Pilot Study to boost viability of fair price shops in four cities

This initiative, led by the Government of India in collaboration with state governments, is designed to provide crucial support to FPS operators, improving their sustainability and service offerings.

The Government is partnering with the Small Industries Development Bank of India (SIDBI) to provide working capital and with B2B online wholesale aggregators to facilitate the sale of non-PDS items, particularly nutritional products. This strategic partnership aims to diversify the product offerings at these shops, ensuring better service to the community.

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In a written reply to the Lok Sabha, Minister of State for Food and Consumer Affairs, Nimuben Jayantibhai Bambhaniya, highlighted additional services being integrated into FPS operations. These include the introduction of Common Service Centre (CSC) services, banking partnerships through tie-ups with banks and corporate correspondents, and the sale of small LPG cylinders and other general store items.

To further support FPS operators, the Ministry of Skill Development & Entrepreneurship (MSDE) is exploring the possibility of capacity-building programs. These programs are designed to equip FPS owners with essential entrepreneurship skills, enabling them to expand into new business areas effectively.

The government has also outlined operational guidelines for FPS, which include the installation of information boards that display beneficiaries’ rights and the integration of electronic Point of Sale (ePoS) devices with automatic weighing scales. These measures aim to enhance transparency and efficiency in the operation of these shops.

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The Public Distribution System (PDS) operates under the joint responsibilities of the Central and State/UT Governments. The Food Corporation of India (FCI) oversees procurement, storage, transportation, and allocation of food grains to States/UTs, while the states handle the licensing and monitoring of FPS, issuance of Ration Cards, and allocation and distribution of food grains.

Bambhaniya also noted that Andhra Pradesh has integrated 29,872 FPS with e-PoS devices equipped with automatic weighing scales, a significant step towards modernizing the distribution system. Additionally, under the Pradhan Mantri Mudra Yojana (PMMY), a total of 1,15,803 loans have been extended to FPS dealers across India, supporting them in expanding and enhancing their services.