Standing Committee on Consumer Affairs, Food and Public Distribution submits report on ‘Transforming Fair Price Shops (FPSs)’

Posted 14 Feb 2024

Updated 22 Mar 2024

2 min read

As per the National Food Security Act, 2013, FPS refers to shops licensed to distribute essential commodities to ration card holders under the Targeted Public Distribution System (TPDS).
- Such license is issued by an order under section 3 of Essential Commodities Act (ECA), 1955.
  - ECA provide for regulating control of production, supply, distribution, and trade of certain commodities in the general public interest.
- Launched in 1997 TPDS provides for lower subsidised food prices for Below Poverty Line (BPL) families than those for Above Poverty Line (APL) beneficiaries
Key issues with FPS: Leakages and diversion of food-grains, financial non-viability of FPS, etc.

Recommendations for transforming FPS
- Increase sales of non-PDS commodities such as Khadi & Ayush products from MSMEs
- Form a monitoring cell to track the progress of model FPS in all states.
- Improve working of Vigilance Committees (VCs) established under NFSA.
  - VCs are established by State Governments at the State, District, Block and FPS levels to ensure transparency and accountability of the functionaries in TPDS.
- Ensure all ePoS machines are connected to and synchronized with weighing machines for effective delivery of ration.

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