sale of non-pds items through fair price shops

fps dealers’ federation meets shri pawar

Tuesday, November 30, 2004

The Ministry of Consumer Affairs, Food and Public Distribution will encourage Fair Price Shops to enlarge the basket of commodities sold by them by adding non-PDS items through these outlets. The fair price shops will be allowed to use the facility as STD booths, LPG/kerosene oil dealership, distributors of ORS or other public utility items in order to improve their viability. The Food Ministry has written to the Ministries of Health and Family Welfare, Petroleum and Natural Gas and Telecommunications to consider the proposal. This was stated here today by Shri Sharad Pawar, Minister of Agriculture, Consumer Affairs, Food and Public Distribution at a meeting of the All India Fair Price Shop Dealers’ Federation who met him to discuss the problems being faced by them mainly the viability of fair price shops.

The Minister promised to consider favourably the recommendation of the recent State Food Ministers Conference that the distribution of foodgrains through fair price shops for Antyodaya Anna Yojana families should be entitled to a retail commission from Government of India. The Ministry is also examining the recommendation that subject to legal suitability, the legal heirs or dependants of a fair price shop licensee might be given preference for allotment of a fair price shop whenever the situation arose.

Instructions have already been given to the FCI to ensure two months’ availability of foodgrains in all the States. During 2004-05, the movement of foodgrains ex-North to the consuming regions has increased from an average of 27.5 rakes per month to 30.9 rakes per month during the period April to October, 2004. In terms of physical quantities, the total movement of rice and wheat during this period has been 88.9 lakh tonnes of rice and 98.8 lakh tonnes of wheat against 86 lakh tonnes of rice and 79.9 lakh tonnes of wheat during the corresponding period last year.

The Minister also pointed out that in order to ensure better targeting, Government has taken a conscious decision to restrict the levy sugar supply under PDS to BPL families only in all States and Union Territories except North-Eastern States, Hill States and Island Territories.

The Ministry of Finance has been requested to consider providing of Bank credit to the Fair Price Shops as a Priority Sector Lending to enable them to avail of credits at low rate of interest, the Minister informed.