Executive Summary:
This document addresses questions regarding the National Food Security Act (NFSA) of 2013, specifically concerning foodgrain allocation, compensation for Fair Price Shop (FPS) dealers' losses, and the sale of other essential commodities through FPSs. It clarifies the roles and responsibilities of both the Central and State/UT Governments in the operation of the TPDS. The response references existing policies and guidelines, and advises State Governments to take action to minimize handling losses for FPS dealers.
Key Points / Main Content:
Foodgrain Allocation Under NFSA:
* Allocation is based on beneficiary numbers reported by States/UTs within the population coverage determined by the Planning Commission.
* Entitlement: 35 kg per household per month for Antyodaya Anna Yojana households, and 5 kg per person per month for Priority households.
* States/UTs receive Tideover allocation if their current allocation is lower than the average annual offtake from 2010-11 to 2012-13.
* Revised allocation orders are issued based on requests from States/UTs for additional beneficiaries, within determined limits.
Compensation for FPS Dealers' Losses:
* As per the TPDS Control Order, 2015, States must ensure foodgrain stock is not replaced or tampered with.
* Decisions regarding compensation for FPS dealers' handling losses are the responsibility of the State Government.
* State Governments are advised to minimize handling losses for FPS dealers.
Sale of Other Commodities Through FPSs:
* The TPDS operates under the joint responsibility of Central and State/UT Governments.
* Operational responsibilities, including licensing, supervision, and monitoring of FPSs, lie with State/UT Governments.
* State Governments shall allow the sale of commodities other than foodgrains at FPSs to improve their viability.
Impact Analysis:
Central Government:
* Impact: Jointly responsible for the operation of the TPDS with State/UT Governments.
* Action Required: Continue to provide policy guidance and support to State/UT Governments.
State/UT Governments:
* Impact: Responsible for operational aspects of TPDS, including FPS licensing, supervision, and loss compensation.
* Action Required: Minimize handling losses for FPS dealers and consider allowing the sale of other commodities through FPSs to improve viability.
Fair Price Shop (FPS) Dealers:
* Impact: May experience handling losses, with compensation determined by State Governments.
* Action Required: Adhere to TPDS Control Order, 2015, and follow State Government guidelines regarding loss mitigation and sale of other commodities.
Beneficiaries Under NFSA:
* Impact: Entitled to subsidized foodgrains as per NFSA guidelines.
* Action Required: Continue to avail of benefits as per established procedures.
Key Entities Referenced
National Food Security Act: A significant Indian legislation that aims to provide subsidized food grains to a large section of the population. Commonly referred to as NFSA.
Ministry of Consumer Affairs, Food and Public Distribution: The Indian government ministry responsible for consumer protection, food security, and public distribution of essential commodities.
Lok Sabha: The lower house of the Indian Parliament.
Fair Price Shop: Government-approved outlets that distribute subsidized food grains and other essential commodities to eligible beneficiaries under the Targeted Public Distribution System (TPDS). Commonly referred to as FPS.
Antyodaya Anna Yojana: A scheme under the National Food Security Act (NFSA) that provides highly subsidized food grains to the poorest families.
Targeted Public Distribution System: The system through which the Indian government provides subsidized food grains and other essential commodities to eligible households. Commonly referred to as TPDS.
Planning Commission: The former agency of the Government of India, responsible for formulating India's Five-Year Plans. Now replaced by NITI Aayog.
States/Union Territories: Refers to the various states and union territories within the Republic of India.
GOVERNMENT OF INDIA
MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION
LOK SABHA
UNSTARRED QUESTION NO. 2834
TO BE ANSWERED ON 6Tll AUGUST, 2025
NFSA
2834. SHRI BALWANT BASWANT WANKHADE:
Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC
DISTRIBUTION
be pleased to state:
(a): whether the Government is planning to restore regular allocation of foodgrains under
the National Food Security Act (NFSA), if so, the details thereof and if not, the reasons
therefor;
(b): whether the Government is proposing to allow the Fair Price Shop dealers to incur
losses at the rate of 1 kg per quintal, keeping in view the reality of handling losses, so that
they may not be held accountable for the shortfall in stock;
(G): if so, the details thereof and if not, the reasons therefor;
(d): whether the Government is proposing to allow the sale of other essential commodities
in addition to NFSA through Fair Price Shops without giving any additional, financial or
administrative liability to the States/Union Territories; and
(e): if so, the details thereoF
ANSWER
MINISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS.
FOOD & PUBLIC DISTRIBUTION
(SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA)
(a): The allocation of foodgrains to States/Union Territories (UTs) under the National
Food Security Act, 2013 (NFSA) is made based on the identification of beneficiaries reported
by the States/UTs within the State/UT-wise coverage of population determined-by the then
Planning Commission, and foodgrains entitlement prescribed under the Act i.e. 35 kg per
household per month for households covered under Antyodaya Anna Yojana and 5 kg per
person per month for Priority households. The Act further provides that if on the above basis,
annual foodgrains allocation to any State/UT is lower than the average annual offtake during
2010-11 to 2012-13 under erstwhile normal Targeted Public Distribution System, the same
shall be protected, as “Tide-over’' allocation.
As and when requests are received from States/UTs for revision of foodgrains
allocation under the Act on account of addition of new beneficiaries, within the ceiling of
beneficiaries determined for that State, the same are examined and revised allocation orders
are issued as per the extant policy.-2-
(b) & (c): As per sub-clause (2) of Clause 11 of the TPDS (Control) Order, 2015, the
State Government shall ensure that stocks of foodgrains under the Targeted Public
Distribution System, as issued from the Corporation godowns, are not replaced or tampered
with during storage, transit or any other stage till delivery to the ration card holder and any
decision to provide compensation to FPS dealers for handling losses rests with the State
Government. State Governments vide letter dated 10.05.2021 are advised to take necessary
action in this regard 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) & (e): The 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 (9) of Clause 9 of TPDS
(Control) Order, 2015, 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.
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