**Executive Summary:**
This document is the Indian government's response to concerns raised in Lok Sabha regarding problems faced by Public Distribution System (PDS) distributors, particularly in Uttar Pradesh. The response clarifies the responsibilities of the central and state governments in the PDS, addresses issues of technology and distributor income, and outlines measures to improve the efficiency and viability of Fair Price Shops (FPS). It also highlights existing provisions for supporting FPS viability and ensuring transparent distribution. The date of the question is 20th August, 2025.
**Key Points / Main Content:**
* **Division of Responsibilities:**
* The Central Government handles foodgrain procurement, allocation, and transportation to FCI depots.
* State/UT Governments are responsible for intrastate allocation, beneficiary identification, ration card issuance, Aadhaar seeding, foodgrain distribution, and FPS supervision.
* **Addressing Concerns:**
* The Department has not received reports of issues from Uttar Pradesh specifically.
* States/UTs have been advised to ensure no beneficiary is denied rations due to authentication failures caused by technical issues.
* **Financial Assistance and Distributor Income:**
* The Central Government provides assistance to States/UTs for intrastate movement, handling of foodgrains, and FPS dealer margins under the National Food Security Act (NFSA).
* FPS dealer margins were enhanced, effective 1st April, 2022:
* General Category States/UTs: Transportation/handling increased from ₹77 to ₹89 per quintal; additional margin ₹6.
* Special Category States/UTs: Transportation/handling increased from ₹100 to ₹110 per quintal; additional margin ₹17 to ₹22.
* State Governments can set higher rates, but central assistance is limited to the rates specified in the rules or actual expenditure, whichever is lower.
* **Fair Price Shop Viability:**
* States are allowed to permit the sale of non-PDS commodities at FPS to improve their viability.
* All FPS in Uttar Pradesh have been automated with ePoS devices for transparent distribution via biometric Aadhaar authentication.
* **Transparency and Ease of Use:**
* The ePoS system is designed to be simple and not require advanced digital literacy.
* States/UTs are advised to provide ePoS printed receipts in local languages and send SMS notifications to beneficiaries to ensure transparency.
**Impact Analysis:**
**State/UT Governments:**
* *Impact:* Responsible for ensuring efficient and transparent distribution of foodgrains, addressing technical issues with ePoS systems, and supporting the viability of Fair Price Shops. Have the autonomy to set FPS margins higher than the central norms.
* *Action Required:* Ensure no eligible beneficiary is denied rations due to technical issues. Implement measures to support FPS viability, including allowing the sale of non-PDS commodities and ensuring transparent distribution through ePoS systems.
**Fair Price Shop (FPS) Dealers:**
* *Impact:* Benefit from enhanced dealer margins and the ability to sell non-PDS commodities to improve income. Face the responsibility of operating ePoS systems and ensuring transparent distribution.
* *Action Required:* Implement and maintain ePoS systems, provide receipts and SMS notifications to beneficiaries, and explore opportunities to sell non-PDS commodities to enhance viability.
**Beneficiaries:**
* *Impact:* Ensured access to entitled foodgrains through Aadhaar authentication, with safeguards against denial due to technical issues.
* *Action Required:* Utilize the ePoS system for ration access.
Key Entities Referenced
Public Distribution System (PDS): A government-sponsored chain of shops entrusted with the responsibility of distributing basic food and non-food commodities to the needy sections of the society at very low prices.
Jaunpur district of Uttar Pradesh: A district in the state of Uttar Pradesh, India, where PDS distributors are reportedly facing problems.
Aadhaar: A 12-digit individual identification number issued by the Unique Identification Authority of India. Used for biometric authentication in PDS.
Food Corporation of India (FCI): The agency responsible for procurement, allocation, and transportation of foodgrains to designated depots.
Fair Price Shops (FPS): Shops responsible for distributing foodgrains to eligible beneficiaries under the PDS.
National Food Security Act (NFSA): An Act of the Parliament of India which aims to provide subsidized food grains to approximately two-thirds of the country's population.
