase essential commodities from any retailer.

Conclusion

Fair Price Shops (FPS) play a vital role in ensuring food security for the poor and marginalized sections of society in India. Over the years, the FPS network has expanded significantly and the system has been reformed to improve its efficiency and targeting. However, FPS continues to face a number of challenges, such as corruption and mismanagement, lack of transparency, poor infrastructure, and inefficiency.

The government is taking a number of initiatives to improve the functioning of FPS, including computerization, e-PoS devices, Aadhaar seeding, and Direct Benefit Transfer (DBT). The government is also working to strengthen the monitoring and evaluation mechanisms for FPS.

The success of FPS in ensuring food security for the poor and marginalized sections of society will depend on the government’s ability to address these challenges and make FPS more efficient, transparent, and accountable.

Official Website: nfsa.gov.in

FAQs

You May Read Also:

• Annapurna Food Packet Scheme 2023: Providing Food Security to the Poor in Rajasthan
• Sukanya Samriddhi Yojana (SSY), Objectives, Eligibility, Benefits and Account Opening
• Arivu Education Loan Scheme 2023, Benefits, Eligibility, Interest Rate, Apply Online
• PM Vishwakarma Scheme, Objectives, Benefits, Eligibility, Registration Process