Executive Summary:
This document presents a response to Lok Sabha Unstarred Question No. 1763 regarding Fair Price Shops (FPS) in India as of June 30, 2025. It details the number of FPS across States/UTs, clarifies the commission system for FPS owners, and outlines the roles of the Central and State/UT Governments in managing the Targeted Public Distribution System (TPDS) under the National Food Security Act (NFSA), 2013. It includes data as of June 30, 2025 and commission revisions effective April 1, 2022.
Key Points / Main Content:
Fair Price Shops (FPS) Overview:
* As of June 30, 2025, there are 5.43 lakh Fair Price Shops (FPS) in the country.
* A state/UT-wise distribution of FPS is provided in Annexure A (detailing shops by location).
Commission for FPS Owners:
* The State Government is responsible for fixing the margin for fair price shop owners and periodically reviewing it to ensure the viability of FPS operations, as per the TPDS Control Order, 2015.
* State Governments can allow the sale of commodities other than TPDS foodgrains at FPS to improve viability.
* The Central Government does not determine the actual rate of FPS dealers' margin/commission/honorarium.
Central Government's Role:
* The Central Government provides assistance to States/UTs for intra-state movement and handling of foodgrains, and FPS dealers' margin under the NFSA, as per the Food Security Assistance to State Governments Rules, 2015.
* FPS Dealers margin was enhanced w.e.f. 1 April 2022. Revised norms include a rate in rupee per uintal for both category A and special category states/UTs.
* Central assistance is limited to the rates specified in the Rules or the actual average rates incurred by the State Government, whichever is lower.
Impact Analysis:
State/UT Governments:
* Impact: Responsible for operational aspects of TPDS, including licensing, supervising, and monitoring FPS. They also fix and review FPS owners' margins and can allow the sale of other commodities at FPS.
* Action Required: Periodically review and fix fair price shop owners' margins to ensure sustained viability, and adhere to central guidelines for utilizing financial assistance.
Fair Price Shop (FPS) Owners:
* Impact: Receive commissions/margins determined by the State Government, which are subject to periodic review. Their viability is also supported by allowing the sale of other commodities.
* Action Required: Comply with the regulations set by the State Government, and potentially diversify offerings to include other commodities to enhance profitability.
Central Government (Ministry of Consumer Affairs, Food Public Distribution):
* Impact: Provides financial assistance to States/UTs and sets broad guidelines for FPS dealer margins.
* Action Required: Continue providing financial assistance to States/UTs according to established rules and monitor the effectiveness of the enhanced FPS dealer margin norms.
Citizens (Beneficiaries of TPDS):
* Impact: Access to subsidized foodgrains through FPS, with the operational effectiveness of FPS directly impacting their access.
* Action Required: No direct action required, but beneficiaries are indirectly impacted by the effective operation and management of FPS by State Governments and FPS owners.
Key Entities Referenced
Fair Price Shops: Government-approved shops that distribute essential commodities to eligible beneficiaries at subsidized rates under the Public Distribution System (PDS).
Ministry of Consumer Affairs, Food and Public Distribution: The Indian government ministry responsible for consumer protection, food security, and public distribution.
National Food Security Act, 2013: An Act of the Parliament of India which aims to provide subsidized food grains to approximately two-thirds of the country's population.
Targeted Public Distribution System: A system under which subsidized food and essential commodities are provided to targeted groups of the population.
TPDS Control Order, 2015: Order issued by the Central Government to regulate the Public Distribution System.
Food Security Assistance to State Governments Rules, 2015: Rules that provide for norms of expenditure and pattern of central sharing to states under the National Food Security Act.
Andaman and Nicobar Islands: A union territory of India.
Andhra Pradesh: A state in India.
GOVERNMENT OF INDIA
MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION
LOK SABHA
UNSTARRED QUESTION NO. 1763
TO BE ANSWERED ON 30TH JULY, 2025
FAIR PRICE SHOPS
1763. SMT. MALA ROY:
Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
be pleased to state:
(a) the total number of Fair Price Shops in the country as on 30.06.2025, State/UT-wise;
(b) whether the Fair Price Shop owner get commission from the Government for their
services; and
(C) if so, the details thereof for the last five years, year-wise
ANSWER
MINISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS,
FOOD & PUBLIC DISTRIBUTION
(SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA)
(a): As per information available in this Department, at present, 5.43 lakh Fair Price Shops
(FPSs) are in the country. A State/UT-wise statement of FPS is at Annexure.
(b) & (c): Targeted Public Distribution System (TPDS) under the National Food Security
Act, 2013 (NFSA) is operated under the joint responsibility of the Central and the State/UT
Governments. The operational responsibility including issuance of licenses to Fair Price Shops
(FPSs), supervision and monitoring of the functioning of Fair Price Shops etc., rest with the
concerned State/UT Government. As per sub-clause (7) of clause 9 of the TPDS (Control)
Order, 2015, the State Government shall fix an amount as the fair price shop owner’s margin,
which shall be periodically reviewed for ensuring sustained viability of the fair price shop
operations. As per sub-clause (9) of Clause 9, the State Government shall allow sale of
commodities other than the foodgrains distributed under the TPDS at the fair price shops to
improve the viability of the fair price shop operations. Central Govemment has no role to play
in determining the actual rate of fair price shop dealers’ margin/ commission/ honorarium etc.
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 which inter-alia provides for norms ofexpenditure and pattern of central sharing. In order to ensure viability of Fair Price Shops, the
norms of FPS Dealers margin was enhanced w.e.f. 1 April 2022 as per the details given below:
Category of States IComponent of FPSIPre-revised normsIRevised norms
margIn I(Rate in rupee perl(Rate in rupee pe
uintal) luintal)
me Categoi e R7 b9
States/UTs
in 17
catego:
Sates/UTS ( 17
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.
8888Annexure
A statement showing details of Fair Price Shops
S.N. State/UT Total Fair Price Shops
1 Andaman And Nicobar Islands 416
2 Andhra Pradesh 29.791
3 Arunachal Pradesh 1.680
4 Assam ;4,300
5 Bihar –50,951
6 Chandigarh NA
7 13,675
8 Dadar& Nagar Haveli & Daman & Diu 114
9 Delhi
1 ,993
10 Goa 452
11 Gujarat 16,949
12 Flaryana 9,434
1 3 H imachal Pradesh 5,219
14 Jammu And Kashmir 6,737
15 Jharkhand 15,228
16 Karnataka 30,403
17 Kerala 13,913
18 Ladakh 404
19 LakshadweeI 3 9
20 Madhya Pradesh 27,377
21 a 52,642
22 Manipur 2.339
2 3 4,735
24 ,258
1
25 Nagaland 1 ,783
26 OdiM1 12.044
27 Puducherr' NA
28 Puniab 18.150
29 Raja= l7.062
3 0 Sikkim 1 ,312
3 1 Tamil Nadu 34.805
32 Telangana 17,246
3 3 TriDur; 2,057
34 Uttarakhand 9.059
3 5 Uttar Pradesh 59,216
3 6 West Bengal lo,476
Total 5,43,259