TPDS Control Order, 2015: Order issued by the Central Government in exercise of the powers conferred by section 3 of the Essential Commodities Act, 1955 to regulate the Public Distribution System (PDS).
NIMUBEN JAYANTIBHAI BAMBHANIYA: Minister of State for Ministry of Consumer Affairs, Food Public Distribution.
GOVERNMENT OF INDIA
MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION
LOK SABHA
UNSTARRED QUESTION NO. 4396
TO BE ANSWERED ON 20TH AUGUST, 2025
PROBLEMS IN PDS
4396 SHRI BABU SINGH KUSHWAHA:
Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
be pleased to state:
(a) whether the Government has taken cognizance that in many districts including Jaunpur
district of Uttar Pradesh, the distributers associated with the Public Distribution System (PDS)
are facing serious problems such as frequent breakdown of e-POS machines and difficulty in
distribution of rations due to non-availability of network and immediate suspension in case of
non-distribution of rations through machines, administrative pressure in distribution of ration in
case of failure of Aadhaar authentication, delay in payment after distribution of ration is
deteriorating the condition ofdistributers;
(b) if so, the details thereof and the reaction of the Government thereon;
(c) whether the Government is formulating any concrete action plan to ensure monthly
income of distributors, simplify distribution process and improve technology;
(d) if so, the details thereof and if not, whether the Government is likely to consider it in the
near future; and
(e) if so, the time by when it will be done?
ANSWER
MINISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS,
FOOD & PUBLIC DISTRiBUTION
(SHRIM ATI NIMUBEN JAYANTIBHAI BAMBHANIYA)
(a) & (b): The Public Distribution System is operated under the joint responsibility of the Central
and the State/UT Governments. Central Government is responsible for procurement, allocation
and transportation of foodgrains upto the designated depots of the Food Corporation of India
(FCI). As far as the operational responsibility is concerned, which includes allocation within
State/UT, identification of eligible families, issue of Ration Cards, Aadhaar Seeding in Ration
Cards, distribution of foodgrains to eligible beneficiaries and supervision of the functioning of
Fair Price Shops etc., rests with the concerned State/UT Governments.-2-
This Department has not received such reports from Uttar Pradesh. However, this
Department has advised all States/ UTs that no genuine beneficiary/ household shall be denied
from receiving entitled quota of subsidized foodgrains due to failure of biometric/Aadhaar
authentication due to network/ connectivity/ linking related issues, other technical reasons or poor
biometrics of the beneficiary.
(c) to (e): 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 (as amended from time to time) which inter-alia provides for norms of
expenditure and pattern of central sharing. In order to ensure viability of Fair Price Shops, the
norms of FPS Dealers margin was enhanced as per the details given below:
Category of States IComponent of FPS margin IPre-revised norms (Rate IRevised norms (Rate
n rupee per quintal) (up1 In rupee per quintal)
3 1 st March, 2022) w.e.f. 1.4.2022)
-ransportation & handling B6 IN
-eneral Category
e [77 B9
States/UTs
[cmi=17;ii= n2
17
-ransportation & handling 100 10
pecial category Fpn
143
States/UTs
Additional margin 17 B2
Special category states includes Sikkim, Himachal Pradesh, Jammu & Kashmir, Ladakh,
Uttarakhand, Andaman & Nicobar Islands, Lakshadweep and seven north east states.
However, the 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.
As per sub-clause (9) of Clause 9 of the 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.-3-
At present, all Fair Price Shops (FPSs) in the State of Uttar Pradesh have been automated by
installing ePoS devices for seamless distribution of foodgrains in a transparent manner
(electronically) through biometric/ Aadhaar authentication of beneficiaries. The process of
distributing foodgrains through ePoS devices is very simple and does not require any special digital
literacy among beneficiaries to lift their entitled foodgrains through electronic transactions. Further,
States/UTs are advised to ensure that ePoS printed transaction receipts are provided to all
beneficiaries in local language, besides SMS be sent on their registered mobile numbers to ensure
complete transparency in distribution process.
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